LED lighting industry: subsidies feast behind the need for cold thinking

In 2012, the LED lighting industry is a bittersweet year. After order shortage, overcapacity, boss, run away after the throes of business failures, LED lighting industry ushered in the Great Central Government 2 billion 200 million yuan of financial subsidies, which will undoubtedly have been regarded as hopeless. "LED lighting industry into the economic development of the" tonic".

Favorable policies to promote industrial chain benefit

Recently, the Ministry issued a "semiconductor lighting technology development" 12th Five-Year "planning", the planning requirements, the scale of the industry in 2015 reached 500 billion yuan, will foster 20-30 master core technologies, with more independent intellectual property rights, independent brand enterprises, to support 40-50's innovative and high technology enterprises etc..

Government efforts to increase subsidies for the LED industry, LED lighting companies to bring what kind of impact? Cbiw senior industry researcher Wu Chaoguo told reporters that China invested 40 billion yuan for the purchase of 30% LED street, providing financial subsidies to users of LED street. Wu Chaoguo said that the implementation of the subsidy policy will stimulate the LED public lighting market demand, stimulate demand for civil LED lighting market. In addition, the subsidy policy will involve product standards for the specification of the LED lighting market will play a role in promoting.

With the release of the LED industry policy and the list of finalists announced, the reporter recently saw in the stock market, lighting industry benefited from government financial subsidies, the recent LED plate can be described as unlimited scenery.

The main cause of financial subsidies or corporate profits

Recently, media reports said: "LED enterprise BDO Runda first half total revenue fell 1.01%, net profit rose 21.5%. For the loss of business in the case of net profit is still maintained high growth, the company is mainly due to the interpretation of the overall gross margin increased during the reporting period, the combined impact of increased subsidies and operating expenses. In the first half of the company's operating income of up to 150 million yuan, is the main factor of its net profit growth. "

The media also said that from the 2011 semi annual report learned that the company received financial subsidies than net profit is also high, net profit of 271 million yuan, while financial subsidies as high as $298 million. Due to reduced subsidies, leading to its first three quarters of this year, net profit is expected to decline by 60%. Obviously, the company's performance is almost entirely to follow the increase or decrease of financial subsidies, higher dependence on subsidies.

Consultant senior researcher He Zaihua also said in an interview with reporters, government subsidies up performance LED does become the profit source of enterprises, domestic LED giant profits rose sharply, mainly due to financial subsidies.

Wu Chaoguo believes that the profit growth is mainly due to the company in March 2012 and June respectively in Wuhu City, the local government to give the "science three" subsidies to 100 million yuan, 48 million 400 thousand yuan, enterprises to obtain financial subsidies was higher than the net profit.

According to media reports, three optical and de Ho Runda in 2011 net profit growth rate of both more than 100%, among them, government subsidies to the net profit of an optoelectronic contribution rate of 90%, de Ho Runda 79%.

Feast behind the need for cold thinking

Financial subsidies for some promising companies can not only allow enterprises to icing on the cake, but also refresh the performance of the enterprise. While it is timely assistance for some is about to fall into the quagmire of the losses of enterprises. It is a happy thing for enterprises to get huge subsidies from the government. Financial subsidies to a certain extent, can promote the industry on the broad road, but also make individual enterprises in the sky "pie" mire.

On the one hand, through financial subsidies to avoid the industry a large number of enterprises closed down, with the help of market and technology advantages of LED enterprises out of difficulties, in line with China's national energy policy orientation; on the other hand, this will cause the LED business to government financial subsidies to reduce its dependence on the anti risk ability and market competitiveness, is not conducive to in the process of transformation and upgrading of enterprises, strengthen research and development capabilities, to enhance the technical level. Investment adviser senior researcher He Zaihua in the China made news reporter said.

Development is like a "subsidy opium", if the enterprise long-term narcissism indulge in short-sighted effect, so for the development of an industry is very unfavorable. To this end, Wu Chaoguo, told reporters that the way the tender subsidies will lead to enterprises rely on the psychological, the government's financial subsidies are often less than blood transfusion. LED enterprises to really get rid of the market crisis, we must increase R & D efforts to enhance the quality of products, as well as enterprises through mergers, research and development of new technologies, the design of new products to enhance competitiveness.