The announcement shows that the expansion of LED epitaxy and chip production capacity (Phase II) investment project plans to increase investment by 464,408,900 yuan, of which 376,624,200 yuan is used to purchase production equipment, 2,015,000 yuan for supporting projects, and 50 million yuan for purchasing software systems. 1,53 million yuan was used for technology development fees, 8.438 million yuan was used as basic reserve fee, and 4,57.5 million yuan was used as bottoming liquidity.
The main construction contents of the project include two aspects: First, invest in new equipment, purchase, install and debug production equipment such as MOCVD, establish a new generation of epitaxial wafer, chip and packaging production line, expand product production capacity, and satisfy the market for epitaxial wafers. The demand for high-speed growth of chips; the second is to develop a series of technologies through nano-patterned substrates, LED epitaxy, and high-brightness LED chips to improve product performance, to cope with the new development trend of the industry, and to realize the company's "quality wins the market, innovation and development" Business philosophy. The project will build a new generation of epitaxial wafers, chips and packaging production lines by investing in new equipment. It is expected to achieve the following goals: to form an annual output of 1.3 million LED epitaxial wafers (calculated by 2-inch epitaxial wafers), and LED lighting efficient chips of 21.45 billion. The project is planned to be built for one year.
According to the company, the calculation period of this project is 11 years, including one year of construction period and 10 years of production. The total investment of the project construction is 466,408,900 yuan. The annual average operating income during the project operation period is 422,408,500 yuan, the annual average profit before tax is 90,606,300 yuan, the financial internal rate of return is 21.08%, and the investment payback period is 5.12 years (static, including construction period). ).
The announcement said that the expansion of production capacity will help to further enhance the market competitive position of Xinnajing Company, expand the influence of its product brand, and further explore the market of LED products; the project has good investment returns and can contribute more profits to the company. Consolidate the strategic layout of the company's "big communication" plus new energy, bringing more returns to investors.
The analysis believes that the company's expansion of LED production capacity will help the company to consolidate its competitive advantage, which will benefit the company and benefit the stock price.
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