Policy support, plus LED industry must guard against overcapacity

Since 2013, the LED industry policy support has gradually increased. In January of this year, the Ministry of Finance issued the "Notice on Adjusting and Promulgating the 13th Announcement of Government Procurement of Energy-Saving Products". The adjusted purchase list first added lighting products, involving LED streetlights/tunnel lights and LED downlights of 84 companies. Reflective self-ballasted LED lights.

In February, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development and the Sixth Ministries of the General Administration of Quality Supervision, Inspection and Quarantine jointly issued the "Semiconductor Lighting Energy Conservation Industry Plan", planning to propose an annual growth rate of LED lighting energy-saving industry output of about 30%, 2015 It reached 450 billion yuan (including 180 billion yuan for LED lighting applications). In addition, Jiangxi, Fujian, Guangdong and other places have introduced policies to support the development of the LED industry.

Help LED break through the bottleneck

Due to the high conversion rate of electro-optical light and meeting the requirements of energy saving and emission reduction, various support policies for LEDs have been introduced in recent years, which has improved the penetration rate of LED products. The Shenzhen Development and Reform Commission abolished the "Shenzhen LED Industry Development Plan (2009~2015)" in March this year, which has caused various speculations in the industry. In fact, this is not inconsistent with the state's support for the LED industry. According to industry experts, due to the rapid development of LED technology, the plan formulated in 2009 has lost its practical guiding significance, so it is not surprising that it has been abolished.

According to the reporter's understanding, the "Semiconductor Lighting Energy Conservation Industry Plan" jointly issued by the six ministries and commissions in February this year has gradually increased the promotion of financial subsidies for LED lighting products. In the fields of commercial lighting, industrial lighting, government office, public lighting, etc., we will focus on the demonstration application and promotion of indoor lighting products and systems such as LED downlights and spotlights, and timely enter the field of home lighting. In the field of outdoor lighting, focus on the demonstration applications of LED tunnel lights, street lights and other products and systems. Bulbs were also included in the subsidy for the first time.

Then, in April this year, the “Twelfth Five-Year Plan for Energy Saving and Emission Reduction in Jiangxi Province” was issued, requiring all public institutions to use high-efficiency lighting fixtures in 2015; in May, Fujian Province issued a number of “Fujian Province to promote the application of LED lighting products. Measures, it is clear that by the end of 2015, LED lighting products will be widely used in the public lighting field, and the province will achieve more than 50% energy saving.

Guangdong lighting industry insiders pointed out that the government's policy support for the development of the LED industry is worthy of recognition, financial subsidies and other methods have accelerated the development of China's LED, making a number of relatively high-quality LED companies.

Subsidies should be moderate

According to the 2012 financial report of China's mainland LED listed companies, the revenue of the main business of the upstream listed companies generally declined, and the net profit attributable to listed companies also declined to varying degrees, but basically remained profitable. The five chip-listed companies such as Sanan and Huacan have all expanded their production capacity. Excluding this part of the cost, the company's net profit is still considerable, mainly due to government subsidies.

Under the government's strong subsidies, LED upstream has huge idle capacity and high inventory, and the decline in the net profit of upstream listed companies and their listed companies is also related.

Some insiders analyzed that the government's support for the LED industry should be more inclined to the middle and lower reaches, because if the terminal market performs well, it will directly drive the sales of the upstream and upstream products, and will also ease the upstream overcapacity crisis and inventory pressure.

In addition, due to the low entry barrier of the LED industry, with the recovery of the market, a lot of capital inflows, a large number of low-end production capacity gathered downstream. If you do not control it, there will be a danger of excess after the large expansion of production capacity. At that time, the industry may face the impact of disorderly competition from small and medium-sized enterprises.

Since last year, Europe, the United States, Japan, South Korea and other countries and regions have increased the import threshold for imported directional lamps and LED lighting products, and the low-end products that are positioned for export are finally unable to escape the fate of being eliminated. The improvement of the awareness of LED lighting products will also increase the technical content and quality requirements. At that time, low-end production capacity will depend on low-cost survival.

The above-mentioned insiders said that the role of policy support is worthy of recognition, but local governments support the LED industry to be moderate, orderly, and not disorderly, otherwise it will lead to overcapacity; on the other hand, support policies must be implemented, not paper The file on it.

(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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