Good shipment of LED automotive lights

In December, the total revenue of Li-Qing, a LED automotive light module factory, was RMB 410 million (NTD, same below). Despite the relatively fewer working days due to the long holidays in China, the monthly revenue of LED automotive lights still increased significantly by 39.62% compared to the same period last year.

Currently, the capacity utilization rate of the Shanghai plant is close to full capacity, while it is planned to continue production by the end of this year to meet the growing demand for orders. In addition, the new factory in Guanyin, Taoyuan, has received orders for LED headlight controllers with annual shipments of at least 2.5 million units and visibility of up to 10 years, and is currently undergoing factory certification and equipment adjustments, with shipments to continue in the first quarter of next year.

In the third quarter, Li Qing's consolidated revenue reached 1.254 billion yuan, operating profit was 42 million yuan, net profit after tax was 57 million yuan, and earnings per share after tax was 0.75 yuan. Single-quarter revenues and profits hit record highs for the same period in history; for the first three quarters, consolidated revenues were $2.966 billion, with a net operating loss of $86 million, a net loss after tax of $50 million, and a loss of $0.66 per share.

Li Qing said the overall operating results for the fourth quarter were not weak in the off-season. Benefiting from the rebound of the new car sales market in mainland China, major customers' demand for Li Qing's LED headlight modules such as headlamps, taillamps, and daytime running lamps increased. In particular, orders for the new model of the GAC GS4 have been in mass production since July, which not only led to a significant increase in LED taillamp revenues, but also kept the Shanghai plant's capacity utilization rate at more than 90 percent. In addition, part of the inventory rebound revenue amounted to RMB15.11 million. In the third quarter, Shengliqing's overall gross profit margin and operating profit margin both rebounded.

Li Qing further said that in the first three quarters of this year, the revenue share of major customers such as Huayu Vision, Damo Frueco, Guangzhou Xiaoben and OLSA was 51%, 14%, 12% and 7% respectively. The major end-brand automakers they supply cover SAIC Volkswagen's sedan model Rangyi, Changan Automobile's YiDong, and Dongfeng Honda's new Civic. In terms of current orders, the ratio of JV branded automakers to independent branded automakers is approximately 7:3. With the increase in new car sales by branded automakers on the mainland, it enhances the attractiveness of the key customers and creates a positive focus on the overall operation in the future.

Looking ahead to the fourth quarter, Li Qing said it will make every effort to sprint the performance of the automotive industry's operational growth during the traditional peak season. It is expected that the overall shipment performance will show quite a significant burst as the market penetration of LED lamps increases and the new car sales market grows. We will realize better operating performance than the market and strive to profit from the full year's operation. (Source: Times Information)