Upstream and downstream of the MO source of risk full of big photovoltaic risk sprint IPO

Recently, the China Securities Regulatory Commission website pre disclosure of the first report of the prospectus of Jiangsu NANDA photoelectric materials Limited by Share Ltd gem. Southern light to be issued 12 million 570 thousand shares, the total issued share capital of 50 million 270 thousand shares, to be listed on the Shenzhen Stock Exchange gem. According to the prospectus disclosure, the south is a professional engaged in photoelectric photoelectric new material -- high pure metal organic source (also known as high pure metal organic compounds, hereinafter referred to as "MO") high-tech R & D, production and sales, the main products are three methyl trimethyl indium, gallium, aluminum and gallium three methyl ethyl three that is one of the world's four largest manufacturer of MO source. However, recently a number of financial media for the reporting period South photoelectric performance fluctuations raised many questions. At the same time, the industry said that the new capacity to raise funds to invest in the project or will encounter a profit dilemma. Nanda photoelectric prospectus shows that during the reporting period, the results of a large increase in the performance of the South photoelectric. 2008 to 2010, the company operating income of 29 million 480 thousand yuan, respectively, $28 million 700 thousand, $118 million, annual revenue growth of 2009 and in the year of and -2.67%. The 2010 and the year after deducting non recurring gains and losses of the company's net profit growth rate fluctuations in the year of 2009. 2008 to 2010, the company net profit after deducting non recurring gains and losses of 5 million 651 thousand and 300 yuan, respectively, $6 million 709 thousand and 100, $55 million 744 thousand and 900, an increase of 18.72% and 730.88%. Thus it can be seen that the results of the South photoelectric fluctuations in the reporting period is very large, the future will be able to maintain steady growth in the performance of doubt. Despite the fact that the company does not mean that the company will remain the same or similar revenue, profit growth rate in the future. It is understood that the downstream demand uncertainty, South photoelectric management MO source products have three methyl trimethyl indium, gallium and gallium, three methyl ethyl three aluminum, two magnesium, three Mao antimony, carbon tetrachloride, ethyl bromide and carbon four, of which three methyl trimethyl indium and gallium is the most important and the largest amount of two MO source. Prospectus data show that in the past three years, the total sales revenue of these two businesses accounted for more than 87% of the company's main business revenue. Data show that the three largest sales of gallium and gallium in the last three years, showing a rapid growth momentum. Among them, only in 2011 1-9 months, the sales revenue of the South photoelectric three methyl gallium reached $196 million, more than the annual sales revenue of more than 3 times in 2010, which accounted for the proportion of the main business has reached 71%. Nanda photoelectric said that in the first three quarters of 2011, MO source has been in a state of shortage, tight supply. Among them, the price of the three basic GA rose 82.51% in 2010, the contribution of the unit price of $88 million 490 thousand, accounting for about 60% of the proportion. At the same time, the sales of trimethyl gallium increased to 1.7 times the annual sales in 2010, an increase of contribution of $59 million 750 thousand, accounting for about 40% of the proportion. Trimethyl gallium and indium are the two most important MO sources in the LED epitaxy. According to the color and brightness of the manufacturers to choose one or several MO sources and in accordance with a specific proportion of the use of. Among them, the maximum amount of three methyl gallium, the use of the proportion of about 80%, the use of indium based on the average ratio of not more than 10%. According to the engineering LED Industry Institute (GLII) data show that as of the end of November 2011, the new MOCVD is only 300, but less than 1/3 of real operation, which is obviously on epitaxial growth of upstream raw materials demand also inhibited greatly. Executive vice president of the same side shares Liu Gang said: because of this year's MOCVD operating rate is not enough, so the price of MO source will definitely drop slightly. Nanda photoelectric said that the company's three base gallium synthesis second line (capacity of 3 tons / year) in April 2011 officially full load production, so that the annual production capacity of the annual output of up to 5.5 tons of methyl gallium, the average monthly shipments increased to about 616 kg. One of the raised funds to invest in the project as "high pure metal organic compound chemical industry project, the completion of the project implementation, to 2015 total production capacity of 22.5 tons of new MO source. Insiders said that if the next three methyl gallium and indium indium prices fluctuate, will likely have a certain impact on the performance of the South photoelectric. If the market price changes lead to three methyl gallium profitability is not as good as the three methyl indium, then the expansion of gallium trimethyl gallium will be an embarrassment for the production capacity of up to 5 times. Vice president of Guang Guang Guang Guang to the high tech LED, said: 2012 MO source price trend will tend to smooth, there should be no shortage of supply, so the price may drop about 10 points. Difficult to control the cost of raw materials, it is understood that the main source of raw materials used in the production of large optoelectronic MO gallium, indium and other rare metals. Because the international non-ferrous metals price volatility is relatively large, while the production of raw materials are not stable characteristics, therefore, take the South photoelectric increase inventory form may face to deal with the price fluctuation and the bulk purchase of the risk out of stock. Prospectus shows that as of September 30, 2011, the company stock of raw materials for 38 million 150 thousand yuan. Nanda photoelectric said, raise investment project completed and put into operation and to achieve full utilization of capacity, the annual demand for new gallium is about 19 tons (every 1 tons of gallium and gallium products about 0.85 tons of raw materials gallium). If there is a shortage of raw materials or price increases in the future, the company's equity investment projects can not be put into operation risk.