It may be bankrupt before being subsidized by policy-intensive LED companies?

On August 20, the Dongguan Science and Technology Association held an LED forum held at the Dongguan Science and Technology Museum. Some local LED business owners told the China Business News that the production capacity of this industry has been seriously oversupplied. In the harsh market competition, a large number of enterprises in Dongguan and Shenzhen have closed down, and small enterprises are the worst.

In the interview, these business owners expressed the same view to this reporter. The reason why the LED industry has come to today's situation is that a large part of it is spoiled by excessively favorable policies.

Spoiled by policy

A LED business owner told reporters about his entrepreneurial journey. He turned from an industry that has nothing to do with LEDs. It is extremely difficult, but the company is getting harder and harder. The market is getting wider and wider.

More LED bosses have the same history. The main person in charge of an LED company told this reporter that in order to attract investment as soon as possible, the government is simply too good for the company. “Sometimes you can give the company a piece of land for free.” And too many favorable policies make some shoes before. The company also ran to do LEDs.

The person in charge of the above-mentioned company said that “there are many porridges” and their company is looking for ways to find a market in a very limited market. In the past few years, due to the government's excessive generous subsidies to LED companies, so many people who do not know how to do it have entered the industry, vicious competition, and profits have gone from bad to worse.

The person in charge also said that in some places, the enterprises that had previously received the government's “land-covering factory” without compensation were only workshops, no products, or products, and could not find the market. "Just wait like this," he said. "The government can't do anything any more."

Earlier this year, a plan related to LED development in Shenzhen was forced to abandon. Many people believe that the LED industry is about to follow the footsteps of photovoltaics. The government is not happy to see such a situation continue to happen. In June this year, Guangdong and Fujian, the major LED industry provinces, introduced support policies to prevent more LED plans from being abandoned.

The "Notice on Further Strengthening Work to Ensure the Tasks for Promoting the Use of LED Lighting Products" issued by the General Office of the Guangdong Provincial Government has proposed that the goal of LED lighting promotion and use should be unshakable, ensuring that the province's universal public lighting will be completed by the end of 2014. The task of field LED lighting. Among them, the Pearl River Delta region must take the lead in completing tasks before the end of 2013.

As a major province of LED industry, in May 2012, Guangdong Province introduced the implementation plan of LED lighting products to promote LED applications. As of March this year, the province's public sector has tendered and newly installed LED street lamps totaling nearly 600,000 baht, indoor LED lighting products exceeding 1.3 million baht, overall energy saving of 55%, and cumulative savings of nearly 300 million kWh.

In terms of subsidies, in terms of Guangdong alone, during the “Twelfth Five-Year Plan” period, Guangdong Provincial Finance invested 450 million yuan each year to set up special funds for LED industry development. In addition, Guangdong plans to promote the use of LED products throughout the province. Just recently, the Dongguan Science and Technology Bureau announced that the application for subsidies for two types of LED lighting demonstration projects in Guangdong Province in 2013 has begun. The successful application of LED projects will receive a subsidy of 20% or 30% of the total lamps.

Li Yaoqiu, chief of the Development Planning Department of Dongguan Science and Technology Bureau, said that LED is a high-tech industry. In terms of energy conservation and emission reduction, especially for a high-energy industrial city like Dongguan, LED has made a major contribution and deserves the government's strong support.

Can a company go bankrupt before getting a subsidy?

Excessive amounts of subsidies also make fraudulent cases happen. A report released by the National Audit Office in June this year showed that Anhui Power Saving Investment Co., Ltd.'s high-power LED green lighting project passed the false declaration of information and defrauded the central government's energy-saving key project investment subsidy of 9.9 million yuan. In addition, Guangdong Xuelaite Optoelectronics Technology Co., Ltd. defrauded 34.55 million yuan, Guangdong Dongguan 100% Technology Co., Ltd. cheated 232,000 yuan.

Zhu Yichuan, a staff member of the Dongguan Semiconductor Lighting Promotion and Application Center, told this reporter that the threshold for approval in Dongguan has gradually increased and the requirements have become stricter.

The application for Dongguan LED subsidy project must meet the following conditions: First, benchmarking, that is, LED lighting products must pass the Guangdong LED lighting benchmark system test. After the completion of the project, the third-party testing organization must conduct benchmarking product quality consistency verification and evaluation, and issue a report. Secondly, the LED public lighting promotion and application project invested by the financial institutions at all levels must be completed in principle within the time required by the relevant documents of the provincial government. Third, the application project must not have received other project subsidies.

In the forum, a number of corporate leaders told this reporter that Dongguan’s requirements are relatively strict and they do not intend to apply. “With these three things going down, companies are almost going to close down.” One of the responsible persons said, “Companies that can receive subsidies are rare.”

However, there are also business owners who express different opinions. "What is difficult, we can get it." The head of a LED company mentioned above told this reporter that "the key is how you do it."

But the person in charge of the LED company said that Dongguan is not only strong in supporting LEDs, but also fair and will not be a difficult enterprise. He said that in some places, enterprises need to take some more complicated roads to get government subsidies, and the most effective way to send money.

He also said that because Li Xinghua, the former director of Guangdong Science and Technology, was recently investigated, some officials have become more cautious and not as "daring" as before. The reason for Li Xinghua's investigation is related to the subsidy aspect of LED operation.

According to relevant sources, in the absence of standard specifications, large and small enterprises can do LEDs, and the quality of the products produced is very poor. China's LED and foreign countries are on the same starting line, but the key technology is still not in China's hands. If entrepreneurs still want to continue to work in this area, it is necessary to "clear direction" and make their own brand before the spring of LED.

( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )

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