Recently, Sanan Optoelectronics, a leading LED industry company in China, is suspected of selling street lamps to the government at high prices. Since the listing, more than half of the profits have come from government subsidies, the sale of surplus gold scrap, and some projects are also suspected of inflating investment. Affected by this news, Sanan Optoelectronics stock price once fell.
A few days ago, Sanan Optoelectronics held a news briefing in Beijing to respond to this. Sanan Optoelectronics said that the company did not violate the regulations in the sale of LED street lamps, fulfilled the normal approval procedures, and fulfilled its information disclosure obligations in a timely manner. The relevant contracts were signed 2-3 years ago. Under the technical conditions at that time, the cost of LED street lamps was originally high. However, with the continuous improvement of technology level, the cost of R&D and production gradually decreased, and the price of street lamps naturally declined.
"High price" selling street lamps has a cause
According to media reports: Since 2010, Sanan Optoelectronics has received a total of 2.65 billion yuan of street lamp orders from the governments of Wuhu, Huainan, Quanzhou and Anxi. Moreover, the price of LED street lamps provided to local governments is much higher than the market price, especially in Quanzhou and Anxi, which is more than three times the market price.
Sanan Optoelectronics revealed that the company had limited investment in Wuhu City Housing and Urban-Rural Construction Committee, Huainan Urban and Rural Construction Committee, and Quanzhou City Construction State Assets Investment on January 15, 2010, December 4, 2010, and September 27, 2011, respectively. The company and Anxi County State-owned Assets Investment Co., Ltd. signed the "LED Application Product Sales Contract". The above contract fulfilled the normal approval procedures and information disclosure obligations during the signing process.
In response to questions from the outside world about the high price of street lamps, San Zhen Optoelectronics Assistant General Manager Wan Zhenyu said at the ventilation meeting that the company's street lamp products have their own product technical characteristics, and the whole lamp system is strictly designed. The product quality is strictly in accordance with international standards. carried out. The relevant contracts were signed 2-3 years ago. Under the technical conditions at that time, the cost of LED street lamps was originally high. However, with the continuous improvement of the technical level, the development and production costs of LED street lamps have gradually declined, and the prices have naturally declined year by year.
Wan Zhenyu further added, "In the emerging industry of LED, such a high-speed development, low-end and high-end products coexist, the price difference between different companies of the same type of product is three times, even 10 times the difference is not surprising. In the recent one At the bidding meeting, there have been quotations of more than 10 times the difference. In the face of such product prices, in fact, more attention should be paid to the quality of the products."
Gold scrap revenue comes from different cost accounting methods
According to media reports, the gross profit margin of Sanan Optoelectronic Materials and Scrap sales business is as high as over 90%, and the revenue growth in recent years has been rapid. The financial report shows that it increased from 5.94 million yuan in 2008 to 230 million yuan in 2012. In 2012, the business contributed 26.4% of the company's main business gross profit. It is understood that these wastes are mainly precious metals such as gold. This means that Sanan Optoelectronics will sell the gold for recycling and then re-purchase gold. This practice is rare in the industry.
In this regard, Sanqing Optoelectronics Company Secretary Wang Qing introduced at the ventilation meeting that the company's materials and scrap sales business is mainly the gold recycling revenue of one of the raw materials needed for the company's LED products. The material used as the LED electrode is 99.999% gold, and the impurity content control requirements are relatively high. After high-temperature fusion vapor deposition, the gold recovered in the cavity and the tray cannot reach the recycling standard, forming a gold scrap. Before the company could not predict the amount of gold scrap recycling, the company adopted the practice of directly incorporating the purchase cost of gold into the production cost of LED products during product cost accounting, so the gross profit margin of material sales was very high. Some companies take the gold scrap recycling revenue to offset the production cost of the product, which is the difference in cost accounting. Sanan Optoelectronics recorded the scrap sales revenue into operating income, in line with accounting standards.
Does not rule out ways to increase stocks and take legal measures
According to media reports, the growth of Sanan Optoelectronics' annual growth is undoubtedly an important reason for the capital market. However, more than half of Sanan Optoelectronics' profits come from non-operating income, while the main source of non-operating income is various government subsidies. According to statistics, since the listing of the backdoor in 2008, Sanan Optoelectronics has received a total of 2.9 billion yuan in government subsidies in various names, mainly from two categories: equipment purchase and technology.
Experts said that due to the characteristics of energy conservation and environmental protection, the LED industry can create great social value in addition to its commercial value. Therefore, in fact, in the process of developing the LED industry abroad, foreign companies have adopted various forms to subsidize or support enterprises. The world's LED industry giants, including CREE, have received government subsidies and orders to help companies achieve technological breakthroughs and accelerate the commercialization of LEDs. China's use of LED street lights in infrastructure to create market space for LED companies is not only conducive to supporting the development of enterprises, but also to demonstrate the demonstration role of promoting energy conservation and emission reduction, and to help achieve the national sustainable development strategy goals.
Some industry analysts believe that in the context of the structural overcapacity of the LED industry, the Sanan Optoelectronics has been pushed to the forefront of the turmoil, and it is not excluded that there are organizations that use the problem to play a malicious short. Wang Qing responded by saying, "It is still necessary to fight the iron. The most important thing for Sanan Optoelectronics is to do the company's own affairs. But it does not rule out the legal weapons to defend its legitimate rights and interests under the premise of obtaining strong evidence. â€
When asked if he would increase the investor's confidence by means of large shareholder increase, Wang Qing said, "The current shareholding ratio of the company's controlling shareholders is about 52%, which is already relatively high. But if necessary, the controlling shareholder does not Exclude the appropriate measures in the case of resolutions through the board of directors and the implementation of relevant procedures."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
A few days ago, Sanan Optoelectronics held a news briefing in Beijing to respond to this. Sanan Optoelectronics said that the company did not violate the regulations in the sale of LED street lamps, fulfilled the normal approval procedures, and fulfilled its information disclosure obligations in a timely manner. The relevant contracts were signed 2-3 years ago. Under the technical conditions at that time, the cost of LED street lamps was originally high. However, with the continuous improvement of technology level, the cost of R&D and production gradually decreased, and the price of street lamps naturally declined.
"High price" selling street lamps has a cause
According to media reports: Since 2010, Sanan Optoelectronics has received a total of 2.65 billion yuan of street lamp orders from the governments of Wuhu, Huainan, Quanzhou and Anxi. Moreover, the price of LED street lamps provided to local governments is much higher than the market price, especially in Quanzhou and Anxi, which is more than three times the market price.
Sanan Optoelectronics revealed that the company had limited investment in Wuhu City Housing and Urban-Rural Construction Committee, Huainan Urban and Rural Construction Committee, and Quanzhou City Construction State Assets Investment on January 15, 2010, December 4, 2010, and September 27, 2011, respectively. The company and Anxi County State-owned Assets Investment Co., Ltd. signed the "LED Application Product Sales Contract". The above contract fulfilled the normal approval procedures and information disclosure obligations during the signing process.
In response to questions from the outside world about the high price of street lamps, San Zhen Optoelectronics Assistant General Manager Wan Zhenyu said at the ventilation meeting that the company's street lamp products have their own product technical characteristics, and the whole lamp system is strictly designed. The product quality is strictly in accordance with international standards. carried out. The relevant contracts were signed 2-3 years ago. Under the technical conditions at that time, the cost of LED street lamps was originally high. However, with the continuous improvement of the technical level, the development and production costs of LED street lamps have gradually declined, and the prices have naturally declined year by year.
Wan Zhenyu further added, "In the emerging industry of LED, such a high-speed development, low-end and high-end products coexist, the price difference between different companies of the same type of product is three times, even 10 times the difference is not surprising. In the recent one At the bidding meeting, there have been quotations of more than 10 times the difference. In the face of such product prices, in fact, more attention should be paid to the quality of the products."
Gold scrap revenue comes from different cost accounting methods
According to media reports, the gross profit margin of Sanan Optoelectronic Materials and Scrap sales business is as high as over 90%, and the revenue growth in recent years has been rapid. The financial report shows that it increased from 5.94 million yuan in 2008 to 230 million yuan in 2012. In 2012, the business contributed 26.4% of the company's main business gross profit. It is understood that these wastes are mainly precious metals such as gold. This means that Sanan Optoelectronics will sell the gold for recycling and then re-purchase gold. This practice is rare in the industry.
In this regard, Sanqing Optoelectronics Company Secretary Wang Qing introduced at the ventilation meeting that the company's materials and scrap sales business is mainly the gold recycling revenue of one of the raw materials needed for the company's LED products. The material used as the LED electrode is 99.999% gold, and the impurity content control requirements are relatively high. After high-temperature fusion vapor deposition, the gold recovered in the cavity and the tray cannot reach the recycling standard, forming a gold scrap. Before the company could not predict the amount of gold scrap recycling, the company adopted the practice of directly incorporating the purchase cost of gold into the production cost of LED products during product cost accounting, so the gross profit margin of material sales was very high. Some companies take the gold scrap recycling revenue to offset the production cost of the product, which is the difference in cost accounting. Sanan Optoelectronics recorded the scrap sales revenue into operating income, in line with accounting standards.
Does not rule out ways to increase stocks and take legal measures
According to media reports, the growth of Sanan Optoelectronics' annual growth is undoubtedly an important reason for the capital market. However, more than half of Sanan Optoelectronics' profits come from non-operating income, while the main source of non-operating income is various government subsidies. According to statistics, since the listing of the backdoor in 2008, Sanan Optoelectronics has received a total of 2.9 billion yuan in government subsidies in various names, mainly from two categories: equipment purchase and technology.
Experts said that due to the characteristics of energy conservation and environmental protection, the LED industry can create great social value in addition to its commercial value. Therefore, in fact, in the process of developing the LED industry abroad, foreign companies have adopted various forms to subsidize or support enterprises. The world's LED industry giants, including CREE, have received government subsidies and orders to help companies achieve technological breakthroughs and accelerate the commercialization of LEDs. China's use of LED street lights in infrastructure to create market space for LED companies is not only conducive to supporting the development of enterprises, but also to demonstrate the demonstration role of promoting energy conservation and emission reduction, and to help achieve the national sustainable development strategy goals.
Some industry analysts believe that in the context of the structural overcapacity of the LED industry, the Sanan Optoelectronics has been pushed to the forefront of the turmoil, and it is not excluded that there are organizations that use the problem to play a malicious short. Wang Qing responded by saying, "It is still necessary to fight the iron. The most important thing for Sanan Optoelectronics is to do the company's own affairs. But it does not rule out the legal weapons to defend its legitimate rights and interests under the premise of obtaining strong evidence. â€
When asked if he would increase the investor's confidence by means of large shareholder increase, Wang Qing said, "The current shareholding ratio of the company's controlling shareholders is about 52%, which is already relatively high. But if necessary, the controlling shareholder does not Exclude the appropriate measures in the case of resolutions through the board of directors and the implementation of relevant procedures."
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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