On June 26, Sanan Optoelectronics announced that its wholly-owned subsidiary Xiamen Sanan Optoelectronics Co., Ltd. received 100 million yuan in government subsidies. According to the relevant provisions of the Accounting Standards for Business Enterprises, this amount is recognized as current income when received, and will have a positive impact on the company's 2017 interim results.
In recent years, LED companies “tonic” have become the industry“common meal”, Sanan Optoelectronics, as an industry giant, has also benefited from government support. A reporter from "Daily Economic News" found that in 2016, Sanan Optoelectronics included 502 million yuan in government subsidies included in the current profit and loss.
However, some people in the industry have pointed out that since 2016, industry subsidies have declined. Many places have cancelled related subsidies. In the next 3 to 5 years, small and medium-sized LED companies operating in the traditional mode will face A more severe reshuffle.
Industry subsidies have begun to decline
In recent years, the LED industry has overcapacity and corporate profits have fallen sharply. A large share of the performance composition of some companies is occupied by government subsidies, which has also become an industry phenomenon.
Sanan Optoelectronics, which is dubbed by the industry as the "Subsidy One Brother", received more than 1.5 billion yuan in subsidies from 2014 to 2016. In addition, companies such as HC Semitek and Qianzhao Optoelectronics are also beneficiaries of this subsidy.
Guo Xiu, secretary general of the Guangdong Lighting Association, told the "Daily Business News" reporter that the government subsidies to enterprises can be treated differently. For large-scale enterprises like Sanan Optoelectronics, the government would have a" The "Peiyou Plan" provides key support for relatively high-growth companies, which will have a significant boost to the local economy, employment, and taxation.
However, Guo Xiu also said that according to the association’s understanding of national enterprises and the understanding of the situation, there has been a decline in domestic subsidies for the LED industry since 2016. For example, local governments have begun to abolish direct subsidies. . In the past, companies could apply for various types of subsidies, such as equipment, laboratories, chips, etc., but now they are all cancelled.
The "Daily Economic News" reporter noted that the name of the 100 million yuan government subsidy that Sanan Optoelectronics received this time is: incentive funds. The quarterly report of Sanan Optoelectronics shows that the government subsidy included in the current profit and loss is 94.54 million yuan. Compared with the 2016 quarterly report, the government subsidy included in the current profit and loss of Sanan Optoelectronics is 198 million yuan.
According to the statistics of OFweek Semiconductor Lighting Network, in the first half of 2016, Sanan Optoelectronics received special support and equipment support for a total of 359 million yuan.
The road to industrialization still lacks conditions
Previously, Guosen Securities Research Report pointed out that from the domestic LED industry's 2016 annual report and 2017 quarterly report, the overall performance has been good. Among them, in the 2017 first quarter report, 40 of the 43 LED listed companies increased year-on-year in revenue, and 35 LED companies reported a year-on-year increase in their parent net profit. Among them, 27 listed companies had a substantial increase in net profit by more than 30%. Accounted for more than 60%.
Guojin Securities believes that before 2016, due to terminal LED applications, midstream LED package lamp beads and upstream LED chips, all are in a trend of falling prices and rising sales, so the overall revenue is still growing, only the growth rate Slow down. In 2016, the overall revenue of listed LED companies reached 160 billion yuan, a growth rate of more than 25%. By the first quarter of 2017, the industry's overall revenue growth rate and the growth rate of net profit attributable to the parent both exceeded 30%, setting a record for the past five years. new highs.
“The entire industry is still growing, but the growth rate is slowing down. "Guo Xiu believes that the exit and transformation of many traditional enterprises is also very normal. This industry is accelerating the reshuffle, the concentration will be further improved, and large enterprises will receive more support and development. "In 3~5 years, more and more traditional small and medium-sized enterprises "will die". ”
Gaogong LED Chairman Zhang Xiaofei also said before that, in the next three years, the output value of the LED lighting industry will increase due to the impact of the macro environment, the volatility of the real estate market and the rapid decline in product prices in all links of the industry chain, and the output value of LED lighting. The rapid growth of the base number and other reasons gradually slowed down, and the future fifth and sixth channel mode—e-commerce and mobile are also one of the main reasons for the slowdown in the output value of the LED lighting industry. Industry consolidation is beginning to be obvious. Some companies will be integrated and exited, especially small businesses. Capital, products, supply chain, marketing, the overall context of these four aspects will be the focus of the LED lighting industry in the future.
It’s worth mentioning that San’an Group, the parent company of San’an Optoelectronics, is already trying to "cross-border" and began to use LED spectrum technology to explore the road to industrialization of plant factories. Will this become a part of the LED industry? development trend?
In this regard, Guo Xiu believes that the current international giants are also exploring "plant factories", but they are still subject to cost factors. From the current point of view, the conditions for industrialization are still lacking.
