The LED industry subsidy was only 40% two years ago

With the completion of the disclosure of the interim report, the reporter found that the LED industry received government subsidies in the first half of this year only 40% two years ago.

LED is called the third light source revolution. Because of the superiority of energy saving and environmental protection, some local governments were strongly supporting the development of the local LED industry and given huge government subsidies.

However, Zhang Hongbiao, research director of China National High-tech LED Industry Research Institute, said in an interview with the media that the nation’s LED lighting companies have seen a significant overcapacity. In the first half of this year, the utilization rate of domestic LED lighting companies was only 60%.

Faced with this situation, the government subsidy that has been favored by the LED industry has chosen to “disappear”.

In mid-March of this year, Shenzhen City suddenly abrogated the "Notice on Printing and Distributing the Shenzhen LED Industry Development Plan (2009-2015)" without any explanation. Some media quoted officials as saying in private that the government was concerned about the overcapacity in the LED industry and even worried about the LED industry becoming the second photovoltaic industry.

Flush data shows that 20 listed companies in the SWS LED industry have already announced 19 semi-annual reports for this year. The total subsidies received in the first half of the year were 377 million yuan, and the average subsidy received by each listed company was 1.82 million. yuan.

The reporter noted that the level of subsidies in the first half of this year has been significantly lower than last year and the previous year. In 2011 and 2012, 13 of the 20 companies and 18 listed companies announced the amount of government subsidies. The subsidies received were 764 million and 497 million respectively. The average subsidies received by each company were 58.74 million and 27.759 million. . In other words, the average government subsidy for listed LED companies in the first half of this year has shrunk by more than 60% compared with two years ago. Compared with last year, it has also reduced by nearly 30%.

Some of the original large subsidies have gradually become less favored. Sanan Optoelectronics, a listed company in Hubei Province, received a grant of 593 million yuan in the first half of the previous year. In the first half of this year, the figure was 160 million yuan, only about a quarter of the original. Another Guangdong company, BDO Runda, received subsidies of 135 million, 154 million, and 57 million yuan in 2011, 2012, and the first half of 2013, respectively.

The BDO Runda Securities Department explained that the government subsidies are mostly directed at the company’s investment and R&D. As the previous two years of investment projects are launched one after another, the subsequent increase will not be large, so the subsidy will be less and less.