Shandong Jinyuan "Unsatisfactory" Qinshang Optoelectronics retreat but does not give up the Shandong market

At present, the LED industry continues to leak news about the company's financial constraints and operational difficulties, and listed companies are no exception.

On the 23rd, the reporter was informed that Qinshang Optoelectronics will transfer all 65% equity of Shandong Jinyuanqin Shangguang Co., Ltd. (hereinafter referred to as “Shandong Jinyuan”) at a price of 13 million yuan. In an interview with reporters, Qin Shang Optoelectronics Secretary Wei Li said that Shandong Jinyuan has been in a state of slight loss, and the external transfer is to reduce investment risks and integrate resources. She stressed that "the company has never given up the Shandong market and is still optimistic about the demand for LED in the Shandong market."

According to Wang Bo, CITIC Securities Investment Consultant, small and medium-sized LED companies will be unable to achieve results in terms of technological breakthroughs and cost control, and will close down a lot. 10%-20% of enterprises will encounter industry reshuffle, which is also an impetuous LED industry. The only way to return to rationality.

Diligent photoelectric retreat
On the morning of the 24th, the Shandong Jinyuan Gate, located on the right hand side of the entrance of the Weifang Comprehensive Bonded Zone, was locked. The roar of the machine was not heard in the factory area, and it was particularly quiet under the sun. The reporter tweeted to contact Zhou Changhui, the person in charge of the factory. He said, "Because of the impact of the industry environment, the company's operation is not very good, coupled with the transfer of shareholders' divestment, the company has been shut down for several months and is in the process of adjustment."

Li Zhaoxin, deputy director of the Political Department of Weifang Comprehensive Bonded Zone Management Committee, told reporters that Shandong Jinyuan was put into operation in 2010, mainly promoting the use of LED green energy-saving products in Weifang City and surrounding counties and even the Bohai Rim region. Technical Support. “Although the operation status after the production was normal, it was also one of the largest LED industry bases in the Bohai Rim region. The LED product exhibition hall was the largest in China at the time.” Li Zhaoxin said.

The data shows that Shandong Jinyuan registered capital of 20 million yuan. Among them, Qinshang Optoelectronics invested 13 million yuan, accounting for 65%; natural person Zhuang Yubing invested 7 million yuan, accounting for 35%. According to the plan, the company's expectation was that the total investment was 700 million yuan, which was constructed in three phases. After the entire LED lighting production project was put into production, it is expected to realize an annual output value of 5 billion yuan and a profit and tax of 1.2 billion yuan. Large-scale semiconductor lighting enterprises integrating the research and development, production and sales of tunnel lights, garden lights, stadium lighting and indoor lighting, as well as the design, construction and maintenance of urban lighting projects.

But the reality is not satisfactory. The reporter was informed that last year, Shandong Jinyuan only realized operating income of 6.18 million yuan, net profit of -2,502,100 yuan, and net cash flow from operating activities was only 1,048,800 yuan. In the first five months of this year, operating income fell to 1,084,200 yuan. This may have laid the foundation for the retreat of Qinshang Optoelectronics.

Wei Li said that the equity transfer is based on the actual production and operation of the company and reduces investment risks. Since the investment, Shandong Jinyuan has been in a state of slight loss. In addition, Qinshang Optoelectronics exited Shandong Jinyuan, which is also to optimize the company's market layout in the country and adapt to the latest situation of the domestic LED lighting terminal application market.

“The company has never given up the Shandong market and is still optimistic about the demand for LED in the Shandong market, and there are other cooperation projects in Qingdao, Yantai, Jinan and other places.” Wei Li stressed.

According to some analysts, Qinshang Optoelectronics, which has strong channel capabilities, will mainly focus on the application product market, trying to meet the upcoming market volume through a differentiated model.

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