In the first half of 2021, with the advent of vaccines, the global economy recovered slightly, and the DEMAND for LED markets surged. In this context, Hongli Zhihui performed well in the first half of the year.
On the evening of August 26, Hongli Zhihui released a semi-annual performance report saying that in the first half of 2021, the company achieved operating income of 2.004 billion yuan, an increase of 50.65% over the same period of the previous year; and achieved a net profit attributable to the owners of the parent company of 141 million yuan, an increase of 259.20% over the same period of the previous year.
Hongli Zhihui is a listed enterprise integrating research, production and marketing of LED semiconductor packaging device products, mainly focusing on LED semiconductor packaging business and LED lighting business.
Both operations performed well during the reporting period.
LED packaging expansion has achieved results, accounting for 84% of revenue in the first half of the year
Hongli Zhihui LED semiconductor packaging business mainly includes MiniLED, white LED, automotive grade LED, LED filament, UV LED, infrared LED, LED bracket, hardware devices, etc.
Hongli Zhihui LED semiconductor packaging business
At present, Hongli Zhihui has LED semiconductor packaging production bases in Guangzhou, Nanchang and Dongguan. Among them, Guangzhou and Nanchang are LED packaging production bases, and Dongguan is LED bracket production bases.
In 2020, Hongli Zhihui released two expansion plans for the traditional packaging field, one is to invest 300 million yuan to expand production in Guangzhou Branch, and the other is to invest 1.2 billion yuan to invest in the construction of LED projects and related supporting facilities in Jiangxi by subsidiary Smyther, the main business is high-efficiency LED packaging, intelligent module research and development, production and sales.
In the first half of 2021, new progress was made in both projects. The upgrading of production capacity also provides sufficient production capacity reserves for the company's two major brands of "Hongli Optoelectronics" and "Smart".
In addition, Hongli Zhihui is also leveraging the MiniLED project to achieve a breakthrough in the LED packaging business sector.
The packaging end is the most mature link in the development of the domestic LED industry. Affected by the continuous release of production capacity and the continuous thinning of profits, the living space of small and medium-sized packaging enterprises has been squeezed, while the head packaging factory has turned its attention to the new niche market. In 2018, Hongli Zhihui began to focus on promoting the MiniLED project, and the products mainly revolved around the two directions of backlighting and direct display.
Among them, MiniLED backlight products are used in TV, display, pen computer, car, pad, VR, mobile phone, etc.; MiniLED direct display uses RGB LED chip as a direct display module, mainly used in security, cinema, shopping malls, smart cities and other commercial display fields.
Hongli Zhihui's production capacity layout of MiniLED products has begun to show results. It is reported that Hongli Zhihui Mini/Micro LED base is located in Guangzhou, the project is carried out in two phases, the first phase of investment of about 150 million yuan, has been successfully put into production in December 2020, has been for the domestic mainstream manufacturers to provide mass production; the second phase of the project has been fully started in April 2021, is expected to be completed and put into operation in the first half of 2022.
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In the previously released investor research report, Hongli Zhihui pointed out that the annual output value of the MiniLED phase I project is expected to reach 600 million yuan after full production, and the second phase of the project will reach an annual output value of 4 billion yuan.
Under the background of the recovery of LED market demand, the expansion of the traditional LED packaging capacity scale and the layout of MiniLED production capacity have benefited Hongli Zhihui a lot.
In the first half of 2021, Hongli Zhihui LED packaging plate achieved business revenue of 1684.2383 million yuan, an increase of 59.06% over the same period of the previous year, higher than the total revenue growth rate, and the proportion of revenue was as high as 84.04%.
The three heads go hand in hand, and the LED lighting business remains stable
Hongli Zhihui LED lighting business mainly includes commercial vehicle LED intelligent lamps, passenger car intelligent lamps, engineering lighting and other businesses.
Hongli Zhihui LED lighting business
Among them, the LED intelligent lamps for commercial vehicles are mainly responsible for the wholly-owned subsidiary Foda Signal. In the first half of 2021, the dual-line layout of Foda Signal commercial vehicle lights in the domestic and foreign markets continued to deepen, and the main customers were HELLA, Bosch, Magna, etc., and the products have been applied to the commercial vehicles of well-known car companies such as Volvo and Mercedes-Benz.
Passenger car intelligent lamps are mainly responsible for the subsidiary Yishan Auto Lamps, products include front combination lights, rear combination lights, interior lights, etc., the main customers include Geely Group, Great Wall Group, Beijing Motor and other well-known car companies. During the reporting period, the sales orders of Yishan auto lamps increased, the gross profit margin was raised, the profit increased, and the overall operation showed an improving trend.
The engineering lighting business is mainly responsible for the subsidiaries Chongying Gongyuan and Ming Xincheng. Among them, Ming Xincheng is a "double A" enterprise acquired by Hongli Zhihui in September 2020. After the integration is completed, Ming Xincheng actively participated in the "lighting" action, and joined forces with its subsidiary Chongying Gongyuan, and has served projects such as the lighting project of Shuntong Avenue in Kunming Economic Development Zone, the lighting landscape improvement project of Zhuhai Grand Theater, and the lighting project of Honggu Beach in Nanchang.
In the semi-annual report, Hongli Zhihui pointed out that during the reporting period, the company's automotive lighting products achieved operating income of 270.568 million yuan, an increase of 25.83% over the same period last year. Revenue accounted for 13.50% and gross profit margin was 24.16%.
Revitalize inefficient stock assets and continue to focus on the main business
In order to concentrate superior resources and focus on the main business, Hongli Zhihui announced on May 20, 2021 that it will transfer 80% of the equity of gold hardware at an appraisal price.
Hongli Zhihui believes that this transaction will not have a significant impact on the normal operation of the company, but it is conducive to improving the company's asset structure and promoting the effective and optimal allocation of assets, which is in the interests of the company and all shareholders.
On the whole, Hongli Zhihui aims at the LED market demand, and is currently focusing on the main business, expanding production capacity, and actively laying out new niche markets and seeking new profit breakthrough points. With the recovery and gradual rebound of traditional LED demand and the gradual entry of MiniLED and automotive LED products into the volume stage, Hongli Zhihui's future growth momentum is full. (Text: LEDinside Lynn)
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