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On the 23rd, the stock price of Ganzhao Optoelectronics rose. The closing price was reported at 34.07 yuan, up 4.8% from the previous trading day. Obviously, the capital market is confident enough for the company to maintain high gross profit and capacity expansion due to capacity expansion.
Although the transcripts handed over to the industry, Ganzhao Optoelectronics has always maintained a low-key and stable style of action, with few appearances and almost no publicity. Compared with other domestic upstream epitaxial chip manufacturers, hundreds of MOCVD orders, Ganzhao Optoelectronics has been firmly committed to its steady development.
However, in the face of the risk of falling prices of chip products in the future, the temptations of the outside world and the pressure to expand production, Ganzhao Optoelectronics also has its own confusion.
Cost control creates high gross profit
The reporter walked into the office of Deng Zhaoming, the chairman of Ganzhao Optoelectronics, and could not help but be amazed. In addition to the memorial hammer presented on the GEM on the shelf, all the other things make you feel that you have gone wrong: the wall Yellow map, peeling off the sofa, this is like the office of the chairman of a LED star listed company!
Facing the reporter's surprise, Deng Dianming looked at the temperament of the real workman and sincerely said: "The high gross profit of dry photos has always been praised by the industry. Many people want to study our model. In dry photos, cost control and process management are Our core competitiveness!"
Due to the company's excellent management capabilities, the gross profit margin of the company's products is much higher than other companies in the industry.
※Guangzhao Optoelectronics compares the gross profit margin of Sanan Optoelectronics and Silan Micro, an upstream listed company of LED:  2008 2009 2010 Dry photo photoelectric 56.64% 59.87% 61.24% Sanan Optoelectronics  42.02% 47.39% Silan 27.02% 28.13% 35.48%
We can see that since 2008, the gross profit margin of Ganzhao Optoelectronics has been on the rise. The gross profit margin in 2010 is more than 60%, which is a good gross profit margin in any modern high-tech industry. Compared with other companies such as Sanan Optoelectronics and Silan Micro, the gross profit margin is 25% higher.
So, how does Ganzhao Optoelectronics achieve such a high gross profit margin? Maybe we can find the answer from some company operations data.
Deng Dianming told reporters that the labor efficiency of the employees of the dry photonics production line is generally higher than other manufacturers. Taking 2010 as an example, the company's total operating income was 297 million yuan. The number of employees in the same period was 258, and the per capita operating income was 1.15 million yuan, far higher than the per capita level of 55-700,000 in the industry.
At the same time, Ganzhao Optoelectronics strictly controls the process, and the yield rate can reach over 98%, which greatly reduces the cost of raw materials.
Compared with the impetuous style of the LED industry, Ganzhao Optoelectronics is doing business in a down-to-earth manner, and has made such a beautiful transcript. Despite this, Deng said that as competition intensifies and future product prices fall, it will become increasingly difficult for chips to maintain such high gross margins for a long time! 
[High-tech LED news / reporter Hu Yanling] On July 22, Ganzhao Optoelectronics released the 2011 semi-annual report. The report shows that Ganzhao Optoelectronics achieved revenue of RMB 182 million in the first half of this year, a year-on-year increase of 40.27% and a net profit of 87.87 million. Yuan, an increase of 45.68%. Due to the expansion of its subsidiary Yangzhou Ganzhao Optoelectronics' production capacity, its gross profit margin increased by 2.27 percentage points year-on-year to 63.69%.