Guoxing Optoelectronics (002449) announced today that based on its own development strategy plan, combined with the judgment of the LED market and the demand situation of existing customers, it is planned to invest no more than RMB 400 million to expand the company's packaging projects.
The construction period of this expansion project is from December 2016 to June 2017. This investment expansion can flexibly meet the needs of the company's product orders and alleviate the shortage of original capacity.
According to the announcement, through the gradual release of production capacity, the company will continue to play its traditional advantages, continuously improve the automation and information production management level, improve product quality, and further strengthen market development and cooperation, and enhance the core competitiveness of the company's main business. Overall profitability, ensuring continued growth in profit.
This is the third expansion of Guoxing Optoelectronics since November last year.
In November 2015, Guoxing Optoelectronics issued three announcements in one breath. In addition to the capital increase of the two subsidiaries of Guoxing Semiconductor and Yaweilang, it is even more remarkable to attract investment projects with a capital of no more than RMB 400 million. Expansion."
The expansion of the packaging project is mainly for outdoor surface mount display devices, indoor small-pitch display devices and white LED devices for lighting. At present, the renovation of the factory building and the transformation of the production line have been completed. The equipment for the expansion of the batch is expected to arrive in early 2016. It will be completed, installed, commissioned and put into operation before March 2016.
In April 2016, Guoxing Optoelectronics announced another announcement that it plans to invest no more than RMB 240 million for the expansion of the company's packaging and component projects. The construction period of this expansion project is from May 2016 to December 2016.
In fact, in the past two years, the LED industry's environment is not very satisfactory, and the price drop is so fast that people are stunned. However, demand has been increasing, and as a result, the continued expansion of scale to reduce the average cost of products is a common practice in the industry to deal with this phenomenon.
In particular, the price of packaging began to increase in the first half of this year, which made the whole industry optimistic about the future market.
Previously, Wang Sen, general manager of Guoxing Optoelectronics, said in an exclusive interview with Gaogong LED that whether it is price war or the development of sub-division, it is an inevitable law for the industry to develop to a certain stage.
The LED packaging industry is gradually becoming concentrated, and the situation of the larger Evergrande will become more obvious. For the national star, this is undoubtedly a new development opportunity.
This change in the pattern means that the LED packaging industry is gradually returning to rationality. After the price wars and industry reshuffles in previous years, the industry is shifting from blindly pursuing low prices to focusing on the products themselves, such as technology and performance. These are the advantages of big companies such as Guoxing.
Guoxing Optoelectronics 2016 semi-annual report shows that the company achieved a total operating income of 105,458,900 yuan in the first half of 2016, an increase of 16.36% over the same period of the previous year; net profit of 94,621,900 yuan, an increase of 13.23% over the same period of the previous year.
According to the semi-annual report, in the first half of 2016, the LED industry experienced full competition for a long time, and some inferior enterprises and their production capacity gradually withdrew from the market. With the deepening of de-capacity, the decline in the price of industrial products slowed down, and cross-border mergers and acquisitions in the industry. Now, the industry's leading market share and competitiveness have been strengthened.
The continued expansion of Guoxing Optoelectronics is also based on its vertical integration strategy for upstream and downstream, optimizing the layout of upstream chips (National Semiconductor + Yaweilang Technology) and downstream lighting applications.
On September 24, Guoxing Optoelectronics announced that it intends to acquire all the shares of its subsidiary Foshan Guoxing Semiconductor Technology Co., Ltd. with its own funds of RMB 119 million. The aim is to enhance the strength of upstream extension and chip links, and to open up the entire industry chain of LEDs.
In the downstream lighting market development, at present, Guoxing Optoelectronics has more than 1,000 lighting sales channel outlets, 8 provincial operation centers, 5 direct sales offices, and more than 800 core dealers.
In addition, in the first half of the year, Guoxing Optoelectronics further explored markets in Southeast Asia, the United States, and Europe, expanded lighting distribution channels and engineering channels, strengthened the development and services of overseas markets, and improved the strategic layout of globalization.
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