LED down the altar

Abstract: Guangdong Provincial Science and Technology department director Li Xinghua was checked, around the news of all walks of life, there are many led enterprises. The relationship between Li Xinghua and the LED industry is so close that people are speculating about how big the industry shocks will be. And this May, the broad

Guangdong Province Science and Technology department director Li Xinghua was checked, around the news of all walks of life, there are many led enterprises.

The relationship between Li Xinghua and the LED industry is so close that people are speculating about how big the industry shocks will be. And this May, Guangzhou bureau secretary, such as a number of cadres by the Disciplinary inspection Department to take away the investigation. In fact, the science and technology information system has become a corruption-prone sector because of the power of industrial subsidy and research funds. The close relationship between this system and the enterprise has also become the focus of attention.

At the same time, with corruption, there are all kinds of deception and compensation disorder. The audit report shows that Anhui Province in the energy-saving Investment Co., Ltd. high-power led Green lighting project through the false declaration of information, the central fiscal energy-saving key project investment grants 9.9 million yuan. In addition, Guangdong Snow Wright Photoelectric Technology Co., Ltd. Cheat to make up 3.455 million yuan, Guangdong province, Dongguan Hundred Technology Co., Ltd cheat to fill 232,000 yuan.

Zhongshan A LED enterprise sales director of the "First financial daily" reporter said, to get government projects, the enterprises have to eight recount, and government projects are not open for three years, opening can eat three years.

"It's better to be liked by the government."

Guangdong Province Science and Technology department has a real money for special support led industry development. In the "Twelve-Five" period, Guangdong Province, the financial investment of 450 million yuan per year set up a special fund for LED industry development.

In addition, Guangdong plans to widely promote the use of LED products throughout the province. According to the May 2012 issue of "Guangdong Province to promote the use of LED lighting products Implementation Plan", Guangdong will take the lead in the public lighting field, such as roads, public places, government agencies, state-owned enterprises and other financial or state-owned capital investment construction of the lighting engineering field, the full application of LED lighting products According to the plan, the Guangdong province led industry scale in "Twelve-Five" end will reach 500 billion yuan.

These policies undoubtedly play a positive role in the development of LED industry. And for the special funds and access to the government's led projects, companies in a number of "sun not to place" to do their bit.

Zhongshan LED enterprise sales leader bluntly said that can get government subsidies or projects, hard strength and soft strength must have, hard power refers to the enterprise itself is strong, soft power test the enterprise's network relations and government resources.

"There are two things in the back of this subsidy: power and money, and companies that can have both can get government favors." Of course, there will be some assessment criteria, but in all enterprises are satisfied with the situation, than is who is more like the government. He revealed that to apply for subsidies, the first step is to the head of the Department of the first docking.

In fact, some enterprise projects do poorly, but the relationship with the government, will boast, can get tens of millions of of the government subsidies, and in fact the company's technology has been eliminated by the market, there is no way to promote in the industry.

An LED industry veteran of the reporter said that Guangdong has more than 6,000 led enterprises, probably only 2%~3% can get subsidies, including many for listed companies, state-owned enterprises.

Zhongshan, the LED business, from the government's projects accounted for 30%. The official told the newspaper that the government project generally has a more substantial scale and profit, so the competition is fierce. Each bid, qualified more than 10 20 companies will come. In fact, the final winners, most of the time, have been fixed.

As for how to get the project, "Eight recount," the person in charge slightly mysteriously said, according to different objects, operating methods are not the same. He admits, however, that he must give some he to the character of his important joint, but he does not want to disclose exactly how much.

As for how to maintain the relationship with the government? The person in charge says that eating and drinking is a superficial matter, and that relationships do not need to be maintained, "as long as there is common interest". And the successful bidder to get the project, will first calculate a sum account, the dark has been spent to calculate the cost, and then planed to profit, the last remaining to be used in the project.

LED down the altar

Based on the consideration of energy saving and emission reduction, the Chinese government will take led as one of its vigorously supported industries.

The Chinese government has set a clear target of 30% of the domestic lighting market by 2015, up to three times times more than the current level. The government estimates that it will save 35 million tonnes of coal a year.

Insiders said that the same number of LED lights to save the efficiency of ordinary sodium 8 times times, is the average energy-saving lamp 3 times times, the cost is 4 times times the sodium lamp, energy-saving lamp 2~3 times.

Other data show that if half of China's lights are led, the annual savings are equivalent to 2.5 times times the annual output of the Three Gorges Dam, the world's largest hydroelectric station.

But the LED is really so energy-saving, there are different views.

Guangdong Province Radio and Television group chief economist Xin Waterfall said, in the same lighting intensity, LED street lamp is actually not more energy-efficient than high-pressure sodium lamp. Coupled with the current various manufacturers LED lamp specifications vary greatly, once maintenance replacement will be very troublesome. Because it's not as fully standardised as a high-pressure sodium lamp, it's easy to buy replacements when the original bulb breaks.

Many people in the industry believe that led is really energy-saving, but not necessarily environmental protection. Because the whole production process of LED lights may be quite energy consuming. If the energy consumption in the process of production and recycling is calculated together, it is higher than the average light bulb.

At the Guangdong Congress Group Symposium on July 31, a representative of Guangdong Congress explicitly objected to the "serious implementation of the public lighting field to promote the use of LED lighting products" into the NDRC's report, he said, if the government is to support the development of the link, rather than support the promotion of products.

"Promotion to the market, let the market to choose, the market is the most choice." The NPC representative said that the government's strong money to promote, it is easy to mistake.

The LED industry senior Personage also said that the government subsidy to the industry itself is not necessarily a good thing, sometimes affect the market to play its normal detoxification function.

Zhongshan LED Enterprise Sales Director said that the current led industry is still in the initial stage, price system, product specifications, technical standards, industry norms, government policies and other levels are not mature.

And the industry is clearly becoming more rational from the frenzied influx of the previous swarm. With the gradual growth of the market, some enterprises enter this field, but also some people exit. This reporter learned that Foshan, a well-known led enterprise general manager recently resigned as a university teacher.

"Fiscal opium" and overcapacity

In fact, the LED industry is not sustainable, mainly reflected in the financial subsidies as a "spiritual opium" to suck, as well as enterprises together caused by overcapacity.

First, in the slogan of the upgrading of government industries, the "good intentions" of the large amount of financial subsidies to the so-called new energy and new technology industries. Public reports show that the LED industry in the three-photoelectric and de-hao two companies in 2011, the net profit growth rate of both more than 100%, of which the government subsidy for the three photoelectric net profit contribution rate reached 90%, BDO run up to 79%.

BDO run up to 2011 years of operating profit of 146 million yuan, and the total profit of 452 million yuan. Of these, about 300 million yuan is derived from government subsidies and income tax relief from its subsidiaries. In 2011, the three-an-photoelectric financial subsidy involved a total of up to 1.8 billion yuan.

According to the audit of the 5,044 energy conservation, renewable energies and resource utilization projects announced by the Audit Commission June 21, the Central financial 2011 and 2012 have arranged this level and transfer payments to 18 provinces in energy conservation, Renewable energy and resources comprehensive utilization of environmental protection category Three sections of the funds 81.883 billion yuan. Among them, the high efficiency lighting product promotion obtains 1.876 billion yuan.

At the same time, in the photovoltaic industry in the "winter", with a Shenzhen led development related to the abandonment of the planning, led industry was once considered as "the next photovoltaic industry." "The first three years of industry profits can reach 20%~30%, but now only 5%-10%." "Guangdong Zhongshan, a leader in LED products Export Enterprises told the newspaper reporter."

The person responsible for the decline in profits attributable to led overcapacity caused by the vicious competition. He said that a few years ago, the industry threshold into too low, a as long as the company has a year of research and development experience, you can open a company.

He added that the LED entry threshold was so low that he could not now figure out what led was. "All I know is that I'm just making lights, just like other lights." He said that, like photovoltaic, other industries, including socks and bicycles, entered the industry. "Money comes too fast," as they do in Zhongshan, a medium-sized enterprise, a year's turnover is also 1 billion.

The official said that because the application of government funding process is more complex, the company has not applied. "The conditions of application, first depends on capacity, our capacity is not big enough." But despite the big capacity, it's hard to do without strong government relationships, you know, especially for private enterprises like us. ”

Some people in the industry told our correspondent, if the government blindly on the LED support and subsidies, will lead to this industry step in the footsteps of photovoltaic. "Photovoltaic is just some people using the concept of new energy to cheat government subsidies." "The internal staff of a Chinese photovoltaic company told our correspondent.

Even insiders predict that in 2013 China could have one-fifth of LED lighting companies fail. Many people in the industry to our correspondent said that, like photovoltaic, the government of the LED is too generous funding support, the consequences are often, resulting in a large number of overcapacity, in the case of severe overcapacity, the industry will inevitably produce vicious competition, which ultimately hindered technological innovation.

"China's led core technology is mainly in foreign countries." "For us, the key is not technological innovation, but how to make the capacity bigger, the bigger the better." ”