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Huacan Optoelectronics is a leading LED chip company in China. Since 2016, the LED industry has ushered in a boom cycle, and the penetration rate of LED lighting market has increased rapidly. The technical progress of LED display market is better than expected. The company has expanded its production by Dongfeng, and has expanded its production capacity from the original 700,000 pieces/month to nearly 2 million pieces/month. In the next three years, Zhangjiagang and Yiwu base Huacan Optoelectronics is the leading LED chip company in China, since 2016. LED industry ushered in a boom cycle, LED lighting market penetration rate increased rapidly, LED display market technology progress is better than expected. The company has expanded its production by Dongfeng. At present, it has expanded its production capacity from 700,000 pieces/month to nearly 2 million pieces/month. In the next three years, Zhangjiagang and Yiwu bases will continue to expand production, and the production capacity will reach 3 million pieces/month. The substantial increase in the company's production capacity provides a strong guarantee for the company's revenue growth. Product yield and production efficiency are improved, and the company's profitability is improved. The company's continuous R&D investment has increased, and its technological innovation capability has improved significantly. On the one hand, the company will increase the proportion of high-efficiency products, plan to increase from the current 15% to 30%, thereby increasing the overall price of the product; on the other hand, by eliminating old equipment, improving product yield and production efficiency and reducing costs. At the same time, Blue Crystal's LED sapphire is also expanding at the same time, and the synergy effect will increase the gross profit level. The company's gross profit margin is expected to further increase. 10.8 billion investment in advanced semiconductors and devices The company and Yiwu Information Optoelectronics High-tech Industrial Park Management Committee signed an investment framework agreement, which will invest 10.8 billion yuan to lay out advanced semiconductor and device projects. It indicates that the company plans to expand its business into the advanced semiconductor field and lay the foundation for the company's sustainable development. (
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