THE city has given out a total of 4 billion yuan (US$581.29 million) in subsidies to local enterprises to help them reduce operation costs since interim measures were introduced last September.

Thousands of enterprises have benefited from the measures, which spurred them to enhance competitiveness and increase investment in research and development.

The subsidies were given to two categories of enterprises. The first category of eligible enterprises covers the industrial and commercial sector, such as those above a designated size, retailers and logistics companies whose business volume reached above a certain limit. The subsidy is 0.055 yuan per kWh. Enterprises in advanced and high-tech manufacturing that have been accredited as State-level high-tech enterprises with industrial added value above a designated level can receive a subsidy of 0.085 yuan per kWh. Enterprises that meet both criteria can receive two subsidies.

As of February, the city’s industry and information bereau had given out 2.58 billion yuan to power supply companies, which in turn gave subsidies to 5,110 enterprises that met the requirements in 2018. By June 30, the bureau had given out 1.52 billion yuan to subsidize the costs of enterprises between January and May. A total of 5,566 enterprises that met the requirements benefited from the subsidies.

“The subsidies helped reduce the costs and replenish the cash flow of the enterprise in a timely and efficient manner,” a manager with Shenzhen China Star Optoelectronics Technology Co., Ltd. (CSOT) was quoted by Shenzhen Special Zone Daily as saying Saturday.

CSOT meets both criteria, which means it can save 0.14 yuan for each kwh, equivalent to one quarter of its electricity cost. The company will use the money it has saved on research and development, and the construction of new LCD products, to further improve its competitiveness.

Another beneficiary, Shenzhen BYD Motors Inc., said in an interview that it will use the money to develop new technologies and products, and try to make technological breakthroughs to improve its core competitiveness and expand in the global market. The company estimates the subsidy program will help the company reduce its electricity expenditure by 10 to 17 percent per year.  (Han Ximin)