Is the integration of LED shares in Tongfang's stock market or capital game?

High-tech LED network message / reporter Ye Xiaoli

On August 8, 2010, Tongfang Co., Ltd. officially announced that its wholly-owned subsidiary, Tongfang Optoelectronics, invested a total of 3.62 billion yuan in the construction of a high-brightness LED application comprehensive industrial base in Nantong, Jiangsu. This is another major project that Tongfang has accelerated the LED production capacity of Tongfang after the establishment of LED chip and LCD TV LED backlight industry bases in Beijing and Shenyang.

As one of the earliest companies to cut into the LED chip manufacturing business in China, as early as 2006, Tongfang Co., Ltd. entered into the field of LED epitaxial chip manufacturing through the joint venture with the technical team from South Korea. But in the end, because the joint venture system of Qingxin Optoelectronics was not straightened out, the company failed to take the lead in the LED chip manufacturing market.

However, the company subsequently firmly developed its LED business independently and began to reserve technology for itself by participating in a technology research and development company in Singapore. Up to now, in addition to the substrate and packaging links, Tongfang has already made some layouts in the LED industry chain.

Is there any hidden reason for the LED chip project delay?

On May 26, 2008, Tongfang shares completed the allotment work. The total number of valid shares subscribed was 122,903,516 shares, the total amount of funds raised was 1,966,456,256.00 yuan, and the net proceeds from deducting the issuance expenses were 1,919,429,663.65 yuan. The fund-raising investment projects include high-brightness light-emitting diode (LED) chip manufacturing and its application industrialization, and technology development and application industrialization projects of digital TV network systems based on national standards.

It is understood that in 2008, the production of the first-phase high-brightness light-emitting diode (LED) chip purchased by Tongfang Co., Ltd. was delayed due to construction restrictions during the Beijing Olympic Games.

In 2009, Tongfang shares caused delays in the production of LED projects due to unexplained reasons. The shareholders of the company have questioned the fraudulent acts on the promises in the share placement proposal of Tongfang.

However, the shareholders of Tongfang explained that the extension of the LED project was mainly because the prospectus was written at the end of 2007, but the real completion of the allotment was in June 2008. After the completion of the rights issue, it happened to meet the Olympic Games, so the entire construction period was Delayed."

According to the forecast of Tongfang, the project has invested a total of RMB 85,951,900. If the project is put into operation as planned, then the total revenue will be 530 million yuan and the profit will be 110 million yuan in 2008. However, due to the delay in project investment, the project income will be RMB 17.08 million. .

The delay in production has led most industry insiders to show skepticism about the technical capabilities of Tongfang LED projects. According to the official explanation of Tongfang shares, the company commissioned Tsinghua University's LED industry related technical strength in 2004 to carry out high-brightness LED epitaxial wafers and chip industrialization technology research. Now it has nearly 30 patents for LED epitaxy and chip manufacturing.

However, since 2006, Tongfang has been wooing the Korean technical team, which has been plagued by problems in the stock and management system. Since then, in 2008, the company acquired Tinggi in Singapore for US$5 million, and officially established Tongfang Optoelectronics Technology Co., Ltd. Obviously, how much to seek for the technical team to join twice reflects the company's lack of technical links.

3 billion huge sums of money into the LED industry chain

According to the "Nantong Tongfang Science and Technology Park Co., Ltd. and Nantong Tongfang Semiconductor Co., Ltd. High-intensity Light-Emitting Diode (LED) Application Industrialization Base (Phase I) Project Approval Announcement" released on September 20, 2010, the project will have an annual output of 84 after completion. Billion grain export high-brightness LED chip (2.4 million high-bright blue-green LED epitaxial wafer, monthly production capacity of 200,000), 2 million LED backlight modules, 2 million LED LCD TVs, 1 million LCD TVs And 500,000 Blu-ray DVDs, 16 million LED lamps and 9.6 million sets of wire and power board processing capacity.

At the same time, Tsinghua Tongfang's LED backlight display module industrial base in Nantong City, Jiangsu Province, was also started in May 2010. The base will invest 1 billion yuan in the first phase, and the annual production capacity is expected to reach 7 million sets after mass production.

It is understood that Tsinghua Tongfang invested 800 million yuan in the construction of the LED backlight display module production line in Shenyang digital TV base, has completed the commissioning work, and gradually entered the mass production stage, the production line is expected to have an annual production capacity of 2 million sets. In the future, the annual production capacity of Tsinghua Tongfang LED modules will reach nearly 9 million sets.

Lu Zhicheng, director of Tongfang Co., said that with the construction of Nantong LED industry base, the LED industry layout of Tongfang shares has also been basically completed.

It is understood that the current 6 MOCVD projects in the Shunyi base in Beijing have reached production, and the monthly production capacity of the epitaxial wafers has reached 20,000. By March 2011, the PSS substrate reached 50,000 pieces, and in July it produced 200,000 pieces. In 2011, Nantong Base planned 48 MOCVD, of which 24 VEECO 52-piece machines will be fully installed and put into production before October 2011.

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