(Text / high-tech LED reporter Liu Qiaomei)
With the global LED backlight market gradually entering a stable development period in recent years, the general lighting market has become the main battlefield for global LED chip manufacturers to pursue high growth. However, in today's market environment where price competition is extremely fierce, it is gradually increasing the difficulty of occupying a place and gaining higher profits.
On December 10, 2010, Taiwan's SemiLEDs Corp. successfully landed on NASDAQ. The company's main business is the development and production of vertical blue (white), green and ultraviolet LED products. Use its patented copper alloy substrate technology.
On May 23, 2011, Xuming Optoelectronics Co., Ltd., a joint venture company in Foshan, Guangdong, officially announced the opening and commissioning of the LED epitaxial chip project. According to the project plan, in 2011, Xurui Optoelectronics began to produce 4-inch substrate epitaxial wafers and high-power, high-brightness LED chips with a production capacity of 20kk/month. It is expected that after the completion of the third phase of investment at the end of 2013, the company can reach 31 MOCVD and the production capacity will reach 84 KK/month. Xu Rui Optoelectronics also plans to go public three years after the company is established.
However, in 2011, domestic LED upstream chips suffered the most brutal price war in history and the resulting inventory crisis. According to the survey data of Gaogong LED reporters, more than half of the LED epitaxial chip companies in China have slowed down the commissioning and commissioning of new MOCVD equipment.
As a part of the global LED lighting chip manufacturers, Xu Ming Optoelectronics is clearly difficult to be independent. Since the first quarter of 2011, Xu Ming Optoelectronics has faced a downward trend in gross profit caused by pricing pressure. According to the previously announced June-August 2011 financial report, the company's revenue decreased by 56% to 5.3 million US dollars, compared with the revenue of 13 million US dollars in September-November 2010, the decline was 59%, while Mao The interest rate has fallen to -93%.
At the same time, Xuming Optoelectronics began to face double-sided pinch in the market. One side is the cofferdam from the mainstream GaN-based LED chip, and the other is the strong price pressure from the high-power chip competitor Cree. The more cruel market situation is that most packaging manufacturers in mainland China have different opinions on Xuming optoelectronic chips.
Perhaps Xuming Optoelectronics, which has gradually lost its competitiveness in the general general lighting market, is hoping to make a turnaround in the special lighting (UV LED) market.
Performance continues to decline
Gaogong LED reporters reviewed the financial statements of Xu Ming Optoelectronics' 2011 fiscal year Q1 (September-November to November 2010) to Q4 (June-August 2011). The data showed that the company's revenue fell from Q1's 13 million US dollars to Q4's $5.3 million, gross margin fell from 51% to -93%.
Based on revenues of $5.3 million in the fourth quarter of 2011, Xuming Optoelectronics earned less than $1.8 million per month from June to August 2011. If calculated according to the market average price of a single chip of 0.3 US dollars, Xu Mingguang's chip sales in a month is also 6kk, and the sales volume of the company's business peak is only 11kk / month.
In the face of such unsatisfactory financial statements, Xu Dao, marketing manager of Xuming Optoelectronics Marketing, blamed the sluggishness of the entire industry and the impact of competitor Cree's reduction in chip prices over the past year.
For the gross profit margin to fall from 51% to -93%, Tang Dao explained to the reporter: "Because of entering the Chinese market, there is new capacity to be put into production, so the depreciation of the booth is relatively high. But the data on the books It is not necessarily because the gross profit of the product is declining.†He said that according to the rules of the Nasdaq-listed company, the company must eliminate all the annual inventory to the cost in the fourth quarter, otherwise it will not be qualified.
Metal vertical structure is controversial
"Two or three years ago, I used the products of Xuming Optoelectronics, the price is not high. The main reason is that his technical route has a bottleneck of low product yield and high cost. It turns out that there is a time when the light effect can be done very high, but Now it seems that I can't go up again." An industry insider told reporters that in the past few years, many domestic street lamps have indeed used Xuming's high-power chips. But the key is still small capacity, performance can not be more advantageous than the big manufacturers.
With the global LED backlight market gradually entering a stable development period in recent years, the general lighting market has become the main battlefield for global LED chip manufacturers to pursue high growth. However, in today's market environment where price competition is extremely fierce, it is gradually increasing the difficulty of occupying a place and gaining higher profits.
On December 10, 2010, Taiwan's SemiLEDs Corp. successfully landed on NASDAQ. The company's main business is the development and production of vertical blue (white), green and ultraviolet LED products. Use its patented copper alloy substrate technology.
On May 23, 2011, Xuming Optoelectronics Co., Ltd., a joint venture company in Foshan, Guangdong, officially announced the opening and commissioning of the LED epitaxial chip project. According to the project plan, in 2011, Xurui Optoelectronics began to produce 4-inch substrate epitaxial wafers and high-power, high-brightness LED chips with a production capacity of 20kk/month. It is expected that after the completion of the third phase of investment at the end of 2013, the company can reach 31 MOCVD and the production capacity will reach 84 KK/month. Xu Rui Optoelectronics also plans to go public three years after the company is established.
However, in 2011, domestic LED upstream chips suffered the most brutal price war in history and the resulting inventory crisis. According to the survey data of Gaogong LED reporters, more than half of the LED epitaxial chip companies in China have slowed down the commissioning and commissioning of new MOCVD equipment.
As a part of the global LED lighting chip manufacturers, Xu Ming Optoelectronics is clearly difficult to be independent. Since the first quarter of 2011, Xu Ming Optoelectronics has faced a downward trend in gross profit caused by pricing pressure. According to the previously announced June-August 2011 financial report, the company's revenue decreased by 56% to 5.3 million US dollars, compared with the revenue of 13 million US dollars in September-November 2010, the decline was 59%, while Mao The interest rate has fallen to -93%.
At the same time, Xuming Optoelectronics began to face double-sided pinch in the market. One side is the cofferdam from the mainstream GaN-based LED chip, and the other is the strong price pressure from the high-power chip competitor Cree. The more cruel market situation is that most packaging manufacturers in mainland China have different opinions on Xuming optoelectronic chips.
Perhaps Xuming Optoelectronics, which has gradually lost its competitiveness in the general general lighting market, is hoping to make a turnaround in the special lighting (UV LED) market.
Performance continues to decline
Gaogong LED reporters reviewed the financial statements of Xu Ming Optoelectronics' 2011 fiscal year Q1 (September-November to November 2010) to Q4 (June-August 2011). The data showed that the company's revenue fell from Q1's 13 million US dollars to Q4's $5.3 million, gross margin fell from 51% to -93%.
Based on revenues of $5.3 million in the fourth quarter of 2011, Xuming Optoelectronics earned less than $1.8 million per month from June to August 2011. If calculated according to the market average price of a single chip of 0.3 US dollars, Xu Mingguang's chip sales in a month is also 6kk, and the sales volume of the company's business peak is only 11kk / month.
In the face of such unsatisfactory financial statements, Xu Dao, marketing manager of Xuming Optoelectronics Marketing, blamed the sluggishness of the entire industry and the impact of competitor Cree's reduction in chip prices over the past year.
For the gross profit margin to fall from 51% to -93%, Tang Dao explained to the reporter: "Because of entering the Chinese market, there is new capacity to be put into production, so the depreciation of the booth is relatively high. But the data on the books It is not necessarily because the gross profit of the product is declining.†He said that according to the rules of the Nasdaq-listed company, the company must eliminate all the annual inventory to the cost in the fourth quarter, otherwise it will not be qualified.
Metal vertical structure is controversial
"Two or three years ago, I used the products of Xuming Optoelectronics, the price is not high. The main reason is that his technical route has a bottleneck of low product yield and high cost. It turns out that there is a time when the light effect can be done very high, but Now it seems that I can't go up again." An industry insider told reporters that in the past few years, many domestic street lamps have indeed used Xuming's high-power chips. But the key is still small capacity, performance can not be more advantageous than the big manufacturers.
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