LED companies long for subsidy policy to extend to civilian use

The LED lighting industry has been doing well recently. Following the May 7th National Ministry of Science and Technology released the "12th Five-Year Plan" for Semiconductor Lighting Technology Development (Draft for Soliciting Opinions), after guiding the price cut of LED lighting terminal products, the Guangdong Provincial Government held on May 28th. Guangdong Province promoted the use of LED lighting products work conference and announced the implementation of the “Three-Year Public LED Lighting” work program. Some people in the industry believe that the government has successively introduced support policies to show the importance of the LED lighting industry, but if it can introduce a civil lighting subsidy policy to promote the industry will be more effective.

For LED lighting good frequency, LED listed companies responded positively on the secondary market yesterday, National Star Optoelectronics (002449) to close at 8.97 yuan price limit, Qinshang Optoelectronics (002638) rose 8.45% to close at 16.05%. In addition, Sanan Optoelectronics (600703), Rectangular Lighting (300301) and Hongli Optoelectronics (300219) both gained more than 4%.

Good for leading enterprises in Guangdong

According to the requirements of the “implementation plan”, LED lighting products shall be used in lighting projects in new roads, public places, government agencies, state-owned enterprises and institutions, as well as new areas planned for construction. The original project using non-LED lighting products will be completed in phases within three years, that is, by the end of 2014, while the Pearl River Delta region will strive to complete by the end of 2013.

For this program, Li Xuliang, Chairman of the Board of Optoelectronics, clapping and cheering yesterday. He told reporters that the industry's major high-quality enterprises are mostly concentrated in Guangdong Province. This support program will help cultivate the leading enterprises in Guangdong, allowing them to obtain the first-mover advantage in the industry competition and gain the right to speak.

According to external rumors, as of the end of 2011, there were more than 80 LED lighting companies in Shenzhen. In the middle of 2011, nearly 10% of LED lighting companies in Foshan closed down. Li Xuliang believes that since this subsidy will implement energy efficiency standards, only the relevant energy efficiency standards that meet the national regulations will qualify for subsidy, and the implementation of the energy efficiency “leader” system will allow the industry's large and high-quality companies to take a dominant position. It is expected that the relevant support policies will promote the development of the industry and also accelerate the industry reshuffle. It is expected that nearly 50% of LED lighting companies will close down or be merged in the next few years.

Civil lighting market has greater potential

In the past three years, Guangdong Province has successively implemented demonstration projects such as “Ten Cities, Ten Thousand Miles,” “One Thousand Miles, One Thousand Miles,” and “Green Lighting Demonstration City” to promote the promotion and application of LED lighting in a point-to-face manner. As of the end of 2011, the LED lighting demonstration project in Guangdong Province has promoted the use of LED street lamps of 250,000 units. Currently, the province has installed more than 300,000 LED street lamps and more than 3,000 kilometers of demonstration roads, driving the annual output value of LED lighting industry to exceed 150 billion yuan. It ranks first in the country.

"The application of LED demonstration project as a breakthrough to promote the development of the LED industry, this is a good idea, Guangdong's policy is very timely, the next step should be introduced to support the civilian lighting market policy." The world's largest lighting show Guangzhou International Lighting Exhibition founder, Pan Wenbo, director of the Guangya Lighting Research Institute, said that compared to public works, the potential of the civil lighting market is even greater. The market size formed by replacing only the existing incandescent lamps will reach several hundred billion yuan. Therefore, the LED market has great potential to be favored by Chinese and foreign LED companies. The 17th Guangzhou International Lighting Fair, which will be opened on June 9th, has attracted 2,600 companies worldwide.

The relevant person in charge of BDO Runda (002005) also pointed out that although the Ministry of Science and Technology had previously issued a special plan for the development of semiconductor lighting technology during the "12th Five-Year Plan" (Draft for Soliciting Opinions), it is also expected to reduce the price of terminal products through localization of chips, but in practice, This is still not enough. “At present, there are subsidies and incentives for the use of terminal LED lighting products by the people in the world, such as Japan and the United States, and they are very effective. There is no specific timetable for this country.”