LED business has been losing money for years, "Can't eat" Guangdong Ganhua 687 million listing transfer Deli photoelectric

On September 14, Guangdong Ganhua issued a notice stating that the company will be listed as a 100% equity and related creditor of Deli Optoelectronics, a subsidiary of the LED business, at a price of 687 million yuan. The operation of Deli Optoelectronics since its commissioning in 2014 is not satisfactory. This listing means that Guangdong Ganhua will officially abandon its LED business.

In 2011, Guangdong Ganhua established a subsidiary of Delip Optoelectronics “high-profile” transformation LED industry. The main business of Deli Optoelectronics is the research and development, production and sales of LED epitaxial wafers and chips; LED technology development, achievement transfer and technical consulting services.

However, the company's LED business development has not been as smooth as imagined. Gaogong LED consulted Guangdong Ganhua's financial report in recent years and found that its LED business has been in a state of continuous losses since 2014. In 2014, 2015 and 2016, Guangdong Ganhua LED business had revenues of 26.87 million yuan, 59.807 million yuan and 63.421 million yuan respectively. However, its loss amount was higher and higher. In 2014-2016, the losses were 20,756,400 and 59,339,900 respectively. , 9282.10 million. In the first half of this year, LED business revenue was 48.033 million, and its operating income increased substantially, but it still failed to stop the loss. In the first half of the year, Guangdong Ganhua LED business lost 16.44 million yuan.

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(Guangdong Ganhua LED business in recent years, revenue and net profit situation)

In addition, the operation of Deli Optoelectronics in recent years shows that the LED epitaxial wafer production project started production in the second half of 2014 has not reached the planned progress in the first year. Since January to June 2015, the large-scale production of Deli Optoelectronics has been stopped by listed companies. It can be seen that Guangdong Ganhua has not achieved practical results on the road to transforming the LED industry.

According to the “Guizhou Asset Evaluation Report” issued by Guangdong Zhongguangxin Assets Appraisal Co., Ltd. [2017] No. 137, the book value of Deli Optoelectronics’ net assets as of December 31, 2016 RMB 423 million, with an estimated value of RMB 455 million; meanwhile, as of December 31, 2016, the company had a credit of RMB 232 million for Deli Optoelectronics.

Guangdong Ganhua said that since its establishment and commissioning, Deli Optoelectronics has not been as good as its operating efficiency. As the competition in the LED industry intensifies and the production environment of small and medium-sized manufacturers becomes worse, the operating performance of Deli Optoelectronics has caused a comparison with the company's financial situation. Big burden.

On the other hand, the company has clearly defined the direction of business transformation in the medical and health field, and Deli Optoelectronics cannot produce synergies with the company's strategic planning. After the sale of Deli Optoelectronics' equity and related creditor's rights, it will bring a certain degree of loss to the company, but it can avoid the long-term adverse impact of Deli Opto's continued loss on the company.

It can be seen that Guangdong Ganhua's determination to strip the LED business is quite firm, and even sells the underlying asset at a price lower than the listed reserve price. In recent years, the LED industry market is extremely fiercely competitive, and at the same time, the industrial concentration is getting higher and higher, and the trend of “the big one is Evergrande” becomes more and more obvious. In terms of the LED epitaxial chip industry, the market share of domestic chips leading to Sanan Optoelectronics, Huacan Optoelectronics, Aoyang Shunchang, and Ganzhao Optoelectronics is getting higher and higher. Deli Optoelectronics has factors such as scale and technology. It is difficult to compete effectively with leading companies.


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