On January 15, Huacan Optoelectronics released a performance forecast. The company expects the net profit attributable to shareholders of listed companies from January to December 2017 to be 470 million to 534 million, a year-on-year change of 76.00% to 100.00%. Huacan Optoelectronics made the following three predictions for the performance increase: (1) Due to the large growth of the company's LED chip capacity this year, the production and sales of the company's chip products increased significantly compared with last year; (2) As the research and development continued to increase, the overall production and sales structure of the chip was adjusted to the high end, and the chip cost was further reduced under the scale effect, and the customer structure was gathered to large-scale high-quality customers, so that the annual gross profit margin increased significantly compared with last year. From the first quarter to the fourth quarter, the gross profit margin is relatively stable; (3) This year, Blue Crystal Technology has completely completed the process switching of 2 inch to 4 inch substrate from the beginning of the year. Liu Can, president of Huacan Optoelectronics, said, “In the past 12 years, Huacan Optoelectronics has experienced the background of global LED industry transfer to mainland China. Initially, Huacan Optoelectronics is backward compared to international competitors. With the continuous development of the company, the continuous investment of advanced equipment, and the continuous accumulation of technology, today's Huacan Optoelectronics has entered the global ranks regardless of production scale or product performance." Focus on deep cultivation and promote a virtuous cycle in the industry Liu Wei said frankly that every company will have its own choices, such as Dehao Runda, which is from the external industry to enter the LED, the layout of the upper, middle and lower reaches, and the chip itself, the acquisition of NVC lighting as a light source, while doing it yourself Package. The gene of Huacan is LED chip. We insist on focusing on technology. Our expertise is in industrial product management, while the downstream packaging and further industries are close to the end customers. It is a consumer product management of the operating brand. Indeed, the pattern of the foreign LED industry is different from that of the mainland. There are not many manufacturers in the middle and lower reaches of the country, and upstream manufacturers, such as Cree of the United States, have begun to expand downstream by acquiring the packaging plant, which can solve the packaging plant. Technical cooperation issues. There are many manufacturers in each layer of the mainland industrial chain, and the packaging factory has done a good job. If Huacan Optoelectronics wants to enter the packaging field, it needs to do better than the existing ones, so Huacan Optoelectronics does not have such an idea. . Liu Wei also said that we and the packaging factory can cooperate very well, each doing expertise, this is a favorable promotion of the benign cycle of the industry. Self-digestion costs, improve risk resistance I believe everyone has noticed that since last year, chip companies such as Sanan and Huacan have expanded their production. However, Taiwanese manufacturers have not expanded their production on a large scale. Is there a certain risk for chip companies? In Liu Wei’s view, “risk has always existed. An industry cannot always be in a situation of short supply. Since 2016, the industry is in short supply, which is also the driving force for Huacan’s rapid growth in 2017. As for 2018 Whether there will be overcapacity due to the expansion of the two companies, I think if other small and medium-sized manufacturers do not have a "closed door" tide, then it is definitely not left; if there is excess, the market competition pattern will be readjusted." It is undeniable that in terms of the strength of Huacan Optoelectronics, the ability to resist risks is strong, because its products are cost-effective and the supply chain is safe and reliable. In other words, overcapacity can lead to price competition risks. In response to market and price competition, Huacan Optoelectronics will be able to convert its leading technology into a considerable cost advantage, thereby maintaining a higher gross margin than its competitors. “All in all, on the whole, even if there is a certain degree of oversupply in the market, we can still maintain the current level of gross profit margin through technological advancement and market layout.†Liu Wei finally mentioned. Join hands with the leader, become the first echelon of LED chips At present, the global LED industry transfer pattern has entered the final stage, and developed countries have gradually accepted Chinese LED chip products. Domestic companies are no longer only doing low-end LED products, and their performance has been internationally recognized. In the next few years, domestic leading companies such as Huacan Optoelectronics will make great strides in terms of production scale and product performance. The top five leading manufacturers in the international LED industry will choose to cooperate with domestic leading companies such as Huacan. It is also the external driving force for the sustainable development of Huacan Optoelectronics. “When we have the cost advantage of scale production and excellent product performance, we have the basis for cooperation with major international manufacturers. In the past two years, Huacan Optoelectronics has invested heavily in equipment research and development personnel, and has now entered the first echelon of LED chips. Manufacturers. Of course, customers also hope that two large LED chip manufacturers can choose to guarantee production." Liu Wei said. In fact, in recent years, Huacan Optoelectronics has developed rapidly in addition to the above external factors, and there are internal factors. As a privately-owned venture capital enterprise created by a team of technology, Huacan Optoelectronics is not only extremely aggressive, but also professional. Therefore, when the enterprise encounters difficulties, Huacan Optoelectronics can hold its breath; when the opportunity comes, Huacan Optoelectronics' decision is very bold. In 2012, Huacan Optoelectronics decided to invest in the construction of Zhangjiagang factory when the industry was at a low point, but in the construction process of Zhangjiagang, it was expanded in production scale and reserves of talents. In 2016, when the growth opportunities of the industry arrived, the scale effect of Huacan Optoelectronics was rewarded, and sales increased from 900 million in 2015 to nearly 1.6 billion in 2016. Other manufacturers have not "woke up", Huacan Optoelectronics has been growing at a high speed. At the beginning of 2016, Huacan Optoelectronics decided to continue investing 6 billion in Yiwu, which is twice the size of the Zhangjiagang plant. Originally a five-year project, it will be able to complete the project ahead of schedule based on market conditions. In this context, Huacan Optoelectronics further narrowed the gap with Sanan in terms of production scale, and the distance from other second-tier manufacturers was further opened. Liu Wei proposed, "Future Huacan Optoelectronics will continue to carry forward the company's entrepreneurial spirit and become stronger and stronger in the LED market. In 2020, Huacan Optoelectronics' global position is more stable, with the goal of accounting for about 20% of the global market share." As we all know, Huacan Optoelectronics plans to focus on the most upstream areas in the next three years, and many Taiwanese manufacturers have begun to move from upstream to downstream and downstream. In this regard, Huacan Optoelectronics has always adhered to its original development strategy. Tinned Copper Wire,Tinned Copper,Tin Coated Copper Wire,Tin Plated Copper Wire Sowell Electric CO., LTD. , https://www.sowellsolar.com