7x bull chip stock was reported for suspected monopoly, 100 "victim" companies expressed support

Latest update time：2021-09-01 17:33

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On August 12, LED display manufacturer Lanpu Video reported Fuman Electronics under its real name for allegedly abusing its market dominance to monopolize the relevant chip market.

Image source: Screenshot of Lanpu Video WeChat official account

According to the WeChat public account of Lanpu Video, after issuing an initiative on July 8 to provide RMB 1 million in legal aid to the LED industry to file a joint lawsuit against a GEM-listed IC company, it has so far received support from nearly 100 IC victim companies in the industry and requests from 9 display screen companies to participate in the joint lawsuit.

At the same time, Lanpu Video Chairman Dai Zhiming said that the company has collected some evidence, formed a legal team, and filed a lawsuit in court. The company submitted a "Report on Fuman Electronics' Suspected Abuse of Market Dominance to Monopolize Related Chip Markets" to the China Optics and Optoelectronics Industry Association and the Anti-Monopoly Bureau of the State Administration for Market Regulation.

The following is part of the original report letter:

In response to this incident, Dai Zhiming, chairman of Lanpu Video, said: "Our lawsuit has been filed, and there is evidence regardless of whether Fuman Electronics admits (the supply relationship) or not. This year, the price of Fuman Electronics' IC products has increased too much, from 0.27 yuan to 1.4 yuan, while the price increase of others of the same type is only 10 % -20%, generally from 0.6 yuan to around 0.8 yuan. Although we can choose not to buy after the price increase, the other party did not perform the contract, causing us losses. Many peers believe that Fuman Electronics is raising prices maliciously. Currently, 9 display screen companies have requested to participate in the joint lawsuit, some of which purchase goods from Fuman Electronics' agents, but this does not mean that Fuman Electronics has no responsibility. From a legal point of view, the agents and Fuman Electronics have also signed an agency agreement."

According to information, Lanpu Video was established in 2012 and is an entity enterprise focusing on the research and development and production of LED, Mini LED, Micro LED, TOPCOB and other LED small-pitch and micro-pitch display panel products. The composition of LED display screens is mainly divided into LED lamp beads/chips, PCB boards, driver ICs, box shells, control systems, power supplies and other parts.

Fuman Electronics responded

Luo Qiong, secretary of the board of directors of Fuman Electronics, responded to the media, saying, "Lamp Video has slandered the company many times. Now we are counter-suing them for unfair competition and infringement of the company's reputation." She also said, "Fuman Electronics and Lamp Video do not have a direct supply relationship. They get goods from agents, and we have a supply relationship with agents. In addition, the market sales price is regulated by the market, not by three parties." Liu Jingyu, general manager of Fuman Electronics, also said in an interview with a Chinese reporter that the other party (Lamp Video) is not a customer of the company.

Fuman Electronics' main business is the design, development, packaging, testing and sales of high-performance analog and mixed-signal integrated circuits. Its main products include power management, LED screen control and drive, MOSFET, MCU, fast charging protocol, RFID, RF front end and various ASIC chips. The company's products are widely used in various terminal electronic products such as personal, family and automobile.

Since the second quarter, Fuman Electronics has achieved "flying together" in performance and stock price. According to Fuman Electronics' financial report, the total operating income in 2020 was 836 million yuan. Among them, the revenue of LED lights, LED control and driver chips accounted for 46.67%. The gross profit margin of related chips is 21.26%. In terms of stock price, the company's stock price has risen by nearly 7 times since February this year. Although the stock price has begun to adjust recently, it is still nearly 4 times higher than the end of the first quarter.

In the first half of 2021, Fuman Electronics achieved operating income of 851 million yuan, a year-on-year increase of 239.31%, and net profit attributable to the owners of the listed company of 316 million yuan, a year-on-year increase of 1190.55%. The revenue in the first half of this year has exceeded the revenue for the whole of last year. In the first half of this year, Fuman Electronics' revenue in LED lights, LED control and driver chips increased by 344.62%, and the gross profit margin reached 52.88%.

What do you think about the dispute between Lanpu Video and Fuman Electronics?

Source: Comprehensive network content

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