In the LED industry, dry photo optoelectronics can be likened to a late bloomer, gradually catching up with the pace of progress. Although the company listed on the Growth Enterprise Market as early as 2010, it wasn't until 2016 that its operating revenue surpassed 1 billion yuan, with a net profit of around 50 million yuan. This was somewhat surprising given the booming market conditions across the industry as a whole. However, with Harmony Capital's acquisition last year, the company seems poised to take on a new role within the industry. On the afternoon of July 27th, Jin Zhangyu, Chairman of Ganzhao Optoelectronics, mentioned in an interview that in the evolving market landscape, there will be room for multiple chip manufacturers beyond just the dominant players like Sanan and Huacan. Ganzhao Optoelectronics finds itself at this pivotal moment in history, and the company is optimistic about becoming a key supplier in the new LED chip supply chain. Increasing Terminal Demand Jin Zhangyu explained to the Securities Times that since 2013, upstream expansion in the LED industry has slowed down. However, after the market downturn in 2015, LED product prices dropped to levels comparable to or even lower than traditional lighting, which accelerated the adoption of LED lighting and display screens. This surge in demand then prompted packaging factories to increase their output, ultimately causing a chip shortage. This wave of shortages spurred upstream companies to ramp up production in 2016 and 2017, leading to a significant increase in overall capacity compared to 2015. Despite recent capacity expansions, the market remains undersupplied, with some product prices fluctuating slightly, whether upward or downward. However, considering the entire LED industry chain, the likelihood of a drastic price drop is minimal. The domestic LED industry continues to see growth in traditional lighting, displays, automotive lighting, and other applications, driving ongoing terminal demand, which is another crucial factor contributing to the current market recovery. Industry Collaboration and Synergy According to Jin Zhangyu, Hejun Capital supported the company’s development philosophy of “industry-based, industry-industry interaction.†In 2017, Ganzhao Optoelectronics adopted a strategy of “holding the main business†and committed to becoming the strongest player in the LED industry. On July 16th, the company signed a major cooperation agreement with the Nanchang Municipal Government. It plans to invest 5 billion yuan (over two phases) in Nanchang to establish a blue-green chip production base capable of producing 1.2 million units per month. It is anticipated that the first phase of the project will begin operations three years after construction starts, processing 7.2 million LED chips annually with projected sales of 1.71 billion yuan and a total profit of approximately 220 million yuan. From the industry perspective, the consolidation of various segments in the LED industry is expected to intensify, particularly in upstream chip manufacturing, where an oligopoly could emerge within the next 2-3 years. In response to this trend, Jin Zhangyu stated, “Ganzhao Optoelectronics is currently navigating this transformative period, and we are confident in becoming a vital supplier in the new LED chip supply structure. Based on this outlook, the company has announced a 5-billion-yuan expansion project in Nanchang to further solidify our position in the LED field.†Jin Zhangyu also mentioned that the company’s future development will follow the principle of “endogenous extension and concurrent promotion,†focusing not only on improving internal management efficiency but also on expanding strategically. “We are considering setting up an industrial fund aimed at leveraging the advantages of the capital market to facilitate our strategic layout in the semiconductor field and ensure sustainable growth. The total size of this fund will not exceed 700 million yuan, with a focus on investments in the semiconductor sector, including but not limited to microwave devices, RF devices, lasers, and new LED directions.†1D Barcode Scanner Module,Barcode Reader Arduino,Qr Code Scanner Module,Small Barcode Scanner Module Guangzhou Winson Information Technology Co., Ltd. , https://www.barcodescanner-2d.com