Sanan Optoelectronics (600703, previous closing price of 22.75 yuan) disclosed in today's announcement that the company plans to sign an "Investment Agreement" with the Xiamen Torch High-Tech Industrial Development Zone to invest in the development and construction of LED epitaxy and chip R&D and manufacturing industrialization projects in the development zone, with a total investment of 10 billion yuan. At the same time, a subsidiary Xiamen Sanan Co., Ltd. was established in the development zone with a registered capital of 10 million yuan.
The announcement shows that the main content of the agreement consists of two parts: First, the company invests in the construction of LED blue and green epitaxial wafers and chip production lines in the land north of Min'an Avenue in Xiamen Torch High-tech Zone and west of Binhai East Avenue. The total investment in the project is 10 billion yuan, with a total scale of 200 MOCVD units (based on 2-inch 54 wafers). The first-phase investment is directly up to 5 billion yuan, with a registered capital of 2 billion yuan (available in installments), and an operating period of no less than 20 years. In addition, 100 units of MOCVD equipment will be launched in the first phase. The construction period of the first-phase project is one year, and all factories and related production supporting facilities will be completed within two years. The remaining 100 MOCVD units will be started after all the first-phase equipment is invested, and will be in place and put into use no later than the end of 2018. Otherwise, Xiamen Torch Development Zone will have the right to cancel the corresponding subsidies for MOCVD equipment that has not yet been put in place.
On the one hand, Xiamen Torch Development Zone agreed to give San'an Optoelectronics Project Company a single piece of equipment based on a 2-inch 54-piece subsidy amount of 5 million yuan, which will be paid in installments according to the project company's payment progress, with a subsidy limit of 200 units; on the other hand, it supports San'an Optoelectronics Project Company and its cooperating energy service company to undertake LED renovation projects for public lighting such as street lamps in Xiamen through competitive negotiations and in accordance with the contract energy management model. The planned 10-year renovation project is about 3 billion yuan.
The reporter found that Sanan Optoelectronics' 2013 semi-annual report showed that the company's wholly-owned subsidiary MOCVD equipment has exceeded 130 units and is at full production.
ANNA