Talking about the recent ups and downs of LED companies

One: 32 million subsidy into the bag Sanan Hefei According to previous announcements, the Xiamen Municipal Government and the People's Government of Xiamen Siming District encourage and support the development of the optoelectronic industry. With reference to the Xiamen Torch Park, subsidies are imposed on MOCVD equipment imported by the companies under its jurisdiction. The support policy subsidizes MOCVD equipment purchased by Xiamen Sanan Optoelectronics Technology Co., Ltd. This time, 40% of the four-chamber conjoined machines are subsidized.

Sanan Optoelectronics stated that when the company received the subsidy for the relevant production equipment from the Siming District Government of Xiamen City, it was recognized as deferred income when it was received, and was evenly amortized into profit or loss over the useful life of the relevant assets.

II: San'an Encroaching on Whale, Swallowing Crystal and Electric Power When the LED chip factory brother reported that according to news reports in mid-September, the LED industry was affected by China's energy-saving benefit-subsidy policy in the first half of this year, and the LED backlighting market in June and July slowed down. However, the steady release of lighting orders in the second half of the year, and some TV manufacturers due to the arrival of the 11th holiday season, began to cover up the backlight inventory, some chip makers have begun to feel the signs of market warming, LED market performance may show the third quarter season is not Wang, the market condition of the 4th season in the off-season.

According to Li Bingjie, chairman of Epistar, Jingdian will attack the mainland market in a way of alliance with China’s information electronics strategy. The joint venture’s joint venture will increase its production capacity by the end of next year by more than twice, and then the company’s market share in mainland China will increase. The rate will surpass Sanan and BDO Runda, becoming China's largest LED epitaxial plant.

As China Information Electronics Group has the world's largest TV factory TPV, China Information Electronics recently joined Philips to enter into commercial and home lighting, and Jingdian is expected to benefit from LED epitaxy and grain suppliers.

Li Bingjie emphasized that the penetration rate of LED lighting in the next year will reach more than 20%, which is more than this year. When LED enters the era of lighting, it is very important to attack the market share. Therefore, Jingdian will adopt two major strategies and have patents in global demand. The LED crystal grain will be dominated by Jingdian. As for the market where the mainland is playing a price war, Jingdian will be mastered through strategic alliances.

Li Bingjie disclosed that in the past, Jingdian had joint ventures with China Information Electronics to develop crystals, and will actively expand production. Jingjing is jointly funded by Jingdian and China Information Electronics Industry Group. China Electronics holds 50% of shares and Jingdian is 40%. 10% is held by Yiguang, Jingdian and TPV. At present, there are 30 MOCVD machines in development and will reach 100 machines by the end of next year. Li Bingjie said that in addition to the development of crystal is an important base for crystal in the mainland, Jingdian in Changzhou and Shandong two joint ventures also have 60 machines, by the end of next year, the entire supply of crystal in China will have 160 machines, This production scale will exceed Sanan, the current largest Chinese plant. In the past, Jingdian once occupied the first place in the Chinese market. With San'an's gluttonous swallowing, Jingdian has retreated to second place, but in the future, Jingdian will rely on the development of crystal to regain its throne in China.

Three: In 2014, Jingdian will add 10 to 15 MOCVD machines. It is reported that Jingdian has not yet finalized capital expenditure in 2014. However, in order to meet the full-load capacity in previous seasons, MOCVD machines newly added next year will be at least 10-15 units. Take-off, and at least four-inch machine, the current monthly capacity of 1.2 million to 1.5 million, the scale of production capacity will continue to rise, the total number of MOCVD machines will exceed 300 units.

Jingdian’s capital expenditure this year is about RMB 3 billion (NTD, the same below). The new machine is mainly based in mainland China. It estimates that 10 new MOCVD will be added. In terms of 2-inch wafers, the monthly production capacity of Jingyue has reached 1.2 million pieces. With 1.5 million pieces, the output value includes 47% of Taiwan's share, and Jingdian will continue to purchase new machines in Taiwan next year.

Jingye held a business meeting every Wednesday. According to the customer's condition, Jingdian believes that the backlight season has entered the traditional off-season in the fourth quarter. Most of the backlight products are finished in the second and third quarters, although the low-cost lighting needs are not bad. However, the backlight still accounts for up to 40% of the revenue of the crystal power, and it is necessary to rely on other markets to completely offset the off-season effect, which is quite difficult.

According to Jingdian’s weak season cycle in previous years, revenue in the 4th quarter was generally 10% to 20% lower than that in the third quarter. The legal person believes that the fourth quarter of this year, the revenue from crystal power should not be taken out of recession.

From the perspective of the number of machines, Jingdian still holds the top position. However, after the two companies reached a strategic alliance with Sanan, the total number of machines for both parties was 277, and the gap with Jingdian has been significantly reduced.

After 2 consecutive quarters of losses, Jingdian turned profitable last quarter, with an average gross profit rate of 15.89%, net profit attributable to parent company of 346 million yuan, and net profit after tax of 0.38 yuan per share. Yingying achieved a profit of RMB 98 million, and the net profit per share after tax was RMB 0.11.

IV: Huacan Photoelectricity LED Project Obtains 150 Million U.S. Dollar Loans Huacan Optoelectronics (Suzhou) Co., Ltd. has already found a $150 million six-year loan for LED production projects.

China Development Bank Suzhou Branch took the lead, with a loan of US$140 million. Bank of Communications Suzhou Branch also participated in the contract and loaned 10 million U.S. dollars.

According to sources, the total income of the loan is between 300-400 basis points in the middle of the period. After a two-year grace period, the loan will be repaid in installments every six months.

The Shenzhen-listed parent company Huacan Optoelectronics provided guarantees for this loan, which was secured by factories and equipment.

It is expected that the contract will be completed before the end of this month.

According to the company's previous announcement, Huacan Optoelectronics (Suzhou) Co., Ltd. was established in August last year, with an investment of 1.81 billion yuan, located in Zhangjiagang City, Jiangsu Province.

Huacan Optoelectronics Co., Ltd. was formerly known as Wuhan Huacan Optoelectronics Co., Ltd. and is a leading LED chip supplier in China. The company said that its revenue for the first half of this year was 111.8 million yuan and its net profit was 14.29 million yuan, which was 40% and 62% lower than the same period last year.

Five: The increase in the stock price has been raised and the stock price rises.

On the evening of September 22, Dongshan Precision disclosed that the fixed-income program of the year before was rejected by the CSRC's approving committee on September 18. On the 23rd, the company's stock price has risen all the way after the opening, eventually achieving an increase of 7.84% throughout the day and a slight increase of 0.77% on the 24th.

It is worth noting that Dongshan Precision announced on September 17 that the actual controller Yuan Yonggang paid 139 million yuan to fill the company's three-year loss in order to promote the development of the company's electricity. However, this measure failed to reverse the fate of the fixed increase. It also made other companies worried about other companies that are waiting in line for the increase in LED project approvals.

LED packaging technology leading?

When Dongshan Precision was listed in 2010, the main products were precision die-casting and precision sheet metal. The LED production line was subsequently added in 2011. Since then, the production and sales volume has expanded rapidly. In the first half of 2013, the operating revenue of LEDs and modules reached 480 million yuan. , The total operating revenue share is more than 40%.

In the year when Dongshan Precision went public, it purchased over US$20 million in preferred shares issued by SolFocus in the United States with a total amount of over 13.369 million yuan, accounting for 10.65% of its shares. Dongshan Precision said: "In the solar business, the company is the sole supplier of SolFocus' precision sheet metal parts and assembly services. There are no competitors at present."

However, after the stakes began, the United States SolFocus fell into a long period of loss, and Dongshan precision related transactions purchases and sales are also less than 2% of similar transactions, so Dongshan Precision's acquisition of SolFocus shares have been criticized by investors.

Despite this, from January to September 2012, Dongshan Precision's operating income and net profit still increased 39.82% and 10.14% year-on-year. Therefore, Dongshan Precision planned to increase the final plan to be launched in December, and planned to raise funds of 1.08 billion yuan for expansion. Precision sheet metal parts project, expansion of precision metal structural parts projects, expansion of precision electronic device projects, expansion of LED devices and precision module projects.

The investment budget for LED devices and precision module projects accounted for half of the estimated amount of funds to be raised. The quota is 530 million yuan. It can be seen that the LED component of Dongshan Precision's business direction is heavier. In the LED investment, Dongshan Precision is favored for backlighting and lighting. However, the disadvantages of Dongshan Precision are also significant, mainly because the company is in the downstream segment of the LED industry chain. However, Dongshan Precision stated in its fixed-incident plan that its self-developed LED package Technology is at the leading domestic and international advanced level. This argument has led to many questions, of which the most talked about is that LED and photovoltaic industries are all overcapacity, and Dongshan Precision's re-expansion or will face the dilemma of investment failure.

Sure enough, obviously net profit from January to September 2012 is 74.59 million yuan, and brokerage firms are more optimistic. However, the 2012 annual report released shows that the annual loss is 110 million yuan, accounting receivables for losses and LED companies. Loss of investment has become a pain in performance.

Among them, the investment loss of Suzhou Industrial Park Doni Optoelectronics Co., Ltd. was as high as 56.56 million yuan, and Doni Optoelectronics was a joint venture company established by Dongshan Precision in June 2010 with Shen Yu-nan of Chinese Taiwanese. The patented LED package price was 187 million yuan, accounting for 70% of the shares. For the loss of this investment, Dongshan Precision announced that Shen Yuk-funded patented technology failed to achieve wide market acceptance is the key, so Doni photoelectric stop production.

The reporter consulted the Patent Office and learned from the Patent Bureau that Shen Yu-Cong’s so-called patent contribution was an earlier patent. The filing date was gathered in 2004-2005, and Shen Yu-Nong’s patents filed in 2006-2011 were mostly his own. Or transfer to Ivy League Holdings Limited on the British Virgin Islands.

Dongshan Precision took the 2004 LED technology as a treasure and invested a large amount of money. As a result, the “independent research and development of LED packaging technology is at the leading domestic and international advanced level” in the fixed increase project. The authenticity is inevitably compromised.

5 companies involved in LED add to worry?

After a long wait, there was still no review and approval committee giving approval opinions. Until September 17, 2013, Yuan Yonggang, a shareholder of Dongshan Precision Control, suddenly sent a Letter of Commitment, promising to fully compensate the 2010 due to the investment in the US SolFocus. The total investment loss and long-term asset impairment losses incurred in the year -2012 were RMB133.69 million.

However, on September 18, the China Securities Regulatory Commission's issuing and approving committee still rejected the company's fixed increase plan. Regarding whether or not the increase in the number of LED projects due to technical issues or market conditions has caused the reporter to call Dongshan Precision's public phone number many times, it has never been answered.

It is worth noting that this year's A-share LED projects have mushroomed. First Silan Microelectronics added 880 million yuan to increase the production of LED-related products, followed by Sanan Photoelectric launched a 3.3 billion yuan fund-raising plan, followed by Oyo Shunchang. After the launch of the plan to increase the RMB 900 million yuan for the expansion of LED chips, National Star Optoelectronics and Xiamen Xinda will launch plans for growth at almost the same time. Swords refer to LED chips and packages.

If the CSRC's issuance and examination committee rejects the Dongshan Precision Increment Project for LED industry issues, the above companies that are waiting in line for approval will also be affected more or less.

Silan Micro Securities Affairs representative Ma Liang said in an interview with reporters on the 24th that he does not believe that the LED market has excess capacity. Before 2013, the LED lighting market did not open, resulting in excess capacity in the LED market, but after the introduction of this year's policy, LED lighting The market is booming and the problem of overcapacity has been solved, so the LED factory will decide to increase the scale.

Ma Liang also said that he felt that the Dongshan Precision Increment Project was rejected and that the relevant departments should focus on other issues, such as finance, trust, etc., rather than LED projects for raising funds.