Hongli Optoelectronics' net profit growth exceeds 60% to accelerate the layout of the second main business of the car network

In 2015, which was regarded as a “difficult year” by many LED companies, Hongli Optoelectronics achieved a high growth against the trend of its main business, and increased its net profit by more than 60%.

On the evening of April 18, LED white light package leader Hongli Optoelectronics (300219.SZ) disclosed the 2015 annual report. According to financial report data, in 2015, Hongli Optoelectronics achieved revenue of 1.592 billion yuan, an increase of 56.47% over the same period of the previous year; net profit attributable to shareholders of listed companies was 152 million yuan, an increase of 67.40% over the same period of the previous year.

“In 2015, LED lighting market demand was good. The company expanded the scale of LED packaging capacity and increased market expansion, prompting the company to effectively release production capacity and maintain stable growth in its main business. “Hongli Optoelectronics Co., Ltd. Secretary Deng Shoutie said that the acquired subsidiaries contributed some of the results, which led to an increase in both the company's operating income and net profit.

The data shows that at present, Hongli's LED packaging capacity is 1400 KK / month, mainly based on PPA packaging. The wholly-owned subsidiary Smect has a packaging capacity of 800 KK/month, mainly based on EMC bracket packaging. Jiangxi Hongli, a wholly-owned subsidiary, is responsible for the Nanchang LED production base project. The packaging products are mainly based on medium and high power and new packaging products. Nanchang expansion related equipment has now placed purchase orders, expansion capacity of 1000 KK / month, is expected to be officially put into operation in June this year.

In August 2015, Hongli Optoelectronics launched a non-public offering plan, plans to issue no more than 100 million shares (including 100 million shares), and the total amount of funds raised will not exceed 725 million yuan. It is intended to be used for “SMD LED construction projects” and “acquisition of good friends”. Three items of hardware 49% equity and capital increase project and “replenishment of liquidity project”. In January 2016, the non-public offering of shares was approved by the China Securities Regulatory Commission.

According to financial report data, in 2015, Hongli Optoelectronics' main packaging business revenue reached 1.16 billion yuan, an increase of 60.28% over the same period last year.

Hongli Optoelectronics' 2015 revenue segmentation

Source: Hongli Photoelectric Annual Report

While the main business is growing rapidly, Hongli Optoelectronics has accelerated the layout of the second main business-vehicle networking business.

In 2015, Hongli Optoelectronics participated in the 18% stake in Dina Technology. Dina Technology's main business is the sales of vehicle terminal GID and the provision of car networking solutions. The core competitiveness is concentrated in the vehicle cloud platform, the application system covering the automobile industry chain and service chain, and the intelligent vehicle terminal.

At the same time, Hongli Optoelectronics also plans to invest 30 million yuan in Guangzhou Zhuzhou Airlines school car to participate in its 20% stake. The Zhuhang School Bus mainly provides school bus services for students, and plans to build a car networking business through students and parents.

At the same time, Hongli Optoelectronics established a car network equity investment fund industry together with Jiupai Yunding, Jiupai Capital and Beijing Tiansheng Yunding. The investment direction of the industry fund is mainly to serve the Internet of Vehicles industry and the upstream and downstream industry chain in the industry. Related businesses are actively looking for high-quality enterprises or projects with core competitiveness and high growth. The purpose is to provide support and guarantee for the layout and development of Hongli Optoelectronics in the Internet of Vehicles.

Hongli Optoelectronics Co., Ltd. said that it will rely on the funds of the company and professional investment institutions to actively seek out investment projects in the car networking industry through various means and ways to accelerate the company's layout in the car networking industry. Cultivate the second main business.

“The gross profit margin of the company's LED packaging products is expected to remain relatively stable in 2016, and there will be no significant fluctuations.” Deng Shoutie believes that the LED market will continue to maintain an upward trend. As the price of LED products declines, lighting demand rises and product penetration increases. Although the price decline affects the profitability of enterprises in the short term, it is conducive to the long-term sustainable development of enterprises and is conducive to the development of the industry.

Deng Shoutie said that the LED production base invested by Hongli Optoelectronics in Jiangxi is under the responsibility of Jiangxi Hongli, a wholly-owned subsidiary. The main project has been completed and is being renovated.

In the general lighting business, it is mainly responsible for the subsidiary Lai Diya Lighting, and the products are mainly commercial lighting and sold to foreign markets. "Future company hopes to seek excellent enterprise cooperation with channel resources, further enhance the scale of lighting products business, market share, and realize the company's industrial layout."

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