Behind the Shenzhen LED Abolition: The negative effects of the target set by the Xu Zongheng era
The Shenzhen Municipal Development and Reform Commission issued a positive response to the reporter on the abolition of the Shenzhen LED Industry Development Plan (2009-2015) (hereinafter referred to as the “Planningâ€) in March this year.
On May 15, the Shenzhen Municipal Development and Reform Commission said in a reply letter to the reporter that Shenzhen LED industry planning has lost the need to continue to retain because there are other corresponding planning documents and higher-level policy documents.
In March of this year, the Plan was suddenly declared abolished without any warning. At that time, the Shenzhen Municipality did not explain the reasons for the abolition, which led to various speculations in the market.
The reporter's investigation found that the plan was actually introduced under the leadership of the former mayor of Shenzhen, Xu Zongheng.
Shenzhen has no LED special plan
The Shenzhen Development and Reform Commission stated in the letter that in March 2009, the Shenzhen Municipal Government promulgated the “Planningâ€. At the end of December 2011, the Shenzhen Municipal Government promulgated the “Shenzhen New Generation Information Technology Industry Revitalization Development Plan (2011-2015). Year) and "Shenzhen New Generation Information Technology Industry Revitalization Development Policy". The Shenzhen Development and Reform Commission explained that this industrial plan and its supporting policies have covered the LED industry, and its coverage is wider, and it is more closely integrated with the national industrial policy and the industrial development of Shenzhen.
In May 2012, the Guangdong Provincial Government promulgated the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Provinceâ€; in September of that year, the Shenzhen Municipal Government promulgated the “Implementation Plan for the Promotion and Application of LED Lighting Products in Shenzhen†to promote the application of LED lighting products. Support the development of LED industry.
The Shenzhen Municipal Development and Reform Commission believes that as a policy to support the development of the LED industry in Shenzhen, the “Shenzhen New Generation Information Technology Industry Revitalization Development Policy†and the “Shenzhen Promotion and Application LED Lighting Product Implementation Plan†respectively have corresponding planning documents and higher-level policy documents. The Plan has lost the need to continue to retain. In view of this, the Shenzhen Municipal Government Office announced in March 2013 that the plan was abolished.
The reporter reviewed the "Shenzhen New Generation Information Technology Industry Revitalization Development Plan", which mentioned the major projects including the next generation information network, mobile Internet, cloud computing, Internet of Things, etc., involving the LED industry only "supporting green lighting such as LED" Product use and promotion "to overcome the common key technologies of the LED lighting industry, and actively carry out LED lighting product application demonstration project" and a few other content.
The abolished "Planning" elaborates on the development foundation, problems, development goals, development priorities and safeguard measures of the Shenzhen LED industry, which can be described as "tailor-made" for the industry.
Immediately after the abolition of the "Planning", it caused widespread concern, and even pessimists believed that "the LED industry was abandoned by Shenzhen."
An official of the Shenzhen Municipal Government told the reporter privately that it is currently promoting LED in Guangdong Province. There is no special project in Shenzhen. The city is only pushing the province.
Xu Zongheng once led the introduction of "Planning"
Behind the abolition of the "plan", many industry insiders speculate that it may have a certain relationship with the high-level government changes in the dominant plan.
"This policy is dominated by Xu Zongheng." Xu Fengyun, former vice president of NVC Lighting, said in an interview.
On December 22, 2008, Xu Zongheng, then the mayor of Shenzhen, hosted a meeting overnight to promote the LED industry to form a cluster of high-end industries. He said at the meeting: "The previous municipal committees and municipal governments have not missed any opportunities in industrial development. What we are doing today may be a historically significant event that may support a major industry because LEDs have great potential. The sunrise industry is an energy-saving and emission-reducing industry and an industry that conforms to the scientific development concept."
On February 3, 2009, Xu Zongheng further proposed in the discussion with the representatives of the public that LED is a sunrise industry. There are more than 700 LED companies in Shenzhen, accounting for 1/10 of the country. However, the scale of the manufacturers is small and the industrial concentration is weak. . Shenzhen will arrange land in the Guangming area. The government will provide a public R&D industry platform to increase industrial agglomeration as soon as possible. At the same time, it will require relevant government departments to launch LED demonstration projects, and said that it will “promote relevant support measures within one monthâ€.
On the afternoon of February 5, 2009, Xu Zongheng presided over the 128th executive meeting of the 4th Shenzhen Municipal Government, researched and reviewed and approved in principle a series of policy documents supporting the development of the LED industry.
One month later, on March 7, 2009, the "Plan" was officially issued. But shortly afterwards, Xu Zongheng was taken away for investigation because of alleged serious violations.
LED policy is said to be too radical
The reporter was informed that in the four years after the introduction of the "Planning", it did not achieve the desired effect, and the negative effects have become increasingly apparent.
Xu Fengyun said that because of the support policies of various places, the entire LED industry has entered a very chaotic and disorderly state, and a large number of LED support policies have been introduced in various places. "Basically, you build a chip stove in me, and I will give you a subsidy. Now these projects have been put into production, and there is a serious overcapacity." He said, "I think this industry will definitely follow the footsteps of photovoltaics."
According to media reports, since 2011, several billion-level LED companies such as Haoduoli, Haobo Optoelectronics, Bolent and Vision Optoelectronics have been closed down. Among the key enterprises listed in the “Planningâ€, Duo Duo is among them.
On the one hand, overcapacity enterprises have closed down, on the other hand, they should be big but not big. The medium and long-term goal of the "Planning" proposes that by 2015, more than one enterprise with an output value of more than 10 billion yuan and two or three enterprises with an output value of more than 5 billion yuan will be cultivated and more than 10 enterprises with an output value of more than 1 billion yuan.
The reporter found that among the major LED listed companies in Shenzhen, Ruifeng Optoelectronics (300241, SZ) last year's revenue was 500 million yuan, Lehman Optoelectronics (300162, SZ) 320 million yuan, Chau Ming Technology (300232, SZ) 6.1 billion yuan, Lianjian Optoelectronics (300269, SZ) 530 million yuan ... and 5 billion yuan, 10 billion yuan is far from the same.
A person in charge of a local LED lighting company in Shenzhen said in an interview that the abolition of the "plan" is an act of the government tending to be rational. As for the impact of the abolition of the "Planning", Li Mantie believes that it is not very large. The government support mainly includes two aspects, one is the lighting project led by the government, and the other is government subsidies. Lighting projects are now promoted by Guangdong Province, the government subsidies this piece, Shenzhen itself is not a large amount, because the LED industry in Shenzhen, so many industries, the capacity is still small.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
On May 15, the Shenzhen Municipal Development and Reform Commission said in a reply letter to the reporter that Shenzhen LED industry planning has lost the need to continue to retain because there are other corresponding planning documents and higher-level policy documents.
In March of this year, the Plan was suddenly declared abolished without any warning. At that time, the Shenzhen Municipality did not explain the reasons for the abolition, which led to various speculations in the market.
The reporter's investigation found that the plan was actually introduced under the leadership of the former mayor of Shenzhen, Xu Zongheng.
Shenzhen has no LED special plan
The Shenzhen Development and Reform Commission stated in the letter that in March 2009, the Shenzhen Municipal Government promulgated the “Planningâ€. At the end of December 2011, the Shenzhen Municipal Government promulgated the “Shenzhen New Generation Information Technology Industry Revitalization Development Plan (2011-2015). Year) and "Shenzhen New Generation Information Technology Industry Revitalization Development Policy". The Shenzhen Development and Reform Commission explained that this industrial plan and its supporting policies have covered the LED industry, and its coverage is wider, and it is more closely integrated with the national industrial policy and the industrial development of Shenzhen.
In May 2012, the Guangdong Provincial Government promulgated the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Provinceâ€; in September of that year, the Shenzhen Municipal Government promulgated the “Implementation Plan for the Promotion and Application of LED Lighting Products in Shenzhen†to promote the application of LED lighting products. Support the development of LED industry.
The Shenzhen Municipal Development and Reform Commission believes that as a policy to support the development of the LED industry in Shenzhen, the “Shenzhen New Generation Information Technology Industry Revitalization Development Policy†and the “Shenzhen Promotion and Application LED Lighting Product Implementation Plan†respectively have corresponding planning documents and higher-level policy documents. The Plan has lost the need to continue to retain. In view of this, the Shenzhen Municipal Government Office announced in March 2013 that the plan was abolished.
The reporter reviewed the "Shenzhen New Generation Information Technology Industry Revitalization Development Plan", which mentioned the major projects including the next generation information network, mobile Internet, cloud computing, Internet of Things, etc., involving the LED industry only "supporting green lighting such as LED" Product use and promotion "to overcome the common key technologies of the LED lighting industry, and actively carry out LED lighting product application demonstration project" and a few other content.
The abolished "Planning" elaborates on the development foundation, problems, development goals, development priorities and safeguard measures of the Shenzhen LED industry, which can be described as "tailor-made" for the industry.
Immediately after the abolition of the "Planning", it caused widespread concern, and even pessimists believed that "the LED industry was abandoned by Shenzhen."
An official of the Shenzhen Municipal Government told the reporter privately that it is currently promoting LED in Guangdong Province. There is no special project in Shenzhen. The city is only pushing the province.
Xu Zongheng once led the introduction of "Planning"
Behind the abolition of the "plan", many industry insiders speculate that it may have a certain relationship with the high-level government changes in the dominant plan.
"This policy is dominated by Xu Zongheng." Xu Fengyun, former vice president of NVC Lighting, said in an interview.
On December 22, 2008, Xu Zongheng, then the mayor of Shenzhen, hosted a meeting overnight to promote the LED industry to form a cluster of high-end industries. He said at the meeting: "The previous municipal committees and municipal governments have not missed any opportunities in industrial development. What we are doing today may be a historically significant event that may support a major industry because LEDs have great potential. The sunrise industry is an energy-saving and emission-reducing industry and an industry that conforms to the scientific development concept."
On February 3, 2009, Xu Zongheng further proposed in the discussion with the representatives of the public that LED is a sunrise industry. There are more than 700 LED companies in Shenzhen, accounting for 1/10 of the country. However, the scale of the manufacturers is small and the industrial concentration is weak. . Shenzhen will arrange land in the Guangming area. The government will provide a public R&D industry platform to increase industrial agglomeration as soon as possible. At the same time, it will require relevant government departments to launch LED demonstration projects, and said that it will “promote relevant support measures within one monthâ€.
On the afternoon of February 5, 2009, Xu Zongheng presided over the 128th executive meeting of the 4th Shenzhen Municipal Government, researched and reviewed and approved in principle a series of policy documents supporting the development of the LED industry.
One month later, on March 7, 2009, the "Plan" was officially issued. But shortly afterwards, Xu Zongheng was taken away for investigation because of alleged serious violations.
LED policy is said to be too radical
The reporter was informed that in the four years after the introduction of the "Planning", it did not achieve the desired effect, and the negative effects have become increasingly apparent.
Xu Fengyun said that because of the support policies of various places, the entire LED industry has entered a very chaotic and disorderly state, and a large number of LED support policies have been introduced in various places. "Basically, you build a chip stove in me, and I will give you a subsidy. Now these projects have been put into production, and there is a serious overcapacity." He said, "I think this industry will definitely follow the footsteps of photovoltaics."
According to media reports, since 2011, several billion-level LED companies such as Haoduoli, Haobo Optoelectronics, Bolent and Vision Optoelectronics have been closed down. Among the key enterprises listed in the “Planningâ€, Duo Duo is among them.
On the one hand, overcapacity enterprises have closed down, on the other hand, they should be big but not big. The medium and long-term goal of the "Planning" proposes that by 2015, more than one enterprise with an output value of more than 10 billion yuan and two or three enterprises with an output value of more than 5 billion yuan will be cultivated and more than 10 enterprises with an output value of more than 1 billion yuan.
The reporter found that among the major LED listed companies in Shenzhen, Ruifeng Optoelectronics (300241, SZ) last year's revenue was 500 million yuan, Lehman Optoelectronics (300162, SZ) 320 million yuan, Chau Ming Technology (300232, SZ) 6.1 billion yuan, Lianjian Optoelectronics (300269, SZ) 530 million yuan ... and 5 billion yuan, 10 billion yuan is far from the same.
A person in charge of a local LED lighting company in Shenzhen said in an interview that the abolition of the "plan" is an act of the government tending to be rational. As for the impact of the abolition of the "Planning", Li Mantie believes that it is not very large. The government support mainly includes two aspects, one is the lighting project led by the government, and the other is government subsidies. Lighting projects are now promoted by Guangdong Province, the government subsidies this piece, Shenzhen itself is not a large amount, because the LED industry in Shenzhen, so many industries, the capacity is still small.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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