Low-margin wars spread rapidly
[Source: "High-tech LED - Research Review" October issue reporter / Tang Guirong]
The low-margin war of the LED industry has rapidly spread to LED packaging manufacturers in Taiwan. Haotian Technology, a high-power packaging enterprise with technology positioning, is now adjusting its market pace.
In January 2012, moved to a new factory in Taiwan, the annual production capacity increased from 30KK to 60KK.
In April 2012, 38 million shares were publicly issued and the proposed fund was 380 million Taiwan dollars.
In May 2012, Jingyuan Optoelectronics participated in the private recruitment of Haotian Technology and obtained 17.39% of the shares in NT$140 million.
Although the actions of a series of market adjustment strategies in the first half of this year are quite eye-catching, it is the latest financial report data of Haotian Technology that still reveals some crisis in the LED packaging market. According to financial report data, in the first half of 2012, Haotian Technology realized a revenue of NT$201 million, a year-on-year decrease of 18.62%; net profit was a negative NT$7.14 million, a year-on-year decrease of 166.98%.
“In the past two years, the price of LED has dropped too much, and the gross profit margin has dropped a lot. As a result, the output has increased, but the overall turnover of the company has not increased significantly.†Chen Tianzheng, general manager of Haotian Technology Co., Ltd. The reporter said that the company's technology and quality are not behind other Taiwanese packaging companies, but in terms of scale and production capacity, there is still a long way to go with the packaging giants such as Everlight.
In fact, since last year, the gross profit margin of the packaging industry has been declining. Low gross profit is an inevitable trend in the development of the LED industry. In the past, the era of relying on technology and quality to occupy the market is gone forever.
"We hope to expand production capacity and reduce costs through capital means to seize market share." Chen Zhenlun said that this year is the year in which the company will take capital operation and open up the market, and next year will be the release of the company's production capacity and rapid increase in production. year.
Sprint IPO
Haotian Technology was established in 2004, and it is a period of development in the LED packaging industry in Taiwan. The packaging companies including Yiguang and Addison are all established at the time.
As the market gradually enters the rapid growth period, especially the downstream application estuary demand is much smaller than the upstream production capacity release, resulting in a decline in the gross profit margin of the packaging industry in recent years. According to the statistics of the High-tech LED Industry Research Institute (GLII), the average gross profit margin of global high-power LED packaging devices in 2011 was 25%-30%, and the gross profit margin dropped by nearly 10% in 2012, before 2011. The gross profit margin is even as high as 100% or more.
The rapid changes in market conditions have caused most packaging companies to change their expansion strategies. For Haotian Technology, the turnaround occurred in 2012, and it was this year that the company officially entered the capital market.
On April 23, 2012, Haotian Technology plans to issue 38 million shares and raise funds of NT$380 million. A month later, Taiwan's leading chip company, Jingyuan Optoelectronics, participated in the private placement of Haotian Technology with NT$140 million.
In the eyes of most industry insiders, Jingyuan Optoelectronics invested in Haotian Technology, which is also a microcosm of Taiwan's LED industry seeking resource integration during the trough. Jingyuan Optoelectronics pointed out that the company had previously maintained a good cooperative relationship with Haotian Technology. The private placement of Haotian Technology is mainly optimistic about the company's good performance and its market potential in lighting devices. A closer relationship in the future.
Chen Chenlun said that the cooperation with Jingyuan Optoelectronics can ensure the stable supply of chips in the future, and can guarantee the quality and price. He revealed that in the near future, Jingyuan Optoelectronics completed another capital increase, and its shareholding in Haotian Technology has reached 30% from 17.39%.
While carrying out capital capital operations, another major task of Haotian Technology is to rapidly open up the market. Chen Chenlun said that in the past, the company’s revenue contribution was basically from old customers.
On the roadmap for the future market development of Haotian Technology, the mainland market is the key target. The mainland is the fastest growing market for the global LED lighting market. “We hope to find more new customers and orders here.â€
The low-margin war of the LED industry has rapidly spread to LED packaging manufacturers in Taiwan. Haotian Technology, a high-power packaging enterprise with technology positioning, is now adjusting its market pace.
In January 2012, moved to a new factory in Taiwan, the annual production capacity increased from 30KK to 60KK.
In April 2012, 38 million shares were publicly issued and the proposed fund was 380 million Taiwan dollars.
In May 2012, Jingyuan Optoelectronics participated in the private recruitment of Haotian Technology and obtained 17.39% of the shares in NT$140 million.
Although the actions of a series of market adjustment strategies in the first half of this year are quite eye-catching, it is the latest financial report data of Haotian Technology that still reveals some crisis in the LED packaging market. According to financial report data, in the first half of 2012, Haotian Technology realized a revenue of NT$201 million, a year-on-year decrease of 18.62%; net profit was a negative NT$7.14 million, a year-on-year decrease of 166.98%.
“In the past two years, the price of LED has dropped too much, and the gross profit margin has dropped a lot. As a result, the output has increased, but the overall turnover of the company has not increased significantly.†Chen Tianzheng, general manager of Haotian Technology Co., Ltd. The reporter said that the company's technology and quality are not behind other Taiwanese packaging companies, but in terms of scale and production capacity, there is still a long way to go with the packaging giants such as Everlight.
In fact, since last year, the gross profit margin of the packaging industry has been declining. Low gross profit is an inevitable trend in the development of the LED industry. In the past, the era of relying on technology and quality to occupy the market is gone forever.
"We hope to expand production capacity and reduce costs through capital means to seize market share." Chen Zhenlun said that this year is the year in which the company will take capital operation and open up the market, and next year will be the release of the company's production capacity and rapid increase in production. year.
Sprint IPO
Haotian Technology was established in 2004, and it is a period of development in the LED packaging industry in Taiwan. The packaging companies including Yiguang and Addison are all established at the time.
As the market gradually enters the rapid growth period, especially the downstream application estuary demand is much smaller than the upstream production capacity release, resulting in a decline in the gross profit margin of the packaging industry in recent years. According to the statistics of the High-tech LED Industry Research Institute (GLII), the average gross profit margin of global high-power LED packaging devices in 2011 was 25%-30%, and the gross profit margin dropped by nearly 10% in 2012, before 2011. The gross profit margin is even as high as 100% or more.
The rapid changes in market conditions have caused most packaging companies to change their expansion strategies. For Haotian Technology, the turnaround occurred in 2012, and it was this year that the company officially entered the capital market.
On April 23, 2012, Haotian Technology plans to issue 38 million shares and raise funds of NT$380 million. A month later, Taiwan's leading chip company, Jingyuan Optoelectronics, participated in the private placement of Haotian Technology with NT$140 million.
In the eyes of most industry insiders, Jingyuan Optoelectronics invested in Haotian Technology, which is also a microcosm of Taiwan's LED industry seeking resource integration during the trough. Jingyuan Optoelectronics pointed out that the company had previously maintained a good cooperative relationship with Haotian Technology. The private placement of Haotian Technology is mainly optimistic about the company's good performance and its market potential in lighting devices. A closer relationship in the future.
Chen Chenlun said that the cooperation with Jingyuan Optoelectronics can ensure the stable supply of chips in the future, and can guarantee the quality and price. He revealed that in the near future, Jingyuan Optoelectronics completed another capital increase, and its shareholding in Haotian Technology has reached 30% from 17.39%.
While carrying out capital capital operations, another major task of Haotian Technology is to rapidly open up the market. Chen Chenlun said that in the past, the company’s revenue contribution was basically from old customers.
On the roadmap for the future market development of Haotian Technology, the mainland market is the key target. The mainland is the fastest growing market for the global LED lighting market. “We hope to find more new customers and orders here.â€
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