The first round of LED subsidy is expected to tender results announced by the end of June

The current LED chip accounted for nearly 60% of the cost of the lamp light chip can drive the price estimates, the lighting costs dropped by nearly 50%; and the package technology upgrading and high efficiency and low cost driving circuit popularization, lamps cost can be reduced to 30-40% now to replace 40W incandescent lamp, LED bulb price fell to 20-30 yuan, street decline. But can also fall into the mainstream price of thousands of yuan, to accelerate the penetration of beneficial LED. In addition, lamps, driving technology, testing.

In May 7th, the Ministry of science and technology "semiconductor lighting technology development" 12th Five-Year "special plan (Draft)", put forward to 2015: LED lighting industry reached 500 billion yuan, LED lighting products accounted for 30% of the general lighting; cultivate 20-30 leading enterprises, built 20 national industrial bases and 50 "ten City million a pilot demonstration city. At the same time, the plan also pointed out that in 12th Five-Year the 80% chip nationalization, light efficiency, cost down to 1/5.

The current LED chip accounted for nearly 60% of the cost of the lamp light chip can drive the price estimates, the lighting costs dropped by nearly 50%; and the package technology upgrading and high efficiency and low cost driving circuit popularization, lamps cost can be reduced to 30-40% now to replace 40W incandescent lamp, LED bulb price fell to 20-30 yuan, street decline. But can also fall into the mainstream price of thousands of yuan, to accelerate the penetration of beneficial LED.

In addition, lamps, driving technology, testing equipment, such as the development of national standards, as well as the popularity of the EMC model, but also for the period of 12th Five-Year to open the market to play a role in promoting LED lighting.

The first round of bidding LED subsidies will soon be out of the results, may be no less than 5 times in Beijing in March 20th this year is the first round of bidding, as we mentioned in the report of the 8 billion subsidy, but the amount is not large, about 2 million of indoor light lamp, lamp, tens of thousands of lights, the amount is only 200 million yuan. As a result of the company as a tool to fight the brand, gave a very low price, no significant contribution to the company's performance.

110 companies participated in the bidding enterprises, can offer the same type of product is more than ten times, the traditional lighting companies offer lower tender results will be announced in the near future batch, time should be before the end of June this year, the bidding may be no less than 5 times.

We believe that the first round of bidding subsidies greater symbolic significance, and the tender requirements (higher requirements at the same time have compulsory certification and certification of such restrictions), with targeted subsidies for ten enterprises, the focus of subsequent subsidy and support the way will be more obvious, with core competitiveness and brand enterprise benefit. Associated with the A shares of the company, on the ground, the sun, the NVC (Ruifeng and NVC cooperation LED packaging production line is expected to bid). The policy stimulus, although LED boom will further enhance the upstream planned capacity is large, but after the second half of last year's cold, a lot of expansion plan has been sluggish or even canceled, and from a policy perspective, the leading enterprises will focus on support, to enable the industry to further enhance the degree of concentration.

On the external market, Japan this year, a comprehensive cessation of nuclear power, there is a large demand for LED, Taiwan plans to replace all of the three LED street lights, to help digest the external capacity.

To the end of the first quarter, LED industry boom picked up, backlight and lighting needs in large numbers, the visibility of orders back to two months or so, the operating rate compared to the big promotion, leading the company even close to full, we believe that with the 12th Five-Year introduction of special planning and financial subsidies continues, LED boom will be further upward.

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