First line: next year, Han push LED chip

First thought line (595) announced the day before yesterday to $2 million stake in South Korea's light-emitting diode chip company Wave Square's interest in $21%. The first line of thinking CEO Su Zhian yesterday at a press conference that the Wave Square is expected to begin early next year pilot, the monthly production of 6 million pieces of LED chip, can be launched in the Korean market in the second quarter of next year, and the first thought for wafer proxy China has made the two or three quarter of next year to start selling materials, believe Wave Square in mass production after a year up to the balance of payments.

Or holdings of Wave Square shares

Su Zhian said that at present the company distribution LED product gross margin of only 5% to 6%, but the gross profit margin of up to 20% light emitting diode chips, but the distribution of Wave Square, due to the initial distribution of smaller, so the turnover contribution will not be too obvious. He also pointed out that the production of Wave Square light-emitting diode chip margin, I believe not less than 40% to 50%.

In addition, the first line of thinking chairman Su Yujun said that the expected future Wave Square to expand production capacity to meet the needs of the market, if the production capacity will be doubled, or need to invest 10 million to 20 million U.S. dollars, will be available through the search form of funds or capital increase to raise funds available, first line of thinking also hope that the holdings of Wave Square shares.

Su Zhian added, there are only a production of vertical light emitting diode chip, and Wave Square is second between the production of the product of the enterprise, and has a patent, so the production costs will be lower, the price of the product will be a vertical light emitting diode chip is low, not to believe that the product can be extended to indoor lighting and mass market.

Su Yujun also said that the company is currently about 300 million yuan in cash on hand, looking forward to find the right project, the main opportunity associated with LED products. In addition, Su Zhian said that its electronic medical products business has been profitable contribution, annual turnover of about 50 million yuan.

Source: Hongkong daily