Mao Zedong’s era goes to Hualei Optoelectronics to face the dual pressure of scale and capital

[Text / Wang Cairong ] At the end of 2011, Mao Zeli, the second largest shareholder of Hualei Optoelectronics, was appointed as the representative and general manager of Hualei Optoelectronics. The new helm was in the following year, and Hua Lei Optoelectronics seemed to have played a good show of "turning over."

The reporter checked the relevant information and learned that in 2012, Hualei Optoelectronics realized operating income of 243 million yuan, an increase of 57.79% over the same period of the previous year, and achieved a net profit of approximately 2,805,100,000 yuan, a substantial increase of 251.79% year-on-year, and reversed the 2011 book performance loss.

According to public information, in 2013, Hualei Optoelectronics achieved a total profit of over 60 million yuan in the first 11 months, a year-on-year increase of over 200%, of which only a single month profit in November exceeded 10 million yuan. This beautiful "transcript" may make the Dehao Runda (002005.SZ), which has already been listed but has fallen into a loss situation, is slightly embarrassed.

After more than a year of gaming, the domestic LED industry upstream chip market order has completed a new round of adjustment. It is understood that the number of MOCVD machine equipment of Sanan Optoelectronics in the mainland's LED epitaxial chip factory has reached 160, and the other large-scale chip manufacturers, such as 59 shares of Fangfang, 71 sets of Huacan Optoelectronics, and 92 sets of Dehao Runda (52 of them are mass-produced) and 64 sets of Blu-ray technology, and Sanan Optoelectronics and Huacan Optoelectronics are still continuing to increase production.

With the current scale of 32 MOCVD equipments of Hualei Optoelectronics, in order to win in the competition of the first- and second-line LED chip factories in the future, the pressure is not small, especially some of the machine equipments are relatively old.

In addition to the scale of production capacity, capital competition is also the key to the future competition of LED upstream chip industry. The reporter noted that Hualei Optoelectronics originally introduced five strategic investors at the end of 2010. It was the Sword Index listed. In 2013, it was once rumored to enter the listing counseling period, but so far no actual progress has been made.

"From technology competition to scale and capital competition, it is the main trend of LED upstream chip industry development. At this time last year, there were many cases where small and medium-sized chip factories were integrated by large factories due to the lack of production capacity due to the bottleneck of the capital chain." A person familiar with the LED chip industry said that unless there is a very strong capital behind the support, or only landed in the capital market, the domestic LED epitaxial chip factory has the hope to stabilize its place in the future competition.

"As the second largest shareholder, we still hope that Hualei Optoelectronics will continue to expand production, and the company will continue to maintain sustainable development. Now it is a new round of competition for upstream LED chip factories. The last round of manufacturers without investment scale has been eliminated. Now is the time to fight for scale." Mao Zili said that the company's future listing is affirmative, and our investment is to force Hualei Optoelectronics to go public.

However, after leaving the general manager, Mao Zili still expressed concern about the management mechanism and strategic planning of Hualei Optoelectronics.

“The original Hualei Optoelectronics is a group of technicians who are engaged in management, but the daily operation of the management company is a systematic project. After I took office, I added a lesson to Hua Lei Optoelectronics. Now I am most worried about their management system and talent team. And the strategic direction can be maintained.” Mao Zili said that Hualei Optoelectronics is a typical state-owned enterprise. Hunan Coal Industry Group under the Hunan Provincial State-owned Assets Supervision and Administration Commission and Xiangjiang Industrial Investment Co., Ltd. owns nearly 60.7% of Hualei Optoelectronics’ shares. He does not I would like to see some bad management models in the state-owned system being brought to Hualei Optoelectronics.

In the past three years after the retreat, He Daqing re-executed the Hualei photoelectric scepter, which seems to be a daily business. The reporter has tried to get in touch with him many times, but he has not seen any response.

A person close to Hualei Optoelectronics told reporters that after Mao Zili left, the company may need to hire another professional manager who knows technology. After all, Hualei Optoelectronics still has a certain distance from several domestic large factories.

However, Mao Zili denied it. He believes that in terms of the talent team structure when he left, the future is technically sufficient. "When I left office, everyone (major shareholder) has reached an agreement, and the position is quite good, but it is hard to say in practice."

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