By raising 1 billion 900 million Baihong excitation LED

Baihong yesterday (3031) held the temporary shareholders' meeting, due to the small shareholders that the private corporate bond prices played a full forty percent off, affect shareholders' equity, the two sides deadlocked for two hours, so the last resort will end by private domestic unsecured debt, transfer 1 billion 900 million yuan; Chairman Liu Zongren said, back light will enter LED TV Baihong, and will introduce strategic alliance partners, LED optimistic about future prospects, revenue since March is expected to show strong growth.

Baihong today held a provisional shareholders meeting will discuss for the domestic private Switching Company unsecured debt, the amount is not more than 1 billion 900 million yuan shall be issued. But the Baihong private placement of convertible bonds to the private placement price is tentatively scheduled for 36 yuan, 40 percent off as the reference price, small shareholders that affect shareholders' equity, therefore, after two hours of discussion, the final resort to vote. Chairman Liao Zongren said that the private placement of convertible bonds mainly for large size backlight (especially LCD TV) and LED lighting development trend, hoping through private placement, introduction of strategic partners, in addition, but also to enrich the material purchasing and working capital.

Baihong this year will be large-scale expansion of production base in Dongguan, the scale of the main strengthening large-size backlight and lighting market, the new factory is located in Dongguan last year, Baihong has been completed, this year is expected to continue to expand production capacity. The company is currently the backlight and lighting market prospects, the hand from many mainland city LED street lamp standard case total orders, thousands of lanterns, February during the Chinese new year have been identified, factory overtime work, expected March revenue will grow significantly, in addition the large-size backlight will be the focus of this year's new business, is expected this year to third the season started mass production.

Most of the domestic LED factory is located in Taiwan, the mainland is not affected by the lack of labor, the lunar new year after the strong momentum of revenue, a number of orders to rewrite a record high, the incentive to fall deep LED stocks overall strength. Because the NB and TV backlight penetration rapidly, the upstream epitaxial demand, including EPISTAR, canyuan and Taigu, new century (3383) maintain orders full, relatively strong share price in early trading today. Since the LED shares from the high fixed more than 20% in large size LED backlight penetration increase, Credit Suisse Securities promising LED group, preferred crystal electric, and optimistic about the I-Chiun (2486), were given "outperform" rating, target price is 133 yuan, 61.