Capacity continued to release Huacan's revenue growth in the first three quarters exceeded 34%

[Text / high-tech LED Zhao Hui] With the gradual release of production capacity, the overall revenue scale of domestic LED chip maker Huacan Optoelectronics continues to grow.

On the evening of October 22, Huacan Optoelectronics (300323.SZ) disclosed the third quarter 2015 report. According to the financial report, in the third quarter of 2015, Huacan Optoelectronics' revenue reached 265 million yuan, a year-on-year increase of 22.78%. In the first three quarters, the total operating income was 699 million yuan, a year-on-year increase of 34.41%.

The continuous growth of Huacan Optoelectronics' revenue scale also benefited from the start of the expansion of Huacan Optoelectronics in the second half of 2013. “In the report period, the company's business income mainly came from the revenue of LED chips. The increase in revenue was mainly due to the further release of production capacity and the continuous improvement of product performance and quality, resulting in an increase in sales volume and sales amount.”

The rapid growth of Huacan Optoelectronics in recent years stems from the rigorous pre-judgment of market demand. After Huacan Optoelectronics was listed in 2012, although the LED industry is in a state of collective commitment and overcapacity. After an accurate judgment of the market, especially the expectation of explosive growth in the lighting market, Huacan Optoelectronics established a large-scale wholly-owned subsidiary in Zhangjiagang with funds raised from the listing.

With the construction of the first, second and third phases of the Zhangjiagang Suzhou subsidiary gradually completed and put into production, the production capacity of Huacan Optoelectronics has been significantly improved. The increase in production capacity has led to a significant increase in the company's sales scale, sales revenue and operating profit.

“Promoting the construction of the production line of the Suzhou subsidiary, the production capacity of the second phase of the Honghuangguang project was gradually released, and the full-color matching sales of the display market were realized. The product performance reached the domestic advanced level, further consolidating the company's dominant position in the display market. Optoelectronics said that at the same time, with the Suzhou Subsidiary Phase III project gradually releasing some of its production capacity, the Suzhou Plant has become a 4-inch LED chip manufacturing plant with leading scale and technology in the international arena.

Just before, the Huacan Optoelectronics Shareholders' Meeting passed the company's plan to increase acquisitions and support funds. According to the plan, the sapphire substrate manufacturer Lanjing Technology will become a wholly-owned subsidiary of the listed company, and the main business of Huacan Optoelectronics will also be extended to the sapphire industry upstream of LED chips. In addition, based on the judgment of the future market, the company also intends to extend its reach to the consumer electronics field.

At present, Huacan Optoelectronics is the second largest LED epitaxial wafer manufacturer in China. After the completion of the third phase of the project in Suzhou, the company added 656,000 pieces of 4-inch LED epitaxial wafers each year, which will effectively digest the production capacity of sapphire substrates of Blue Crystal Technology.

Hua Can Optoelectronics Director, Vice President and Secretary of the Board of Directors Ye Aimin said that after the completion of the transaction, Huacan Optoelectronics' main business will expand from LED chip manufacturing to upstream sapphire crystal growth and sapphire substrate production, etc. Synergistic effect.

In fact, after the acquisition of Blue Crystal Technology, in addition to the production capacity of sapphire substrates, Huacan Optoelectronics will also have the foundation and capabilities to expand into the application field of consumer electronics. The company said that if future demand breaks out, the company will be able to rapidly expand into new business areas and sources of profit.

At the same time of continuous expansion of production capacity, Huacan Optoelectronics took the lead in launching a series of new products such as “small-pitch professional display chip” and “high-brightness red-light chip” in the market in 2015. 18 R&D projects were established, and R&D expenses were 78.563 million. Yuan, accounting for 11.24% of operating income.

“Hua Chan will continue to expand its backlight and lighting market while maintaining its leading position in the display market.” Shi Songgang, Marketing Director of Huacan Optoelectronics, said that as a mainstream supplier of domestic display chips, Huacan Optoelectronics will accumulate its own mass production for many years. The rich experience of display products is reasonably applied to the backlight and lighting market, and the goal of “customized personalized needs for customers” is to maintain the spirit and action of active and continuous innovation, and determined to create brilliant future with customers.

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