Micro Bo: the company's development strategy results

The afternoon of July 9, 2010 3:30 Silan deputy general manager and chief financial officer Chen Yue joined Societe Generale Securities organization "Silan executive meeting".

Chen introduced in detail the company's development history and current situation, the main business, the main product line, the core technology, and the company's future development strategy and the problems and challenges faced by the description. After that, Chen answered the question of investor concern.

Our main viewpoints are as follows - silan:

(1) the company has semiconductor design, semiconductor manufacturing and LED chip of three kinds of business, with power supply and power drive, mixed signal and RF, digital audio and video, micro control chip (MCU), security monitoring chip, discrete devices and LED devices 7 product lines. We believe that the future of the three major categories of products for two or three years the company will grow rapidly, the reason is that the global semiconductor boom cycle is elongated, and the global semiconductor industry in the low-end to accelerate the transfer to the mainland (refer to "China semiconductor industry depth report ushered in the period of strategic opportunities"); two reasons: the company to purchase equipment in the boom low, the future can continue to expand; three reasons: the company has IC design ability, combining with the design and manufacturing phase is the company's core competitive advantage; four reasons: the company is the only one from the semiconductor to expand to LED in the field of listed companies has great potential in the field of LED.

(2) in semiconductor design, the company has SOC platform and BiCMOS, BCD platform. The design of SOC products mainly in the factory BiCMOS, BCD tape, all products of their own production, take the IDM line. The company's advantage lies in the ability to design and manufacture, to protect their intellectual property rights, with the ability to innovate. We believe that the company is currently in the new product on the amount of early, will soon be able to see benefits.

(3) in semiconductor manufacturing, the company currently has a total production capacity of 105 thousand / month, monthly production of about 100 thousand, basically full production. This year, the company bought a second-hand 6 inch line, is expected to expand this year's production capacity of 20 thousand, in 2011 to expand around 30 thousand. We believe that the future of the company will become the world's largest low-end semiconductor manufacturing enterprises, the increasingly obvious advantages of scale.

(4) in terms of LED devices, the company currently has a total of 8 MOCVD, epitaxial film production capacity in the 150 thousand / year, chip production capacity of 6 billion / year, the current capacity utilization is very high. The company has ordered 6 sets of MOCVD Aixtron, is expected to arrive in batches in early 2011. The company mainly produces green and blue chip, good brand awareness, mainly for outdoor color field. The company has set up a joint venture company Meika Music, ready to enter the field of packaging. Another reason we have been optimistic about Silan LED business is the company from the field of semiconductor technology, has entered the field of LED, the technical aspects of the long-term accumulation, has a unique competitive advantage.

(5) Company in June 25th released the first half of 2010 the pre announcement, the company expects net profit in 2010 half year attributable to shareholders of listed companies will be more than 90 million yuan, compared with the 2009 semi annual growth of 429%.