Government subsidies to whitewash the performance of LED chip manufacturers

After deducting subsidies, Elec-Tech loss in the first quarter

Domestic LED chip manufacturers this year, the amount of subsidies received by local governments continue to climb.

Yesterday, the announcement said, the company is a subsidiary of Bengbu BDO optoelectronics company in August 4th and 5, from Anhui Bengbu municipal government to give 75 million 800 thousand yuan subsidy, which is based on the local government in Bengbu, the local LED industry investment projects, special subsidies for the construction of the project expenditure.

According to this year's announcement of all the subsidies, the amount of government subsidies this year has reached 461 million yuan. However, compared with Sanan optoelectronics, Elec-Tech of 461 million yuan subsidies is a pediatrician, as of yesterday, has received government subsidies Sanan optoelectronics as high as 1 billion 345 million yuan this year.

Performance soared

High subsidies directly push up the performance of the first half of the domestic LED chip performance.

In mid July, Sanan optoelectronics and BDO Runda announced that the first half net profit than the same period last year growth of 120% and 380%. Among them, the first half of this year net profit is expected to 98 million 410 thousand yuan ~1.09 billion, while net profit Sanan Optoelectronics in the first half of this year may be more than 445 million yuan.

Behind the growth of digital performance crazy, there is a considerable part of the local government to encourage LED chip manufacturers to invest in local factories set up to buy MOCVD equipment (LED epitaxial wafer production equipment) huge subsidies. Based on this, an optoelectronic also had to pointed out in its results in the increase of the amount of non recurring items, is one of the main reasons first half net profit growth.

In contrast, in the end of 2011 in the first half of the year in the light of the first half of the earnings report in the light of the results on the dwarfs, because the government subsidy has not been in place in place in July. In the first half, according to the dry photoelectric income 182 million yuan, an increase of only 40.27%, net profit of $87 million 870 thousand, an increase of only 45.68%.

Yangzhou raised the project of 16 sets of MOCVD equipment will be July 31, 2011 before all arrived in Yangzhou subsidiary factory, the company expects full subsidy from the government in the second half. "Changelight reported at the end of September last year, Yangzhou changelight company signed 16 MOCVD and Germany AIXTRONAG company's procurement contract, the total contract amount of 201 million yuan.

Zhang Xiaofei Dean of Engineering Industry Research Institute said that the current amount of Yangzhou municipal government subsidies for the MOCVD for each MOCVD800 million ~1200 million yuan, if calculated in accordance with government subsidies for equipment procurement contract amount of 50% standard, changelight second half of the amount of government subsidies will be more than 100 million yuan, and will give changelight full year results. Especially the net profit growth rate is adding a bright.

Under high subsidies still bonds

Local government subsidies, can only temporarily whitewash LED chip manufacturers one or two year performance report.

In July 11th, China announced that the company intends to issue corporate bonds, bonds of not more than 900 million yuan, the fund raised to be used to repay the debts of the company, optimize the company's debt structure and supplement working capital. Previously, de Ho Runda in early June has just been considered by the 3 billion 500 million yuan private placement motion, in October last year, in the LED project has also been financing the $1 billion 500 million in.

"In fact, the key problem is the problem of talent and Elec-Tech, the introduction of technology, equipment in place of the MOCVD capacity to release slowly. An industry veteran pointed out that the current business is to Elec-Tech small household appliances industry, LED industry in its infancy, now basically no output.

The 2011 first quarter earnings, excluding the first quarter received government subsidies, Elec-Tech a quarter of the actual losses. What is more, as of March 31st this year, the short-term loans amounted to 948 million yuan, total current liabilities amounted to 2 billion 385 million yuan, far higher than the counterparts changelight and optoelectronics.

Hua Rui investment director Kang Wei said that the current domestic LED industry is still a lack of core competitiveness, and the government subsidies and support at this time a little more effort, understandable. But from the investment point of view, the entire domestic LED industry and the market has a great impact on policy orientation, the future should also be more market-oriented development.

For an optoelectronic, Elec-Tech and changelight, at present the company performance and financial situation may not be important, the key is whether the fast will place the MOCVD debugging, put into production quickly, seize the market opportunities for LED chip. This is a direct to LED industry staged a poaching of chaos".

It is understood that more than a dozen engineers recently zhenminglee LED chip department by poaching, technical personnel invenlux has been a new photoelectric company ", he even hired look at fiercely as a tiger does" several turns on the search key technical personnel with inducements, while domestic originally established earlier in Shanghai had more than half of the Blu ray technology extension staff turnover.