Subsidy chaos harms the fairness of the delisting system. Losing companies receive government subsidies to turn losses into profits.

Nearly 90% of listed companies have received government subsidies, and more than 90 of them have turned losses into profits. In response to the relevant data disclosed in this year’s semi-annual report, the clichéd topic of subsidy chaos has heated up again. According to statistics, the first place is still Sanan Optoelectronics, an upstream LED company.

In recent years, the government’s financial subsidies to Sanan Optoelectronics in the field of energy conservation are only a regulation for the country to promote the LED industry within a specific period of time. At the same time, government subsidies have also caused serious overcapacity of domestic LED chips, causing LED chip prices to plummet. Many LED listed companies have shown a bad state of "increasing revenue without increasing profits" in recent years.

However, in this year’s semi-annual report, Sanan Optoelectronics did not include “government subsidies included in current profits and losses”, and its net profit growth is still beautiful. In the first half of the year, it achieved sales revenue of 2.177 billion yuan, and net profit attributable to shareholders of listed companies was 666 million yuan, a year-on-year increase of 43.87%, making it the "king of money" in the LED upstream.

The other three companies won on the basis of size. On this basis, Gezhouba's semi-annual report performance was outstanding, ranking first with a net profit of 1.26 billion yuan, surpassing the second place San'an Optoelectronics by 600 million yuan.

The amount of subsidies increased by nearly 200 million yuan compared with last year

Compared with the amount of government subsidies in the first half of last year, which reached 1.3 billion yuan, the amount of subsidies for listed companies in Hubei this year has increased by more than 200 million yuan. The upward trend of government subsidies is obvious, but the coverage still remains at about 75 companies.

This year, the listed companies receiving subsidies are concentrated in the fields of energy conservation and emission reduction, new energy, and emerging industries. In addition to subsidies provided by the finance department of the location where the enterprise's production base is located, some subsidies are provided by national ministries and commissions, which are related to the government's support for industry development.

However, the "free supplements" of listed companies are also questioning the fairness of the market. Nationally, companies in some industries with obvious overcapacity, from chlor-alkali chemicals to steel, from LED to non-ferrous metals, can still receive high subsidies. "Using government subsidies to turn around losses and protect stocks has become a certain norm in the A-share market." An industry insider believes that government subsidies have the final say whether a company delists or not, which has become a torture to the fairness of the delisting system.

The subsidy chaos harms not only the fairness of the delisting system. Statistics show that among the 58 listed companies nationwide with subsidies exceeding 100 million yuan in the first half of this year, 40 are state-controlled or joint-stock companies, accounting for nearly 70%. In addition, 93 companies across the country received government subsidies greater than their net profits in the first half of the year. In the past three and a half years, 278 companies have relied on government subsidies to turn losses into profits, and some companies have even used this to avoid delisting.