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Australia Shunchang: to make the white LED chip leader

In March 12th, Zhangjiagang Sand Lake Hotel, Australia Shunchang held for the first time for investors and media report roadshow. From Shanghai Beijing Shenzhen investors and the media gathered to listen to the Australia Shunchang senior management in the past 1 years the company's operating results and the company's future development planning report. At the meeting, Australia Shunchang said, as to consolidate and enhance the competitive position of the LED chip company since 2017, the future of Australia Shunchang to do LED white chip leader.

Australia Shunchang general manager Chen Kai said that Australia Shunchang company registered in 2002, is the earliest metal distribution business, the main service object for companies such as Foxconn IT, and successfully listed in 2008. We can visit the capital market in such a short period of time, mainly due to the Macao Yang from Shunchang is the beginning of a very standardized management company.

And after the successful listing, the company has been looking for more business. In 2011, Australia entered the semiconductor lighting chips, 2016 acquisition of Tianpeng stake.

Australia Shunchang LED business began in 2011, at the time of the LED chip industry is a late start of the project, after 6 years of struggle, to 2017 has been recognized by the industry, the status of the industry rose to third.

In such a short time to achieve such results, Chen summed up the main experience, the first is the Australia Shunchang well in lowering cost and improving efficiency of the future by enhancing the level of automation of production, production efficiency and cost and continue to improve the space.

On the other hand, Australia Shunchang also has a strong technical strength. LED chip Australia Shunchang in light efficiency, brightness is well done, the price has been widely recognized by the market. Although 2017 has been the expansion of the Aoyang 5 times, 2018 will continue to expand production of 400 thousand pieces, but they are far from enough to meet customer demand increased order. Overseas customers are more and more and Australia Shunchang contact, hope Australia Shunchang to undertake more orders.

The main difficulty in the white LED chip brightness increase above, Australia Shunchang firmly seize this core, every year continued to increase the brightness, the first light industry products and performance more and more closely, the future will continue to invest in the development of Australia Shunchang light efficiency and brightness, and further narrow the gap between the industry benchmark.

In the development of new technology, Australia Shunchang is the pursuit of R & D investment precision. The development goal of Australia Shunchang is very clear, in addition to continue to enhance the brightness of white light, will be more R & D resources focus on the layout of Micro, Mini LED and other new chip technology.

The general manager of Shunchang Aoyang LED chip business Mr. Cui Hengping further elaborated Australia Shunchang LED chip division of the sources of competitive advantage.

The first is the management level of the leading, Australia Shunchang into the LED chip industry is late, but not bloated organizational structure, the implementation of flat management, the operating efficiency of the industry leading level. Especially Australia Shunchang LED chip business profit from entering the industry production began, the chip in the LED industry can be said to be very rare. Furthermore collocation reasonable incentive system, all employees are actively involved in the factory to improve production, reduce costs, improve efficiency.

The second point is the leading equipment, since entering the industry late, so put more advanced equipment, improvement and upgrading of equipment ability, can improve the production efficiency and product uniformity. At the same time, in close cooperation with the plant, the leading model for joint research and development, has been the focus of support equipment enterprises.

The third point is the leading technology, technology leading wafer Market Reform in Australia, to enhance the consistency of the product directly to the wafer, wafer delivery to customers, lower cost. At present, small and medium-sized power products in the industry-leading level, high R & D ability makes the light efficiency annual increase of not less than 7%, and has a lot of technical reserves, so the white in the fierce market competition, I can still have a good profit space.

In 2018, Australia Shunchang LED chip business will continue to layout automation to improve efficiency and reduce cost, for the 3.1 phase of the project and strive to reach, the second quarter reached 400 thousand pieces completely incremental, and in a timely manner to promote the 3.2 phase of the project construction (by plant planning there are 800 thousand pieces of space).

In addition Australia Shunchang will strengthen the research and development, maintain the competitiveness of products, reduce indirect costs, aim to be a leader in the field of white light. At the same time, pay attention to the cost trends of technological breakthroughs and LED industry, to prepare for the UV and MicroLED industry and the production of the outbreak.

In the industrial chain layout, sapphire flat substrate and patterned substrate project will be scheduled to start in 2018, and strive to the fourth quarter results, is expected to bring down the cost of future space 10%.

Judge Cui on the market performance is quite optimistic about the expected total, LED industry demand in the next 5 years compound growth rate can reach about 20%.

From the point of supply of global LED epitaxial wafer (2017-2018) in the new increment of about 25%, and most of them will be released in the three quarter of this year, plus part of the backward production capacity further out (low light efficiency capacity + MOCVD backward production competitive) and environmental factors lead to stone plate upstream raw materials supply shortage will.

Cui Zong believes that the current stock market relative balance, does not produce severe concussion, on the cost and price of high-quality companies will decrease the formation of positive interaction, the lack of competitiveness of the company will accelerate exit.

Shunchang Aoyang metal logistics business for Mr. Cheng Hong and Tianpeng Chen introduced metal logistics business and the business of lithium battery company. Cheng Zong said the metal logistics business every year to maintain the steady growth of 15 to 20%. The lithium battery business is a rising star in the group, although not yet the group profit contribution to the largest sector, but the future is very broad prospects for development, is expected to become the company's main business segments.

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