Sanan Optoelectronics' revenue growth slowed in the first three quarters

[Text|High-tech LED Zhao Hui] The impact of the slowdown in LED market demand is spreading, even Sanan Optoelectronics, which is the leader of domestic LED epitaxial chips, has not been spared. This is clearly visible from the revenue growth of Sanan Optoelectronics' third quarterly report.

On the evening of October 17, Sanan Optoelectronics (600703.SH) disclosed the third quarter 2015 report. According to the financial report, Sanan Optoelectronics achieved operating income of 1.311 billion yuan in the third quarter, and realized net profit attributable to shareholders of listed companies was 543 million yuan.

From January to September 2015, Sanan Optoelectronics' total revenue was 3.602 billion yuan, a slight increase of 3.55% year-on-year; the net profit attributable to listed shareholders was 1.447 billion yuan, a year-on-year increase of 37.82%.

According to the report, the MOCVD equipment purchased by Xiamen Sanan Optoelectronics Co., Ltd. has been sold to 40 chambers (converted to 2 inches and 54 units, equivalent to 80 units), but actually contributed effective capacity in the third quarter. The equipment has about 4 chambers. Sanan Optoelectronics said that the remaining equipment capacity will be gradually accelerated with the commissioning, and will be released in the future, reflecting the operating efficiency.

“With the rapid development of technology and rapid decline in cost, the LED business has developed to the present stage, the speed of industrial integration has obviously accelerated, and the concentration will be further improved.” When it comes to the current status of LED development, Sanan Optoelectronics has reached the company’s recent planning goals. To realize the strategic layout of the company, the company will take the initiative to adjust the strategy and lay a solid foundation for the subsequent rapid development.

As a high-margin segment, automotive lighting also plays an important role in Sanan's business layout.

On the day of the disclosure of the third quarterly report, Sanan Optoelectronics announced that it had decided to increase the capital of its wholly-owned subsidiary, Wuhu Anrui Photoelectric Co., Ltd. (hereinafter referred to as “Wuhu Anrui”) with its own monetary funds of RMB 180 million. The registered capital of Wuhu Anru after the capital increase is 260 million yuan.

Previously, Wuhu Anrui signed a Cooperation Framework Agreement with BAIC Yinxiang Automobile Co., Ltd. (hereinafter referred to as “Beiqi Yinxiang”) on July 17.

Agreement: Wuhu Anrui set up a branch office in Chongqing to provide supporting services for BAIC Yinxiang, LED products for automotive lighting and automotive applications (including automotive lighting, signal lights, interior lights, decorative lights, electronic instrumentation applications, GPS) /DVD display, etc.), Wuhu Anrui is equipped with two or more suppliers for Beiqi Yinxiang. (Besides the guarantee of quality, delivery and price of Anrui Optoelectronics), Beiqi Yinxiang promises Wuhu The share of Anrui is not less than 70%.

It is reported that Wuhu Anrui's application products business has been certified by a number of auto manufacturers, and has begun to supply some models. In the first half of 2015, Anrui Optoelectronics achieved sales revenue of 101 million yuan and net profit of 10.109 million yuan.

While accelerating the expansion of epitaxial chip production capacity and entering the high-margin segment, Sanan Optoelectronics has not stopped the transition of semiconductors.

It is understood that Sanan Optoelectronics Co., Ltd. Xiamen Sanan Integrated Circuit Co., Ltd. is expected to send samples to customers for verification in November, and will gradually release production capacity in the later period.

Yan Fan, a researcher at China Merchants Securities, believes that Sanan will build the integrated circuit industry with III-V semiconductors such as gallium arsenide and gallium nitride as the core, and plans to build an annual output of 300,000 GaAs and 60,000 GaN 6-inch production lines. At present, Sanan's 5,000-unit/month GaAs Phase I has already started trial production. It is expected to be mass-produced next year, and GaN production line equipment is gradually in place.

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