Guangdong Ganhua LED losses the transformation of health is still on the road

The daily news Guangdong Gan Hua industry from 2013 since the reorganization, had not engaged in sugarcane and chemical company, focus on the transformation and development of LED business, and high hopes for LED business.

But in the past 3 years, the "daily economic news" reporter at Guangdong Gan Hua report found that support the company's main business is still paper trading (accounting for 70%), the company focus on the transformation of LED business revenues accounted for only 15%, while the LED product inventory backlog, serious loss situation.

At the same time, Guangdong Gan Hua in the 2013 annual report on the proposed restructuring, to the health of the past two years, has so far failed to find a suitable health project. The company still did not find a suitable large health projects, is still in research, from the current point of view, the main losses or more difficult. "A manager of Guangdong Gan Hua Securities Department said.

3 years ago to seek transformation into LED

In March 12th, Guangdong Ganhua released 2015 annual report, the company achieved operating income of 398 million yuan, net profit of 177 million yuan, a year-on-year increase of 1628.35%, however, after deducting non recurring gains and losses net profit of -7938 million yuan, down 209.6%, disappointed investors.

"As a stick to the Guangdong Ganhua 4 year old shareholders, have to ask, this three years are you going to bring what sweet...... Three years later, the main loss...... "Investors in Guangdong Gan Hua the interactive platform for investor relations to complain.

Reporters found that access to information, Guangdong is sweet Delixi Group Limited (hereinafter referred to as Delixi) before the reorganization, the main business for the comprehensive utilization of sugarcane industry, including the production of sugar, and biochemical products, but due to inadequate supply of raw materials can not be put into effect and restrict factors of sufficient funds for the development of the company's business is shrinking year by year.

Since 2010, Guangdong has become *ST Gan Gan Hua, business continued to deteriorate, cannot rely on existing funds to restore profitability, seek restructuring transformation, September 5, 2011, the controlling shareholder of the company by the Jiangmen City Asset Management Agency to change to Delisi.

In March 20, 2013, *ST and sweet to Delixi were given by, to enter the field of LED, will increase, holds a total of 41.55% shares *ST Gan Delixi, became the controlling shareholder.

Data show that in the production of high and low voltage electrical Delixi Electric based industrial automation control, while engaged in integrated logistics, transportation, investment and other industries PE.

After holding Guangdong Delixi, Gan Hua said that the future focus on the development of LED and biochemical industry. Among them, the Guangdong Ganhua wholly owned subsidiary of Guangdong Deli Electronic Co. Ltd (hereinafter referred to as the main force de photoelectric) has started construction of LED wafer production project.

At that time, Guangdong Ganhua hopes for the LED industry, LED industry optimistic about the prospects for the development of that company, the local government developed vigorously support LED industrial policy, the region of LED a relatively complete industrial chain, the development of LED industry company has good environment and infrastructure, and LED industry senior industry team and advanced equipment, have a competitive advantage.

LED high inventory losses

However, Guangdong Gan Hua high hopes LED business has not brought the expected results, the company nearly three years is still difficult to get rid of reliance on non recurring losses of the situation.

Reported in 2013, 2014 and 2015 Guangdong Ganhua net profit was 35 million 880 thousand yuan, 10 million 260 thousand yuan and 177 million yuan, after deducting non recurring gains and losses net profit was -584 million, -2564 million and -7938 million yuan.

This means that the transformation of 3 years, Guangdong is still difficult to rely on Gan to achieve the main business losses, LED industry sector accounted for in revenue in the proportion is still low, and the operation is in high inventory and the cost of the situation upside down.

The 2013 annual report disclosure, the first phase project of Guangdong LED business in Gan Hua Deli photoelectric LED epitaxial wafer and chip project successfully enter the debugging stage of production, but has not gone away from production losses.

Reported that in 2013, in 2014 and in the year of the German power photoelectric operating income was 0 yuan, respectively, $26 million 820 thousand and $59 million 880 thousand, net profit of $1 million 694 thousand, -2076 million and -5934 million.

Reported in 2015, LED 2015 revenues of 59 million 870 thousand yuan, the operating cost is as high as 70 million 220 thousand yuan, gross margin of -17.29%, cost of revenues appear upside down, the inventory of 78 million 280 thousand yuan, an increase of 37 million 90 thousand yuan, an increase of 90.04% compared with the beginning, mainly for the LED increase in products, semi-finished goods, goods in stock.

"As to the back, we enter the LED business is relatively late, now doing good business, the scale has been great, such as Sanan optoelectronics, the competition is fierce," a manager of Guangdong Gan Hua Securities Department told reporters, "a subsidiary of German power photoelectric losses are very powerful, under such a situation, we are here hope to do fine, do market losses, and further development. "

At the same time, from the 2015 Guangdong Ganhua product revenue structure, support the company's main income is the traditional paper trade, focus on the transformation and development of LED products operating income of only 60 million yuan, and other LED companies in billions of dollars compared to the size of the relatively few.

The 2015 annual report, the company achieved operating income of 398 million yuan, of which the biochemical products operating income of 46 million yuan, LED products operating income of 60 million yuan, the paper trade revenues 283 million yuan, respectively, total operating income was 11.55%, 15.04% and 71.01%.

The big transformation in the way of health