LED Manufacturers Received in Total RMB 1.2B Subsidies from Chinese Government in 2015

LEDinside surveyed 31 listed LED manufacturers announcements made in 2015 on the website Chinfo, the designated information disclosure website assigned by Notice of China Securities Regulatory Commission. We found 11 companies (including certain company subsidiaries) received subsidies totaling a striking RMB 1.18 billion (US $179 million).

Note: San’an Opto’s RMB 500 million worth of subsidies were paid in several instalments by the government. The company received RMB 150 million and RMB 20 million respectively on Dec. 30, 2014 and on Dec. 31, 2014.

Given the disclosure date is listed in January, RMB 30 million out of RMB 113 million of HC SemiTek’s subsidies was received on Dec. 31, 2015, and thereby included in the survey. Manufacturers that received subsidies were mainly upstream chip manufacturers, including the top three highest subsidy receivers, San’ an Opto, HC SemiTek, and AuckSun Opto. San’ an Opto received a significant RMB 502 million throughout 2015, which is a lot higher than the second place HC SemiTek. Despite the fact that San’an Opto received huge subsidies from the government of China, the company did have a promising outlook based on its financial results. In the three quarter report, the company’s revenue has a 3.55% Year on Year growth (YoY) of an estimated RMB 3.6 billion. Meanwhile, its net profit attributable to shareholders has seen 37.82% YoY growth at RMB 1.45 billion. Meanwhile the non-recurring gains attributable to shareholders reached 30.18% growth to RMB 1.07 billion.

Compared to upstream chips manufacturers, the subsidies for mid-stream package and downstream lighting and display manufacturers were relatively scarce. Among 23 downstream LED manufacturers, only six of them received related subsidies from the government. Among the six manufacturers Yankon Lighting topped the list with RMB 99.8 million, followed by LED chip manufacturers Changelight and ETI. Meanwhile, Mason Technologies, Refond Opto, Shanghai Feilo Acoustics and Ledman also received subsidies of varying amounts.

What is worth noticing is that many Chinese companies received subsidies during the start of 2016, including San’an Opto’s RMB 150 million, Silan Microelectronics and its holdings subsidiaries RMB 2.9 million and Moso Power’s RMB 8.46 million.

 

(Author: Sophie Liu,Editor, LEDinsidehttp:// Translator: Emma Chang, Editor, LEDinside)

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