The LED project will reach full production in the third quarter and is affirmed by Xinhaiyi

Recently, it was reported that the LED projects invested by Xinhaiyi will be fully put into production in the third quarter, and LED product revenue is expected to double in the second half of the year. The company is also confident in the LED industry and emphasizes that all 20 LED equipment invested can indeed reach full production in the third quarter.

Judging from the announcement, Xinhaiyi invested in the LED project in July 2011 and pre-built 20 MOCVD equipment to produce LED epitaxial wafers, and planned to reach production in March 2014. But by the beginning of this year, only nine units had been put into production. However, recent news said that Xinhaiyi's 20 MOCVD equipment will reach full production in the third quarter of this year. It is also predicted that the company's LED product sales revenue will grow rapidly, reaching 300 million yuan in the second half of the year. Regarding this news, some investors sought confirmation from the company on the Panorama interactive platform.

The reporter also contacted the company to learn about the situation. Xu Lei, the company's secretary of the board of directors, confirmed that "the 20 LED equipment planned to be built by the company will all be put into production in the third quarter and reach full production status." In addition, regarding the speculation on LED sales, Xu Lei believes that "the rumored data is also calculated based on the annual production capacity of LED equipment, but it still has to be subject to the company's announcement."

According to the investment LED project announcement, after all 20 MOCVD units reach production, annual sales will reach 776 million yuan. If calculated based on this, all MOCVD equipment will be at full production in the third quarter, so LED products can contribute 300 million yuan in sales revenue in the second half of the year, which is within a reasonable range.

The two major areas in which Xinhaiyi currently accounts for the largest proportion of revenue are communications manufacturing and computer technology development. Currently, the company has full confidence in the LED lighting industry. Some institutions pointed out that LED products will become the third pillar of the company's revenue. Xu Lei also said, "The LED lighting industry is developing rapidly, and the LED lighting products produced by the company are among the best in the industry in terms of luminous efficiency and yield rate. The company hopes to make LED a major product that contributes to the company's revenue."