Hao Jun, president of Wanrun Technology, said in an interview with Journalist recently that the company has initially completed the industrial layout in the field of Internet advertising. In the future, it will adhere to the double main business of LED business and internet advertising business. The Company expects annual revenue of 2017 to reach nearly 3 billion yuan.
Strict control of risks Cautious mergers and acquisitions
Journalist: Wanrun Technology, which landed on the small and medium board in 2012, was originally a high-end LED light source device package and LED lighting product provider integrating R & D, design, production and sales. Since 2014, the company has transformed itself into the Internet advertising business. Why did the company make this transition?
Hao Jun: Around 2014, LED plate competition intensified, industry profits generally declined. Although the company's LED business growth, but the growth rate and our expectations are still gaps, so I hope to open up a new battlefield. The reason for the transition is that the Internet advertising industry is very promising in terms of market size, capacity or growth rate. Data show that by 2018, the Internet advertising market capacity may reach more than 400 billion yuan, the compound annual growth rate of 40% or more. In addition, the internet advertising industry has obvious asset attributes of light assets, and the characteristics of "big business small companies" are also suitable for our quick entry.
Journalist: The company continued to acquire a high cumulative goodwill, the acquisition of the letter media, the total value of goodwill may exceed 2 billion yuan, how does the company control the risk of impairment of goodwill?
Hao Jun: In mergers and acquisitions, we have always insisted "Ningquewulan" and have a specific risk control strategy. First, set up your own professional investment team to screen high-quality targets from the source. Second, highlighting its own characteristics with regard to the terms of mergers and acquisitions. For example, the consideration paid by the M & A company is mainly based on the stock price, which makes the original shareholders of the underlying company stakeholder and the cooperation with the listed company more deeply; the performance commitment period of the target company is almost all four years, while giving them pressure Gave us more integration time; performance commitments in addition to assess the net profit targets, but also assessment of cash flow indicators, strict control of the quality of the subject. In addition, our bargaining requirements on stocks are also more stringent.
Journalist: Whether the company will maintain the current extension of the expansion rate?
Hao Jun: A company's growth and development is the need for mergers and acquisitions. We have now completed the initial layout in the field of advertising media, then the related mergers and acquisitions will be more cautious. The company expects full-year 2017 revenue of nearly 3 billion yuan, the scale may be expanded in the future.
Continue to promote "double main" strategy
Journalist: Wanrun technology performance rapid growth in recent years, mainly due to large-scale mergers and acquisitions in the field of Internet advertising, consolidated statements. Internet advertising and LED business revenue in the company what proportion? Will the company fully transform itself into an Internet advertising company in the future?
Jun Hao: As of the third quarter, our revenue is about 2.06 billion yuan, of which 1.24 billion yuan Internet advertising revenue, accounting for about Liucheng. However, the company will not give up LED business. We have deep plowing in the field of LED for many years, there is a certain quality of technology and market resources precipitation, which is a solid foundation for our transformation. Over the past three years, the company's LED business revenue compound annual growth rate of more than 30%, is still continuing to grow, the company will continue positioning "double main" strategy.
Journalist: How to reflect the company's competitive advantage in the LED industry?
Hao Jun: LED industry in 2014 is relatively sluggish, LED industry has been rising this year trend. In addition to technological progress, cost reduction factors, there are favorable policies, the future of smart city construction landscape LED will have great demand for space. Our LED products have been positioned in the high-end commercial lighting and government projects and exports, the future will continue to dig deep wisdom of urban landscape lighting lighting in the high-end market.