ST shares refer to domestic listed companies that have suffered losses for two consecutive years and have been issued a delisting risk warning. Lianjian's net profit before and after deducting non-recurring gains and losses in the three fiscal years from 2018 to 2020 was negative. And the company's 2020 annual audit report type is an unqualified audit report with a "Material Uncertainty Related to Continued Operations" paragraph. According to regulations, starting from the opening of the market on May 6, 2021, the Shenzhen Stock Exchange will implement other risk warnings for the company's stock transactions. The company's stock code remains unchanged, and the stock abbreviation is "Lianjian Optoelectronics" was changed to "ST Lianjian Optoelectronics"
The main reason for the negative net profit of Lianjian Optoelectronics from 2018 to 2020 was the impact of marketing and performance of some of its subsidiaries. In recent years, Lianjian Optoelectronics has divested some subsidiaries that lacked development potential and performed poorly.
Lianjian Optoelectronics was founded in 2003 and was successfully listed on the GEM of the Shenzhen Stock Exchange in 2011 with stock code 300269. It is a leading domestic supplier of LED display screens, providing domestic and foreign customers with overall solutions such as R&D, manufacturing, engineering installation and after-sales service of mid-to-high-end LED display equipment and display control systems.
Multiple measures were taken to adjust the business. "Taking off the hat" came naturally
In order to successfully remove the "ST", Lianjian has redoubled its efforts over the past year and accelerated the optimization of internal management, equity changes, and marketing strategies.
Under the strategic guidance of founder Liu Hujun after returning to the main business of LED display, Lianjian Optoelectronics has comprehensively upgraded the company's management platform and achieved refined management by formulating "key company-level matters"; comprehensively explored the mid-to-high-end channel market, and completed product project establishment and R&D work in response to market demand in related new hot market areas such as Mini/Micro-led (micro-pitch), outdoor display, conference display, etc., completed the function, configuration, cost optimization of the full range of LED display products and related new product development, and continued to enhance the company's product competitiveness.
In 2021, the company will complete the divestment of all loss-making advertising and marketing subsidiaries, so that the company's overall performance will no longer be hindered by the advertising and marketing business. As can be seen from its 2021 financial report, this effect is very obvious. According to the 2021 annual report of Lianjian Optoelectronics, the operating income in 2021 was 1.031 billion yuan, the main LED business increased by 19.48% year-on-year, and the net profit attributable to shareholders of the listed company was 61.1615 million yuan, a year-on-year increase of 119.36%; the net cash flow generated from operating activities was 103 million yuan, a year-on-year increase of 32.42%; the asset-liability ratio decreased by 4.18 percentage points year-on-year.
In 2022, the actual control rights of Lianjian Optoelectronics were changed. On August 10, Nanfeng Investment won the highest price for 83.6494 million shares of the company held by Liu Hujun and Xiong Jinyu (the de facto controllers of Lianjian Optoelectronics). At the same time, Liu Hujun and Xiong Jinyu entrusted all voting rights and other rights corresponding to the remaining 28.26 million shares they held to Nanfeng Investment for exercise. After the transfer of the above-mentioned shares is completed, Nanfeng Investment will hold 20.12% of the voting rights of the listed company and become the company's largest shareholder. Nanfeng Investment, Liu Hujun and Xiong Jinyu will form a concerted action relationship, and the actual control of the company will change. This is the first time Lianjian has changed owners since its listing.
In the first half of this year, Lianjian Optoelectronics sold 21 sets of its own properties in the office building of Shenzhen Bay Science and Technology Park for 418 million yuan. In fact, in June last year, Lianjian Optoelectronics also sold four houses in Huizhou, which were part of the investment project raised when the company went public in 2011, and received a return of nearly 200 million yuan.
Lianjian Optoelectronics has been focusing on the development and brand building of overseas markets for many years. Lianjian Optoelectronics stated in its 2021 financial report that during the reporting period, the company’s LED display overseas business revenue increased significantly year-on-year. Lianjian Optoelectronics revealed that this year in overseas markets, through the advancement of supporting measures such as product updates, localized service improvements, and key customer expansion, LED display overseas business has increased significantly compared with last year, and is expected to exceed the 2019 level. At present, Lianjian Optoelectronics has dual brands of "Lianjian Optoelectronics" and "Easystar" in its overseas market development.
Screen Display World believes that the entire industry has been in recession due to the impact of the epidemic in recent years, and the business of each company will decline. However, under such circumstances, Lianjian Optoelectronics turned the tide, actively made effective adjustments and optimizations, continued to work steadily in the main LED display business, and successfully took off its hat as the New Year is approaching. It is not easy.
The commercialization of new displays is accelerating. Lianjian returns to the main LED display business and encounters the trend again
Mini/Micro LED is regarded as the ultimate display technology and is highly valued both inside and outside the industry. Not only do the six major LED display companies have plans, they have also attracted giants in IT, LCD panels, security, audio and video and other fields to join the industry. There will be trillion-level market demand in the future. Lianjian Optoelectronics has also laid out its layout in this field, completed the Mini/Micro LED (micro-pitch) layout, and caught up with the major trends in the display industry.
Lianjian Optoelectronics stated that it has been deploying micro-pitch products since 2018, creating the world's "minimum pitch" LED screen for the high-end guest space of Tencent Binhai Building at that time, realizing "new technology application"; by 2021, the new generation of micro-pitch products will "push the practicality of new technologies such as "below P1.0, Mini LED" to maturity. Lianjian Optoelectronics continues to break technical barriers to industry development and continues to be at the forefront of the industry. For example, Lianjian Optoelectronics' "Trinity Bright and Dark Line Elimination Technology" reduces the screen point spacing error to less than 0.05 mm by combining PCB micron-level positioning piece by piece, integrated five-axis processing, and module suspension adsorption. It solves the problem of bright and dark lines from the source, making the arrangement of lamp beads more accurate. It is reported that Lianjian Optoelectronics is one of the few companies in the industry that has a mature COB micro-pitch production line, which has reached large-scale mass production, and has received orders from many domestic and overseas customers.
Lianjian Optoelectronics leads the naked eye outdoor 3D large screen industry
Naked eye 3D screen at Wanda Plaza, Wanzhou District, Chongqing
Today's Lianjian Optoelectronics industry layout is very clear. Based on its leading advantages in small spacing, it uses the "7X23" application scenario matrix model to promote LED display screens from the initial outdoor advertising large screens to gradually enter new hot application fields such as Mini LED, Micro LED, naked-eye 3D, and conference all-in-one machines. As a leader in naked-eye 3D large screens, Lianjian Optoelectronics has so far built over 20,000 square meters of naked-eye 3D giant screens in more than 30 cities around the world, creating a series of new "miracles" for outdoor displays in the fields of party and government cultural propaganda, tourism and cultural communication, etc. Lianjian Optoelectronics was also shortlisted for the first batch of selected units in the "Hundred Cities, Thousand Screens" program and passed the Hundred Cities, Thousand Screens test.
Judging from the latest financial report, the future of Lianjian Optoelectronics is becoming increasingly clear. In the face of a bad environment, the total operating income in the first three quarters of 2022 was 977 million yuan, a year-on-year increase of 26%; the net profit attributable to the parent company was -3.99 million yuan, compared with 85.717 million yuan in the same period last year. Although it failed to maintain profitability, there are already signs of improvement compared to the previous huge losses. Taking off my hat this time is one of them. I hope that in the future, Lianjian Optoelectronics can regain its former glory and make great progress!
ANNA