In 2018, the LED industry subsidy boom reappeared, and many companies received subsidies one after another. LED companies receive subsidies for various reasons, including technology research and development subsidies, production equipment subsidies, and loan interest discounts. As of July 2, according to the incomplete statistics of OFweek's semiconductor lighting network, 11 LED listed companies disclosed in the non-recurring income statement that they received government subsidies. The total amount was as high as 2.3 billion yuan, a significant increase compared to the same period last year.
Overall, the subsidy amount spans a large scale, ranging from hundreds of millions to millions. Among them, San'an Optoelectronics ranked first with a government subsidy amount of 972 million yuan, followed by Mu Linsen, with a subsidy amount of 449 million yuan, HC Semitek ranked third with 4.47 yuan, and 4-10 places were Jucan Optoelectronics and Gancan Optoelectronics. Photoelectric, Hongli Zhihui, Ruifeng Optoelectronics, Sanxiong Aurora, Aoyang Shunchang, National Star Optoelectronics.
Note: 1. The above data comes from the subsidy announcements issued by various companies; 2. The ranking in the table is based on the amount of government subsidies included in the non-recurring gains and losses in 2018.
Sanan Optoelectronics has always been regarded by the industry as the most profitable company in China's LED industry, and it has also been labeled as "Subsidy King". However, as Sanan Optoelectronics has continued to grow and develop in recent years, its profitability has continued to increase, and the proportion of government subsidies in net profits has continued to decrease. For Sanan Optoelectronics, government subsidies have played an icing on the cake.
San’an Optoelectronics relevant person in charge believes that “The company is mainly engaged in LED chips and compound semiconductor chips, which is in line with the national industrial policy to encourage development, and various local governments have given great support to the industry. In fact, our non-recurring gains and losses accounted for no more than 20% of our net profit each year in the past three years. It is not so much that we rely on government subsidies, but rather that the net profit of the main business has increased more. ”
As the largest LED packaging company in China, Mulinsen has become the target of many packaging manufacturers. As of July 2, the amount of government subsidies received by Mulinsen and its subsidiaries has reached 449 million yuan. In 2017, Mulinsen achieved operating income of 8.2 billion yuan, higher than the industry average of 42.65%; net profit reached 651 million yuan, a year-on-year increase of 37.57%. Regarding the increase in revenue and net profit, Mulinsen said that with the gradual release of project capacity, the company's advantages in production costs and scale have begun to be reflected.
In addition to performance, the most interesting thing in the industry last year for Mulinsen was the completion of the nine-month "Snake Tunxiang" overseas acquisition. Mulinsen's acquisition of Landvance is intended to strengthen the downstream product side, especially to strengthen the layout of the overseas market. Mulinsen can rely on Landvance's marketing channels and brand effects, and Mulinsen's cost-effective products have the opportunity to enter the major global markets, thereby becoming a global LED lighting company.
Through continuous production expansion, Mulinsen’s revenue has increased from 4 billion yuan in 2014 to 8.2 billion yuan in 2017. However, due to the relocation and expansion of production capacity, management and financial expenses have increased significantly, which has affected the company's recent profitability.
Another major LED chip manufacturer in China, HC Semitek and its wholly-owned subsidiaries received various government subsidies such as equipment subsidies, loan interest discounts, and industrial development subsidies in the first half of 2018. The amount of subsidies has reached 447 million yuan. , Which can greatly increase its net profit.
According to OFweek's semiconductor lighting network, the company's subsidy announcement found that in the first half of 2018, government subsidies tended to LED technology threshold chip industry and leading packaging companies. It can be seen that government subsidies are now becoming more and more centralized, and they are listed on several companies. The company moves closer. However, for companies, if they want to have better development, they must improve their own hematopoietic capacity, rather than relying solely on policy red envelopes to maintain profitability.
