On May 26, Wanrun Technology (002654) announced the evening announcement that the company signed a Project Investment Agreement with the Fuling District People's Government of Chongqing Municipality in Fuling District, Chongqing on May 26, 2016, authorizing the wholly-owned subsidiary Shenzhen Day. Shangguang Optoelectronics Co., Ltd. invested RMB 100 million in the construction of LED Industrial Park project in Fuling District, Chongqing.
According to the announcement, the overall planning land for the project is planned to be located in the west of Hefeng Avenue in Fuling New District, north of Juye Avenue, covering an area of ​​about 100 mu (based on the actual demand of the project). The specific land use is marked on the land certificate. And the express four boundaries and area shall prevail. The project is subject to overall planning and phased construction. It is expected to start construction in early 2017 with a construction period of 2 years. The project construction was solved by Shenzhen Rishang Optoelectronics Co., Ltd. by itself.
As is known to all, Chongqing is a core city in the west, backed by the southwest, and is an important transportation hub in the west. It has prominent geographic location advantages and has outstanding geographical advantages and industrial clustering advantages in the national “Belt and Road†strategy. Therefore, the LED lighting market has great potential.
Wanrun Technology said that the authorization of Shenzhen Rishang Optoelectronics Co., Ltd. to set up a project company in Fuling District, Chongqing, will help improve the company's regional layout in the LED lighting industry, open up the western LED lighting market, and further enhance the company's LED lighting. Profitability and comprehensive competitive strength.
In addition, LED Industrial Park is mainly used to build R&D, production and sales bases for LED indoor and outdoor lighting and lighting engineering products (such as: LED modules, LED strips, LED panel lights, LED drive power and LED street lights, etc.) At the same time, LED upstream and downstream supporting enterprises will be introduced to create an LED industrial park integrating R&D, production and international and domestic trade.
However, investment is always accompanied by certain risks while welcoming opportunities.
Although Shenzhen Rishang Optoelectronics Co., Ltd. has accumulated certain practical experience in LED lighting R&D technology, brand promotion, operation management, etc. and has corresponding core competitive advantages, the investment may still have insufficient internal management and management capabilities. LED lighting market demand growth is less than expected, and government policy changes and other uncertainties.
Faced with risks, Shenzhen Rishang Optoelectronics Co., Ltd. will establish an excellent management team, improve the incentive and restraint mechanism, and use its accumulated experience in the LED lighting industry to further develop the western LED lighting market and promote the stable operation of the project company.
In fact, for the investment in the construction of LED industrial park projects, Wanrun Technology has been preparing for a long time.
It is understood that as early as 2013, Wanrun Technology “escaped†from Shenzhen and moved to Dongguan Songshan Lake Industrial Park. At present, the main business LED packaging production line has been successfully relocated from Shenzhen Guangming Factory to Dongguan Songshan Lake High-tech Industrial Development Zone.
Indeed, after the relocation, Wanrun Technology continued to expand its production capacity, achieving a growth rate of approximately 60% in 2015. In the first quarter of 2016, it achieved operating income of 189 million yuan, an increase of 78.54% over the previous year.
In the past two years, industry transformation has become a major trend, and Wanrun Technology has also been involved in the transformation tide. Different from other LED transformation enterprises, Wanrun Technology still attaches great importance to LED main business. In the future, it will further cultivate in the key segments of LED industry and integrate superior resources through mergers and acquisitions.
Li Zhijiang, chairman of Wanrun Technology, said that “the old can't be lostâ€. Although the powerful Internet has come in, LED will continue to do in the future, and it will increase investment. It is only from strategic considerations, the future investment of LED will be large-scale. It is impossible to continue, but the technical transformation and individual products will be re-invested; in addition, the packaging should be transferred to the lighting, and the packaging market should be turned to the supporting services of the industrial chain. â€
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