Xinhaiyi chasing LED, mobile games and other hot concepts, where is the main business planning road?

Xinhaiyi announced on the evening of August 26 that its share placement financing plan was approved by the shareholders meeting. It is worth mentioning that the company's fundraising investment has attracted many market hotspot concepts such as LED, e-commerce, mobile internet, mobile games and 4G. The pace of the company's pursuit of hotspots is closely following the trend.

According to the plan, the company intends to allocate shares to all shareholders in a ratio of no more than 10:3. The total number of shares to be issued does not exceed 132 million shares, and the total amount of funds to be raised does not exceed 480 million yuan.

In terms of the investment of raised funds, the company has turned its attention to the hot industry in the near future. The first is the energy-efficient semiconductor lighting integrated light source project, with a planned investment of 173.3 million yuan. The second is the innovative business support platform construction project of Yi Sibo, with a total investment of 152 million yuan. Previously, the company said that the main construction of the project includes e-commerce integrated services and mobile Internet mobile games. In addition, the company plans to invest 84.8 million yuan to build a 4G communication equipment production base.

Every step of the company has stepped on the wave of market concept rotation, but the recent weak correlations of investment projects and the leap-forward extension of the industry have forced investors to doubt whether the company's investment can truly meet expectations.

Chasing the concept on the LED sector

Xinhaiyi announced on August 10 that it plans to increase the capital of Suzhou New Najing Optoelectronics Co., Ltd. by 173 million yuan. After the capital increase, the company will hold a 92.14% stake in Xin Najing. The company is the implementation body of the high-efficiency energy-saving semiconductor lighting integrated light source project, and its business scope covers LED technology research and development, LED epitaxial wafers, chip production, sales and installation.

The timing of this investment is quite intriguing. Since July 30th, the A-share LED concept sector has soared and won the funds. On August 8th, many LED concept stocks rose against the market, and many stocks rose more than 5% in a single day. Two days later, the company issued the above proposed capital increase announcement.

According to the financial data reviewed by Suzhou Xinnajing Optoelectronics Co., Ltd., the actual revenue of its LED business, which is known as its core competitiveness, is only 10.39 million yuan. Although it has increased significantly compared with last year, the total business revenue in the first half of Xinhaiyi accounted for The ratio is still less than 3%, and its net profit for the first half of the year is a loss of 12.84 million yuan.

From this point of view, the LED project invested by Xinhaiyixin is still in the construction stage, and it will take a long time to become the pillar industry with core competitiveness. Zhou Lian, an academician of the Chinese Academy of Engineering, previously said that LED thermal analysis in China is only a concept heat, and the phenomenon of low-level blind investment is serious. At present, 70% of enterprises can only stay in the low-level low-tech packaging and assembly process, and compete with each other at a low level.

Hot-forward hot-handed tour of the blue sea

On August 14, Xinhaiyi announced that it plans to establish Sun Company Chengdu Opera Star Network Technology Co., Ltd., which will be mainly engaged in the development and operation of mobile games.

According to the data, on July 3, Xinhaiyi, a wholly-owned subsidiary of Shenzhen Yisibo Software, recruited mobile game developers to trigger the involvement of the mobile game industry speculation, and the intraday market approached the daily limit. In the interview with the media, Xinhaiyi’s secretary-general also said that the company is developing mobile games. After being exposed to the concept of mobile games, the company's share price rose by 33.61% in 8 trading days.

It is reported that because of the fierce concept of mobile games, in Chengdu, where Xinhai Yisun Company is located, the mobile game startup team has increased from 300 to more than 700. Some financial analysts have said that the mobile game industry is highly competitive. Most companies are small in scale. The game characteristics of the industry are highly dependent on product revenue. If there is no brand game, it is difficult to generate a certain amount of income.

Similar stories are easily reminiscent of many mobile game concept stocks with similar performance. The concept of mobile games has become the biggest hot spot in the A-share market, but when it comes to the stock price, it will skyrocket. The temptation of hot spots can't stop the company's wave-by-wave, but whether the company can really have a place in the mobile game market is still a distant suspense.

The company's main business is not satisfactory

In sharp contrast to the “hot” of fundraising projects, the company’s deteriorating business conditions.

The new Haiyi semi-annual report shows that in the first half of 2013, the company achieved operating income of 399 million yuan, down 9.28% year-on-year, and net profit after deduction was only 13.1075 million yuan, down 76.49% year-on-year. The company expects that there will be no improvement in net profit from January to September this year, with a year-on-year decline of less than 50%. In 2012, the company's net profit after deduction was 79.285 million yuan. In 2011, the net profit after deduction was 135 million yuan. The profitability of the company's main business is declining year by year.

Ironically, the company has invested the least in projects that should be the most invested. The project with the least fund matching in the fundraising project is the construction of the 4G communication equipment production base, with an investment amount of only 84.803 million yuan, accounting for less than 18% of the total fundraising. This project should be the project with the highest correlation with the company's existing industry and involving the main income.

As a communication company whose main business is the R&D, production and sales of communication equipment rooms and communication network wiring products, the main business resources are scattered by so many hot investment investments. Such industry concentration can not help but cause doubts. Is the company's main business plan clear in the future? The performance has been declining year after year, but the concept of investment hotspots is keen. Does this business philosophy really bring new growth points to the company?

It is worth noting that on November 27, 2012, Xinhaiyi launched a plan to issue shares to purchase assets and financing. It plans to purchase 26.3669% equity of Shenzhen Yisibo Software Technology Co., Ltd. with a total investment of 150 million yuan. 50 million yuan. However, in March 2013, the company canceled the supporting financing in the plan, and the allocation of 480 million yuan was obviously more generous.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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