Jucan Optoelectronics: The company will usher in a rapid growth cycle in the next 2 years
On July 5, Jucan Optoelectronics pointed out in the Investor Relations Activity Record that the company will continue to expand production and seek greater scale benefits.
According to reports, the LED chips of Jucan Optoelectronics are mainly divided into general lighting, display backlighting, medical beauty and other high-end application fields according to the terminal application field. Among them, the company has launched a variety of chip products such as formal, flip-chip and high-voltage for lighting applications, which are finally applied to various lighting products.
In terms of production capacity, Jucan Optoelectronics' capacity utilization rate has been maintained at a high level this year. At the same time, thanks to the strong market demand, orders shifted from the international market to the domestic market. Jucan Optoelectronics pointed out that the company's current orders are saturated, with full production and sales, and orderly delivery.
In addition, the expansion project of Jucan Optoelectronics in the planned location of Suqian Economic and Technological Development Zone has been filed and obtained environmental assessment qualification. The project will build an annual output of 2.4 million red and yellow light epitaxial wafers and chips, and 15.6 million blue and green light epitaxial wafers and chips. In the future, with sufficient funds, Jucan Optoelectronics will carry out project management and operation as soon as possible.
However, the industry-wide price increase has also brought a certain impact on the company. Jucan Optoelectronics pointed out that the company's products have increased in price to a certain extent, and the average selling price has steadily increased. At present, the company reduces the impact of material price increases by means of refined management, improved production efficiency, reduced production costs, and moderate transmission to the middle and lower reaches.
Jucan Optoelectronics also pointed out that judging from the current operating conditions, the company's operations in the first half of the year have been steadily improving in accordance with the established goals, and the impact of the increase in raw material prices on the company is generally controllable.
It is reported that Jucan Optoelectronics is expected to make a profit of 60-80 million yuan in the first half of 2021, an increase of 338.65%–484.87% compared to 13.68 million in the same period last year; deducting non-net profit of 7 million to 10 million yuan, successfully turned losses into profits .
Jucan Optoelectronics pointed out that there are three main reasons for this achievement:
First, the LED chip industry’s prosperity continues to rise, especially in the mid-to-high-end chip market. The company’s previous round of production expansion has a significant effect on the release of production capacity in this period; at the same time, the company insists on "marketing by operation, production by sales, and promotion by production. "The production and sales strategy has further increased the market share of products, achieved the unity of maximum production capacity and optimized efficiency, and steadily expanded domestic and overseas markets, which led to a substantial year-on-year increase in operating income.
Second, the company has deepened the implementation of the business strategy of “adjusting structure, improving performance, reducing costs, and creating benefits”, and its operating efficiency is at the leading level in the industry. In particular, it has strengthened technological innovation, increased R&D investment, and implemented product transformation and upgrading. The high-end products represented by flip chip and backlight have high added value and strong market competitiveness. The price of corresponding chip products has been increased in a timely manner, and the gross profit has increased significantly, which has led to a significant year-on-year increase in net profit.
Third, on the basis of the significant increase in operating efficiency and the continuous increase in the net inflow of operating cash flow, the company successfully completed the issuance of stocks to specific targets to raise funds, effectively controlled the scale of interest-bearing liabilities, further reduced interest expenses, and greatly improved The financial situation and the significant decline in the debt-to-asset ratio will have a significant positive impact on the current and later operating results.
Jucan Optoelectronics is optimistic about the company's future performance development.
Jucan Optoelectronics believes that in the next 2-3 years, the company will maintain a good momentum of continuous expansion in order to seek greater economies of scale. It is reported that Jucan Optoelectronics is at the top of the production capacity of a single production base in the same industry. At the same time, given that the company has made overall arrangements and rationally planned the basic supporting facilities and factory services of the base in the early stage, it has reserved space for the next round of new expansion. The foundation will greatly reduce the cost of infrastructure construction, and the advantage of scale effect of the base will be further revealed in the future.
Therefore, Jucan Optoelectronics believes that the next two years will be the company's rapid growth cycle, with stable and predictable performance growth. (Organized by LEDinside)