2012 semiconductor lighting products financial subsidy bidding "price chaos" behind

[Source: "High-tech LED - Research and Review" April issue / reporter Hu Yanling] Recently, the "2012 semiconductor lighting product financial subsidy promotion project" organized by the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Science and Technology was carried out at the Beijing Meiquan Palace Hotel. In the open tender, 110 companies from all over the country participated in the bidding.

Compared with the bidding of 94 companies in August 2010, the number of participating companies did not increase significantly. However, the “quotation confusion” that appeared in the last bidding was once again staged.

Behind low prices
The 536 products of 110 companies participated in the bidding. From the price of the bidding products, the price difference between the products of the same type and the same specification is very large, and the price difference of the LED street lamps is particularly obvious. For example, the high-priced LED street lamp with a specification of 9000 lm can reach 9200 yuan, but the low price is only 920 yuan; the high price of LED street lamp with a specification of 14000 lm actually reaches 11,000 yuan, while the low price is only 1062 yuan.

Chen Bin, general manager of Guangdong Zhonglong Transportation, told the reporter that the current market price of LED street lamps is 20 ¥/W, and the price will not exceed 20%. The power of 9000lm street lamps is between 80-100 watts, and the market price is around 1800 yuan.

"Even if the cost price is not likely to be as low as this level," Peng Guangyuan, assistant chairman of Longteng Lighting, told Gaogong LED reporter that the cost of 9000lm LED street light will not be less than 1,000 yuan.

In this way, isn’t the company bidding for a loss?

In this regard, many LED street lamp companies responsible for it did not agree. One of the responsible persons told reporters: "No company can make a loss or purchase. They dare to report low prices in order to get subsidies."

"The idea of ​​many companies is to squeeze in and say it," industry insiders said.

It is reported that the subsidy funds for this tender will be indirectly subsidized, and the financial subsidies will be given to the winning bidders, and then the winning bidders will sell the products to the end users at the price after the bidding agreement minus the financial subsidy funds.

“Because the LED streetlight project is a more complex project, the cost of the project is not just a streetlight product. This includes such things as construction costs and subsequent maintenance costs. The price of LED streetlights is only part of it.” Assistant Director of the East, Pi Chunjiao told reporters.

“After winning the bid, the price can be negotiated when the specific project is purchased. The price of the product won't be the final price of the project.” A company official who participated in the bidding of the LED street light product told the “High-tech LED” reporter, “ The companies that squeeze in have undoubtedly have the right to coordinate the price of the project with the local government."

At the same time, although the government chooses the winning bidder to examine the comprehensive strength of the company, low price is not the only winning bid. However, as a public bidding for financial subsidies for LED lighting, will the low prices quoted by bidding companies impact the LED streetlight market? In this regard, Chen Bin told the reporter of "High-tech LED": "The impact will definitely be there. For example, other project parties will see the price of the street lamp for this bid, and he may also ask the bidder at the same price."

Peng Guangyuan expressed different opinions: "The relationship between LED streetlight projects is very complicated, and the relationships involved are intertwined and have their own pricing methods. How the market will proceed will not be affected."

Traditional lighting companies offer low prices
It is understood that the ultra-low-priced reporters at the tender meeting are basically traditional lighting companies. Lv Xubo, president of Ningbo Liaoyuan Marketing, pointed out that since traditional lighting companies have just begun to enter the LED field, they have not done similar government projects before, and they are not very familiar with some of the later investments, so this will happen. Companies that have done these projects before have never dared to bid at low prices.

Cai Yao, assistant to the president of Shenghui Lighting, said that such a spread does not rule out some malicious competition, but in fact it is a decision made by different companies based on different starting points.

It is reported that the bid evaluation committee will conduct a comprehensive evaluation of the bidding products, and the percentage system will be selected. The bidders will select no more than 10 bidders per package as the winning bidder. Among them, the product quality accounts for 45 points, and the product price accounts for 32 points (the lowest price is 32 points).

Lu Xubo said that because only about five companies were selected in a project, in order to be able to grab the order, everyone is desperately pushing down the price. Some companies offer the price of the next year's chip price to calculate the cost.

The ultra-low price, how to guarantee the income is the primary problem facing the enterprise.

Insiders pointed out that most companies just want to be famous and expand their influence. "Many listed companies simply rely on this to expand the influence of the company, thereby driving the appreciation of the stock to profit from it." Lu Xubo said to "High-tech LED."

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