On December 27, Azure Lithium released an announcement stating that the company's holding subsidiary Huai'an Aoyang Shunchang Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Huai'an Optoelectronics") intends to dispose of old and idle MOCVD equipment.

Currently, Huai'an Optoelectronics and Gaosong Electronics have signed the "Used Equipment Sales Contract." The total tax-included contract price of the 52 MOCVD machines to be disposed of this time is 20.8 million yuan. This batch of 52 second-hand equipment is packaged and sold together. Gaosong Electronics has evaluated the second-hand equipment and fully understands the status, performance and quality of the equipment; Huaian Optoelectronics does not provide quality assurance for this batch of second-hand equipment.

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Weilan Lixin pointed out that the assets to be disposed of this time are the first epitaxial wafer production equipment (MOCVD) purchased by Huai'an Optoelectronics. The equipment is old and currently idle. The original value of the equipment was RMB 388,296,600, the accumulated depreciation was RMB 251,480,800, the provision for impairment of RMB 12,566,700 had been withdrawn, and the net book value was RMB 124,248,400.

It is understood that in recent years, with the breakthroughs in LED technology and changes in application trends, Azure Lithium Core has formulated and resolutely implemented the strategic decision of "high-end products and high-end market routes". It has successfully transformed from the initial general lighting field to backlight and highlight It focuses on application fields such as high efficiency, and has formed a highly competitive mid-to-high-end product system such as high-efficiency backlight (mobile phone/TV), plant lighting, LED car lights, large-size flip-chip and MiniLED. At the same time, relying on the upgrade of the product system, the company's customer structure has been continuously optimized. It has moved from a relatively single customer in the initial stage to a comprehensive strategic cooperation with first-line customers in South Korea and China.

The product performance brought by new customers needs to match the new process technology, and the process technology has higher requirements for the stability and consistency of the equipment. Azure Lithium said that in order to better develop high-end products such as MiniLED and plant lighting to meet customer needs, the company has gradually purchased new equipment with better performance in 2021. The single-cavity capacity of the new equipment is about 5 times that of the disposal equipment, and the production efficiency is greatly improved compared to the disposal equipment. The above advantages of the new equipment play a major role in the improvement of production efficiency.

Therefore, Azure Lithium believes that the assets to be disposed of are the epitaxial wafer production equipment purchased by Huai'an Optoelectronics Co., Ltd., which has been used for many years and the equipment is old. With the continuous upgrading of equipment, there is no longer any possibility to continue large-scale production and use. Economical, it is currently idle, and the disposal of the above idle equipment will not affect the company's normal production. (Organized by LEDinside)