1. Guoke Micro and Large Funds set up a partnership investment company, and the subsidiary company acquires Huadian Communications simultaneously;
On the evening of June 4th, Guoke Microelectronics announced that the company intends to jointly invest in the establishment of the Changzhou Hongdun partnership with the National IC Industry Investment Fund Co., Ltd. ("the fund") and Shenzhen Hongtai. The enterprises have subscribed and paid a total of 254 million yuan, of which the major funds have subscribed for 150 million yuan and Guoke Micro has subscribed for 103 million yuan.
The business scope of the partnership is: Equity investment, Investment consulting (excluding consulting projects prohibited or restricted by the state) (Industrial and commercial registration shall prevail) After the establishment of the partnership enterprise, the focus of the partnership will be on M&A integration and core competitiveness in the IC industry. The company's investment.
Currently, the major fund holds 17,647,026.00 shares of Guoke Micro, accounting for 15.79% of the company's total share capital. It is a shareholder holding more than 5% of the company's shares (the company's second largest shareholder). According to relevant regulations, this transaction constitutes a related party transaction. But does not constitute a major asset reorganization, does not require approval by the relevant departments.
Guoke Micro believes that the company intends to use the expertise and policies of two other partners (the National IC Fund and Shenzhen Hongtai) to guide and support the establishment of a partnership through joint investment, seeking for synergies in industrial mergers and acquisitions, investment, and The enterprises invested by the partnership enterprises establish strategic cooperative relationships, accelerate the effective integration of industrial quality resources, further strengthen the company’s research and development capabilities, further enhance the company’s overall strength, industry status and competitiveness, enhance the company’s continued profitability, and create more for shareholders. Return on investment.
At the same time, on June 4th, Guoke Microelectronics also announced that the company’s wholly-owned subsidiary, Changsha Tianjiexing Technology Co., Ltd. (hereinafter referred to as “Tianjiexing Technology”) and Huang Xueliang, Li Jianhao, Zhu Changhua, Wu Jiahua, Yuan Peiliang, Ye Jinsong and You Quan (hereinafter referred to as the “former seven natural person shareholders”) signed the “Conditionally Equity Share Purchase Agreement Regarding 100% Equities of Shenzhen Huadian Communications Co., Ltd.” (hereinafter referred to as the “Equity Transfer Agreement”), etc. Jetstar Technology intends to purchase 100% equity of Shenzhen Huadian Communications Co., Ltd. (hereinafter referred to as 'Huadian Communications') held by the original seven natural person shareholders in cash and initially determines the transfer consideration of RMB360 million.
According to the data, the business scope of Huadian Communication includes: technology development, design and production of communication equipment; design of cable television system, security system, production and engineering installation, maintenance; development of computer software and hardware, integration of computer software systems; UAV system And its airborne equipment, wireless video transmission equipment development and sales.
According to the agreement signed by the two parties, in respect of performance commitments, the original seven natural person shareholders promised to accumulate net profits in the three years after the completion of the transaction (hereinafter referred to as the “commitment period”), that is, 2018, 2019, and 2020. Not lower than RMB 100 million. Net profit refers to the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses from the consolidated statements of Huadian Communications.
Guoke Micro stated that the company has rich chip product R&D experience and market advantages in radio and television, smart monitoring, solid-state storage, and the Internet of Things, combined with Huadian Communication's years of technology accumulation and market in system integration, market segmentation and other fields. Mature resources, after mergers and acquisitions and resource integration, will have a positive impact on the company.
Through this transaction, we can enrich our product line based on consolidating the current industry status of Huadian Communications, strengthen the technical depth of existing product lines of Huadian Communications, integrate the existing technical resources and human resources of both parties, and upgrade its overall technology level. At the operation level, the product line is scaled and systemized, which further enhances the competitiveness of Huadian Communications in the segmented industry market and establishes a leading brand position. 2. National Grand Fund 950 million shares in Tai Chi Industry;
On the evening of June 4, Taiji Industrial announced that the company had agreed to transfer the 130 million shares held by the company through open solicitation of the transferee, which accounted for 6.17% of the company's total share capital.
During the public solicitation period, there was a legal entity, namely National IC Industrial Investment Fund Co., Ltd. (large fund) submitted the application materials and signed the relevant agreement as the final transferee. The transfer price was 7.3 yuan per share, corresponding to the total price 9.49 billion yuan.
Tai Chi's current main business includes semiconductor business, engineering and technical service business, photovoltaic power plant investment operation business and polyester chemical fiber business.
Taiji’s semiconductor business is based on the subsidiaries Haitai Semiconductor and Taiji Semiconductor. Haitai Semiconductor is engaged in the packaging and testing of semiconductor products, module assembly and module testing, etc. TaiChi Semiconductor is engaged in the packaging and testing of semiconductor products and module assembly. , And provide after-sales service. The above business meets the investment direction of the National Fund.
It is understood that after the signing of the share transfer agreement between the two parties, it will be submitted by Taiji Industry progressively to the State Council SASAC for approval. The approval of the State Council's SASAC will take effect after its approval.
3. Yandong Microelectronics has been accused of 2.8 billion shares by a number of state-owned companies, and the electronic city has re-invested 1.2 billion.
Beijing News Express (reporter Zhao Yibo) The chip investment market is becoming more and more active. On June 4, the Beijing News reporter confirmed from the Beijing Stock Exchange and the listed company Electronic City that Yandong Microelectronics' capital increase has been formally finalized. The big fund unites three state-owned enterprises. A total of 2.8 billion yuan was used to invest in shares. In addition, the electronic city also reinvested 1.2 billion yuan through non-public channels.
The replenishment plan shows that China National Integrated Circuit Industrial Investment Fund Co., Ltd. (ie, a large fund) has an investment amount of RMB 1 billion and holds a share of 19.76%; Beijing Yizhuang International Investment and Development Co., Ltd. has an investment of RMB 1.0 billion, holding 19.76% of shares; Beijing The Jingguorui State-owned Enterprise Reform and Development Fund (Limited Partnership) amounted to RMB 400 million, holding 7.91% of the shares; Yancheng High-tech Zone Investment Group Co., Ltd. invested RMB 400 million, holding 7.91% of the shares.
As early as January of this year, the Beijing News reported that Beijing Yandong Microelectronics Co., Ltd. has issued a capital increase project and plans to introduce no more than five investors. The total amount of funds to be raised is not less than RMB 2.8 billion, corresponding to a low shareholding ratio. At 60%, the replenishment plan showed at the time that other companies controlled by eligible intentional investors had rich experience in participating in the mixed ownership reform of state-owned enterprises, had participated in Beijing, and the mixed ownership reform of SOEs owned by districts and counties was preferred.
This replenishment followed by new investors to join, involving the listed company Electronic City.
On June 4, Lv Yanqiang, chief secretary of the Electronic City, told the Beijing News reporter that Yandong Microelectronics had already held a shareholder meeting on May 25 to increase capital. We and Beijing Electronic Control’s (increased capital) were closed and did not go north The exchange's procedures, increase the amount of funds is 4 billion.
In March this year, the listed company Electronic City announced that the controlling shareholder of the company, Beijing Electronic Holdings Co., Ltd., planned to form a joint investor with a large fund, an electronic city, etc., to increase the capital of Yandong Microelectronics by 4 billion yuan.
In response to the details of the replenishment plan, the Beijing News reporter called the relevant person of Yandong Microelectronics on June 4th. The other party said that it was not convenient for the interview.
Yandong Microelectronics' investment in this period is extraordinary.
Among them, the largest fund with the largest investment amount was established in September 2014 under the guidance of the Ministry of Industry and Information Technology and the Ministry of Finance. Its purpose was to support the local chip industry in China to reduce dependence on foreign companies. According to media reports in March this year, According to Ding Wenwu, president of the major fund, as of the end of 2017, the fund has effectively invested 67 projects in decision-making, and accumulative project commitments amounted to 118.8 billion yuan.
Beijing Yizhuang International Investment Development Co., Ltd. was founded in February 2009. It serves the state-owned investment and financing platform with the mission of scientific and technological innovation and industrial transformation and upgrading in Kaikai District.
Yandong Microelectronics is a subsidiary of Beijing Electronics Holdings Co., Ltd. (abbreviation: Beijing Electronic Control). The latter was transformed from the Beijing Electronic Industry Office. Currently, it is a state-owned company authorized by the Beijing State-owned Assets Supervision and Administration Commission for the electronic information industry. Large-scale high-tech industry group.
According to public information, Beijing Yandong Microelectronics Co., Ltd. was established in 1987. It is a professional semiconductor device chip design, manufacturing, sales of state-owned high-tech enterprises. Yandong company independently develops, manufactures integrated circuits and discrete devices. Chips, and provide chip processing services. The company has a monthly production of 20,000 6-inch silicon chip production line and monthly production of 20,000 4-inch silicon chip production line. At present, Yandong customers include Apple, Huawei, Xiaomi and other users Customer groups at all levels within.
Electronic City, one of the investors of Yandong Microelectronics, said that the joint investors added RMB 4 billion to Yandong Microelectronics and Yandong Microelectronics invested RMB 4 billion to establish Yandong Technology, a wholly-owned subsidiary of the company. Line project construction and operation.
E-City stated that Beijing Yandong Microelectronics Technology Co., Ltd., a wholly-owned subsidiary of Yandong Microelectronics, is responsible for the construction and operation of the 8 inch production line integrated circuit R&D industrialization and sealing and measurement platform project (hereinafter referred to as the “8-line project”). The 8 line project is an important measure to implement the strategy of implementing science and technology innovation in Beijing and promote industrial transformation and upgrading. It is of great significance to promote the development of the integrated circuit industry and promote the industrialization of domestic equipment and domestic materials.
Xie Xiaoming, Chairman of Yandong Company, recently publicly stated that the construction of the Bagua Line is the largest project of the direct financing of the electronic control headquarters so far. The electronic control company has great confidence in the rapid development of Yandong, and strives to build Yandong into Outside BOE, another star industry.
According to public information, on April 15, Yandong Microelectronics' 8-inch integrated circuit R&D industrialization and sealing and measurement platform project was completed. The project is expected to be put into production in the development zone by the end of this year. This project is also the first large-scale mass production in Beijing. Inch line. The Beijing News 4. Weier shares promote mergers and acquisitions OV/Scipco, specific plans are still planning demonstration;
Set micro-network news, June 4, Weir shares are suspending the latest major asset restructuring announcement announced that the company is planning to acquire Beijing Howe Technology Co., Ltd. Beijing Sibike Microelectronics Technology Co., Ltd. (hereinafter referred to as ' The equity of Sibiko's), which constitutes a major reorganization of assets, was suspended on May 15, 2018.
On the evening of May 14, Weier shares announced the above-mentioned major asset restructuring plan. The main transaction partner of the transaction was Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership), Qingdao Rongtong Minhe Investment Center (Limited Partnership), Jiaxing. Shuimu Haowei Equity Investment Partnership (Limited Partnership) and other shareholders.
The acquisition of the target - Beijing Haowei image sensor series complete, mainly for the high-end areas; Sibi's products are mainly for the low-end image sensor chip field.
On May 29, Weier shares disclosed that the company and related parties are actively promoting various tasks of major asset restructuring. The specific plan is still cautiously planning the demonstration. The company's shares will continue to be suspended.
As of June 4th, Vail shares and related parties are actively promoting various tasks of major asset restructuring. The specific plan is still cautiously planning the demonstration. Due to the uncertainty in the relevant issues, the company's shares will continue to be suspended.
Weier shares announced that in order to ensure fair information disclosure and protect the interests of investors, the company will fulfill its obligation of information disclosure in a timely manner in accordance with the relevant regulations, combined with the progress of major asset reorganization during the suspension period, and publish the progress of relevant issues once every five trading days. Conditions. After the completion of the related work, the Board of Directors shall convene the board of directors to review the major assets reorganization, and timely announce and resume the trading. 5. How long can Sanan Optoelectronics maintain its high net margin? The industry's supply and demand will reverse soon;
Editor's note: Sanan Optoelectronics was spotlighted by the capital market because of its ultra-high net profit margin. However, Sina Finance conducted an in-depth study of its statements and found that although the company’s high net profit is now provided by the strong bargaining power on the revenue side, the company has The key to today’s industry leadership lies in the company's earlier aggressive expansion policy that fully captured the window period of policy subsidy dividends. However, the high net profit is bound to lead the industry. The new round of expansion in the industry is already on the way. Backlog or also indicates that the industry supply and demand will soon reverse.
Sanan Optoelectronics Co., Ltd. is a company mainly engaged in the research, development, and application of III-V compound semiconductor materials, focusing on gallium arsenide, gallium nitride, silicon carbide, indium phosphide, aluminum nitride, sapphire and other semiconductor materials related to epitaxial wafers. High-tech companies. The company's main products include LED chips, LED special applications and second-generation, third-generation semiconductor chips, mainly used in lighting, display, backlight, agriculture, medical, microwave radio and other fields. Sanan Photoelectric 2017 annual report Disclosures, the company's operating income was 8.39 billion, of which LED business revenue was 7.04 billion, accounting for about 84%.
Briefly describing the position of the company in the semiconductor chip industry chain and the direction of future development will help us better understand the company's business and challenges. The semiconductor chip is the core of all smart devices: VR, AR and smart phones, etc. The foundation for the development of Internet and mobile Internet, Internet of things and artificial intelligence. The breakthrough of all applications in the above industries is often based on breakthroughs in related chip technologies. Currently, the chip industry is broadly divided into four areas: First, computing and storage Second, the power electronics category; third, photoelectric conversion, this type of chip functions related to LED-related lighting and display, it is the business direction of Sanan Optoelectronics; Fourth, communications, mainly dealing with related communication signals The chip used, this area is the future direction of the company's efforts to develop.
LED full name light emitting diodes, its principle is to use some of the semiconductor's photoelectric effect to make devices that can emit light. Currently the most widely used raw material for gallium arsenide (GaAs), through the integrated circuit technology to integrate the optoelectronic units, it is called LED chips. LED industry chain can be divided into: raw materials and substrates, epitaxial wafer manufacturing, wafer chip processing, die cutting, packaging and testing, downstream lighting backlight and other links. At present, Sanan photoelectric in the epitaxial wafer manufacturing and wafer chips Processing has achieved a leading position in the world. In 2016, it surpassed Taiwan Jingdian to become the world's largest LED epitaxial and chip manufacturer.
In the epitaxial wafer manufacturing and wafer chip manufacturing processes, the core of this process is the production capacity and production efficiency. The scale of production capacity is the number of MOCVD. MOCVD is an organic compound of Group III, Group II elements and hydrogenation of Group V and Group VI elements. As a crystal growth source material, a material or the like is subjected to vapor phase epitaxy on a substrate by a thermal decomposition reaction to grow various thin-film single-crystal materials of III-V main group, II-VI sub-group compound semiconductors and their multi-component solid solutions. Most of the MOCVD systems used were purchased from the MOCVD system of Aixtron in Germany and the MOCVD system from Emcore of the United States. Therefore, to some extent, domestic LED chip manufacturers do not possess the intellectual property rights of their own chip manufacturing core equipment. Competition is more of a competitive model of economies of scale. Everyone competes in terms of scale of production and operational efficiency.
Subsidies help radical expansion: Nearly half of government subsidies for purchasing equipment
Sina Finance found that San'an's 'leading position' cannot be separated from the government's high subsidies and large-scale expansion.
Industry data shows that after a large amount of production capacity entered the LED chip industry in 2012-2013, the industry experienced excess capacity. At that time, the net profit margin of Sanan Optoelectronics also fell to the bottom, two years (2012, 2013). Li'an's net profit margins were 24% and 28%, respectively.
After a lot of rigorous competition, in 2015, about 10 LED chip companies in China stopped production or withdrew, resulting in the redistribution of LED chip market. The proportion of the top five manufacturers steadily increased, with a market share of 65%, including Sanan Optoelectronics. Exclusive 29%, the industry's average profit rate also rebounded.
As previously stated, the LED chip industry's production capacity can be achieved through an outsourced MOCVD system. The key to competition lies in the economies of scale and efficiency. Sanan Optoelectronics seized upon the outbreak of downstream LED demand and quickly expanded with government subsidies. It can be seen that Sanan Optoelectronics' aggressive expansion strategy during the remodeling of the market is based on the policy dividend. Compared with the later entrants to the industry, a large number of government subsidies caused the entire fixed assets of Sanan Optoelectronics to purchase the MOCVD system. The price is nearly half less than that of the later entrants. This also constitutes the company's unique “moat”, and with the country's back-seat, new entrants are difficult to compete with the company in terms of costs.
In addition, Sanan Optoelectronics has the world's largest LED chip production capacity. As long as the capacity utilization rate reaches a reasonable level, fixed costs such as R&D expenditures can be amortized over more chip production, and the average cost can be much lower than the average competitor.
Take Sanan Optoelectronics Wuhu Subsidiary as an example, in July 2010, the company and the Wuhu Municipal Government signed the "Supplementary Agreement for the Subsidization of MOCVD Equipment." The subsidy for the MOCVD purchase of the "Sanan Optoelectronics Wuhu Photovoltaic Industrialization Project Investment Cooperation Agreement" originally signed. Matters have been adjusted, that is, the purchase of 200 MOCVD from the red and yellow light 38-chip and above, blue-green light 31-chip machine and above are adjusted to no less than (including) 45-chip machine; purchase red-yellow light MOCVD to 55 tablets For 2-inch and above models, the price is increased by 20% on the basis of a subsidy of RMB 8 million, and adjusted to RMB 9.6 million; the purchase of blue-green MOVCD is modeled on 55-inch 2-inch and above models. The RMB 10,000 yuan subsidy will increase by 20%, and will be adjusted to 12 million yuan. The equipment purchased by the company must be invested in the Wuhu project, otherwise it will double the subsidy, and this supplemental agreement is the final agreement for the subsidy of the equipment. The average government subsidizes 10 million yuan for each device, and the price of each device is about 20 million. Therefore, half of the money for each device is issued by the government. Sanan Optoelectronics has seized the window period of the policy dividend (the current government Subsidies account for three Optical profit has dropped from 60% to 20%), it was able to achieve a leadership position in LED chip industry.
How long can Sanan Optoelectronics maintain high net margin? Industry supply and demand or reversal Opponents are keen to expand production
However, with the continued prosperity of the LED chip industry, the industry situation is also changing, and the reversal effect of the supply and demand situation has begun to appear.
On the one hand, China’s LED is rapidly developing under the government’s strong subsidies. The penetration rate in 2017 is already close to 50%. With higher and higher penetration rates, the growth rate of the industry will inevitably decline. On the other hand, San’an has benefited from its large scale. Expansion of production has led the LED chip field, but because LED's technical threshold and funding threshold are not as high as the semiconductor chip, so peers have the opportunity to challenge Sanan through expansion.
According to public statistics, several LED giants will continue to expand production capacity by about 40% in 2018. In 2018, Sanan purchased a large number of MOCVD equipment. It is expected that the number of equipment to be put into production in 2018 will reach 450, with the target of producing 30% of the world's production capacity.
In terms of other competitors, on November 22, 2017, Huacan Optoelectronics Yiwu Phase II project was started. The second phase of the project will have a total investment of 3 billion yuan. After it is put into production, it will achieve an annual output of 12 million LED epitaxial wafers and 52 million sapphire substrate materials. According to the research records of the Australian Ocean Shunchang Dec. 12, 2017 disclosure agency, by the end of this year, LED chips will have a capacity of 1 million units per month. At the same time, new capacity construction will continue in the first half of next year, and an expansion plan of 1.4 million will be reached. Film/month goal.
From the perspective of the current industry structure, all major manufacturers are aware of the principle of 'success in scale', and expansion has become the only way for each.
In the future, will the industry experience overcapacity and oversupply, and replay the price war situation? The data shows that in the fourth quarter of 2017, the price of LED chips has started to decrease, and mainstream chips such as Sanan Optoelectronics and Huacan Optoelectronics have adjusted in different ranges. , Among which Sanan Optoelectronics's price of some products has actively dropped by about 20%.
Sina financial review report found Sanan photoelectric inventory growth may be the performance of industry supply and demand inversion
According to the disclosure of the Sanan Optoelectronics Annual Report, it can be seen that the company’s LED chip production increased by 67% in 2017, while the sales volume only increased by 32% year-on-year. The growth rate of production was almost double the sales growth rate, which naturally led to the company’s With the backlog of inventory, we can see that the inventory volume has tripled from last year. If there is a continuous backlog of inventory in the future, then the company’s price reduction will be inevitable. The company’s ultra-high gross margins will also be narrowed in the previous period. .
In the first quarter of 2018, Sanan Photoelectric Inventories soared to 2.22 billion yuan. According to the sales volume in the first quarter, existing stocks can be sold by the company for 2.3 quarters.
At the same time, the internal functions of production-manufacturing enterprises include procurement, production, sales, and the three indicators of competency are raw material turnover days in inventory, days of product turnover and days of inventory turnover, and Huacan Optoelectronics' product turnover days in recent years. In the first half of 2017, it has been significantly lower than Sanan Optoelectronics, indicating that the company's production and management efficiency has exceeded Sanan Optoelectronics, which also indicates that Sanan Optoelectronics may face a more severe competitive environment in the future.
Bad debt provision rules loose Fixed asset depreciation rate is too low
Due to the rapid development of LED industry of Sanan Optoelectronics, the industry generally uses a higher proportion of bad debt accruals, but we can see that the company's relevant accrual rules are obviously too low compared with its peers.
Sanan Optoelectronics accounts receivable and other receivables are 5%, 15%, 30% and 50% in 1-2 years, 2-3 years, 3-4 years and 4-5 years respectively. Compared with Huacan Optoelectronics of the same industry, the proportion of the same years is 5%, 15%, 20% and 30% more than the company's. If the amount is to be withdrawn according to the Huacan standard, the profit of Sanan Optoelectronics will be reduced by approximately 56 million.
In addition, the depreciation time of the company is relatively long compared with that of the same industry. The depreciation period of the company's buildings and buildings is 30 years, and the depreciation period of machinery and equipment is 8-25 years. However, compared with Aoyang Shunchang, the relevant depreciation lives are the depreciation periods of the buildings. In 20 years, the depreciation period of machinery and equipment is 10 years.
Check the company's 2017 annual report of the final book value of machinery and equipment, through the year's LED chip output divided by the initial balance of the machinery and equipment to compare the rationality of the unit's book value of the equipment. Sanan photoelectric value of 66. Chan Optoelectronics, this value is 92. Considering that the prices of MOCVD machines purchased by the industry are all relatively consistent, the output of LED chips formed by comparing unit prices of the same denomination, the data of Sanan Optoelectronics is far lower than that of Huacan Optoelectronics. The company may overestimate the value of its own machinery and equipment assets, and suspect assets are inflated.
Patent Hidden Concerns: Blocking and Litigation Risks
The development of China's LED industry is relatively late. There is still a certain gap between the accumulation of patents and foreign countries, and most of the patents only stay at the stage of derivative patents, and will inevitably suffer from patent litigation. With the intensified competition in the LED industry, patents Disputes and lawsuits are also growing at the same time. Many domestic companies have realized the importance of patents and formed 'umbrellas' through cross-licensing with international giants to maintain a steady and continuous development of the company.
Take Sanan as an example, Sanan has nearly 1300 patents, but its gold content is not high, and it is mostly a derivative patent. Last year, Sanan Optical Announcement and Seoul Semiconductor Company and Seoul-based Viosys Co., Ltd., a subsidiary of Seoul Semiconductor, decided to conduct business. In cooperation, a joint venture company, Anhui Sanshou Optoelectronics Co., Ltd., will be established. The joint venture company will produce light-emitting diodes for the Korean company with a registered capital of US$2 million. Sanan Optoelectronics will invest US$980,000 in its own currency funds, accounting for the registered capital of the joint venture company. 49 %, I hope to obtain cross patent authorization through this method. But currently more than half of the technologies and patents in the global LED field are occupied by developed countries such as the United States, Japan and Germany, which makes the development of China's LED industry seriously constrained. These LED giants reached a cross-licensing authorization and Sanan Optoelectronics is also at risk of patent litigation at any time. At the same time, if Sanan cannot enter the patent blockade market, then Sanan’s main market can only be locked in China, while Sanan is in China. With market share already far ahead of the market, how to digest production capacity will be a big problem.
In addition to the continued expansion of production capacity in LED epitaxial wafers and chip processing, Sanan Optoelectronics also carried out industrial layouts on the upstream and downstream sides of LED chips, trying to create a complete LED industry chain. The company established Wuhu in 2010 for downstream application expansion. Anrui Optoelectronics Co., Ltd., enters the LED automotive lamp production industry. In 2016, its operating income was 500 million, and the net profit was about 40 million. Due to the increase in market expenses, the profit growth in 2017 was negative -18.68%, and the net profit was only 3215. Ten thousand yuan. In the upstream raw materials, the company entered the upstream sapphire substrate production through its subsidiary, Fujian Jingan Optoelectronics, to ensure the supply of raw materials for the company's midstream production segment. According to Pacific Securities estimates, the company entered the upstream sapphire substrate and provided the company with around 5%. The net profit level. At the same time, Sanan Optoelectronics has also deployed the communications chip field. Through Sanan IC Co., the communications chip has entered the micro-production stage. In 2014, it began to build the first phase of the communications microelectronic device project with a total investment of 3 billion yuan. , Focus on the production of GaAs high-speed semiconductor devices and GaN high-power semiconductor devices. Proposed GaAs and G Each of aN epitaxial and chip production line (6 inches) has a GaAs production capacity of 30,000 pieces/month and GaN production capacity of 6,000 pieces/month. The construction period is 45 months from 2015, and it is expected to reach full capacity by the end of 2018. The company also Layout of Micro LED display technology, Micro LED is a new generation of display technology following OLED, with excellent display effect and power consumption. In short, the company is still in a state of attack, but these layouts need to spend a lot of money on the account. Taking the integrated chip project as an example, the planned capital investment will be 30 billion yuan, and the company is currently on the eve of the industry price war and is facing a possible inventory squeeze. Therefore, the company may face financial risks that also require investors to be vigilant. . Sina Finance