Sanan Optoelectronics received 13 government subsidies totaling over 1.8 billion
According to statistics, this is the 13th financial subsidy that Sanan Optoelectronics (including its holding subsidiaries) has received this year, and the total subsidies involved are 1.802 billion yuan.
The total amount exceeds 1.8 billion yuan
The first financial subsidy received by Sanan Optoelectronics this year occurred on January 11th. According to the “Investment Cooperation Agreement of Sanan Optoelectronics Wuhu Photoelectric Industrialization Project†signed by the company and the Wuhu Municipal People’s Government of Anhui Province, the Wuhu Municipal People’s Government will The corresponding proportion of subsidies is given according to the progress of purchasing MOCVD equipment.
MOCVD is a key device in the field of LED chips, and Sanan Optoelectronics purchased 107 units from US and German companies. On the same day, the company received a total of 89.52 million yuan from the Wuhu Municipal People's Government for 15 units of equipment.
Subsequently, the Wuhu Municipal People's Government continued to subsidize equipment purchases for Sanan Optoelectronics. The company issued announcements on February 22, March 1, March 8, March 25 and May 19, respectively, and received a total of 416 million yuan in subsidies for MOCVD equipment.
In addition to this subsidy, Sanxin Optoelectronics Technology Co., Ltd., a subsidiary of Sanan Optoelectronics Co., Ltd., received a subsidy of 500 million yuan from the Huainan Municipal Government of Anhui Province to purchase related production equipment. In addition, on June 29 this year, Rixin Photovoltaic Technology Co., Ltd. also received a total of 450 million yuan of subsidies for the “three science and technology†funds allocated by the Finance Bureau of Huainan High-tech Industrial Development Zone.
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According to the statistics of the roots, Sanan Optoelectronics has received 13 subsidies totaling 1800,197 million yuan this year.
An insider of Sanan Optoelectronics said that the company’s profits after deducting government subsidies have increased substantially year by year, and not all subsidies are included in the current profit and loss. For example, equipment subsidies are included in deferred expenses. The useful life of the equipment is amortized.
Subsidized double-edged sword
He is a senior researcher at China Investment Consulting. He said that Sanan Optoelectronics is mainly engaged in the production of LED and photovoltaic products, and these areas are also the focus of government subsidies. As an emerging industry, it is understandable that the government will increase investment and subsidies, because these industries are still in the early stage of development, with large investment and good prospects for future development.
He Zaihua said that for Sanan Optoelectronics, the government's huge subsidies have effectively increased the company's profitability, but Sanan Optoelectronics should increase the technological development by using these subsidies, so it must not slow down the pace of development, otherwise it will not be worth the candle.
Subsidies can help companies accelerate their development and play an important role in strengthening the industry's position. However, there are also outsiders who question that Sanan Optoelectronics' current performance is supported by subsidies. The above-mentioned Sanan Optoelectronics insiders do not like this statement. He said that while receiving government subsidies, the company's main business is also growing substantially. Because LED products have the characteristics of energy saving and environmental protection, they can not only create commercial value, but also bring great social value, so they can get strong support from the government.
He Zaihua said that whether the profit of the enterprise after the subsidy is over is largely determined by how the company uses these subsidies to promote the development of its business. If Sanan Optoelectronics can make full use of government subsidies, vigorously develop its main business, and promote the growth of the company's overall strength and the improvement of its operating level, the company's own business scale will be large enough to support the company's sustainable development after the subsidy is over. The impact of subsidies on company earnings will naturally be smaller. On the other hand, if Sanan Optoelectronics fails to make full use of government subsidies and does not promote the sustainable development of the company's business, once the subsidy is over, the company's earnings will be hit.
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