The outbreak of the new hegemony of the LED Market

Independent innovation research and development combined with improving competitiveness

G Silan (600460): the company is a semiconductor IC chip design of China's famous leading manufacturer, to develop high-end semiconductor chip high-tech intervention, the level of R & D technology in a leading position in the same industry in china. In strengthening the chip design and development capabilities at the same time, the company invest in the construction of chip production lines, at present has been put into operation, the company has an annual output of 500 thousand pieces of chip circuits and discrete devices, which extend the industrial chain, has advantages of collaborative design and manufacturing in the field of IC. The company has also invested heavily in research and development, strengthen the programmable chip CD and DVD chip system, high power and ultra high frequency products, new products and other special chip discrete devices such as embedded MCU, positive research results into products with independent intellectual property rights, to maintain the company's core competitiveness. At present, digital audio and video, discrete devices and LED and other fields have achieved a major breakthrough, this year the first half of the company's new product development efficiency significantly accelerated 14 cumulative successful development of new products to improve the circuit, circuit 5, a total of 19 species. This is the basis for the company's high growth.

Policy support to ensure the high performance of the release of hidden profits

Recently, the company received a notice on the release of the national planning and layout of the 2005 key software companies list, the company was listed as the national planning and layout of the key software companies in the year 2005". In order to encourage and accelerate the development of key software industry and integrated circuit industry, the company's 2005 annual corporate income tax at the reduced tax rate of 10%, the return of part of the tax will be reflected in the second half of the financial statements. The company semi annual report shows that the first half of this year, the company realized main business income and net profit year-on-year growth of 56.4% and 51.8%, which is obviously more than a quarter of decline, but to carefully study the company's semi annual report can be found in the first quarter of the sale of a subsidiary to obtain huge non recurring gains and losses, the company accelerated investment in new projects the development of new products, the progress of the company, R & D costs compared to the same period last year there was a substantial increase, one-time stalls subsidiary Hangzhou Silan azure Co., start-up costs 6 million 900 thousand yuan, while the subsidiary Silan integrated capital 100 million yuan, these costs led to substantial growth in the two quarter, but these inputs are quickly transformed into benefits. For example, Silan integrated chip production line is running smoothly in June, the monthly output of chip has reached 48 thousand / month, the company is expected by the end of August Output can reach 60 thousand / month, so the company has to increase the investment in order to dilute the current earnings in order to ensure the continued growth of future performance of the suspect.

LED cutting-edge technology to enhance profitability

According to the "11th Five-Year" plan, this year China's energy consumption per unit of GDP should be reduced by about 4%, but in the country has repeatedly stressed the transformation of growth mode under the condition of the first half of China's energy consumption growth is still faster than economic growth, energy consumption per unit of GDP did not fall, such situation is very serious. Therefore, the recent introduction of the country, "11th Five-Year" 10 key energy conservation projects implementation of the "11th Five-Year" urban green lighting project planning. Proposed energy-saving targets, including in 2005 as the base, the annual urban lighting electricity saving 5%, from 2006 to 2010 cumulative saving of 25%. To guarantee the application of efficient energy-saving lamps lighting efficiency in more than 80% of the rate of more than 85%, the application of high light efficiency, long life light source rate of more than 85%. The company's technical advantages make it possible for the company to find a new potential market and make a breakthrough in the LED light-emitting semiconductor. Due to technical reasons, China's LED industry has been at a low level. The company is determined to enter the LED market will develop a clear industrial layout, starting from the middle reaches of the chip, and gradually extended to packaging and application and extension of the upstream and downstream, through cooperation with foreign giants, to enhance the overall level of. A large number of companies into the market test stage power LED flip flip chip and small chip has been completed, LED devices up to up to 36.2% gross margin is two times the industry leader LIAN G, the company is stepping up to develop new products with high brightness red LED chips such as LED, the future will become the field of overlord. In addition, CD/VCD company's servo circuit, MP3 circuit, IC card circuit, LED drive circuit, LED devices and other new products will also be put into the market, will bring a great improvement on the performance of the company, the stock recently in the bottom area to build a small arc bottom shape, recently continued upside volume, there are signs of acceleration. Pay close attention to.