Injection of 130 million yuan blue rainbow group on LED for self-help

Rainbow Electronics (0438.HK) issued Yukui announcement 3 days, July 16th, rainbow club group (hereinafter referred to as LED (Rainbow) invest 130 million into the semiconductor lighting industry), holding 51% of the shares of the Blu ray technology signing ceremony was held in Shanghai. This move makes a lot of people in the market was surprised, there are analysts said it is the field of home appliances again gambling".

A long-term concern Rainbow Group researchers also said that the rainbow has a certain risk of holding.

"Rainbow Holdings Shanghai Blu ray is another way to seek self-help." Senior home appliance expert Liu Buchen told reporters.

Rainbow group propaganda department official said, the holding is the rainbow group into the field of Optoelectronics and the implementation of an important strategic step of industrial restructuring.

From the rainbow annual report, the reporter found that from the beginning of 2005, the rainbow began to fall into the quagmire of losses, and then consider the various factors of the enterprise, to seek self-help. 2006 set up a joint venture with Changhong, Sichuan century rainbow, to build PDP plasma screen production line; at the beginning of this year, also started construction of the first domestic LCD glass substrate production line.

Although the rainbow side said that the glass substrate project is in accordance with the plan, but experts have reservations about the two investments.

Liu Buchen said, because the upper reaches of the core technology of plasma and liquid crystal panel in Japan and South Korea and other foreign hands, while domestic production line imported and relatively backward, with liquid crystal, adopted in foreign countries has been to the 8 generation line, while the domestic still remain in the 4 and 5 generation line, the gap between the obvious, so the short term is difficult to Japan and South Korea made the ideal gains in the struggle.

Investment in the LED industry to invest a lot less than the previous two, and this is the rainbow's main business in the three most likely to generate revenue items." Liu Buchen think.

Conference, the rainbow group deputy general manager Zhang Shaowen said, the global LED lighting market of 14% annual growth rate in 2009 will reach $7 billion 200 million, and the China LED industry annual growth rate above 30% in 2010, the market scale will reach 28 billion yuan.