Dehao Runda's net profit decreased by 2926.29% year-on-year. Aoyang Shunchang/Huawei Electronics Growth

In 2017, China's LED chip industry continued to grow significantly, with the output value reaching 18.8 billion yuan, accounting for nearly 40% of the global production. According to data from the High-tech Research Institute's LED Research Institute (GGII), domestic MOCVD technology has become a key driver of this expansion. By the end of 2017, the number of MOCVD machines in mainland China exceeded 1,600, and GGII forecasts that China’s LED chip output will surpass 50% of the global market by 2019. Among major players, Dehao Runda reported a sharp decline in net profit, falling by 2926.29% year-on-year. Despite a 3.79% increase in operating income, the company suffered a net loss of 894.65 million yuan. This was partly due to the sale of its international lighting business, which had previously contributed around 569 million yuan in revenue in 2016. Additionally, rising raw material costs led to higher operating costs and a 3.73% drop in gross margin. On the other hand, Aoyang Shunchang saw strong performance, with a 72.36% increase in net profit. The company's operating income rose 82.93%, and its net profit reached 533.3 million yuan, up 100.29%. The firm attributed its success to stable chip prices, full production capacity, and continuous technological advancement. Its subsidiary, Huai'an Optoelectronics, also delivered impressive results, with a 167.18% rise in operating income and a 273.73% increase in total profit. China Microelectronics also posted positive results, with a 133.52% year-on-year increase in net profit. As an IDM company, it benefited from the recovery of the power semiconductor market. With advanced manufacturing capabilities across 4-inch, 5-inch, and 6-inch wafer lines, the company maintained a leading position in the industry. Overall, while some companies faced challenges, others capitalized on the growing demand for LED chips and power semiconductors, showcasing the dynamic nature of China’s high-tech manufacturing sector.

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