Xiamen Changelight Co., Ltd.

Changelight is mainly engaged in the research and development, production and sales of semiconductor photoelectric products. Its main products include full-color LED epitaxial wafers and chips, as well as epitaxial wafers and chips of gallium arsenide solar cells. Now, the company has grown into the largest domestic manufacturer of red and yellow LED chips, the leading domestic manufacturer of blue and green LED chips and supplier of gallium arsenide solar cells of excellent performance. After years of development and numerous industrial consolidations, the LED industry is expected to embrace a new cycle of normal development. Changelight will keep promoting the development of main business, while ploughing deep its position in industry. It seeks to consolidate its leading position in the field of red and yellow light, while continuously enhancing its core competitiveness in the field of blue and green light. Additionally, the company also explores deeper into the field of gallium arsenide solar cells, focuses on characteristic development, and actively drives industrial upgrading. The main content is as follows: 1. Field of universal chip: scale effect, supply chain layout, and industrial chain extension The field of LED chip manufacturing is characterized by a significant scale effect. Scale effect often brings about cost reduction and also an enhancement of upstream and downstream bargaining power. In the future competition among LED manufacturers, scale will still be a crucial factor of competitiveness. The company will keep on implementing the non-public offering equity investment project, known as the "R&D and Manufacturing of Mini/Micro and High-luminous-efficiency LED Chips", to sustain its competitive advantage. Besides, LED enterprises will confront the competition trend of vertical integration of industry chain. In the midst of industrial migration and integration, the competition among LED chip enterprises will ultimately be determined by operational efficiency. As an important supplier of LED chips, Changelight extends to both upstream and downstream of the industry chain, and strategically invests in core material suppliers to ensure a stable and secure supply of materials, while collaborating to explore cost reduction and efficiency enhancement in the industry chain. Additionally, the company also builds strategic and friendly partnerships with key customers downstream to ensure product sales and access to international markets. 2. Development of distinctive features: high-end featured products, and future display Changelight is the strongest supplier of red and yellow LED chips in China, possessing natural advantages in the development of infrared (IR) industry. Infrared technology finds extensive applications in various fields, including security monitoring, biometrics with mobile devices (iris, face, and fingerprint recognition), digital health (heartbeat detection and blood oxygen measurement), infrared touch, VR/AR eye tracking, automotive sensing and lidar (light detection and ranging), UAVs (Unmanned Aerial Vehicle), etc., presenting a broad market prospect. To plant lighting, a representative of the country’s emerging agriculture industry, Changelight has already supplied related chips. Serving as pivotal technologies of future display, the industrialization of Mini LED and Micro LED is considered to unlock a vast realm of possibilities for the development of LED chips. Based on the investment of strategic resources, the company holds comprehensive cooperation with the industry chain to drive the development of Mini LED and Micro LED technologies and to take up highland of the industry. 3. Industrial upgrading: entering on the second- and third-generation semiconductors The second-generation semiconductors, represented by gallium arsenide (GaAs) and indium phosphide (InP), are excellent materials used to produce high-performance Mini and Micro LEDs, mainly applied in the field of communications. Now, the localization of second-generation semiconductors is in its early stage. The third-generation semiconductors, represented by silicon carbide (SiC) and gallium nitride (GaN), possess some exceptional qualities, such as wide band gap, high thermal conductivity, high disruptive field intensity and high radiation resistance, surpassing the semiconductor materials of the first two generations in a multiple-fields. Consequently, the third-generation semiconductors are anticipated to overcome the technological limitations brought by the semiconductor materials of the first two generations and present an enormous potential in the market. By means of investment, merger and industrial incubation, the company invests in existing outstanding enterprises, attracts excellent talents and intensifies research and development, aiming to stay at the frontier of industry development and lead the trend of technological development and application, when the second- and third-generation semiconductors are on the rise. 4. Industry extension: to create the competitive edge of full industry chain integration Over the past three to five years, the LED industry has become a most typical representative for “Made in China” integrating with global brands, patents and channels. In the future, based on the expansion of LED production and the enhancement of product technologies and capabilities, Changelight will take full advantage of policy resources and capital market resources to give full play to its advantages of “industry and capital”, then fully embrace the opportunities upstream and downstream and extend the supply chain upstream by means of investments, mergers and acquisitions to lower cost and boost profits, so as to create the competitive edge of full industry chain integration as the final goal.