Zhen Mingli spent 400 million yuan to increase its share price in Jiangmen Construction Plant by more than 6%

HONG KONG, June 14 (Reuters) - Zhen Mingli Holdings said on Monday that it will build a manufacturing plant for LED epitaxy and wafers in the Jiangmen branch of China, with a total capital commitment of 400 million yuan. The stock rose more than 7% in early trading.

The company's announcement said that its wholly-owned subsidiary Billion Choice and Jiangmen Industrial Park Management Committee reached an agreement on Saturday, agreeing to set up a manufacturing plant for the production of LED epitaxial wafers, packaging and lighting modules in the first phase of production in November this year, The monthly production capacity will reach 25,000 epitaxial wafers and 470 million wafers.

The company estimates that the cost of LED terminal products can be reduced by 10% to 15%." Announcement. By the time of full production in 2013, Billion Choice will purchase 60 organic metal chemical vapor deposition machines (MOCVD) and obtain a total of 600 million yuan. RMB subsidy; by then the company's production capacity will reach 135,000 pieces per wafer or 2.8 billion pieces per month, and the annual output value will reach 2 billion yuan.

The company said that this year, the demand for LED chips has grown rapidly, and the current price increase has exceeded 40%. The company's gross profit margin is over 50%, and the net profit margin is over 40%.

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