Tianlong Optoelectronics: Benefiting National Policy is expected to improve next year

"New Industry" reporter Luo Gemei

Tianlong Optoelectronics (300029.SZ) announced on the evening of October 17 that its holding subsidiary Jiangsu Zhonghao Semiconductor Equipment Co., Ltd. had received the Jintan Finance Bureau and Jintan Science and Technology Bureau on October 15. "Notice on the 12th batch of provincial-level scientific and technological innovation and transformation of achievements (significant transformation of major scientific and technological achievements) in 2012, will receive a total of 15 million yuan from the Science and Technology Department of Jiangsu Province, of which 12 million yuan will be funded. The discount is 3 million yuan, and the annual appropriation is 8 million yuan.

Lu Song, the secretary of Tianlong Optoelectronics, told the "New Industry" that the relevant state departments will subsidize the subsidies in phases according to the progress of the company's project implementation. Regarding whether the government subsidy will improve the performance of Tianlong Optoelectronics, which has been losing money since the beginning of this year, Lu Song said that it is still unclear.

Tianlong Optoelectronics previously estimated that the net profit attributable to shareholders of listed companies from January 1, 2012 to September 30, 2012 was 83 million yuan to 88 million yuan, down 190% to 210% over the same period of the previous year. The company explained that since the second half of last year, the photovoltaic industry has been affected by overseas policies and short-term surplus of the industry. The company's new orders have dropped sharply, resulting in a significant decrease in the company's main business sales compared with the same period last year.

In recent days, the support policies of the photovoltaic industry intensively introduced by relevant government departments in China have made the relevant equipment enterprises represented by Tianlong Optoelectronics feel the signs of recovery.

"Benefiting from the newly released solar power generation '12th Five-Year Plan' and the recent proposal of the National Development and Reform Commission to support the photovoltaic industry, as well as the environmental impact of the entire industry, it is expected that Tianlong Optoelectronics' performance will gradually improve from next year." Lu Song said that the National Development and Reform Commission recently Intensive organization of various functional departments to study and formulate support for the development of the photovoltaic industry, and as one of the most important financial support departments, CDB has also recently completed recommendations on further strengthening financial credit to support the healthy development of the photovoltaic industry, focusing on ensuring "six big six small "12 PV companies credit line.

From the perspective of financing, the 12 PV companies are undoubtedly a gift in the snow. As some of the above companies are Tianlong Optoelectronics customers, Lu Song said that this will be good news for the company's future performance. "According to the plan, China's solar power installed capacity reached 21 million kilowatts (21G W) or more at the end of 2015, which means that China's photovoltaic power generation capacity is expected to expand more than six times in the next three years."

Lu Song said that from the recent trends, the relevant departments still encourage the rapid development of the domestic PV market and hedge against the “double-reverse” risks in Europe and the United States, which will have a positive impact on all enterprises in the PV industry chain.

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