"Endogenous" and "extension" and the overall performance of Hongli Optoelectronics increased significantly

[Text|High-tech LED reporter Zhao Hui] "In order to actively promote the company's development strategy, the company will adopt the dual measures of endogenous growth and extensional development." Hongli Optoelectronics Board Secretary Deng Shoutie was interviewed by Gaogong LED It is said that endogenous growth is mainly achieved by expanding production capacity, improving the company's management capabilities, market size, research and development capabilities, innovation capabilities and business levels. The extension of the development is mainly through the acquisition of the target of a better management team, product structure, technology reserves, business channels, etc.

With the rapid development of LED lighting market demand, Hongli Optoelectronics has accelerated the pace of M&A in the packaging and lighting business since last year.

Following the increase in capital and heavy investment in Gongyuan, the acquisition of Dongguan Xinquan, Liangyou Hardware, and the acquisition of Smect Optoelectronics, Hongli Optoelectronics will continue to expand its production.

On August 19, Hongli Optoelectronics announced that the company signed an investment cooperation agreement with the Nanchang Municipal Government and plans to invest in the construction of an industrial park in the Nanchang Linkong Economic Zone Management Committee Park.

The total investment of the project is estimated to be about RMB 1.0-1.5 billion. The project covers an area of ​​300 mu. The wholly-owned subsidiary or the company's absolute holding company (holding more than 50% of the shares) established by Hongli Optoelectronics in Nanchang is used for the construction of industrial bases. Hongli Optoelectronics plans to achieve an annual output value of 1.5 billion yuan in three years after its official production and full production.

According to the announcement, Hongli Optoelectronics will receive the preferential policies granted by the Nanchang Municipal Government: the total output value of 100 million yuan to realize the incentive support funds; the total production subsidy of 100 million yuan; the special subsidy of the LED Experience Hall; the introduction of talents; 100 million yuan of market support (including inclusion in the government procurement company directory).

“The Nanchang project is expected to invest 1.5 billion yuan, covering an area of ​​300 mu, and there will be packaging and lighting business.” Deng Shoutie said that the Nanchang project can further enhance the production capacity of Hongli Optoelectronics, while the government subsidies and labor costs in inland areas. It can effectively reduce the overall cost pressure of the enterprise, thereby improving the profitability of the enterprise.

For the start-up time of the project, Deng Shoutie revealed that if the preliminary work was successful and approved by the shareholders' meeting, it will start in the fourth quarter of this year.

At present, Hongli Optoelectronics has acquired more than 1400 KK/month after the acquisition of Smect, coupled with its own expansion.

According to the data of the mid-year report, in the first half of 2014, Hongli Optoelectronics realized a net profit of 31.529 million yuan, a year-on-year increase of 44.59%, and operating income of 426 million yuan, an increase of 33.72%.

“In the first half of the year, the company seized the opportunity of rapid growth in the LED lighting market, effectively released its production capacity and maintained steady growth in its main business.” Deng Shoutie believes that the LED market will continue to maintain an upward trend in the second half of the year, along with LED products. Prices have fallen, lighting demand has risen, and product penetration has increased. Although the price decline affects the profitability of enterprises in the short term, it is conducive to the long-term sustainable development of enterprises and is conducive to the development of the industry.

In response to several mergers and acquisitions this year, Deng Shoutie explained that the company's M&A ideas are mainly focused on the company's long-term strategic objectives, through the selection of mergers and acquisitions and the company's complementary peers and downstream high-quality LED segment companies to complete the integration of the LED industry chain. In order to expand the company's product production line, enhance the company's business scale, market share, build a new profit growth point for the company, and realize the company's industrial layout.

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