Meeting minutes exposure: Six asked why the acquisition of secret crystal Sheng

In April 10th, the company announced 138 million yuan acquisition of LED equipment manufacturers for photoelectric 51% stake, is an important step in the field of the company layout sapphire industry and intelligent equipment, CRE securities invitation to the general manager of the company to communicate by telephone meetings with investors, the following is the meeting minutes.

1 please give a brief introduction to the acquisition of the basic mechanical and electrical conditions for the acquisition of crystal

The company in line with the strategic layout of new materials and new equipment for photoelectric acquisition, for LED photoelectric equipment manufacturers, customers covering LED extension, packaging, packaging, patch, lamp manufacturing and other fields, the technology in the industry-leading level, is China LED packaging equipment ten strong enterprises, influential is the national semiconductor lighting project development the industrial enterprise in the alliance. In the high-end positioning for the photoelectric and Sheng Mechanical and electrical strategy is fully consistent, the acquisition was very smooth.

2 how do you see the synergies of the company and the sapphire business?

In photoelectric and company sapphire business synergy is mainly reflected in: (1) the synergistic effect of the market, as is the LED photoelectric equipment suppliers, downstream customers covering LED on industrial chain, which is common and Sheng electrical customers, for example, BDO Runda Optoelectronics Technology (2) and other enterprises; the collaborative, crystal Sheng electrical equipment is of high precision, strong real-time control of large and medium sized single high value equipment for photoelectric technology advantage in integrating various equipment technology, such as sensing, detection, pipeline inspection and packaging, the two companies in the industry are concerned about 4 areas have their own advantages, technology complementary.

3 sapphire chip mainstream size of more than 6 inches over the next 3 years?

The 4 inch has been the mainstream, the market share of more than 50%, 6 inch sapphire wafer now companies in the industry have made more in-depth research on the reference path, silicon semiconductor, 3 years, 6 inches should be done about 40%, the future development is very fast, can do more to see the development of the industry, especially the demand consumer electronic window materials.

4 how to look at the future development of sapphire crystal industry trends and competitive landscape?

A few years ago, sapphire crystal is not part of Chinese leading enterprises, major global capacity in Russian companies such as Mono, the recent domestic long grain companies are developing very fast, the future domestic long grain companies will become more and more competitive. The technical route on the company optimistic about the main advantage of kyropoulos method, the growth of high quality, stable production, the disadvantage is the monomer production of small, low degree of automation. However, it can be found that the reference to the PV industry will be faster progress, the next 1 years or so will be able to achieve full automation. Market size LED growth of 20-30%. In the field of consumer electronics, sapphire glass material is more optimistic about the direction of the industry, will lead to further rapid development of the sapphire industry. At present, most of the company's production capacity is about the same, the core is the next two or three years of technical conditions, the technical breakthrough to determine the future position of the industry.

5 how to see the recent Jinsha River venture capital $3 billion 300 million acquisition of PHILPS lighting business: A. valuation is reasonable B. acquisition of the domestic LED industry?

(1) valuation is reasonable, PHILPS lighting is a well-known enterprise in the global lighting brand, has a relatively high value, and PHILPS in the LED technology intellectual property layout is very perfect, very comprehensive, in addition to a high value in intelligent lighting business of PHILPS, is not only energy-saving technology.

(2) does not constitute a substantial impact, but the Jinsha River venture capital company, the acquisition of the acquisition of other LED companies behind them and the layout of the lighting industry is very meaningful.

What is the size of the 6.LED substrate for sapphire and how will it grow in the future?

A conservative estimate, at present LED on sapphire substrate needs 3 million per month / month (converted into inches) demand, the future market demand can keep 20-30% growth per year.