Hongli Optoelectronics: optimistic about the performance of automotive LED lighting market

Net profit fell 15.87% in the first half of the year

The semi-annual report disclosed by Hongli Optoelectronics, a listed company, showed that the company's net profit fell 15.87% year-on-year, and domestic and foreign incomes both fell.

Hongli Optoelectronics pointed out that the second quarter revenue decreased year-on-year, the main reason for the increase in gross profit margin year-on-year: First, due to the European debt crisis and domestic policies, revenue decreased by 3.83% year-on-year. The European debt crisis in the first half of the year impacted China's LED exports. At the same time, the domestic purchase restriction policy affects the real estate industry, which in turn implicates LED lighting, resulting in a decline in the company's revenue. Second, sales restructuring, general-purpose lighting and LampLED revenues with lower gross margins decreased, while high-margin car lighting and SMDLED revenue growth increased, driving up gross margins. Third, due to inflation, labor costs, logistics costs increased, and company management expenses increased, resulting in a decline in net profit margin.

Received a subsidy of only 64,000 yuan

However, the reporter found that in the first half of 2012, Hongli Optoelectronics received only 64,000 yuan from the financial allocation. In contrast, in the first half of this year, *ST Guangzhou Steel received only 400,000 yuan and 200 million yuan from the government subsidies for the LED energy-saving car lighting decoration system project and the LED project financial subsidy project of Guangzhou City Science and Technology Bureau. The National Semiconductor's semi-annual report, which is also the LED packaging company, shows that the government subsidy for the first half of this year was 10.459 million yuan.

In fact, in order to obtain more government support policy support, Hongli Optoelectronics has continuously increased its energy-saving qualifications. The announcement shows that the company obtained 13 patents in the first half of the year, including 3 invention patents; 14 new patent applications, including 3 invention patent applications.

Borrow the "shell" remedy

On July 3 this year, Hongli Optoelectronics invested 24 million yuan to increase the capital of Guangzhou Zhongying Gongyuan Energy Saving Technology Co., Ltd. (hereinafter referred to as “Heavy Gongyuan”). Upon completion of the equity transfer, Hongli Optoelectronics will hold an 80% stake in Zhongying Gongyuan and become the largest shareholder. According to public information, Zhongying Gongyuan was established in June 2011. As of May 31, 2012, Zhongying Gongyuan had total assets of 4,879,100 yuan, total liabilities of 0 yuan, net assets of 4,689,100 yuan, and operating income of 10,000 yuan. The net profit was -13,960 yuan.

As "Guangdong Province promotes the use of LED lighting products implementation plan" clearly proposed the EMC model as the main promotion method, and the heavy surplus Gongyuan has the third batch of "energy-saving service company national filing unit" qualification. The company borrowed capital from the company to meet the bidding conditions of EMC Energy Saving Company of Guangdong Province, in order to promote the company's lighting products and enjoy the Guangdong LED support policy. At the same time, the company established direct sales centers in Shenzhen, Hangzhou, Xiamen, Shanghai and other places to form a rapid response system to local customer needs.

Increase the development of automotive LED market

As a high-end automotive lighting application, automotive LED headlamps currently have a global penetration rate of less than 1% and have great prospects for future development. Hongli Optoelectronics semi-annual report shows that the company's automotive lighting business revenue in the first half of the year was 22,756,200 yuan, an increase of 95.35%, the company will use its advanced technology of white LED to increase the development of automotive LED market. The scale of the automobile industry in mainland China is large, and the demand for the automotive lighting market is obvious, which has become one of the future development points of the company.

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