Among the six listed companies whose main business is LED packaging, Wanrun Technology is the smallest one, at least in terms of revenue performance in the first three quarters of 2014.
In an environment of increasingly fierce market competition, in order to achieve "quantity" breakthroughs, it is far from enough to rely solely on one's own efforts. Wanrun Technology's big move is put in the back, and it has not yet been reflected in the 2014 annual report.
Slow growth rate for “petite” body type
In 2010, the revenue was 234 million yuan, and the net profit was 36.1399 million yuan; in 2011, the revenue was 374 million yuan, a year-on-year increase of 6010%, and the net profit was 54.0691 million yuan, a year-on-year increase of 49.61%; in 2012, the revenue was 389 million yuan, a year-on-year increase of 3.76%, and the net profit was 3848.5 60,000 yuan, a year-on-year decrease of 28.82%; in 2013, revenue was 436 million yuan, a year-on-year increase of 12.32%, and net profit was 44.4492 million yuan, a year-on-year increase of 15.5%; in 2014, revenue was 523 million yuan, a year-on-year increase of 19.91%, and net profit was 40.4049 million yuan, a year-on-year decrease of 9.10%.
It can be seen from the above data that Wanrun Technology only crossed the 500 million yuan threshold in 2014. Among its peers, Nationstar, Hongli, Ruifeng, Jufei, and Changfang, excluding Nationstar whose scale exceeds 1 billion yuan, other companies are already heading towards the door of 800 million yuan, except Wanrun Technology.
But the story continues. On September 1, 2014, Li Zhijiang, chairman of Wanrun Technology, said in an exchange with investors that he would strive to build Wanrun Technology into a company with a market value of tens of billions in three years.
The background to these words is that Wanrun Technology announced on August 15, 2014 that it planned to issue no more than 66.06 million shares at a price of 10.76 yuan per share, and the total amount of funds raised would not exceed 710 million yuan, which would be used to acquire 100% of the equity of Rishang Optoelectronics and supplement working capital.
What is the financial status of Rishang Optoelectronics? In 2012, the revenue was 250 million yuan, and the net profit was 20.2405 million yuan; in 2013, the revenue was 376 million yuan, a year-on-year increase of 50.02%, and the net profit was 25.5298 million yuan, a year-on-year increase of 50.02%. An increase of 26.13%; in 2014, the revenue is expected to be 527 million yuan, and the net profit is 32.9213 million yuan; in 2015, the revenue is forecast to be 664 million yuan, and the net profit is 42.2482 million yuan.
If there is not much difference in the forecast data, once Rishang Optoelectronics' finances are merged into Wanrun Technology, Wanrun Technology will successfully enter the 1 billion yuan club. If you want to quickly improve your performance to the next level, it is not enough to rely solely on your original main business to achieve growth. You must also rely on external mergers and acquisitions.
However, as of today (February 4, 2015), the market value of Wanrun Technology is still at 2.545 billion yuan, which is still a long way from the market value of 10 billion yuan. There are still two and a half years of hard work.
The growth of LED lighting business is sluggish
At the 2014 annual performance briefing, Qing Beijun, financial director of Wanrun Technology, said that with the improvement of product cost performance, the trend of LED lighting replacing energy-saving lamps and incandescent lamps is clear, and it is expected to enter a stage of rapid growth.
Even at the risk of competing with customers for the lighting application market, Wanrun Technology, like other peers, has made early plans for LED lighting products.
In 2012, Wanrun Technology’s LED lighting product revenue was 93.3222 million yuan, a year-on-year increase of 15.59%, with a gross profit margin of 34.46%, a year-on-year increase of 2.28%, and a revenue share of 32.87%; in 2013, Wanrun Technology’s LED lighting product revenue was 120.3054 million yuan, a year-on-year increase The growth rate was 28.91%, the gross profit margin was 43.34%, a year-on-year increase of 8.88%, and the revenue accounted for 27.6%; in 2014, Wanrun Technology's LED lighting product revenue was 121.4646 million yuan, a year-on-year increase of 0.96%, the gross profit margin was 37.95%, a year-on-year decrease of 5.39%, and the revenue accounted for 23.23%.
It can be clearly seen from the above data that the growth of Wanrun Technology's LED lighting products in 2014 was weak. What's worse is that the gross profit margin has also declined. Of course, this is closely related to the entire LED lighting market.
In 2014, the main market directions of Wanrun Technology's LED lighting products were mid-to-high-end commercial lighting and municipal engineering lighting. In the domestic lighting market, it continues to provide EMC lighting energy-saving renovations for many supermarket chains such as Jingkelon, Shirley Department Store, Rizhao Department Store, and Wanda Department Store. It uses the BT model as a general contractor for the Xiantao City urban road lighting construction project contracted by the Xiantao City Housing and Urban-Rural Development Committee, and won the bids for projects such as China Southern Power Grid, Dongguan Metro, and Shenzhen Guangming New District Street Light Project. In the foreign lighting market, it deeply explores the European traditional lighting stock replacement market and actively explores emerging markets such as America and Southeast Asia.
As we all know, accounts receivable have always been a big problem in engineering projects. The worst thing is that the money made by the project has not been collected for a long time. At the end of 2014, Wanrun Technology's revenue accounts were 153 million yuan, accounting for 29.25% of total revenue.
ANNA