Huacan Optoelectronics will receive 150 million yuan of venture capital
On January 6, Liu Hua, president of Wuhan Huacan Photoelectric Co., Ltd. (hereinafter referred to as “Huacan Optoelectronicsâ€) confirmed to the newspaper that the company will indeed receive financing of 150 million yuan. “But this financing is still under review and is estimated to be There are results by the end of this month." Liu Wei said that the funds will be mainly used for production line expansion.
At present, Huacan Optoelectronics occupies the second largest market for LED chips in China, and the first is Silan Micro (600460.SH). Coincidentally, on January 4, Silan Micro also said that it plans to raise no more than 600 million yuan of funds, which is also used for project expansion.
The industry believes that in the context of a low-carbon economy, 2010 will be the golden year for the development of the LED industry. Television, lighting, and automotive taillights will jointly drive LEDs to grow at a high speed, while the industry is in a period of rapid expansion.
Refinancing
Huacan Optoelectronics' financing of 150 million yuan is composed of four investment institutions. Among them, the joint venture between China Development Bank and Cisco Systems - investment fund investment of 65 million, the famous American venture capital IDG investment of 30 million, the rest by Zhejiang private capital composition.
This is the second round of financing from IDG Capital to Huacan Optoelectronics. In the first round of March 2008, IDG invested 70 million yuan alone. In addition to this round, IDG has invested a total of 100 million yuan. 30% shares of Can Optoelectronics.
If the investment fund is completed, it will hold a 10% stake in Huacan Optoelectronics. Chen Hongwu, a partner of the investment fund, said that the reason why Huacan Optoelectronics was chosen is the company's team and technology. "Understanding, their technology is leading in China and the team has industry experience."
"Although it was the first time to invest in Huacan Optoelectronics, I used to work for IDG and I contacted it very early." Chen Hongwu said that he has been very interested in the LED chip industry and Huacan Optoelectronics project. Before 2009, Chen Hongwu served as vice president of IDG.
As for whether there is a plan for continuous investment, Chen Hongwu said that he will look at the company's specific business development needs, and as a professional investment institution, it will not do anything to promote the listing. He said that the company has not yet submitted a listing agenda.
If the funds are in place, Huacan Optoelectronics will receive an investment of 270 million yuan. In addition to capital injection, investment institutions also inject international business ideas into the company.
At present, Huacan Optoelectronics has a full-scale LED epitaxial and chip production line, and has a production capacity of 20,000 pieces of 2-inch epitaxy per month.
"Now this financing is still in the approval stage of the Wuhan government, and it is estimated that there will be results at the end of this month." Liu Wei told this reporter that this round of financing is mainly used to expand production scale.
At present, the production capacity of Huacan Optoelectronics is 400kk/month, and the monthly sales amount is 25 million yuan. “This is in the top three positions in the mainland in China.†Liu Wei said that he hopes to produce this year. At 800kk/month, the monthly sales exceeded the target of 50 million yuan.
Huacan Optoelectronics was established in November 2005. The technical team valued by investors is composed of a number of returning doctors, Taiwanese and foreign experts with professional background and practical experience in compound semiconductors.
Rapid expansion
Liu Wei said that in the past, the industry failed to invest more than successful, but due to the continuous introduction of new application areas, the industry is still in a rapid growth period, so in the next three years, it will still be the peak investment.
On January 4, Silan Micro also stated that it plans to raise no more than 600 million yuan of funds, of which 500 million will be used to invest in high-brightness LED chip production line expansion projects and 100 million to supplement liquidity. At the same time, other domestic LED manufacturers are also paying close attention to capacity expansion. Last year, Sanan Optoelectronics (600703.SH) also launched a private placement plan, and the total investment of 9.99 billion yuan will be invested in ultra-high brightness LED chips and epitaxial wafer production lines.
A person who participated in Huacan Optoelectronics said that although the technology gap between China and abroad is relatively large, if it is done well, the opportunities for substitution are also great. Compared with downstream applications, upstream chip technology and higher funding thresholds are more attractive to investors. "Downstream application companies, the minimum investment of 500,000 yuan is enough, while the upstream is at least 20 million US dollars. The upstream main equipment is about 2 million US dollars, usually a company does not have three or five equipment, does not constitute scale."
“The return on investment of carbon emissions is the first thing investors value, and the industry must conform to the future trend.†The source said that in addition, the core of the LED industry is upstream chips, and the downstream applications are still in time. The package in the middle reaches is squeezed by both ends. The upstream is the first choice, looking for companies with excellent technical innovation capabilities and excellent teams.
The industry believes that 2010 will be the golden year of LED industry development, TV backlight, lighting, car taillights, etc. will jointly drive LED high-speed growth, the industry is in a period of rapid expansion. In the case of a large expansion in demand, many LED epitaxial plants even said that LED chips will be out of stock for two years.
In contrast, because most domestic LED chip companies do not have a complete intellectual property system, in the market, the domestic chip market share is not high. The gap between domestic and foreign products is that a foreign chip can sell for $2.50, while domestic ones have a minimum of a few cents.
According to the plan of the Ministry of Science and Technology, the “Ten Cities and Ten Thousand†LED Lighting Demonstration Project will enter the second stage and expand to 2 million LED street lights in 50 cities. The government has issued documents to encourage green lighting through financial subsidies and financial and tax support. . It is expected that the penetration rate of LED lighting will reach 30% in 2013. It is reported that LED can convert electric energy into light energy, which can save 90% of electricity and have a service life of 80,000 hours, which is 5 times of the life of ordinary fluorescent lamps.
In addition, Samsung and other global brand manufacturers compete for LED-backlit TV. (Economic Observer)
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