In 2012, it was a year of sorrow and joy for the LED lighting industry. After experiencing the shortage of orders, overcapacity, bosses running, and business failures, the LED lighting industry has received a huge financial subsidy of RMB 2.2 billion from the central government. This undoubtedly inflicted economic development on LED lighting industry "cardiac".
Positive policies will benefit the industrial chain
Recently, the Ministry of Science and Technology has issued the “12th Five-Year Plan†for the development of semiconductor lighting technology. The plan requires that the industrial scale will reach 500 billion yuan by 2015, and 20-30 will be cultivated to master core technologies and own more independent intellectual property rights. Leading companies with independent brands, supporting 40-50 innovative high-tech companies and other requirements.
The government has increased its efforts to subsidize the LED industry. What impact will it have on LED lighting companies? Wu Chaoguo, a senior industry researcher at China Merchants Information Network, told reporters that China spends 40 billion yuan on procurement of LED street lamps and provides 30% financial subsidies for LED street lighting users. Wu Chaoguo said that implementation of the subsidy policy will also stimulate the demand for LED public lighting market and stimulate the demand of the civilian LED lighting market. In addition, the subsidy policy will involve product standards and will play a role in regulating the LED lighting market.
With the intensive release of LED industry policies and the announcement of short-listed companies, the reporter has also seen in the stock market recently that the lighting industry benefits from government financial subsidies and the LED sector can be described as being inexorably in the near future.
Financial subsidies or main reasons for corporate profits
Recently, some media reports said: “The total operating income of LED company BDO Runda fell 1.01% in the first half of the year, but net profit rose 21.5%. For the company's net profit remains high growth in the operating losses, the company explained mainly Due to the overall impact of increased gross profit margin, increased subsidy income, and operating expenses during the reporting period, the company’s operating income was as high as 150 million yuan in the first half of the year, which was the main factor in its net profit growth.â€
The media also said that from the 2011 semi-annual report, it was learned that the financial subsidies received by enterprises were even higher than the net profit. The net profit was 271 million yuan, and the financial subsidies were as high as 298 million yuan. Due to the reduction of subsidies, it is expected that its net profit may fall by 60% in the first three quarters of this year. Obviously, the company's performance has risen and fell almost completely in line with the increase or decrease in fiscal subsidies, and it is highly dependent on subsidies.
In an interview with reporters, He Zaihua, a senior research fellow of China Investment Advisors, also believes that government financial subsidies have indeed become a source of profits for LED companies' bright performance. The domestic LED giant's profits have risen sharply, mainly due to financial subsidies.
Wu Chaoguo believes that BDO Runda’s profit growth is mainly due to the company’s subsidy of “three scientific and technological subsidies†granted by local governments in Wuhu City in March and June 2012 of RMB 100 million and RMB 48.4 million, respectively, and the financial subsidies received by the company The net profit is still high.
According to media reports, both Sanan Optoelectronics and BDO Runda's net profit growth rate exceeded 100% in 2011. Among them, government subsidies contributed 90% to Sanan Optoelectronic's net profit, and BDO Runda was 79%. .
There are still cold thoughts behind the "Feast"
Financial subsidies, for some promising companies, will not only add value to the company but also refresh the performance of the company. For some companies that are about to fall into a loss-making quagmire, they are sending in the snow. It is a blessing for the company to get a huge government subsidy. Financial subsidies can, to a certain extent, promote the industry to go on the road to prosperity, but it will also allow individual companies to fall into the quagmire of "pies."
"On the one hand, through capital subsidies to avoid the collapse of a large number of industry enterprises, to help LED companies with market and technological advantages out of trouble, in line with China's energy-saving emission reduction policy orientation; On the other hand, this will lead to LED companies rely on government financial subsidies Sex, lowering its anti-risk capability and market competitiveness are also not conducive to strengthening the research and development capabilities and upgrading the technological level of enterprises in the process of transformation and upgrading, said He Zaihua, a senior research fellow at China Investment Consulting, in an interview with the reporter.
Subsidy-style development is like a "opium". If a company is indulged in short-sightedness for a long time, then it is very unfavorable for the development of an industry. To this end, Wu Chaoguo told reporters that the bidding and subsidy method will lead to a psychological dependence on the company. The government's financial subsidies for blood transfusions are often inferior to hematopoiesis. To truly get rid of the market crisis, LED companies must increase their research and development efforts to enhance the quality of their products. In addition, companies must increase their competitiveness by merging, developing new technologies, and designing new products.
Positive policies will benefit the industrial chain
Recently, the Ministry of Science and Technology has issued the “12th Five-Year Plan†for the development of semiconductor lighting technology. The plan requires that the industrial scale will reach 500 billion yuan by 2015, and 20-30 will be cultivated to master core technologies and own more independent intellectual property rights. Leading companies with independent brands, supporting 40-50 innovative high-tech companies and other requirements.
The government has increased its efforts to subsidize the LED industry. What impact will it have on LED lighting companies? Wu Chaoguo, a senior industry researcher at China Merchants Information Network, told reporters that China spends 40 billion yuan on procurement of LED street lamps and provides 30% financial subsidies for LED street lighting users. Wu Chaoguo said that implementation of the subsidy policy will also stimulate the demand for LED public lighting market and stimulate the demand of the civilian LED lighting market. In addition, the subsidy policy will involve product standards and will play a role in regulating the LED lighting market.
With the intensive release of LED industry policies and the announcement of short-listed companies, the reporter has also seen in the stock market recently that the lighting industry benefits from government financial subsidies and the LED sector can be described as being inexorably in the near future.
Financial subsidies or main reasons for corporate profits
Recently, some media reports said: “The total operating income of LED company BDO Runda fell 1.01% in the first half of the year, but net profit rose 21.5%. For the company's net profit remains high growth in the operating losses, the company explained mainly Due to the overall impact of increased gross profit margin, increased subsidy income, and operating expenses during the reporting period, the company’s operating income was as high as 150 million yuan in the first half of the year, which was the main factor in its net profit growth.â€
The media also said that from the 2011 semi-annual report, it was learned that the financial subsidies received by enterprises were even higher than the net profit. The net profit was 271 million yuan, and the financial subsidies were as high as 298 million yuan. Due to the reduction of subsidies, it is expected that its net profit may fall by 60% in the first three quarters of this year. Obviously, the company's performance has risen and fell almost completely in line with the increase or decrease in fiscal subsidies, and it is highly dependent on subsidies.
In an interview with reporters, He Zaihua, a senior research fellow of China Investment Advisors, also believes that government financial subsidies have indeed become a source of profits for LED companies' bright performance. The domestic LED giant's profits have risen sharply, mainly due to financial subsidies.
Wu Chaoguo believes that BDO Runda’s profit growth is mainly due to the company’s subsidy of “three scientific and technological subsidies†granted by local governments in Wuhu City in March and June 2012 of RMB 100 million and RMB 48.4 million, respectively, and the financial subsidies received by the company The net profit is still high.
According to media reports, both Sanan Optoelectronics and BDO Runda's net profit growth rate exceeded 100% in 2011. Among them, government subsidies contributed 90% to Sanan Optoelectronic's net profit, and BDO Runda was 79%. .
There are still cold thoughts behind the "Feast"
Financial subsidies, for some promising companies, will not only add value to the company but also refresh the performance of the company. For some companies that are about to fall into a loss-making quagmire, they are sending in the snow. It is a blessing for the company to get a huge government subsidy. Financial subsidies can, to a certain extent, promote the industry to go on the road to prosperity, but it will also allow individual companies to fall into the quagmire of "pies."
"On the one hand, through capital subsidies to avoid the collapse of a large number of industry enterprises, to help LED companies with market and technological advantages out of trouble, in line with China's energy-saving emission reduction policy orientation; On the other hand, this will lead to LED companies rely on government financial subsidies Sex, lowering its anti-risk capability and market competitiveness are also not conducive to strengthening the research and development capabilities and upgrading the technological level of enterprises in the process of transformation and upgrading, said He Zaihua, a senior research fellow at China Investment Consulting, in an interview with the reporter.
Subsidy-style development is like a "opium". If a company is indulged in short-sightedness for a long time, then it is very unfavorable for the development of an industry. To this end, Wu Chaoguo told reporters that the bidding and subsidy method will lead to a psychological dependence on the company. The government's financial subsidies for blood transfusions are often inferior to hematopoiesis. To truly get rid of the market crisis, LED companies must increase their research and development efforts to enhance the quality of their products. In addition, companies must increase their competitiveness by merging, developing new technologies, and designing new products.
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