Roshow Technology has released an abnormal stock price announcement after experiencing three days of inflation on stock prices surpassing 25 percent. The listed company does not manufacturer sapphire substrate. It expressed that rumors on the Internet claiming the company has invested a total of RMB 1.1 billion (US$?) to produce 4 million LED sapphire substrate pcs annually is false.

Recent Internet rumors pointed out  sapphire substrates will be used for the display screen in the upcoming iPhone6. Apple has recently already placed a large order of sapphire substrate from GT Advanced Technology (GTAT). Industry insiders believe that use of sapphire substrate as a protective screen for iPhone 6 will lead to a severe undersupply situation in 2014, and prices are expected to rapidly increase. It was rumored on the Internet that Roshow Group invested a total of RMB 1.1 billion in a project to produce 4 million pieces (PCS) of LED sapphire substrate materials in 2011. This has sparked soaring company stock prices on Dec. 3rd, rising from RMB 8.8 up to 11.18 closing price on the 5th, an increase of 27 percent.

According to the recent announcement, it was revealed on Sept. 17 and Nov. 25 this year that Roshow’s Zhejiang based mechanical and electrical subsidiary Lutong and an optoelectronic subsidiary had a ingot growth furnace transaction. The related transaction totaled f RMB 30.28 million. The aforementioned sapphire substrate crystal growth equipment is limited to the optoelectronics subsidiary of the company and makes up a small portion of the company’s total business.

There has been no further information or news regarding the rumor of Roshow’s investment in sapphire substrate production.

“Chinese sapphire crystal growth furnace manufacturers are currently being squeezed on both sides, stuck in the middle trying to survive”, according to an industry insider. “On one side are large international manufacturers including GTAT and ARC Energy. The other side is oversupply of domestic Chines sapphire substrates, due to  feeble market demand, and lowered prices.” Extremely low production capacity utilization rates have directly caused a slump in sales for upstream sapphire substrate and ingot growth furnace industry. Prices have continued to drop. Market prices for 2 inch sapphire substrate wafer are already close to manufacturing costs of US$ 7 to US$ 9. Japanese and Korean manufacturers are even boasting extremely low prices of US $6.