LED chip production equipment price BDO not impairment

LED chip production equipment continued price cuts, LED chip manufacturers in the accounting for impairment of assets need to deal with? In the face of the Shenzhen Stock Exchange inquiry letter, Elec-Tech given the answer is: "there was no sign of impairment. "

Today's announcement, the company recently received the Shenzhen Stock Exchange inquiry letter, for the company LED chip production equipment operating rate, market prices and other conditions of self-examination, and make a written reply.

It is reported that the manufacture of LED chips, including the epitaxial segment (EPI segment) and chip processing segment (CHIP segment), the main equipment of the epitaxial segment is MOCVD. According to the announcement, Elec-Tech LED chip Department statistics, the company's 2014 annual EPI annual average operating rate of 82%. Among them, the annual production capacity of Wuhu base MOCVD 50 units, engineering, Taiwan, R & D 4 units; Yangzhou base MOCVD equipment in June began to put into operation, the average production capacity of 12 units. CHIP segment annual average operating rate of 94%. Elec-Tech started better than the market average.

In fact, the entire LED chip industry is becoming more concentrated. According to industry statistics, in 2009 the total output value of the domestic LED chip industry was about 2000000000 yuan, the number of enterprises in the region by up to 62. Today, most enterprises have ceased to exist, Deputy Secretary General of alliance national semiconductor lighting project in the days before long Nguyen said that at present, there are about more than and 20 chip companies in the production.

At the same time, MOCVD equipment prices continue to decline. Industry insiders said that compared with 2011, the current price of the new MOCVD device has been reduced by about 40%. New equipment prices fell sharply, the old equipment will lose the price advantage. As a result, it is very difficult to sell the old equipment of the LED chip factory.

It is understood that the MOCVD device is the key equipment for the production of LED epitaxial wafer, currently the world's major suppliers of MOCVD equipment has two, namely, the German AIXTRON company and the United States VEECO. More than 90% of the world's commercial application of MOCVD equipment is the product of the two companies, mainland China manufacturers purchase MOCVD devices are basically the two companies' products.

LED chip equipment production process debugging time is longer. In general, from the equipment to the factory installation to the equipment to be put into operation at least 3 months or so, but also need to continue to improve the technical process, improve product brightness and other technical indicators and excellent rate.

Elec-Tech said, all the company purchased 4 inch MOCVD equipment, the latest batch of equipment in June 2014 to the plant, is the world's most advanced equipment in MOCVD model.

For the production equipment continued to decline, Elec-Tech that MOCVD equipment and chip manufacturing equipment companies are relatively new equipment in the industry, the normal production and operation, high operating rate. Although at this stage the same equipment market overall price decline, but the company's LED chip business overall has been profitable, the current value of the estimated future cash flow will not be lower than the book value of the company, there is no impairment of signs of judgment.

However, Elec-Tech said cautious attitude, based on Accounting in the 2014 annual audits of the company's fixed assets impairment test, after the final auditing results shall prevail.

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