Sanan Optoelectronics once again spent 280 million yuan to expand production and was accused of subsidies

Recently, some investors told reporters that "Sanan Optoelectronics just announced a plan to increase the production capacity of RMB 3 billion for the expansion of the Wuhu (Phase II) project at the end of May. On June 19, it announced that it will expand its investment again. Digest?"

In fact, the reporter also noticed that Sanan Optoelectronics released Wuhu (Phase II) fixed-up plan less than one month, and the company spent 280 million yuan to expand production capacity. However, some LED researchers told reporters that “Sanan Optoelectronics is also taking the opportunity to expand when there is subsidy. First, the production capacity will be improved, and the subsidy will definitely be cancelled later. This kind of subsidy behavior is definitely unfair to the latecomers.”

280 million investment received 100 million subsidies

Thanks to technology, cost development, overseas lighting launches and domestic LED lighting channel distribution, the LED industry has sprung up in the capital market. At the end of May, Sanan Optoelectronics threw out a 3.3 billion yuan increase plan mainly for the implementation of Wuhu Optoelectronics Industrialization (Phase II) project.

On June 19, Sanan Optoelectronics announced that it would expand its production capacity. The company decided to invest no more than 280 million yuan in the internationally advanced 20 units of its wholly-owned subsidiary, Xiamen Sanan Optoelectronics Technology Co., Ltd. (referred to as Xiamen Sanan). Single-cavity machine or five four-cavity machine-connected gallium nitride MOCVD equipment and a part of the LED chip production line.

In the above announcement, Sanan Optoelectronics said that the local government subsidized 20 MOCVD equipment purchased by Xiamen Sanan. The specific plan is: a single-cavity 54-piece model (converted to 2 inches) for each subsidy of not more than 5 million yuan; or 216 (converted to 2 inches) four-cavity joint model for each 20 million yuan subsidy. In this way, Sanan Optoelectronics' investment can receive 100 million yuan in subsidies.

In response to the expansion of Sanan Optoelectronics, a securities institution is more optimistic. “The company announced the expansion of 100 MOCVD fixed plans at the end of May. The accelerated expansion of the Xiamen subsidiary proves that the LED chip market continues to be tight, and the company's chip capacity. The utilization rate has entered full production since April, and the first half of the month has remained in the first half of June. The market is worried that LED lighting is currently a channel distribution. The demand in the second half of the year is uncertain, but the price of LED lighting products is continuously decreasing rapidly. The distribution process will not last more than two months, and the backlight market has entered the traditional off-season since late May. The current strong orders have proven that the demand for the lighting market has been stimulated."

Expand when there is subsidy

However, some investors told reporters that the capacity plan of Sanan Optoelectronics Wuhu (Phase II) almost doubled the company's current production capacity. On this basis, the company still uses 280 million yuan to expand production capacity, and it is inevitable to suspect its capacity digestion. rate.

The reporter called the company as an investor. The relevant staff of the company told reporters that the capacity of 100 units of Wuhu (Phase II) is ready to expand, but the 100 MOCVDs are not available now. However, the current market demand Very strong, the company's 100 capacity expansion in Wuhu (Phase II) is due to see the future lighting market."

A brokerage researcher with long-term tracking of the LED industry told reporters: "The problem of capacity digestion is not very big. Sanan optoelectronic chips are doing a good job. The company's position is to win by scale. It can only be expanded. In addition, Sanan Optoelectronics is also When there is a subsidy, take the opportunity to expand, first make up the production capacity, and the subsidy will definitely be canceled in the future. This kind of subsidy behavior is definitely not fair to the latecomers."

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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