The China Securities Regulatory Commission announced on the evening of March 13 that the first application of Huacan Optoelectronics Co., Ltd. was approved after the 16th meeting of the GEM Board of Auditors held today. Poster Display,Led Poster Display,Indoor Led Advertising,Advertising Poster Screen ALLIN , https://www.nbdisplayapio.com
Huacan Optoelectronics plans to issue 50 million shares, and the total share capital after the issuance is 200 million shares. It is planned to be listed on the GEM of the Shenzhen Stock Exchange. Since its establishment, the company has been engaged in R&D, production and sales of LED epitaxial wafers and chips. The main products are GaN-based high-brightness blue and green LED chips.
Risk cannot be ignored
Previously, Huacan Optoelectronics was once exposed to the company's performance growth rate is facing a slowdown, the risk of profitability decline; product sales rely on large customers, strong regional revenue and venture capital assault shares, the complex relationship of equity and other issues.
According to the company's prospectus, as the company has already passed the low-starting stage, the capacity expansion rate will be slowed down in the future. At the same time, due to uncertainties in market demand and competition, the company may face a growth rate. Slow risk.
The prospectus also stated that the company still has the risk of lowering the profitability of the product market. If the company's capacity expansion is faster than the demand growth rate, it will lead to further decline in LED chip prices.
If the market price of the company's products declines faster than the cost reduction, it will have an adverse impact on future profitability. At the same time, the prospectus also shows that in 2009, 2010 and 2011, Huacan Optoelectronics' sales revenue to the top five customers accounted for 59.62%, 60.39% and 50.59% of the total operating revenue, respectively. high.
Industrial opportunities still exist
At present, China has become the world's largest producer and exporter of lighting products, and is the fastest growing region in the global LED industry. Driven by the LED application market, the demand for LED chips as upstream products will also increase significantly. According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry in 2011 reached 154 billion yuan, a year-on-year increase of 22%. The output values ​​of LED upstream epitaxial chips, midstream packaging and downstream applications were 6 billion yuan, 32 billion yuan and 116 billion yuan respectively, up 50%, 19% and 22% respectively.
The LED upstream epitaxial chip industry has high capital and technical requirements, which has become the biggest threshold for entering the industry. In the increasingly fierce market competition in the future, companies with scale and technological advantages will gradually open up the gap with their competitors and become the industry leader.
In recent years, with the continuous improvement of Huacan Optoelectronics' product quality and popularity, the market's recognition of their products has also increased, but compared with international manufacturers such as Cree and Taiwan Jingdian, Huacan still has a large scale. Room for improvement.
In the past few years, Huacan Optoelectronics mainly produces high-quality chips for display screens. With the continuous expansion of its production scale and the rapid growth of customer demand, Huacan has systematically completed the research and development of LED products for lighting backlights.
At present, Huacan Optoelectronics has mastered the key technologies for LED chip products used in the lighting and backlight market. The mass production chip has a luminous efficacy of 120 lm/W, which is at the leading level in the domestic industry.
With the continuous expansion of Huacan Optoelectronics' customer base and the increasing demand from customers for their products, the production capacity of Huacan Optoelectronics before the construction of the third phase of the project has been unable to meet the rapidly growing market demand. The lack of production capacity not only restricts the further improvement of Huacan's revenue and profit scale, but also hinders the cultivation and maintenance of quality customer resources to a certain extent. In order to break through the capacity bottleneck, promote scale effect, increase customer loyalty, and maintain its market leading edge, expansion project construction is imperative. 