One of the leading semiconductor lighting company: Sanan Optoelectronics

According to the industry reports, Sanan Optoelectronics has more than a quarter of shares of the domestic LED chip production capacity in 2017. Based on the company's product structure, vertical integration of the industry chain and downstream customer dispersion, the company's gross profit margin is much higher than that of its main competitors. In terms of net profit, we found that the company's management costs, sales expenses, and financial cost control are both high in the industry, indicating that the company's management and operation standards are high, financing and low costs.

Supply-side capital expenditures, domestic enterprises have become the main force of expansion. With the constant expansion, the main large lighting enterprises will further monopoly the upstream semiconductor chip market, and the competition will also become more serious.

Sanan has advanced technologies and a large scale, which guarantee the company's high gross profit. At the same time, there is still room for improvement in large-scale production. Obviously, Sanan will maintain its leading position in the lighting industry for a long time to come.

After two consecutive years of decline in 2015 and 2016, LED chip prices have been basically stable. However, influenced by the market supply and demand, the prices will still fluctuate in the short term. For example, the collective large-scale expansion of leading LED lighting suppliers in 2018 led to another drop in chip price.

China's LED application scenarios continue to expand, and the market scale continues to increase. It is expected that the LED chip market in China will reach 22.56 billion yuan in 2018.

The semi-annual report for 2018 shows that in the first half of the year, Sanan Integrated achieved a revenue scale of 67 million yuan, a year-on-year increase of more than 1.5 times compared to the full year of 2017. Among them, Sanan integrated GaAs RF has contact with 103 customers, 58 customers have shipped, 14 customers have been mass-produced, product performance and stability have been well received by customers; GaN RF has achieved customer delivery As such, the initial performance has been recognized by customers; 5G mobile communication power amplifier chip project is in progress as planned; power electronic products have been verified by domestic and foreign customers and supplied in batches, and have entered mass production stage; optical communication chips have been sampled 26 pieces. Some products have been mass-produced and have been sold. It is expected that the profit prospects of Sanan Integration will be good in the future.