Doubt and Tension, two expression for LED industry

Doubt

In 2012, the net profit of some companies rely on government subsidies,which is more serious. The state subsidies occupy a large part of their profits; This can not help but provoke the questioned eyes of everyone. So the sustainability of this mode is also controversial.

The subsidies can be counted as corporate profits., The answer is yes! Listed companies Sanan Optoelectronics third quarter profit is 667 million yuan, including subsidies up to 328 million yuan, accounting for nearly half; On November 13, Sanan carried on the enormous financial to achieve the Taiwan Formosa Epitaxy, which is almost twice equity-it is the first private equity. And soon after followed came the news Sanan CDB borrowings of up to 5.5 billion; Look at BDO Runda, interim net profit is 120 million yuan in 2012, while government subsidies is up to 150 million yuan as much, compared to the three security I am afraid that surpasses it; the profits of the country star power subsidies accounted for approximately 25%.

In this regard, industry insiders questioned that, the national starting point is good, but excessive investment is precisely a big reason caused by industry overcapacity. From another perspective, the LED Lights, as a new LED industry, it is necessary to get support from the government, but whether it should be facing the end consumer subsidies? For Enterprises, enterprises who can obtain subsidies only account for a small part of the type of product. A small number of large enterprises are not always having everything if they have government funding. Government can give you a ride, but ultimately it depends on the enterprise’s own energy and strength.

Doubt and Tension, two expression for LED industry

Tension

In 2012, LED industry development is still facing many challenges. But influenced by the European debt crisis, the U.S. economic downturn and other factors, China LED companies exporting orders dropped sharply.

Lighting companies in particular, the industry began to centralized direction development, some of which have already accumulated enough strength to take advantage of this opportunity to develop a large-scale local lighting industry, and try to come out on top in the new round of competition in the industry, but the small and medium-sized enterprises who lack of core technology strength will face more severe survival problems.