On the 12th, Sanan Optoelectronics announced that it plans to invest 12 billion yuan to build an LED industrialization base in Wuhu, Anhui. This is another big move after the company raised 800 million yuan last year to build a northern LED production and R&D base in Tianjin. However, the investment scale of 12 billion yuan is in stark contrast to its total assets of less than 2 billion yuan and net profit of less than 150 million yuan. The insiders worry that Sanan Optoelectronics will pull the 12 billion yuan big car. The domestic LED project is going crazy. Will it become another new energy industry bubble after overcapacity after wind power and polysilicon? Small horse-drawn cart Sanan Optoelectronics Wuhu Optoelectronics Industrialization Project has undoubtedly received high support from local governments. However, with the current strength of Sanan Optoelectronics, the investment scale of 12 billion yuan is difficult to escape the suspicion of painting cakes. According to Sanan Optoelectronics Announcement, the agreement stipulates that the total investment of the project is about 12 billion yuan, including 200 MOCVD equipments with world advanced level. The project is implemented in phases, with a phase of investment of 6 billion yuan, including 100 MOCVD equipment; Wuhu, Anhui Province The Municipal People's Government grants a total of 8 million yuan per MOCVD (limited to 38-piece machine and above) to the red-green light MOCVD (limited to 31-piece machine and above) for each 10 million yuan subsidy. The total construction period of the project is 4 In the year, we will strive to complete the project construction in three years. According to estimates, even if 100 MOCVD equipment purchased by Sanan Optoelectronics can receive 10 million yuan of subsidies per unit in Wuhu City, the first phase of the project will require huge investment of 5 billion yuan. According to Sanan Optoelectronics' 2009 third quarterly report, its total assets are only 1.759 billion yuan. If it deducts 800 million yuan that it has just raised through non-public issuance, its total assets are only 959 million yuan. At the end of the third quarter of 2009, the monetary funds on Sanan’s account were only 851 million yuan, which also included the 800 million yuan it had just raised. The company’s loan owed to the bank reached 236 million yuan. The net profit is also less than 150 million yuan. The huge investment of 5 billion yuan needed for the first phase of the project is more like a pie made by Sanan Optoelectronics to the Wuhu Municipal Government. Insiders analyzed that if the non-public issuance was not completed last year, the cash flow of Sanan Optoelectronics will be quite tight. Even if the non-public issuance is completed, the Tianjin project, which is planned to invest 1 billion yuan, still has a vacancy of 200 million yuan, which will make the company have to make up for it by using bank loans. In order to draw a 12 billion yuan cake, Sanan Optoelectronics will once again aim at secondary market financing. Under the temptation of huge financing, the company's share price has soared 10 times in 14 months, which is exactly what Sanan Optoelectronics is happy to see. LED industry blind investment initial With the increasing number of market entrants, the competition in the LED industry, where the threshold is not high, has become fierce, and concerns about the LED industry bubble have begun to appear in the market. An investor said at the forum, "There is no suspense in halving the profit rate on the day of completion." One of the main suppliers of Sanan Optoelectronic MOCVD equipment, and one of the two largest MOCVD manufacturers in the world, AIXTRON, an employee of Germany, told reporters that the core technologies of LED chips and epitaxial equipment are in Japan, the United States and Taiwan. In the hands, mainland companies mainly rely on the purchase of MOCVD equipment for processing. Although not mastering the core technology, but in the bright future of the LED industry, listed companies have invested in building LED light source bases and industrial parks. Companies such as Dehao Runda, Silan Micro and Changjiang Communications have announced plans to invest in LED projects. According to relevant information, the total number of MOCVD machines planned to be purchased by companies such as Jingdian, Yuyuan, Taigu, Guanglang, AUO/Ronda, Chimei/Keili in Taiwan is expected to exceed 300 units in the next two years. . In this context, there is concern in the market that the industry's gross profit margin will fall when the production capacity is released in the next few years. Zheng Haowen, director of the LED Committee of the National High Enterprise Committee, said: "From the current domestic market and the number of LED industry, there has been a problem of repeated investment." Under the expectation of MOCVD equipment price increase and LED capacity saturation, even if the LED market is bigger, Sanan Optoelectronics' gross margin will face fierce competition. Marine copper needle valve,copper needle valve,Marine copper needle valve size Taizhou Jiabo Instrument Technology Co., Ltd. , https://www.taizhoujbcbyq.com