The “winter†that the LED industry is experiencing seems to be colder than the current weather. In order to protect the cold, the relevant enterprises have tried their best to solve the problem, and Sanan Optoelectronics has sacrificed the method of “holding the group to warm upâ€.
Sanan Optoelectronics recently announced that Xiamen Sanan Optoelectronics Technology Co., Ltd. (hereinafter referred to as Xiamen Sanan), a wholly-owned subsidiary of the company, plans to use its self-raised funds of 505 million yuan (about 2.352 billion Taiwan dollars) to subscribe to the Taiwan Stock Exchange. The company issued a total of 120 million shares of common stock in a private placement. Upon completion of the transaction, Xiamen Sanan will hold approximately 19.90% of the shares of Yanyuan Optoelectronics and become the largest shareholder of Yanyuan Optoelectronics.
Sanan Optoelectronics is considered to be a new attempt by the LED industry to get out of the cold winter.
The winter of the industry is very cold
In November, for this year's solar terms, it just entered the winter. But for the LED industry, this winter has been going on for more than a year. At the beginning of this month, there were reports that a billion-level LED company Haobo Optoelectronics had a crisis. This is another "bomb" that was detonated after the closure of several billion-level LED companies last year. This is also destined for the winter of the LED industry. It's colder.
Judging from the three quarterly reports this year, the A-share optoelectronics enterprises with large assets are not doing well. According to the statistics of the reporters, from January to September this year, nearly 70% of LED companies' net profit fell, and some of them were struggling on the edge of losses. Seven companies including Weiwei and Huacan Optoelectronics experienced both revenue and net profit decline.
Among the companies with declining net profit, Weiwei's net profit decreased by 92% year-on-year, Silan's net profit decreased by 88%, Dehao Runda's net profit decreased by 57%, and net profit fell by the top three. What is even more surprising to investors is that Wei Wei, which was listed only in May this year, has experienced a decline in net profit for the first half of the year after the listing. The company’s net profit has fallen by 94% year-on-year. It is known as the fastest-changing listed company. The reporter looked through the company's third quarterly report and found that although the revenue in the third quarter was 71 million yuan, the net profit was only 60,000 yuan. The company has stood on the edge of the loss.
And those companies with larger assets are just as bad. Recently, some media reported that in 2009, Dehao Runda began to transform into the LED industry. It has raised about 3 billion yuan of funds, but now it is eating government subsidies. Although the company achieved a net profit of 115 million yuan from January to September, However, it was down 57.41% from the same period of the previous year. The reason for the company's decline in net profit is actually explained as the reduction in subsidies received compared to last year.
In the research report, Huabao Securities pointed out that on the one hand, there is a constant collapse of LED enterprises, and on the other hand, the news that funds are invested in the LED industry on a large scale is endless. Over-investment has made the industry overcapacity and concentrated on small and medium-sized enterprises with low technical barriers. Future LED companies, including listed companies, will face a brutal process of survival of the fittest. A small number of enterprises will grow stronger and more enterprises will face the fate of being eliminated.
Zhang Xiaofei, director of the High-tech LED Research Institute, also told reporters that there are many LED industry problems, and the era of high profits in the industry has long gone. It is precisely because of the high profit of the LED industry that led to the influx of large numbers of enterprises. In recent years, market saturation has become more apparent, and large companies can rely on government subsidies and more orders to survive. Small businesses can only rely on price wars to maintain their livelihoods, resulting in some products with poor performance. At present, the market has formed a vicious circle, and most companies are doing at a loss. Although large enterprises can rely on government subsidies for a short period of time, the subsidies are not endless. Therefore, industry reshuffle is inevitable. In the future, only a few high-quality enterprises will survive, and more enterprises will be eliminated.
It can be seen that LED companies either choose to break through the predicament or are eliminated in the reshuffle. At such a critical moment, Sanan Optoelectronics has to participate in the company, so that the industry has to pay attention.
Sanan’s “hand in hand†has warmth
The reporter read the relevant information and found that the Yuanyuan Optoelectronics, which was “married†with Sanan Optoelectronics, was listed on the Taiwan Stock Exchange in 2003 and is one of the major manufacturers of LED epitaxial wafers and chips in Taiwan; as of June 2012 On the 30th, Yuyuan Optoelectronics' total assets amounted to NT$18.79 billion. In the first six months of this year, the operating income was NT$2.3 billion, and the combined total revenue was NT$210 million.
Previously, there were also some cooperation between mainland LED companies and related companies in Taiwan, such as the cooperation between Skyworth and Jingyuan Optoelectronics. The Sanan Optoelectronics shareholding in Yuanguang Optoelectronics is different. Lin Xiucheng, the chairman of Sanan Optoelectronics Co., Ltd., who has always been savvy and low-key, has thrown 505 million yuan in the shareholding. If it succeeds, it will become the first LED LED company to participate in Taiwan LED. The company, and Sanan Optoelectronics, as the largest shareholder, may enter the board of directors of Yanyuan Optoelectronics.
It is no wonder that this news came out, which caused strong concern in the LED industry in Taiwan. The local media even reported that "Sanan Optoelectronics can obtain the high-brightness wafer technology and other patents of Yuyuan Optoelectronics. If Yuyuan Optoelectronics signs a cross-licensing contract with competitor Sanan Optoelectronics, the leading edge of Yuanyuan will be reduced. Close the gap between the mainland and Taiwan's LED industry." The mainland also has media and some research reports that Sanan Optoelectronics can make up for its shortcomings by using more than 200 patents of Yanyuan Optoelectronics.
In response to media reports in Taiwan, Yanyuan Optoelectronics issued an announcement on November 14th, clearly stating that the company does not have any patent or technology authorization with Sanan. The company reiterated that it will continue to expand its investment in Taiwan by taking shares in Sanan. Actively recruit talents, retain talents, and increase employment opportunities to continuously enhance Taiwan's research and development capabilities and the core competitiveness of the LED industry. Recently, the reporter called Yuyuan to inquire about related matters. The relevant staff of the company also clearly stated that according to relevant regulations, Yuanyuan will not authorize Sanan for technical patents.
Yu Yuan said that he will not license the patent to Sanan Optoelectronics. What is the value of Sanan Optoelectronics?
“This is a typical win-win result!†Yang Zhaowu, editor-in-chief of LEDinside, LED consulting platform, said to reporters, “Although Yuanyuan does not license technology to Sanan Optoelectronics, Yuanyuan Optoelectronics is a company that pays great attention to R&D. In the future, the two can exchange ideas and develop together. Sanan Optoelectronics will also acquire more new technologies, and the production capacity of Sanan is quite high. Sanan can also get a round order through cooperation. The business is more in Japan and South Korea, and has a small market share in the mainland. Through this cooperation, I believe that Yuanyuan can take this opportunity to develop into the mainland."
In this regard, the relevant staff of the Yuhuan Headquarters also told reporters that “the business before the Yuanyuan has a small market share in the mainland. Through this cooperation, the company hopes to have the opportunity to develop to the mainland.â€
In the research report, Industrial Securities also clearly stated that the introduction of Sanan Investment in Yuyuan is not, in the first place, not for technological upgrading, and the benefits of market access, production capacity and cost will be more obvious. The strength of the company is LED backlight chip, the main customers are many international companies, and the main customers of Sanan are from the mainland. The customers of the two sides do not overlap. Yuanyuan hopes to use the strategic alliance between the two parties to indirectly share the support of the mainland for the LED industry. There are more gains. Secondly, the production capacity of Sanan Optoelectronics is greater than that of Yuanyuan. Both Q2 and Q3 are in full production this year. After this strategic alliance, the production capacity of Yuyuan will be improved, and the supply shortage will be greatly alleviated. Some of the orders for the round may be handed over to Sanan OEM.
Some researchers also told reporters that Sanan’s hands-on rounds may lead directly to the international market by bypassing patent barriers for the way of OEM, because the current production capacity of Sanan is already very large, and the future project of Wuhu Phase II It is possible to further expand the production capacity of Sanan, so Sanan may open the US, Korea and Japan markets through OEM, and take the first step of the company's international development.
Sanan Optoelectronics recently announced that Xiamen Sanan Optoelectronics Technology Co., Ltd. (hereinafter referred to as Xiamen Sanan), a wholly-owned subsidiary of the company, plans to use its self-raised funds of 505 million yuan (about 2.352 billion Taiwan dollars) to subscribe to the Taiwan Stock Exchange. The company issued a total of 120 million shares of common stock in a private placement. Upon completion of the transaction, Xiamen Sanan will hold approximately 19.90% of the shares of Yanyuan Optoelectronics and become the largest shareholder of Yanyuan Optoelectronics.
Sanan Optoelectronics is considered to be a new attempt by the LED industry to get out of the cold winter.
The winter of the industry is very cold
In November, for this year's solar terms, it just entered the winter. But for the LED industry, this winter has been going on for more than a year. At the beginning of this month, there were reports that a billion-level LED company Haobo Optoelectronics had a crisis. This is another "bomb" that was detonated after the closure of several billion-level LED companies last year. This is also destined for the winter of the LED industry. It's colder.
Judging from the three quarterly reports this year, the A-share optoelectronics enterprises with large assets are not doing well. According to the statistics of the reporters, from January to September this year, nearly 70% of LED companies' net profit fell, and some of them were struggling on the edge of losses. Seven companies including Weiwei and Huacan Optoelectronics experienced both revenue and net profit decline.
Among the companies with declining net profit, Weiwei's net profit decreased by 92% year-on-year, Silan's net profit decreased by 88%, Dehao Runda's net profit decreased by 57%, and net profit fell by the top three. What is even more surprising to investors is that Wei Wei, which was listed only in May this year, has experienced a decline in net profit for the first half of the year after the listing. The company’s net profit has fallen by 94% year-on-year. It is known as the fastest-changing listed company. The reporter looked through the company's third quarterly report and found that although the revenue in the third quarter was 71 million yuan, the net profit was only 60,000 yuan. The company has stood on the edge of the loss.
And those companies with larger assets are just as bad. Recently, some media reported that in 2009, Dehao Runda began to transform into the LED industry. It has raised about 3 billion yuan of funds, but now it is eating government subsidies. Although the company achieved a net profit of 115 million yuan from January to September, However, it was down 57.41% from the same period of the previous year. The reason for the company's decline in net profit is actually explained as the reduction in subsidies received compared to last year.
In the research report, Huabao Securities pointed out that on the one hand, there is a constant collapse of LED enterprises, and on the other hand, the news that funds are invested in the LED industry on a large scale is endless. Over-investment has made the industry overcapacity and concentrated on small and medium-sized enterprises with low technical barriers. Future LED companies, including listed companies, will face a brutal process of survival of the fittest. A small number of enterprises will grow stronger and more enterprises will face the fate of being eliminated.
Zhang Xiaofei, director of the High-tech LED Research Institute, also told reporters that there are many LED industry problems, and the era of high profits in the industry has long gone. It is precisely because of the high profit of the LED industry that led to the influx of large numbers of enterprises. In recent years, market saturation has become more apparent, and large companies can rely on government subsidies and more orders to survive. Small businesses can only rely on price wars to maintain their livelihoods, resulting in some products with poor performance. At present, the market has formed a vicious circle, and most companies are doing at a loss. Although large enterprises can rely on government subsidies for a short period of time, the subsidies are not endless. Therefore, industry reshuffle is inevitable. In the future, only a few high-quality enterprises will survive, and more enterprises will be eliminated.
It can be seen that LED companies either choose to break through the predicament or are eliminated in the reshuffle. At such a critical moment, Sanan Optoelectronics has to participate in the company, so that the industry has to pay attention.
Sanan’s “hand in hand†has warmth
The reporter read the relevant information and found that the Yuanyuan Optoelectronics, which was “married†with Sanan Optoelectronics, was listed on the Taiwan Stock Exchange in 2003 and is one of the major manufacturers of LED epitaxial wafers and chips in Taiwan; as of June 2012 On the 30th, Yuyuan Optoelectronics' total assets amounted to NT$18.79 billion. In the first six months of this year, the operating income was NT$2.3 billion, and the combined total revenue was NT$210 million.
Previously, there were also some cooperation between mainland LED companies and related companies in Taiwan, such as the cooperation between Skyworth and Jingyuan Optoelectronics. The Sanan Optoelectronics shareholding in Yuanguang Optoelectronics is different. Lin Xiucheng, the chairman of Sanan Optoelectronics Co., Ltd., who has always been savvy and low-key, has thrown 505 million yuan in the shareholding. If it succeeds, it will become the first LED LED company to participate in Taiwan LED. The company, and Sanan Optoelectronics, as the largest shareholder, may enter the board of directors of Yanyuan Optoelectronics.
It is no wonder that this news came out, which caused strong concern in the LED industry in Taiwan. The local media even reported that "Sanan Optoelectronics can obtain the high-brightness wafer technology and other patents of Yuyuan Optoelectronics. If Yuyuan Optoelectronics signs a cross-licensing contract with competitor Sanan Optoelectronics, the leading edge of Yuanyuan will be reduced. Close the gap between the mainland and Taiwan's LED industry." The mainland also has media and some research reports that Sanan Optoelectronics can make up for its shortcomings by using more than 200 patents of Yanyuan Optoelectronics.
In response to media reports in Taiwan, Yanyuan Optoelectronics issued an announcement on November 14th, clearly stating that the company does not have any patent or technology authorization with Sanan. The company reiterated that it will continue to expand its investment in Taiwan by taking shares in Sanan. Actively recruit talents, retain talents, and increase employment opportunities to continuously enhance Taiwan's research and development capabilities and the core competitiveness of the LED industry. Recently, the reporter called Yuyuan to inquire about related matters. The relevant staff of the company also clearly stated that according to relevant regulations, Yuanyuan will not authorize Sanan for technical patents.
Yu Yuan said that he will not license the patent to Sanan Optoelectronics. What is the value of Sanan Optoelectronics?
“This is a typical win-win result!†Yang Zhaowu, editor-in-chief of LEDinside, LED consulting platform, said to reporters, “Although Yuanyuan does not license technology to Sanan Optoelectronics, Yuanyuan Optoelectronics is a company that pays great attention to R&D. In the future, the two can exchange ideas and develop together. Sanan Optoelectronics will also acquire more new technologies, and the production capacity of Sanan is quite high. Sanan can also get a round order through cooperation. The business is more in Japan and South Korea, and has a small market share in the mainland. Through this cooperation, I believe that Yuanyuan can take this opportunity to develop into the mainland."
In this regard, the relevant staff of the Yuhuan Headquarters also told reporters that “the business before the Yuanyuan has a small market share in the mainland. Through this cooperation, the company hopes to have the opportunity to develop to the mainland.â€
In the research report, Industrial Securities also clearly stated that the introduction of Sanan Investment in Yuyuan is not, in the first place, not for technological upgrading, and the benefits of market access, production capacity and cost will be more obvious. The strength of the company is LED backlight chip, the main customers are many international companies, and the main customers of Sanan are from the mainland. The customers of the two sides do not overlap. Yuanyuan hopes to use the strategic alliance between the two parties to indirectly share the support of the mainland for the LED industry. There are more gains. Secondly, the production capacity of Sanan Optoelectronics is greater than that of Yuanyuan. Both Q2 and Q3 are in full production this year. After this strategic alliance, the production capacity of Yuyuan will be improved, and the supply shortage will be greatly alleviated. Some of the orders for the round may be handed over to Sanan OEM.
Some researchers also told reporters that Sanan’s hands-on rounds may lead directly to the international market by bypassing patent barriers for the way of OEM, because the current production capacity of Sanan is already very large, and the future project of Wuhu Phase II It is possible to further expand the production capacity of Sanan, so Sanan may open the US, Korea and Japan markets through OEM, and take the first step of the company's international development.
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