Cold winter against the trend of expansion, participation in Taiwan, Taiwan, Sanan Optoelectronics, significant financial risks

On November 13, Sanan Optoelectronics (600703.SH) announced that its wholly-owned subsidiary Sanan Optoelectronics Technology Co., Ltd. plans to use self-raised funds of no more than 2.352 billion Taiwan dollars (about 506.68 million yuan) to subscribe for Yuanyuan Optoelectronics (3061). .TW) No more than 120 million shares of common stock issued by private placement, thus becoming the largest shareholder holding approximately 19.9% ​​of Yanyuan Optoelectronics.

"Sanan Optoelectronics' shareholding in Yuanyuan Optoelectronics was formally signed in Taiwan on the morning of November 13. This is the first case in which Taiwan's mainland companies have relaxed their participation in the LED industry, and the land has entered Taiwan."

For this cooperation, Sanan Optoelectronics and Yuyuan Optoelectronics all claim to be “complementary advantages”. However, as the LED industry continued to struggle, Sanan Optoelectronics not only achieved a record high in accounts receivable and external guarantees, but also expanded its investment and continued expansion, which also caused market concerns and doubts.

Problem
The price per share of Sanan Optoelectronics was RMB 19.6 per share. The price was the closing price of Yanyuan Optoelectronics on Friday (November 9), and the board of directors of Sanan Optoelectronics deliberated on November 11. Pass this motion.

Unusually, the news that Yanyuan Optoelectronics introduced Sanan Optoelectronics was announced in Taiwan on the afternoon of November 12, but on the morning of the same day, the stock price of Haoyuan Optoelectronics took the lead in the intraday trading session, causing market doubts to leak in advance. The insider trading is suspected.

In this regard, Lin Huo Deng, deputy general manager and spokesperson of the Taiwan Stock Exchange, pointed out that the supervision mechanism has been initiated to conduct relevant data analysis and collection to trace whether it constitutes an insider transaction and report the information to the competent authority.

Not only that, Taiwan’s “Ministry of Economic Affairs” also said that Sanan Optoelectronics invested in Yuanyuan Optoelectronics, and will review the two major projects of “strategic cooperation” and “non-control ability”. According to the relevant regulations of Taiwan's "Industrial Bureau", for key LED technology industries, mainland shareholding companies may not assign managers.

Fu Zhenzhen, a spokesman for Yuyuan Optoelectronics, confirmed that Sanan Optoelectronics will not obtain the right to operate Huayuan.

The enquiry also found that on February 24, 2012, Toyoda Gosei filed an infringement lawsuit against Yuyuan Optoelectronics in the Taoyuan District Court in Taiwan, alleging that the latter infringed on its gallium nitride (GaN) light-emitting diode. The body (LED wafer) patent, for which an injunction was requested for multiple LED products manufactured by the latter.

On February 21, Toyota Synthetic also filed a patent infringement lawsuit in the Federal District Court of the Northern District of California, claiming that Yenyuan Optoelectronics infringed its patents related to LED chips.

The official website of Yuyuan Optoelectronics Co., Ltd. shows that it is dedicated to the epitaxial and grain fabrication of compound semiconductor gallium nitride photoelectric related materials, and is a professional manufacturer of gallium nitride related optoelectronic and electronic products.

However, Yuyuan Optoelectronics announced on October 30 that Toyota Synthetic has revoked the patent litigation filed against it, but the specific reasons were not disclosed.

According to the data, the company registered in November 1999 has a registered capital of NT$8 billion and paid-up capital of NT$4.816 billion. It was listed on the Taiwan Stock Exchange in April 2003 and was released in January 2010. Mitsui entered 15% of the shares and became the largest shareholder.

According to Sanan Optoelectronics Announcement, as of June 30, 2012, Yuyuan Optoelectronics' total assets amounted to NT$1,879,340,000, and the total owner's equity was RMB 1,016,617. The new year's operating income was RMB 237,193,000. ) benefit 215.96 million yuan in new Taiwan dollars.

However, Yuanyuan Optoelectronics reported that its earnings per share for the first three quarters of 2012 were -0.12 yuan (NTD, the same below), -0.17 yuan and -0.07 yuan, and the operating margin for the third quarter was 7.09%, before tax. The net profit margin is -3.02% and its 2011 earnings per share is -0.40 yuan.

In terms of the proportion of revenue of Yanyuan Optoelectronics, the light-emitting diode crystals reached 97.56%, the light-emitting diode wafers accounted for 2.21%, and the others were 0.23%.

Problems with failing factory relays, connectors/terminals and fuse contacts are also common when excessive load is placed on them.


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