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Although the LED chip factory faces short-term inventory adjustment pressure, Ronda's expansion plan is not affected, maintaining the pace of expansion. According to Ronda statistics, last year's capital expenditure was about 1 billion yuan (about 204 million yuan). The original capital expenditure for this year was 2 billion yuan (about 408 million yuan), but due to the addition of the bamboo and bamboo plant's purchase plan, the capital expenditure was raised to 3 billion yuan, not only in the history of new highs, but also in scale. Unprecedented, three times as much as last year.
Ronda does not say that in addition to Cree's OEM orders, the expansion is mainly focused on the long-term demand for LED lighting. Therefore, even if the short-term boom adjustment occurs, Ronda's production increase plan will remain unaffected. Production capacity has been released from the third season, and all the way to the end of the year.
As for the front-end epitaxial wafers and wafers, Ronda pointed out that it would first increase the production by modifying the machine. As for the number of machines to be added? At present, Ronda has already purchased a new plant in Zhunan, and has more room for expansion. It hopes to increase production by 40-50% by the first half of next year. This is the largest expansion operation since the establishment of Ronda.
Ronda currently has 100 MOCVD machines on both sides of the strait. The investment scale of the new factory in Zhunan is undecided. However, Ronda hopes to introduce 4-inch and 6-inch machines at the same time, and hopes to use 6-inch machines.
As Ronda reached the end of the second quarter, cash and cash equivalents reached 4.843 billion yuan (about 989 million yuan), plus a cumulative profit of 194 million yuan (about 39.576 million yuan) in the first half of the year. Cree's share of US$83 million is in place, and Ronda's available funds are also unprecedented. There should be no capital increase this year. 
Ronda launches the largest expansion in history
Fearing the LED industry's economic adjustment, Ronda launched the largest expansion in history. Due to Cree's low-to-medium power orders and long-term LED lighting demand, Ronda will conduct LED wafers and wafers before the first half of next year. Expansion plan, capacity growth rate of 40 to 50%, 2014 capital expenditures increased by 50% to 3 billion yuan, more than half of the share capital.