Revenue Exceeds 5.4 Billion! Hucan Optoelectronics Reduced Losses Last Year, Multiple "Stock Whales" Increase Holdings

LED Chip Manufacturer Huacan Optoelectronics (300323) disclosed its annual report on March 22, projecting revenue of 5.408 billion yuan in 2025, with a net loss attributable to shareholders of 438 million yuan, a reduction from the previous year’s loss. The top ten shareholders showed that in the fourth quarter of last year, several retail investors increased their holdings.

The annual report indicates that in 2025, Huacan Optoelectronics achieved revenue of 5.408 billion yuan, a year-on-year increase of 31.07%; net loss attributable to shareholders was 438 million yuan, compared to a loss of 611 million yuan in the same period last year, representing an improvement of about 28%. During the same period, the company’s operating cash flow turned negative.

As a provider of LED chips and advanced semiconductor solutions, Huacan Optoelectronics’ main products include LED chips and epitaxial wafers, sapphire substrates, and GaN power electronic devices, ranking among the industry’s top tier. Last year, the company accelerated operational improvements, significantly increased revenue, and greatly reduced net losses.

During the reporting period, the company’s gross profit margin on LED chip sales increased by approximately 13 percentage points year-on-year to 7.36%, with a gross margin of 1.67% for LED substrates.

The company has effectively reduced product costs through capacity expansion, manufacturing cost reduction, and process optimization. However, since 2025 is still a stage of capacity expansion, debugging, and mass production delivery, coupled with uncertainties in the global political and economic environment, weak external demand growth, sluggish end-market demand for LED chips, intensified industry competition, fierce price wars, and soaring precious metal costs, the company’s net profit has improved significantly but has not yet achieved overall profitability.

The company expects asset impairment losses totaling 250 million yuan in the second half of 2025.

In terms of market operations, the company made progress in market expansion and increasing market share. In the fourth quarter of last year, market share exceeded 23%, maintaining a top-three position and further enhancing industry influence. Notably, the domestic market share for automotive applications rose to 10%, with nearly 100 million yuan in sales, a 200% increase year-on-year; lighting market share increased to 27%, with key customer lighting products being mass-produced, generating over 50 million yuan in annual sales; and core overseas customers were successfully onboarded and increased volume.

Regarding capacity, the company’s monthly LED chip production capacity exceeds 900,000 wafers, supporting increased sales. The average cost of LED chips has decreased by over 15%, further improving product profitability; GaN completed high-voltage Generation 1.0 trial production, and Generation 2.0 samples passed testing; AR chips reached a brightness of 200W nit, completing the entire chip-to-device process, aiding product structure optimization and operational improvements.

Looking back at 2025, the company noted that industry trends show demand for Mini displays, backlights, and automotive markets continues to grow, but overall prices fell more than expected, leading to a 1% decline in global LED chip market revenue year-on-year. Coupled with rising precious metal costs, competition among LED manufacturers intensified, and operational pressures increased.

For 2026, the company plans to strengthen customer service and delivery levels through collaboration between manufacturing and R&D, aiming for steady progress and maintaining industry leadership. Additionally, it will actively explore emerging growth areas, focusing on AR, ADB, plant lighting, and GaN power electronic devices, accelerating technological upgrades and customer onboarding to enhance profitability. Capacity-wise, the company will optimize product structure and production line layout, surpassing the million-wafer capacity milestone to leverage scale advantages; meanwhile, it will strengthen cost control in manufacturing, implement dual-line management of labor and personnel expenses, improve per capita output and operational efficiency, and continue lean production initiatives.

Among the top ten circulating shareholders, Huacan Optoelectronics saw increased holdings from Wang Yuansong and Li Guosong in the fourth quarter of last year. Zhou Xin became the ninth-largest shareholder, and the Southern CSI 1000 ETF increased its holdings.

Since January this year, Huacan Optoelectronics’ stock price has risen approximately 37%.