□ Reporter Shen Zuorong
China Canton Optoelectronics (20.62 +7.34%, diagnostics) (300323.SZ), the second largest LED chip company in China, has used the equity refinancing to expand the industry in an extensible manner and achieved a significant improvement in its operating performance. Huacan Solar’s performance forecast shows that It is estimated that the net profit in 2017 will be 470 million yuan to 534 million yuan, an increase of 76% to 100%.
The Yangtze River Business Daily reporter combed and found out that five years ago, Huacan Optoelectronics, which was deeply involved in the field of LED chips, successfully listed on the GEB. However, after the listing, affected by the changes in the industry environment, the company’s operating performance began to change its face. In 2013 and 2015, they were caught in succession. Loss.
In order to reverse the unfavorable situation of the business, Huacan Optoelectronics began to use the capital market for industrial expansion. As of now, the increase in the issuance of bonds, Huacan Optoelectronics refinancing of equity reached 3.863 billion yuan. If you count other financing, in the expansion of expansion Fundraising reached at least 4 billion yuan.
In terms of R&D investment, Huacan Optoelectronics also frequently overcharged. Last year last year, the company's R&D investment was 5,423,660,000 yuan, an increase of 5.4% compared to the first half of 2016. In addition, the company plans to invest 10.8 billion yuan in the next 7 years, and to lay out new advanced semiconductors. Technical field.
After Huacan Optoelectronics' series of actions, the company not only turned a profit, but also saw a doubling of net profit. Gross profit of product sales also increased significantly. In the first half of 2017, Huacan's gross margin was 33.72%, which was close to 16.75% in 2015. 2 times.
Two-year growth in gross margins nearly doubled
With the increasing concentration of the LED industry, the market as a whole is good, Huacan photoelectric also ushered in the harvest season.
According to the forecast of Huacan Solar's performance, it is estimated that the net profit for 2017 will be 470 million yuan to 534 million yuan, an increase of 76% to 100% from 267 million yuan in 2016. This is the second highest performance that the company will face after its 2015 loss. Growth year. In 2016, the company not only turned a profit, but also net profit increased 378.40% year-on-year.
Huacan Solar, which was listed in 2012, saw significant growth in its operating results before its IPO. After listing, it was affected by the external environment and its performance continued to decline and it was in a loss.
The data shows that from 2009 to 2011 before the IPO, the net profit of the company was RMB 15 million, RMB 112 million, and RMB 126 million. After the listing, from 2010 to 2015, its operating income was RMB 330 million. 316 million yuan, 706 million yuan, 955 million yuan, two years after the first two years of decline, a sharp increase in two years. Net profit for the same period of 087 million yuan, -0.09 billion, 91 million yuan, -0.96 billion yuan, a one-year loss of profit for one year , Profitability is not stable.
However, with the improvement of the market environment, Huacan Optoelectronics's profitability was quickly released.
In 2016, the company achieved operating income of 1.582 billion yuan, an increase of 65.62%, and a net profit of 267 million yuan, a year-on-year increase of 3.78 times. In the first nine months, the company's operating income reached 1.872 billion yuan, which exceeded the 2016 full-year growth rate. 74.78%.
Huacan Optoelectronics stated in its 2016 annual report that during the year, due to the increase in market demand and the elimination of outdated production capacity, the LED industry improved supply and demand in the chip market, and the company’s production and sales volume increased significantly, consolidating its dominant position in the market. The company is expected to display The market's dominant position will provide the company with a faster growth opportunity in the next 2-3 years.
In mid-January of this year, Huacan Optoelectronics explained the reasons for the rapid growth of the company's performance, said that the LED chip production capacity has achieved greater growth, making the company's chip product production and sales increased year-on-year as compared to the same period last year. At the same time, as R & D continues to increase, the overall chip The adjustment of the production and sales structure to the high end, together with the scale effect, the chip cost further decreased, and the customer structure converged with large and high-quality customers, resulting in a year-on-year increase in gross profit margin year-on-year, and a stable gross profit margin from the first quarter to the fourth quarter. , Blue Crystal Technology has fully completed the switch from 2-inch to 4-inch substrate wafers from the beginning of last year.
As Huacan Optoelectronics stated, R&D investment has boosted the increase in gross profit margin. In the first half of last year, the company's R&D investment was 54 million yuan, an increase of 5.4% year-on-year. The current gross profit margin was 33.72%, which was an increase from 23.94% at the beginning of the year. Nearly 10%, nearly doubled from 16.75% in 2015.
4 times to increase the layout of the extension of the expansion
Huacan Optoelectronics has significantly increased its profitability. Apart from the fact that the production environment leads to a better market environment, it also has a close relationship with the company's industrial layout.
In 2016, Huacan Photoelectric invested 6 billion yuan to establish a Zhejiang subsidiary to enter the construction phase. It is mainly responsible for the development of optoelectronic technology products, technology transfer and sales, making the main business bigger and stronger. In February of this year, the company also joined the management committee of Yiwu Industrial Park. Signing the contract, it plans to invest 10.8 billion yuan in the construction of advanced semiconductor and device projects, and to enter into world-class and high-end production capacity.
Huacan Optoelectronics has also continuously extended its industrial chain to form a synergy effect to enhance its comprehensive competitiveness. In May 2016, the company acquired a 100% stake in Blue Crystal Technology through the issuance of shares and payment of cash. The industry extends to the growth and processing of sapphire crystals. And sales and sapphire substrate research and development, production and sales, etc. In addition, to expand the development space in the third generation of semiconductor applications, expand new product application areas, Huacan Optoelectronics through the investment in the Daily Strategy Limited indirect equity participation in North awakening.
It is worth focusing on the fact that after more than a year of twists and turns, Huacan Optoelectronics acquired a major asset acquisition from MEMSIC, which was approved by the China Securities Regulatory Commission.
According to the previously disclosed plan, the company plans to acquire Harmony Optronics for a consideration of RMB 1.65 billion. The latter’s main asset is 100% equity of Amazing Semiconductor. The main business of Amazing Semiconductor is around the MEMS industry. The main products are accelerometers and magnetic sensors. Smart phones and consumer electronics, automotive security systems and other fields.
According to published data, in terms of accelerometers, last year, the company continued to maintain its leading position in technology, and at the same time expanded its compatibility programs. It is expected that the market share of Accelerometer will exceed 30% in 2019. In geomagnetic sensors, last year Introduced a full-featured single-chip three-axis MMC5603NJ geomagnetic sensor with industry advantages in terms of integration, accuracy, and cost. Currently, a considerable number of mobile phone Tier 1 manufacturers and the United States and Singapore cooperate. In addition, the United States and New Zealand is still the only car with the level of Accelerometers and geomagnetic sensor chip companies, their automotive sensors have entered the general, Mazda and other international car manufacturers, began to realize the cooperation of manufacturers in large quantities.
In order to support the expansion of production capacity, industrial transformation and upgrading and industrial chain extension, Huacan Optoelectronics continued to raise funds.
According to an inquiry by a reporter from the Changjiang Business Daily, the company has implemented two fixed-term increases since 2016. Together with the two scheduled increases that have been approved for implementation, the company's equity refinancing will reach 3.363 billion yuan. In addition, the company had announced in 2015 that A corporate bond with a issuance size of 500 million yuan is used to supplement liquidity.
To sum up, we will increase the issuance of bonds. Huacan Optoelectronics' refinancing of equity will reach 3.863 billion yuan. If we count other financing, the fund-raising for the expansion of expansion will reach at least 4 billion yuan.
IDG Capital shares 10 years or enjoy wealth feast
Huacan's operating performance ups and downs did not allow the internationally renowned capital IDG to remain unmoved. Sticking to its position as a major shareholder, Huacan Solar has ushered in a surge in wealth.
From the perspective of shareholders’ shareholdings, Huacan Optoelectronics's shareholdings are relatively decentralized. The company has no controlling shareholders and actual controllers. As of the end of September last year, the company’s largest shareholder was IDG Capital, which was jointly held by NSL and Jing Tian. There is a 17.89% stake in the company.
IDG's share of Huacan Optoelectronics will be traced back to 10 years ago, before the company's IPO.
According to public information, in December 2007, IDG registered Jing Tian I and Jing Tian II exclusively in Hong Kong and acquired shares in Huacan Optoelectronics. In 2012, after the IPO of the company, IDG held a total of 18.17% of Huacan Optoelectronics through the two funds. .
In the two blue-crystal and midea semiconductor processes that Huacan Optoelectronics had acquired through the acquisition, IDG has already advanced the company in advance.
In 2015, Huacan Solar announced that it had acquired 100% equity of Lanjing Technology by issuing shares for RMB1.08 billion through the issuance of shares and payment of cash, among which, 93.42 million shares were issued and cash paid was RMB154 million. KAI LE, a major shareholder, issued 36.42 million shares, and this former majority shareholder was controlled by IDG.
Blue Crystal Technology originally wanted to land A shares through the IPO, and submitted a listing application to the China Securities Regulatory Commission. In 2010 before the IPO, KAI LE invested 30.21 million US dollars to subscribe for 6.8 million shares of Blue Crystal Technology, holding a ratio of 11%. After the operation, by June 2014, its shareholdings rose to 33.42%.
However, due to the sharp decline in the profitability of Blue Crystal Technology. In 2013, the company withdrew its IPO application.
The direct IPO failed, and the blue crystal technology curve went public. Through the reorganization with Huacan Optoelectronics, it successfully entered the A-share market.
In addition, Huacan Optoelectronics has been closely associated with IDG since its acquisition of Midea Semiconductor for over a year.
According to the announcement, JingtianI and JingtianII, Kai Le are controlled by the IDG-Accel Fund, and the actual controllers are Zhicheng and Zhouquan. IDG's official website shows that He Zhicheng and Zhou Quan are members of the IDG Capital team. In addition, the chairman of Huacan Optoelectronics is Yu Xinhua. IDG Capital team members.
Huacan Optoelectronics acquires Harmony, a shareholder of Midea Semiconductor, whose shareholder NSL is also associated with IDG Capital shareholders. The NSL shareholders include four IDG U.S. dollar funds, and the general partners of the four I funds are He Zhicheng and Zhou Quan as directors or controllers. .
In view of this, after Huacan Optoelectronics completed the acquisition of Midea Semiconductor, its largest shareholder will still be IDG Capital. Perhaps, it is only a step away from the controlling shareholder and the actual controller.