The performance of 12 listed listed companies was “bombing”, and the net profit of Changfang Group was only 20,000 yuan!

From the perspective of the entire LED industry chain, it can be divided into upstream epitaxial wafers/chips, midstream packaging, and downstream application fields, and the packaging is just in the middle position of the link, which plays an indispensable role in the entire industrial chain.

It is understood that the current global LED packaging industry is mainly concentrated in China, East Asia, the United States, Europe and other countries and regions.

From the perspective of LED industry development, the first phase of Japan, the United States, Europe and other manufacturers rely on the first-mover advantage, with technological advantages and equipment advantages, become the world's first LED packaging industry center; the second phase of Taiwan and South Korea have complete consumer electronics The industrial chain has a clear division of labor and rapid rise. Currently in the third stage, the mainland China has undertaken global industrial transfer, benefiting from cost advantages and strong downstream product market demand, and has become an important LED packaging production base in the world.

After more than ten years of development, China's packaging industry relies on the government to support growth and expand its production capacity with capital advantages. China has become the manufacturing center of LED packaging devices in the world. In 2016, there were more than 2,000 packaging companies in China, providing 70% of the world's packaging output.

According to data from the Institute of Advanced Industrial Industries (GGII), the size of China's LED packaging market in 2016 increased from 64.4 billion yuan in 2015 to 73.7 billion yuan, a year-on-year increase of 14%. Driven by the LED application market, especially the lighting market recovery and strong demand in the niche market, GGII expects that China's LED packaging market will reach 87 billion yuan in 2017, up 16% year-on-year, significantly higher than global growth rate, and China LED in the next few years. The output value of the packaging industry will maintain a growth rate of 13%-15%.

Although China is now in the leading position in the world in terms of output value, the current operating conditions of many domestic packaging companies vary widely, and the development prospects of most SMEs are worrying. There are also many packaging companies fighting in the low-end market, with low market concentration and uneven technology and processes.

Gaogong LED has summarized the performance of various LED packaging listed companies in the first half of this year. According to the financial report data, compared with the same period of last year, most companies' net profit has increased significantly. Only Changfang Group, Xiamen Xinda and Dongshan Precision have three companies. There was a decline in net profit.

12 LED packaging listed companies' financial report in the first half of 2017

(Note: Net profit in the text refers to the net profit after deducting non-recurring gains and losses)

As the leading enterprise of the first echelon of LED packaging industry, Mulinsen achieved operating income of 3.624 billion yuan in the first half of this year, up 73.68% year-on-year; net profit attributable to shareholders of listed companies was 293 million yuan, up 96.89% year-on-year. The company continues to expand the company's sales channels by continuously extending to the upstream and downstream of the LED industry chain, through the integration of the industry chain, and at the same time cooperating with well-known foreign companies. Introduce excellent management talents, improve the training of talents, consolidate the company's core competitive advantages, and promote the company's business scale to continue to grow and develop, and the industry's leading position is further consolidated.

The same package companies belonging to the first domestic echelon include Guoxing Optoelectronics, Hongli Zhihui, Zhaochi, Ruifeng Optoelectronics, etc. Of course, these packaging companies have also achieved good results in double profit growth in the first half of this year.

According to the financial report, Guoxing Optoelectronics achieved a revenue of 1.597 billion yuan, a year-on-year increase of 51.45%, and a net profit of 154 million yuan, a year-on-year increase of 102.97%. Among them, LED packaging and component products revenue reached 1.404 billion yuan, an increase of 50.07% over the same period last year. Guoxing Optoelectronics said that during the reporting period, the company's production and operation achieved rapid growth. The main performance driver was the company's comprehensive competitive advantage and continued investment in product expansion. The production and sales capacity of the industry was rapidly growing under the favorable environment.

In the first half of 2017, Hongli Zhihui actively built the dual main business format of LED+ car networking. Among them, LED business focused on LED lighting application field, and laid out the middle and lower reaches of LED industry. During the reporting period, the company's LED product sales revenue was 1.51 billion yuan, accounting for 92.91% of total operating income. The performance of LED products mainly comes from the contribution of LED packaging products. The sales revenue is 1.172 billion yuan, accounting for 72.07% of the total operating revenue, the production capacity is 28808.65KK, the output is 22670.28KK, the capacity utilization rate is 78.69%, and the comprehensive product yield is 98.38%.

Zhaochi is mainly engaged in the R&D, production and sales of LED devices and components. It is based on the mid-stream packaging industry of the LED industry chain and is positioned in two core application areas of LED lighting and LED backlight. In the first half of 2017, the company achieved revenue of 3.746 billion yuan, a year-on-year increase of 20.85%, and a net profit of 279 million yuan, a year-on-year increase of 28.27%. Among them, LED products and accessories realized operating income of 634 million yuan, an increase of 33.96% over the same period of last year. It has strong market competitiveness in the industry and has become a leading LED enterprise in China.

Ruifeng Optoelectronics Co., Ltd. is a national high-tech enterprise specializing in LED packaging and providing related solutions. It is also a leading enterprise in the domestic packaging field. In the first half of the year, the company achieved revenue of 787 million yuan, a year-on-year increase of 51.66%, and a net profit of 22.06 million yuan, a year-on-year increase of 36.90%.

Wanrun Technology has deeply cultivated the LED mid-stream light source device package, which has formed the synergistic advantages, products, technology, market and brand advantages of the middle and downstream industry chain. During the reporting period, the company deepened the LED packaging and lighting segment to consolidate and enhance the core competitiveness of the LED industry. In the first half of the year, revenue was 1.281 billion yuan, a year-on-year increase of 119.55%; net profit was 70.56 million yuan, a year-on-year increase of 16.82%.

Looking at Jufei Optoelectronics and Lianchuang Optoelectronics, the revenue and net profit of the two major packaging companies in the first half of this year also maintained steady growth. The main business of Jufei Optoelectronics belongs to LED packaging. The main products can be divided into backlight LED devices and lighting LED devices according to their applications. During the reporting period, the backlight LED business developed steadily, accounting for 69.58% of operating income, an increase of 16.66% compared with the same period of the previous year.

It is worth mentioning that as a newly listed LED company, Guanghao has handed in a good “transcript” in the first half of this year. Revenue reached 211 million yuan, a year-on-year increase of 57.70%, net profit of 24.78 million yuan, an increase of 102.34%. Relatively speaking, it is a fast-growing company.

In addition to the above-mentioned nine packaging companies to achieve profit-making double growth, the net profit of the Changfang Group, Xiamen Xinda, Dongshan Precision in the first half of the year actually showed a different decline.

According to the financial report, the net profit of the Changfang Group after deducting non-recurring gains and losses was only 20,000 yuan: According to the interim report of the Changfang Group, in the first half of 2017, the rectangular group realized revenue of 855,556,774.71 yuan, a year-on-year increase of 17.60%. The net profit attributable to shareholders of listed companies was 123,200, down by -67.20% year-on-year. However, the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was only 20,000 yuan. Gaogong LED noted that in the first half of 2016, the Group's net profit after deducting non-recurring gains and losses was 32.29 million. Compared with the same period of last year, why did it fall so bad this year?

According to the semi-annual report of the Changfang Group, the main reason for the decline in the company's performance during the reporting period was that the relocation of the company's Pingshan production base led to the impact of capacity in the first half of the year; secondly, the company's Huizhou Industrial Park plant was completed and converted to fixed assets. Depreciation is depreciated, which has a certain impact on profits. Finally, the adjustment and optimization of product structure in the first half of 2017 has increased the development of new customers, but its effects have not been released. However, in the context of the continued steady increase in profitability of most packaging companies, the Changfang Group is slightly “chilling”.

According to the performance of 12 LED packaging companies, nearly 80% of enterprises have ushered in different degrees of growth. The market share of large enterprises has steadily increased, and the leading effect has become more prominent.

Related Reports & Data

2017 China LED Monthly Export Data Report

"2017 China LED Packaging Industry Research Report"

2017 China LED Industry Analysis Report

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