On November 22, 2017, Huacan Optoelectronics celebrated a major 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 Yiwu Mayor Lin Yi, Chairman of the Board of Huacan Optoelectronics Co., Ltd., Zhou Fuyun, and President of Huacan Optoelectronics (Zhejiang) Co., Ltd., Liu Wei. This marked an important step forward in the company's growth strategy and its commitment to expanding its presence in the LED industry.
The second phase project of Huacan Optoelectronics (Zhejiang) Co., Ltd. is a significant industrial initiative with a total investment of 6 billion yuan, of which 3 billion yuan is allocated for this phase. The project covers a land area of 143 mu and includes a construction area of 150,000 square meters. Upon completion, it will significantly enhance the production capacity of LED chips, pushing the company to new heights in 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 contribution of 1 billion yuan, the project will create over 6,000 job opportunities. It will also accelerate the localization of LED chip manufacturing, reduce costs for end-users, and strengthen China’s position in the global LED industry.
Huacan Optoelectronics sees this groundbreaking ceremony as a catalyst for further growth. The company aims to complete the second phase quickly and establish itself as a leading global LED enterprise. By doing so, it hopes to become a symbol of high-quality manufacturing in Yiwu and proudly declare “Hua Can, China Core.â€
Throughout 2017, the company has been actively expanding its production scale and investing in key projects. One of the most notable initiatives was the plan to invest 2.5 billion yuan in a new LED chip project in Zhangjiagang City, Jiangsu Province. This project, led by Huacan Optoelectronics (Suzhou) Co., Ltd., aims to boost efficiency, reduce costs, and ensure reliable material supply for the company.
In addition, Huacan Optoelectronics invested 1 billion yuan to build what is expected to be the world’s largest sapphire substrate production facility. This project, developed in collaboration with Lanjing Technology and the Yuxi Hongta District Government, is set to meet growing market demand and solidify the company’s position in the global market.
The first phase of the Yiwu Plant was completed and officially launched in July 2017 after nearly a year of construction. According to President Liu Wei, this marked a successful expansion of the company’s production capacity. By the end of 2017, the plant was expected to produce 150,000 LED chips and 200,000 sapphire substrates per month, significantly easing current capacity constraints.
Huacan Optoelectronics has seen impressive financial growth in 2017. In the first half of the year, the company reported revenue of 1.193 billion yuan, a 94.64% increase year-on-year. Net profit attributable to shareholders reached 216 million yuan, up 306.28%. With increased production capacity and improved cost efficiency, the company expects even stronger performance in the first three quarters, with net profit projected between 338 million and 380 million yuan—an increase of 139.63% to 169.40% compared to the same period last year.
Huacan Optoelectronics has always focused on delivering top-quality LED products and building long-term partnerships with downstream customers. Its products are now widely accepted by major packaging and application companies across China. This strong customer base has helped the company maintain a healthy gross margin and secure a stable position in the market.
Today, Huacan Optoelectronics stands as a key supplier of LED chips for leading Chinese packaging and application firms. These strategic relationships have allowed the company to benefit from the vast opportunities in the downstream LED market and continue its rapid growth.
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