LED benefit delivery chain "surfaced"

The last appearance of Li Xinghua, director of the former Department of Science and Technology of Guangdong Province, was on July 23.

On the same day, Li Xinghua participated in the 8th provincial representative meeting of the Guangdong Provincial Science and Technology Association and was elected as the vice chairman of the 8th session of the Provincial Association for Science and Technology. Subsequently, Li Xinghua headed the team to go to Guangdong Radio's "people voice hotline" live show. During the program, Li Xinghua responded “corruptly” to the Guangzhou Municipal Science and Technology System Corruption Case and stated that the Provincial Science and Technology Department had already investigated the risk points of corruption and strengthened anti-corruption work.

It is ironic that after just three days, the Disciplinary Committee of the Guangdong Province disclosed to the public that Li Xinghua was under investigation for his suspected disciplinary violations. After two months of continuous investigation, on August 12th, the reporter of the Times Weekly News learned exclusively from a spokesperson of the Provincial Commission for Discipline Inspection that “currently Li Xinghua is on file”.

The 55-year-old Li Xinghua, who entered the position of director in 2007, has been committed to promoting the development of the LED industry in Guangdong Province and is closely related to a number of LED companies in the province. Li Xinghua's dismissal was a huge shock to LED companies in Guangdong Province.

From July 25th, the share prices of LED listed companies in many Guangdong provinces, including Qinshang Optoelectronics, BDO Runda, Foshan Lighting, Lehman Optoelectronics, and Chau Ming Technology, fell drastically.

Although the Guangdong Provincial Commission for Discipline Inspection has not publicly announced the specific reasons for Li Xinghua's investigation, it has been widely speculated that Li Xinghua's problems were mainly concentrated on the evaluation of LED research projects and the distribution of funds.

"The Provincial Department of Science and Technology holds 450 million yuan of special funds for the development of the LED industry each year. To compete for the funds, companies have sharpened their heads," said an industry insider who is familiar with the subsidy. And government resources are the key to getting special funds. There must be great power for rent-seeking space."

With the in-depth investigation of the reporter, a benefit chain centered on the application and approval of scientific research projects by the Science and Technology Department gradually emerged. Among them, the “Guangdong Province Semiconductor Lighting Industry Co-Innovation Center” initiated by Li Xinghua and joined by a number of leading LED companies. It plays a pivotal role.

All indications indicate that the investigation of the Provincial Commission for Discipline Inspection has deepened Li Xinghua's interest chain. According to an insider’s report to the Times Weekly reporter, there was a “semi-official” association person in Nanhai and Shunde each week who was taken away to assist in the investigation.

In this regard, the reporter interviewed a number of LED companies in the province, the relevant corporate executives are deeply secretive about Li Xinghua.

On August 13, the reporter found in the Science and Technology Department of Guangdong Province that the Science and Technology Department is quite calm. “The investigation work was mainly conducted by the Commission for Discipline Inspection. Before the investigation results came out, the Science and Technology Department was not convenient to express opinions,” the relevant person in charge of the Science and Technology Department told the reporter of the Times Weekly. Now, the Science and Technology Department is chaired by a deputy secretary and everything is normal.

Before Li Xinghua's case became clear, the public was even more concerned about how many companies and institutions were able to stay out of the chain of interest and how much would be involved.

Abuse of scientific research subsidies as the main reason

In fact, the disciplinary inspection department's investigation of the Guangdong science and technology system has already appeared.

On May 20 this year, the Guangzhou City Commission for Discipline Inspection inspected revealed that it is investigating the serious violations of laws and regulations by individual officials of the City Science and Information Bureau.

Although in the clean government building meeting held on June 7th by the Provincial Department of Science and Technology, Li Xinghua said that “the accident of a city’s science and information bureau is painful”, but this meeting did not stop the expansion of corruption cases in the science and technology system.

On June 20, Xie Xuening, director of the Guangzhou Branch of the Bureau of Letters and Science, was suspected of committing serious violations of the law and was investigated and dealt with. He was transferred to the judicial authorities for investigation on economic crimes. According to the outside world, Xie Xuening’s resignation was the trigger for Li Xinghua’s accident and scientific research projects. The transfer of benefits resulting from the issuance of approvals and research subsidies may well be the main reason for the investigation of the science and technology system.

According to the “Opinions on Implementing the State Council's Deployment to Accelerate the Cultivation and Development of Strategic Emerging Industries” proposed by Guangdong Province in August 2011, semiconductor lighting, one of the three major high-tech industries in Guangdong Province, is led by the Science and Technology Department.

Data show that the output value of LED industry in Guangdong Province has already exceeded 210 billion, accounting for nearly 45% of the country's total, and the industry scale ranks first in the country. However, behind the scenery data, the LED industry has relied too much on financial chaos. It has long been seen by the outside world. On July 23rd, Li Xinghua participated in the "People's Voice Hotline" program. The general manager of a technology company was right. It pointed out that many LED companies are currently focusing on the project in order to compete for special subsidy funds, almost gave up on the development of science and technology, which Li Xinghua expressed disagreement on the spot. In his opinion, it is difficult for enterprises to develop government funds alone.

However, the actual situation is that financial subsidies have become an important means for companies to survive and even develop. Data show that the development of the LED industry, Sanan Optoelectronics, BDO Runda, with the support of local governments, both have net profit growth of more than 100% in 2011, of which, government subsidies accounted for 79% of BDO Runda's profits. The contribution rate to Sanan’s net profit is even as high as 90%.

“A lot of listed companies have only one or two million profit a year, but the subsidies can reach tens of millions or hundreds of millions, which is too temptation for companies.” Dr. Zhang Xiaofei, president of Gaogong LED, who has long paid attention to the LED industry, told the Times Weekly. Analysis.

What is more serious is that huge subsidies will inevitably bring about room for exchange of interests. Guangdong Provincial Science and Technology Department holds 450 million yuan every year to set up a special right to develop LED industry development funds. It will undoubtedly become the target of LED companies' major drilling operations and public relations.

It is understood that there are more than 6,000 LED companies in Guangdong Province, but only about 100 enterprises can receive subsidies every year.

“In order to compete for this special fund, companies have sharpened their heads,” an industry source who declined to be named told reporters. “We can get government subsidies or projects, in addition to the minimum scientific research strength, the relationship with the government It's important that everyone has the same level and the relationship is good. The project will get it."

"PR costs" 3 million start
So, how can an LED company get a good relationship with Li Xinghua, who has mastered the scientific research project's power of approval, so as to gain the initiative in obtaining the project? With the deep investigation of the reporter, an institution named "Guangdong Province Joint Innovation Center for Semiconductor Industry" (hereinafter referred to as "Innovation Center") gradually emerged.

The main function of the Innovation Center's external publicity is only to provide information services for the company's innovation and research and development. But judging from the sponsors of the Innovation Center, this innovation center is not simple. The Innovation Center was initiated by the Guangdong Provincial Department of Science and Technology. The sponsors include 21 leading LED companies in Guangdong, such as Qinshang Optoelectronics, Lehman Optoelectronics, BDO Runda, and Chau Ming Technology.

What is even more embarrassing is that the innovation center has a registered capital of 63 million yuan. Most of the registered capital comes from LED companies that are sponsors. According to the reporter’s understanding, each company’s share of the cost of joining the innovation center is as high as 3 million yuan.

According to the address provided by the website of the Innovation Center, on August 13, the reporter found the office of the Innovation Center in Guangzhou in an outlying corner of the Science and Technology Department Building. The area is less than 20 square meters, and only three staff members work in the office.

According to one of the staff members, this office is mainly connected to the Office of Science and Technology. The headquarter of the Innovation Center is located in Nanhai, Guangdong Province. The above staff was very excited about the reporter’s question on paying a high share subscription fee. “The 3 million equity fee is definitely There will be revenue. The center can help public relations science and technology department, the Department of Science and Technology's scientific research projects, a project at least tens of millions."

As for the use of the share subscription fee, the staff member is not very clear. “We will also conduct some research, and some of the expenses will be used to fund the activities.”

The reporter repeatedly asked Qu Shirong, director of the Innovation Center, but he was rejected by the meeting as the reason.

“This organization is in fact a platform for good relations with the government. The purpose is to allow companies to get research projects.” An industry insider who declined to be named told reporters bluntly.

According to the introduction of the staff of the Science and Technology Department, the approval process for science and technology projects requires that companies report the project first, and then the Science and Technology Department organizes experts to score the project and pass the score, which is then reported to the Science and Technology Department for approval.

"Expert review is more of a form," said Wang Xianqing, director of the Institute of Circulation Economics at Guangdong University of Finance and Economics who has participated in the review of some scientific research projects. According to Wang Xianqing, even though experts scoring are randomly sampled from the expert database, these experts have no time to understand the project and the company in the face of a huge number of projects. The ultimate report is that companies with relatively high level relations with the Science and Technology Department.

Even a number of innovation centers sponsored enterprises and their innovation centers are quite a few words. "The original intention of this institution was good," said Gao Weihua (a pseudonym), a lighting company owner who is one of the organization's sponsors. He said to the Times Weekly reporter that "only problems have arisen in the actual operation."

According to Gao Weihua's introduction to the Times Weekly reporter, at that time, people from the Innovation Center took the initiative to come and find him. After paying 3 million shares, his company became the center's initiator. “Even if you join the Innovation Center, but you don’t engage in the relationship, The chance of project approval is not great, and many companies that really want to engage in research and development do not receive funds."

According to a science and technology research project list obtained by a reporter, it can be found that Qinshang Optoelectronics has obtained 2 provincial-level strategic emerging industry special fund LED projects. According to sources in the industry, Li Xuliang, President of Qinshang Optoelectronics, has been closely associated with Li Xinghua, and when the president of Shenzhen Capital International Investment Co., Ltd. Jin Haitao invested in Optoelectronics, it was inseparable from Li Xinghua’s matchmaking.

In this regard, the reporter interviewed Li Xuliang, but as soon as Li Xinghua was dismissed, Li Xuliang quickly hung up the phone and the project list showed that companies including the Innovation Center of Zhou Ming Technology, TCL, and BDO Runda were basically available. LED research projects. This phenomenon has also been confirmed by Gao Weihua. "After joining, you may not get a project, but the chance is much greater."

Studying Government Projects Finely by Scientific Research

According to the materials of the special LED R&D fund of the Science and Technology Department, the amount of subsidies for scientific research projects is at least 10 million, and the maximum amount is 50 million. "Subsidies, companies often boast about scale and technical content in the application of the project, the article is very beautiful, but in the end only for the funds. Planning can not be achieved." Wang Xianqing told reporters.

After the company obtains special funds, there will not be too much pressure for scientific research. “The scientific research project is allowed to fail. After the failure, the government only recovers the unused scientific research funds.” A staff member of the Innovation Center acknowledged the reporter. This also led to many companies' research projects like a dice trade, and even worse, some business owners run away after taking the funds.

In contrast, the interests of some leading companies are not limited to research funding. “Scientific research projects are only a stepping stone for government procurement and engineering projects, and the latter’s profit will be mostly.” A core person familiar with the situation disclosed to the Times Weekly.

It is understood that with the acceleration of the progress of LED public lighting promotion in Guangdong Province, government procurement and public lighting projects have become more and more LED companies scramble for the "Xiang Yao." The company that has obtained the LED special technology R&D qualification from the Science and Technology Department has a lot of advantages in winning the bid.

The general tendering of government projects is open and strict, but it is taken for granted that companies with scientific research projects of the Science and Technology Department are favored during tendering, which has caused many companies to increase the bargaining power of winning government projects by obtaining scientific research projects of the Science and Technology Department.

“The government project will certainly consider the promotion of the research results of the Science and Technology Department.” In response, Deng Shoutie, public relations manager of Hongli Optoelectronics, confirmed this.

The road behind the road

Behind the leading companies rushing to grab scientific research projects and engineering projects, a large number of low-end LED companies at the bottom of the industry are devastated.

On August 10, No. 15, Ankang Road, Guzhen Town, Zhongshan City, the door of Xiongji Lighting Factory was open and the factory building was in a mess. In early July, Xie Kee Lighting Factory owner Xie Yingxiong suddenly evaporated and owed as much as RMB 40 million in various payments. According to local people's memories, the employees who had recovered wages and the suppliers who had recovered the debts had surrounded the factory several times. The angry debt collectors evacuated all the valuable things in the factory building.

Xie Yingxiong's running path is only a microcosm of the running of the LED enterprise owners in Guangdong Province. As early as June 2012, Xing Yi, the owner of Shenzhen Vision Electronics Co., Ltd., with a scale of over 100 million, ran, and in August, the ancient town of Kabang, Zhongshan, owner of the lighting. Bring bright money to abscond, and this year, a number of provincial banks for LED corporate loan warning, but also makes many LED companies worse.

"The industry gap is too great, and upstream companies are doing very well, but more companies can only rely on low-priced dumping and vicious competition." Zhang Xiaofei told the Times Weekly reporter. Compared with the leading listed companies that can obtain support and subsidies from government policies, the downstream low-end companies have been very difficult to survive.

“In the view of the industry, the collapse of most companies is only the result of reshuffling in this industry.” Xiong Yingxiang, who once had failed to manage LED companies, but now has a comeback, expressed to reporters that in his opinion, the current policy support is good. However, in the specific implementation, the phenomenon of power rent-seeking will lead to the stronger the stronger and the weaker the weaker. "This is not fair to many LED companies. After all, there are hundreds of thousands of families behind each failed company."

In the eyes of professionals in the industry, Li Xinghua's fall is the inevitable result of the government's reform of the examination and approval system. Guangdong's three emerging industries, LED lighting led by the Department of Science and Technology, electronic information led by the Bureau of letters and letters, led by the National Development and Reform Commission new energy vehicles, and with Liu Tiexi, Xie Xuening, Li Xinghua's successive fall, the policy is favorable, how to cut off the benefits The chain is worth reflecting on.

For now, after Li Xinghua has left, LED companies will usher in a big round of reshuffle, and the running tide will not be able to subside in the short term. However, with the results of the survey, companies and institutions related to Li Xinghua may have difficulty. Keep it alone.

Reporter's Notes: 掮 妄 妄 for approval

Nearly every senior official has thrown a horse or a group of clients. They have a strong network of resources and perform long-sleeved dances in the official business darkfields. They have built their own “power trading” bridges to help them succeed in making money.

Before the incident took place, they were "friendly alliances" of high-ranking officials; after the incident took place, they became "core accomplices."

Can crackers be eliminated? The flow of information is not equal, and there must be a soil where clients can survive. There are often lobbying municipalities but the clients are living in dark places. Various positions are used as cover and even various kinds of alliances are used as cover.

Judging from the field of government project approval, how the government allocates project resources and what companies choose to issue subsidy funds will undoubtedly require information as support. In this process, some people and even industry alliances take on the role of “hackers” and integrate government and corporate information, allowing this information to flow smoothly between the government and enterprises.

However, when information is conveyed by clients, they are often exposed to opaque and non-sunshine operations. The bypassing of the hackers helps the transportation of the interests of the government officials, and the allocation of project resources is difficult to ensure fairness.

In a humane society, if we want to completely eradicate the transfer of interest and the space for power rent-seeking, it would be tantamount to a fantasy that would only work to prevent the sale of power to the utmost extent. This would expose the lobbying of clients to the sun and pass laws and regulations. Stop hacking behavior and make information flow and approval process more transparent.