Zhaochi shares with 5 billion yuan to "catch" LED upstream chips, add new value or rebuild a mega

Yesterday evening, Zhaochi shares (002429) issued an announcement, the board of directors reviewed and approved the "Proposal on Signing an Investment Agreement with the Nanchang High-tech Industrial Development Zone Management Committee." According to the agreement, the company will invest no less than RMB 1.5 billion and no more than RMB 1.6 billion to invest in LED epitaxial wafer and chip production projects in Nanchang High-tech Industrial Development Zone (the company name is tentatively set for Jiangxi Zhaochi). Semiconductor Co., Ltd.).

The company plans to set up a project company in Nanchang High-tech Industrial Development Zone, which is mainly engaged in the production, research and development and sales of LED epitaxial wafers and chips. The first phase of the project plans to jointly invest RMB 5 billion (including construction land, plant construction and renovation costs), of which the equipment investment is not less than RMB 3 billion, that is, the registered capital of the project company is not less than RMB 3 billion. Under the premise of the construction, renovation and production conditions of the project company, the first phase of the project is planned to be installed and commissioned in 2018 and put into operation.

The Nanchang High-tech Industrial Development Zone Management Committee will apply for the Nanchang Key Industry Development Fund for Jiangxi Zhaochi Semiconductor. The investment amount of the Industrial Development Fund is RMB 1.5 billion, which does not exceed 50% of the registered capital of the project company.

According to the announcement, the LED industry is the extension and expansion of the company's existing industrial chain, and has gradually become an important business segment of Zhaochi. At the same time, with the expansion of business scale, the company's use of LED chips has increased significantly, coupled with industry concentration. Improve and gradually show the trend of vertical integration of the entire industry chain. After the project company is officially put into operation, it is expected that the coordinated development of the company's LED industry chain will add about 60-70 billion yuan to the company's new production value.

According to the 2016 annual performance report of Zhaochi, the company achieved operating income of 7.477 billion yuan, an increase of 22.66% over the same period of last year; realized a total profit of 428 million yuan, an increase of 6.69% over the same period of last year; the net profit attributable to shareholders of listed companies was 3.74. 100 million yuan, an increase of 8.31% over the same period last year.

LED subsidiary Zhaochi Energy Saving (838750) 2016 annual report shows that 2016 operating income was 945 million yuan, up 4.97% over the same period of last year; net profit attributable to listed company shareholders was 79.485 million yuan, an increase over the same period of last year. 63.56%. Zhaochi Energy is mainly engaged in the R&D, production and sales of LED devices and their components. It is based on the mid-stream packaging industry of the LED industry chain and is positioned in two core application areas of LED lighting and LED backlight.

Based on the LED packaging industry, Zhaochi is engaged in the R&D, production and sales of LED devices and components. The products are mainly used in the two core fields of LED backlight and LED lighting. With solid foundations in product development, internal use, and market development, the company has become one of the major suppliers of LED backlights for LED TVs and mobile phones.

In the field of TV backlighting, the core customers of Zhaochi Co., Ltd. include Skyworth, Gaochuang (Suzhou) Electronics Co., Ltd., Konka, etc., and actively develop the international market, and opened up Taiwan TPV, South Korea first-line brand customers, etc.; won TCL in the field of mobile phone backlighting, Helitai, Lianchuang and other important customers are favored.

In the LED lighting market, Zhaochi has been highly recognized by first-line brands at home and abroad, and has become the main source of business growth. Domestic core customers include Foshan Lighting, Sunlight Lighting, Sanxiong Aurora, Yimei Lighting, and Snowlight.

In terms of technical reserves, Zhaochi participated in the research of new low-cost silicon substrate LED light source module technology in the National 863 Program. In 2015, the company obtained the patent license of Toyota Synthetic White Light, and built a comprehensive patent guarantee from chip to LED white light application. The five-sided and single-sided CSP products of Zhaochi Energy-saving Lighting have passed the trial production, and will continue to increase investment in CSP product development, application development and placement to ensure the leading position of CSP technology.


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