Faced with constant doubts, Sanan Optoelectronics' share price plummeted on April 1 and once fell. Subsequently, Sanan Optoelectronics said that the relevant news was not true and said that there was no plan to suspend the license in the near future.
On the evening of April 2, Sanan Optoelectronics officially issued a positive response. According to the announcement, Sanan Optoelectronics denied the concealment of connected transactions and stated that there was no inflated investment.
On April 3, the share price of Sanan Optoelectronics after the resumption of trading fell rapidly, but it soon began to rebound, eventually closing at 12.38 yuan, up 0.08%. Although the stock price has been stabilized, the outside world’s doubts about Sanan Optoelectronics still exist. As far as the outside world is concerned, the reporter contacted the news party, Wang Qing, the director of Sanan Optoelectronics Co., Ltd.
Reporter: Some people say that since 2010, Sanan Optoelectronics has received orders for LED street lamps totaling 2.65 billion yuan from the governments of Wuhu, Huainan and Quanzhou. It seems that there are suspects of connected transactions. In terms of performance, government procurement and subsidies do account for a large proportion of Sanan Optoelectronics. How much is this related to the accused “more than half of the profits since the listing came from government subsidies�
Wang Qing: Since the characteristics of LED products are energy-saving and environmentally friendly, the LED industry can create great social value in addition to its commercial value. Therefore, the development of the LED industry has received support from governments and governments around the world in terms of policies and funding. In the early days of the industry, the world's LED giants, such as American Corey, were supported by government subsidized orders.
The development process of China's LED industry is no exception. From 2009 to 2013, the National Development and Reform Commission, the Ministry of Science and Technology and other competent departments continuously issued industrial planning opinions and support opinions and policies. Under the guidance of national policies, local governments have also introduced support policies for the LED industry, including LED equipment subsidies, R&D project awards, financing discounts, and targeted purchase orders. The introduction of these policies has indeed helped the development of the LED industry.
Sanan Optoelectronics was listed in July 2007. At that time, it was the first listed company in China to focus on LEDs. After only six years of development, today's A-share listed companies are engaged in the listing of LED and downstream businesses. The number of companies has reached more than 30, and there is still a trend of continued growth, which shows that the government's industrial policy guidance and specific support measures have indeed greatly promoted the development of the industry.
However, as the LED industry continues to mature, the industry chain continues to improve, and the degree of marketization increases, the role of the government will gradually reduce or even completely withdraw, making the LED industry become a completely market-oriented industry. This is our judgment and a process of gradual realization.
Reporter: Some people questioned the price of Sanan Optoelectronics' products is too high. For example, the price of Sanan Optoelectronics is almost three times higher than the market price. Some media said that these street lamps are not produced by you. If the company purchases and is suspected of violating the relevant provisions of the state procurement, are these real situations?
Wang Qing: Our announcement has already stated that the company's street lamp products strictly design the whole lamp system according to the technical characteristics of the company's products. The quality of the products is strictly in accordance with international standards. The street lamps and other application products are entrusted to downstream customers. The company's standard organization processing.
Why do we emphasize the technical characteristics of our products? Because the high-power LED chip applied to street lamps three years ago is also a monopoly technology abroad, Sanan Optoelectronics has developed a high-power industrial light LED chip of 126 m/W through independent research and development and realized industrialization through assembly and optics. Designed to make the color temperature display exponential light effect continuous lighting time...
Reporter: I interrupted, do you think the technology used is worth more than three times the market price?
Wang Qing: At that time, the technical conditions were indeed relatively high. The contract for the company’s street lamps was signed earlier, and the signing was three years. For the price, this included product performance, brand value, follow-up services and other factors. I think now everyone can see the same kind of products in the market. The prices of different companies are absolutely different. You can search for LED flashlights and other products on Taobao. The price difference of similar products can reach ten times, so I can clarify a question about the price difference here. For the problem of street lamp production, we belong to the mode of commissioned processing, and this is also a mature model adopted by other industries around the world. For example, the principal organization is responsible for the management of the supply chain.
Reporter: That is to say, this product is not produced by your own company. Is it produced by other companies?
Wang Qing: This is the case, because we are adopting a mode of entrusted processing. We are responsible for the design and supply chain management, and then the processing is responsible for assembly. The Apple mobile phone that everyone can be familiar with is Foxconn OEM. There are also many electronic products companies that are contracted by specialized companies.
Reporter: That is to say, you also exist in fact that they are actually produced by other companies. Is there any problem?
Wang Qing: The information services implemented in this mode are legal and compliant.
Reporter: There is still another problem. We know that there is a large chunk of the business structure of Sanan Optoelectronics called gold scrap recycling. This part of the profit seems to account for nearly 30% of the company's total profit. Why does an auxiliary business create so much for the company? What about profit?
Wang Qing: This is the case. I need to explain the link of gold recycling. Regarding the problem of gold scrap, one of the links in the LED chip production process is to use high-purity gold to make electrodes for LED chips. The purity of gold is required to reach five high-purity gold, and the control requirements for production are very high. In this production process, there is a link through high-temperature fusion plating, called the plating step, which is a gold from solid. After the high temperature becomes liquid, it becomes a process of gas plating into this LED chip.
After the plating is complete, the epitaxial wafer is cooled and removed. At this time, many gold components remain on the tray of the chamber of the equipment. This part of the gold needs to be recycled by professional equipment and personnel. The impurities are not recycled after recycling. At this time, the gold of the waste was formed.
Sanan Optoelectronics has always been a quick way to deal with the amount of scrap gold that cannot be predicted. In the process of product cost accounting, the purchase cost of gold has been included in the production cost of LED products, but after the scrap gold recycling is completed, it is sold. Specialized recycling agencies have formed sales revenues, as the sale of this scrap gold is accompanied by LED production chip processes...
Reporter: I understand that you have a big profit in this, but since the production part is contracted by other companies, do you recycle the gold from the foundry company?
Wang Qing: No, maybe you are a bit misunderstood. The OEM we emphasized earlier refers to the street lamp products. The gold recycling is the process of LED chip production...
Reporter: Is this part controlled by you?
Wang Qing: It is our own control, LED products are completely produced in the production base of their own production enterprises.
Reporter: There are more LED manufacturers, more companies, and more fierce competition. The stock price of Sanan Optoelectronics has also been affected to some extent. What do you think is the reason why there will be so much information in the market, resulting in three An Optoelectronics share price is affected?
Wang Qing: The so-called reason for the media reports is how we can't judge, but we can't make a conclusion without any substantive evidence. For acts that maliciously vilify the company, we will take legal measures to protect our legitimate rights and interests.
Regarding the issue of stock price, we believe that the stock market is a market with a high degree of marketization. The price price change is determined by the intrinsic value. Although the price and value of some special events deviate from certain periods, we are listed companies. Managers, their job is to do their part to do their part, to achieve sustained and healthy growth of the performance of listed companies, which is the best maintenance of the value of our listed companies.
Reporter: Just now you also said that in fact, the LED industry also has state support and subsidies. In the current development situation, if the government introduces a large amount of support, will your industry be like the photovoltaic industry? prospect?
Wang Qing: I would like to express some views on this issue. First, the LED industry and the photovoltaic industry are fundamentally different. The problems encountered by the photovoltaic industry have the particularity of this industry. We do not say much about the photovoltaic industry, but the largest The two are outside, the raw materials and assets are at the same time. Under the premise of the global economic crisis, the European and American countries have reduced the investment in new energy, and the photovoltaic industry has encountered difficulties.
But for the LED industry, I personally think that our rising period has only just begun. I have already mentioned that the two characteristics of LED products are energy conservation and environmental protection. With the continuous improvement of the technology industry chain, the use of LED is constantly The expansion of the use of LED lighting is the industrial revolution, which is the consensus of our entire industry. This revolution is like a motor vehicle to replace the carriage, new technology and new products for the replacement of the original model. According to the statistics of the National LED Industry Alliance, the total size of LEDs in 2000 was about 9 billion yuan. After more than a decade of development, the industry scale reached 180 billion yuan last year, but this scale is far from enough.
On the evening of April 2, Sanan Optoelectronics officially issued a positive response. According to the announcement, Sanan Optoelectronics denied the concealment of connected transactions and stated that there was no inflated investment.
On April 3, the share price of Sanan Optoelectronics after the resumption of trading fell rapidly, but it soon began to rebound, eventually closing at 12.38 yuan, up 0.08%. Although the stock price has been stabilized, the outside world’s doubts about Sanan Optoelectronics still exist. As far as the outside world is concerned, the reporter contacted the news party, Wang Qing, the director of Sanan Optoelectronics Co., Ltd.
Reporter: Some people say that since 2010, Sanan Optoelectronics has received orders for LED street lamps totaling 2.65 billion yuan from the governments of Wuhu, Huainan and Quanzhou. It seems that there are suspects of connected transactions. In terms of performance, government procurement and subsidies do account for a large proportion of Sanan Optoelectronics. How much is this related to the accused “more than half of the profits since the listing came from government subsidies�
Wang Qing: Since the characteristics of LED products are energy-saving and environmentally friendly, the LED industry can create great social value in addition to its commercial value. Therefore, the development of the LED industry has received support from governments and governments around the world in terms of policies and funding. In the early days of the industry, the world's LED giants, such as American Corey, were supported by government subsidized orders.
The development process of China's LED industry is no exception. From 2009 to 2013, the National Development and Reform Commission, the Ministry of Science and Technology and other competent departments continuously issued industrial planning opinions and support opinions and policies. Under the guidance of national policies, local governments have also introduced support policies for the LED industry, including LED equipment subsidies, R&D project awards, financing discounts, and targeted purchase orders. The introduction of these policies has indeed helped the development of the LED industry.
Sanan Optoelectronics was listed in July 2007. At that time, it was the first listed company in China to focus on LEDs. After only six years of development, today's A-share listed companies are engaged in the listing of LED and downstream businesses. The number of companies has reached more than 30, and there is still a trend of continued growth, which shows that the government's industrial policy guidance and specific support measures have indeed greatly promoted the development of the industry.
However, as the LED industry continues to mature, the industry chain continues to improve, and the degree of marketization increases, the role of the government will gradually reduce or even completely withdraw, making the LED industry become a completely market-oriented industry. This is our judgment and a process of gradual realization.
Reporter: Some people questioned the price of Sanan Optoelectronics' products is too high. For example, the price of Sanan Optoelectronics is almost three times higher than the market price. Some media said that these street lamps are not produced by you. If the company purchases and is suspected of violating the relevant provisions of the state procurement, are these real situations?
Wang Qing: Our announcement has already stated that the company's street lamp products strictly design the whole lamp system according to the technical characteristics of the company's products. The quality of the products is strictly in accordance with international standards. The street lamps and other application products are entrusted to downstream customers. The company's standard organization processing.
Why do we emphasize the technical characteristics of our products? Because the high-power LED chip applied to street lamps three years ago is also a monopoly technology abroad, Sanan Optoelectronics has developed a high-power industrial light LED chip of 126 m/W through independent research and development and realized industrialization through assembly and optics. Designed to make the color temperature display exponential light effect continuous lighting time...
Reporter: I interrupted, do you think the technology used is worth more than three times the market price?
Wang Qing: At that time, the technical conditions were indeed relatively high. The contract for the company’s street lamps was signed earlier, and the signing was three years. For the price, this included product performance, brand value, follow-up services and other factors. I think now everyone can see the same kind of products in the market. The prices of different companies are absolutely different. You can search for LED flashlights and other products on Taobao. The price difference of similar products can reach ten times, so I can clarify a question about the price difference here. For the problem of street lamp production, we belong to the mode of commissioned processing, and this is also a mature model adopted by other industries around the world. For example, the principal organization is responsible for the management of the supply chain.
Reporter: That is to say, this product is not produced by your own company. Is it produced by other companies?
Wang Qing: This is the case, because we are adopting a mode of entrusted processing. We are responsible for the design and supply chain management, and then the processing is responsible for assembly. The Apple mobile phone that everyone can be familiar with is Foxconn OEM. There are also many electronic products companies that are contracted by specialized companies.
Reporter: That is to say, you also exist in fact that they are actually produced by other companies. Is there any problem?
Wang Qing: The information services implemented in this mode are legal and compliant.
Reporter: There is still another problem. We know that there is a large chunk of the business structure of Sanan Optoelectronics called gold scrap recycling. This part of the profit seems to account for nearly 30% of the company's total profit. Why does an auxiliary business create so much for the company? What about profit?
Wang Qing: This is the case. I need to explain the link of gold recycling. Regarding the problem of gold scrap, one of the links in the LED chip production process is to use high-purity gold to make electrodes for LED chips. The purity of gold is required to reach five high-purity gold, and the control requirements for production are very high. In this production process, there is a link through high-temperature fusion plating, called the plating step, which is a gold from solid. After the high temperature becomes liquid, it becomes a process of gas plating into this LED chip.
After the plating is complete, the epitaxial wafer is cooled and removed. At this time, many gold components remain on the tray of the chamber of the equipment. This part of the gold needs to be recycled by professional equipment and personnel. The impurities are not recycled after recycling. At this time, the gold of the waste was formed.
Sanan Optoelectronics has always been a quick way to deal with the amount of scrap gold that cannot be predicted. In the process of product cost accounting, the purchase cost of gold has been included in the production cost of LED products, but after the scrap gold recycling is completed, it is sold. Specialized recycling agencies have formed sales revenues, as the sale of this scrap gold is accompanied by LED production chip processes...
Reporter: I understand that you have a big profit in this, but since the production part is contracted by other companies, do you recycle the gold from the foundry company?
Wang Qing: No, maybe you are a bit misunderstood. The OEM we emphasized earlier refers to the street lamp products. The gold recycling is the process of LED chip production...
Reporter: Is this part controlled by you?
Wang Qing: It is our own control, LED products are completely produced in the production base of their own production enterprises.
Reporter: There are more LED manufacturers, more companies, and more fierce competition. The stock price of Sanan Optoelectronics has also been affected to some extent. What do you think is the reason why there will be so much information in the market, resulting in three An Optoelectronics share price is affected?
Wang Qing: The so-called reason for the media reports is how we can't judge, but we can't make a conclusion without any substantive evidence. For acts that maliciously vilify the company, we will take legal measures to protect our legitimate rights and interests.
Regarding the issue of stock price, we believe that the stock market is a market with a high degree of marketization. The price price change is determined by the intrinsic value. Although the price and value of some special events deviate from certain periods, we are listed companies. Managers, their job is to do their part to do their part, to achieve sustained and healthy growth of the performance of listed companies, which is the best maintenance of the value of our listed companies.
Reporter: Just now you also said that in fact, the LED industry also has state support and subsidies. In the current development situation, if the government introduces a large amount of support, will your industry be like the photovoltaic industry? prospect?
Wang Qing: I would like to express some views on this issue. First, the LED industry and the photovoltaic industry are fundamentally different. The problems encountered by the photovoltaic industry have the particularity of this industry. We do not say much about the photovoltaic industry, but the largest The two are outside, the raw materials and assets are at the same time. Under the premise of the global economic crisis, the European and American countries have reduced the investment in new energy, and the photovoltaic industry has encountered difficulties.
But for the LED industry, I personally think that our rising period has only just begun. I have already mentioned that the two characteristics of LED products are energy conservation and environmental protection. With the continuous improvement of the technology industry chain, the use of LED is constantly The expansion of the use of LED lighting is the industrial revolution, which is the consensus of our entire industry. This revolution is like a motor vehicle to replace the carriage, new technology and new products for the replacement of the original model. According to the statistics of the National LED Industry Alliance, the total size of LEDs in 2000 was about 9 billion yuan. After more than a decade of development, the industry scale reached 180 billion yuan last year, but this scale is far from enough.
With the continuous maturity of LED lighting technology, the automotive industry has been using LED light sources for instrument panels and interior lighting, and LED lighting is gradually capturing brake lights, fog lights, low beam lights, high beam lights, and daytime running lights. Application fields such as adaptive headlights (AFS) for exterior signal indication and headlight illumination.The challenge for LEDs to be used in exterior lighting is the need for integrated, flexible and networked drives.
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