New EMC model help LED companies to promote products

In December 30th last year, Shenzhen, a LED listed company Chau Ming technology announced that the company decided to terminate the rights and obligations of the implementation of the contract energy management (EMC) model signed with another company. This means that the domestic enterprises to try the case of the failure of the EMC model to add a case. Insiders said that the traditional EMC model repeated failure of the biggest reason is that the capital of the LED spin the long rotation cycle, unable to ensure timely collection of accounts receivable.

There is no way to overcome? In fact, a new EMC business model, contract energy management (EMC) + financial innovation, has attracted the attention of the industry. The model through the introduction of "finance" this link, in one fell swoop to overcome the original EMC mode of financing defects, break through the bottleneck of LED promotion. It is understood that the current Quanzhou enterprises have begun to try.

Free energy embarrassment

A household 9 watt LED lights, the price of one hundred yuan; a LED street lamp, the price of up to several million...... Although the same brightness of the LED lamp energy saving than traditional lamps up to 90%, but the high price is still a stumbling block to the promotion of the market. In this case, the prevalence of foreign EMC model is optimistic about the industry. Analysts said, simply put, LED transformation of the object does not need to pay, LED companies to help you change, in the future from the electricity savings in installments paid to LED companies can be. "

In theory, the EMC model is more likely to be accepted by the buyer, but in reality it is difficult. Transformation of the initial funding come from? Want to eat big cake LED companies often headache. "Many enterprises responsible person said, according to the rules of EMC agreement, the money to the enterprise by LED, but tens of millions, without any short-term return on investment, a sum of two better said, if several projects started at the same time, a large floating exchange, which companies are too much. Their money, look for bank loans OK? There are LED enterprises still watch helplessly: many enterprises belong to the recently created high-tech enterprises, mostly in the start-up period, only have the future charging rights and cash flow, and the bank is the value of the land, factories and other assets, which makes enterprise loans difficult.

New model watch financing short board

The new EMC model will solve the financing problem. Quanzhou LED industry technology innovation strategic alliance Secretary General Pan Yiming introduced the characteristics of the new EMC model is the largest financial institutions will come into the LED lighting industry will no longer directly with the user of funds, so as to achieve the purpose of fast recovery of funds. After the adoption of the new model, the one-time payment of financial institutions to purchase costs to LED companies, the user will then be a certain proportion of the energy saving quarterly or annual payments to financial institutions. It is understood that this model has been tried in Guangdong. To undertake the KingSun Shenzhen Expressway 120 km LED lighting project, successfully delivered in more than a month ago, it provides a good reference and successful experience. The introduction of innovative financial instruments, through rigorous consideration of local government credit, cooperation with Ping An insurance, the future earnings of the project product "discount" to solve the payment cycle is too long to bring cash flow risk.

Financial institutions attitude as the key

At present, Quanzhou has begun to try this model. Pan Yiming told reporters that the talks are related to the transformation of the South Ring Road, Licheng district. Just look at the transformation of the street lamps in Quanzhou, the formation of billions of market. According to the Fujian provincial development and Reform Commission released the latest information, to 2013, large stores, department stores such as WAL-MART, Xinhua will also implement LED product transformation, this is a rare opportunity for LED enterprises, production of new model can solve the enterprise financial problems early. However, some analysts believe that the key to the implementation of the new EMC model is the attitude of banks, Guarantee Corporation and other financial institutions, their participation in a large extent determines the effect of the new EMC model will be achieved.

In the current LED lighting products in the promotion process, the proportion of government procurement has always been dominant. However, it is impossible for the government to provide guarantee for indoor commercial lighting such as stores, department stores, hotels and so on. In the industry view, it is necessary to promote the new model to indoor lighting, the establishment of a mature financing mechanism is the premise of faith, in order to protect the financial institutions of investment risk, so as to eliminate concerns of financial institutions. Right now, you can consider taking the lead from a number of large enterprises or businesses, their credit is often higher, but also more conducive to the promotion of LED products. 000