Behind the 36 LED enterprises subsidies decline: enhance the enterprise operating capacity

With the 2017 disclosure of listed companies "tonic" also surfaced. By the end of August 31st, LEDinside rough statistics found that a total of 36 LED listed companies receive government subsidies in the disclosure of non recurring gains and losses in the table, the total amount of 884 million yuan, compared to the same period last year fell.

Overall, the amount of subsidy of larger span, more than a billion, ranging from tens of thousands of. Among them, Sanan optoelectronics topped the list with a government subsidy of 270371099.81 yuan, followed by Elec-Tech, subsidies amounting to 168455435.19 yuan to 123338530.46 yuan, HC semitek ranked third, followed by the 4-10 Newell, REFOND Hongli, Australia Shunchang, changelight, Riyadh, ledone, Furi electronics.

Note: 1, the above data from the company in 2017 semi annual report; 2, described in the table corresponding enterprise net profit for the first half of 2017 attributable to shareholders of listed companies net profit; the table ranking is included in the 1H17 non recurring gains and losses based on the amount of government subsidies.

Sanan optoelectronics has always been considered to be the most profitable company in Chinese LED industry, and has been labeled a "subsidy king" label. However, with an optoelectronic in recent years continue to grow, "Wang subsidies" label also slowly fade. According to the LEDinside review semi annual report found that in the first half of 2015 and an optoelectronic first half of 2016 non recurring gains and government subsidies were 294682579.44 yuan, 348276149.50 yuan, while net profit corresponding to 904005921 yuan, 966317122 yuan. In contrast, the first half of 2017, government subsidies accounted for net profit (1 billion 514 million 817 thousand and 900 yuan) ratio further reduced, which means that the three optical profit ability can be continuously enhanced.

For optoelectronics, government subsidies to play the role of icing on the cake. However, for another government frequently get gift Elec-Tech, the amount of subsidies amounted to 168455435.19 yuan in the first half of 2017 did not reverse the situation of loss of 67 million 161 thousand and 800 yuan. LEDinside access to the 2016 semi annual report found that Elec-Tech in non recurring profit and loss table disclosure received government subsidies for 171377603.83 yuan, net profit of 16036311.16 for the period of more than 10 times, that is to say, excluding subsidies, the first half of 2016 Elec-Tech also belong to the actual loss of state.

The explanation for the first half of 2017 performance loss is given, the comprehensive effect of industry competition, part of the company's products production capacity bottleneck, the RMB exchange rate fluctuations and other reasons, resulting in the company earnings is not ideal. Specifically, the company downstream chip production capacity is not matching, affect the output and performance of the company's chip business, coupled with fierce competition in the industry, the company's overall business failed to explosive growth; in addition to the end of 2016 the company has international lighting business sale, after the sale, some products for homegrown, reduced from the company's products procurement scale up, the above factors, compared with the same period last year, the company business revenue fell slightly.

Coincidentally, "tonic" on the list of the top three are the chip companies. HC semitek 2017 ranked third in the first half net profit of 216 million 24 thousand and 300 yuan, of which the government subsidies accounted for 57.09%. Look at the HC semitek 2016 semi annual report found that in the current non recurring gains and losses, the amount of government subsidies for a blank, and the current net profit of 53171617.21 yuan. In view of this, the first half of this year although Huacan photoelectric performance grants polish, but its profitability also increased, excluding subsidies, its net profit increase of more than 34 million yuan.

In 36 companies, in addition to Guangdong and Elec-Tech is still a loss in sweet "tonic", the remaining 34 companies were in a state of profit and net profit is higher than the amount of subsidy. Compared to previous years, not only the tonic intensity has decreased, rely on subsidies "out of poverty" of the enterprise is more and more less, indicating that LED. For businesses, if want to have a better development, must improve their own blood, rather than relying on policy envelopes to maintain profitability. (text: LEDinside Nicole)

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