On November 22, 2017, Huacan Optoelectronics celebrated a significant milestone as the groundbreaking ceremony for the second phase of its Zhejiang subsidiary took place in the Yiwu Information Optoelectronics High-tech Zone. The event was attended by notable figures such as Yiwu Mayor Lin Yi, Chairman of Huacan Optoelectronics Group, Zhou Fuyun, and Liu Wei, President of the company. This marked a new chapter in the company’s growth and development.
The second phase of Huacan Optoelectronics (Zhejiang) Co., Ltd. is a major industrial project with a total investment of 6 billion yuan, of which the second phase alone requires 3 billion yuan. The project covers 143 mu of land and includes a construction area of 150,000 square meters. Once completed, it will significantly boost the production capacity of LED chips, pushing the company to a higher level of technological advancement and market competitiveness.
Once fully operational, the Yiwu Plant is expected to produce 12 million LED epitaxial chips and 52 million sapphire substrates annually. With an estimated annual revenue of 6 billion yuan and a profit and tax income of 1 billion yuan, the project is set to create over 6,000 job opportunities. The expansion not only supports the localization of LED chip manufacturing but also helps reduce costs for end-users, strengthening China’s position in the global LED industry.
Huacan Optoelectronics aims to use this groundbreaking ceremony as a catalyst for future growth. The company is committed to completing the second phase of its Zhejiang project as soon as possible, striving to become a globally competitive leader in the LED sector. As a key player in Yiwu's manufacturing industry, the company is helping to build a strong brand image that reflects "Hua Can, China Core."
In 2017, Huacan Optoelectronics made strategic moves to expand its chip production scale. One of the major initiatives was investing 2.5 billion yuan to build a new LED chip project in Zhangjiagang City, Jiangsu Province. This project, led by its Suzhou subsidiary, aimed to enhance efficiency, reduce costs, and ensure stable supply chains.
Additionally, the company invested 1 billion yuan to develop what is expected to be the world’s largest sapphire substrate production facility. This initiative, supported by local government collaboration, is designed to meet growing market demand and solidify Huacan’s position as a leading supplier in the industry.
The first phase of the Yiwu Plant was successfully commissioned in July 2017 after nearly a year of construction. With a monthly production capacity of 150,000 LED chips and 200,000 sapphire substrates, the plant helped alleviate supply shortages and increase market share. By the end of 2017, the company reported impressive financial results, with revenue rising by 94.64% and net profit surging by 306.28%.
Thanks to increased production capacity, Huacan Optoelectronics has seen a significant rise in sales volume. The company has also optimized its cost structure and strengthened relationships with high-quality customers, maintaining a healthy gross margin. For the first three quarters of 2017, the company projected a net profit increase of between 139.63% and 169.40% compared to the same period last year.
Huacan Optoelectronics continues to focus on delivering top-tier LED products and building long-term partnerships with downstream customers. As one of the main suppliers to leading Chinese LED packaging and application companies, the firm is well-positioned to benefit from the expanding LED market and drive sustainable growth.
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