With many LED manufacturers releasing their latest revenue performance in August 2014, LEDinside will now review and rate their performance as “excellent”, “pass” or “fail”.

Upstream: San’an Opto clears name, HC Semitek delivers stellar performance, Changelight outlook bleak

In China’s LED upstream sector, leading manufacturer San’an Opto finally has been able to clear its reputation as being government dependent. The company has long been criticized for heavily relying on government subsidies to polish up its revenue performance. This time the company has finally been able to prove itself with solid “statistics”. In first half of 2014, the company’s revenue was up 30.03 percent to RMB 2.18 billion (US $350 million). The company’s net profit also increased 43.78 percent to RMB 666 million, and the company’s nonrecurring gain was also up 44.06 percent to RMB 503 million.

It should be emphasized that San’an Opto’s nonrecurring gain does not include government subsidies, which indicates San’an Opto delivered a stellar performance.

HC Semitek has also boasted stellar performance recently, having successfully turned around losses. In the first half of this year, the company’s revenue was up 172.19 percent YoY to RMB 304 million. The company’s net profit also more than doubled by 239.25 percent to RMB 44.15 million, and reported profit margin was 27.74 percent. The company’s green LED chip revenue also soared 126.37 percent to reach RMB 113 million, and profit margin was about 22.08 percent.

In stark contrast, China’s largest AlInGaP LED chip supplier Changelight’s performance for first half of the year was unsatisfactory. The company’s revenue and profits all declined during first half of 2014. The company’s revenue was down 10.49 percent YoY to RMB 199 million, while net profits also dropped 6.49 percent YoY to RMB 47.11 million.

In the financial report, Changelight did not clearly explain the cause behind the sliding performances. “Changelight has not expanded AlInGaP production capacity, and prices for these products have dropped,” said LEDinside Analyst Figo Wang. “Revenue and net profit declines are quite normal when market competition intensifies.”

Then there is Auckson and Silan Microelectronics performance to consider. Auckson’s revenue during first half of the year was up 5.78 percent YoY to RMB 714 million, while net profit had soared 52 percent YoY to RMB 68.48 million. The company’s LED business performed especially well, and made the most significant contributions in sales revenue and net profits. Accompanying the company’s growing MOCVD volume and entry in mass production, the company’s LED chip revenue in the first two quarters of 2014 were respectively RMB 23.45 million and RMB 50.65 million. The company’s revenue in second quarter this year grew 116 percent compared to previous quarter.

Silan Opto’s revenue during first half 2014 increased 16.64 percent to reach RMB 871 million, while net profits soared 65.8 percent to RMB 61.55 million. LED chip revenues climbed up 68.03 percent YoY to reach RMB 121.37 million, and profit margin was also up 29.83 percent YoY to 18.29 percent. The company’s LED component revenue ballooned 145.56 percent YoY to RMB 59.30 million. LED component profit margin also hiked up 15.31 percent to 30.88 percent.

Worth noting is two Silan Opto subsidiaries Silan Azure and Multi-Color Optics have turned around losses. Accompanying increased production capacity during first half of 2014, Multi-Color Optics secured a competitive advantage in high-end display pixel component market, which has helped boost its brand image.

Tianlong Photoelectronics performance during 1H14 was less than ideal. The company’s revenue plunged 63.04 percent YoY to RMB 62.68 million. The company also incurred a net loss of RMB 53.88 million, profits shrunk 742.80 percent YoY. The company has reported losses since 2012 to 2013. The company estimates losses during 3Q14 might reach RMB 37 million to RMB 40 million. If the company continues to accumulate consecutive losses, the company might be temporarily removed from the China bourse. (To be continued)

(Author: Sophie Liu, Reporter, LEDinside China/ Translator: Judy Lin, Chief Editor, LEDinside)