Innovation Optoelectronics: Deep Plowing LED Lighting Application Products To Take The High-end Customized Route Breakthrough

- Oct 07, 2018-

On September 26, sponsored by the new third board Internet financial information portal - Rhinoceros Star and Xiangjiang Fund Town, the new third board field held the first mid-term performance investors exchange conference in Shenzhen in full swing. Among them, chairman Zhang Bing, general manager of optical and optical company, and general manager Tang Xiaoyan attended the performance exchange meeting.——LED lighting

According to the data of the semi-annual report, in the first half of the year, Chuangxiang Optoelectronics realized business income of 18.2238 million yuan, an increase of 9.5%; net profit loss of 6974 million yuan belonging to the shareholders of listed companies, a decrease of 241.9%; and realized gross profit rate of 20.92%.——LED lighting

Creative Photovoltaic will be listed on May 7, 2008 as a new third board, mainly engaged in research and development, production and sales of LED lighting application products, providing global users with one-stop LED lighting application product solutions.——LED lighting

Since 2011, Creative Photonics has been working on the low-voltage lamp band track, filling the gap in the low-voltage lamp band (less than 36V, mainly 12V) market. At present, the company has become the LED lighting industry, low-voltage lamp band market has a very promising enterprise.——LED lighting

As a company which has been in the LED lighting industry for 7 years, with the market-oriented concept and steady market expansion strategy, Creative Photoelectric Soft Lamp Belt has maintained a stable level of 33.73%, 32.27% and 32.48% gross margin in 2015, 2016 and January-September 2017.——LED lighting

But since the second half of 2007, due to fierce competition in the market, LED products homogeneity is serious, the industry price war has led to product sales prices continue to decline, which also makes the first half of the imaginary gross photoelectric interest rate compared with the same period last year 30% to 20.92%.——LED lighting

For changes in performance, Creative Photonics says that as the price of chips and resistors goes up, labor costs increase and the market develops, the gross margin of products will fall. At present, the company has adopted a differentiation strategy, continue to follow the high-end customization line, give up low gross margin and no room for growth of all kinds of products, in order to improve the overall gross margin.——LED lighting

In this context, innovative optoelectronics to strengthen the research and development of high-end customized products, LED lighting products into the direction of intelligent, intelligent lighting as the company's main performance growth point, and business lines extended to outdoor lighting. In June this year, Creative Optoelectronics showed its customized intelligent lighting products to the industry at the 23rd Guangzhou International Lighting Exhibition, covering human body induction lamp, infrared induction lamp, radar induction lamp and so on, which attracted the attention of many foreign customers.——LED lighting

Creative Optoelectronics revealed that customized products master and designer cooperation, plans to deepen cooperation with international lighting design master Yuan Zongnan, multi-dimensional open source. It is understood that Yuan Zongnan is the first internationally certified doctoral professional lighting designer of IALD (International Association of Lighting Designers) in Taiwan. He has been responsible for the lighting design projects of Xi'an Dayan Pagoda, Taipei National Father Memorial Hall and Suzhou Lizhi Hotel. He has made great achievements in landscape lighting and interior design.——LED lighting

In addition to strengthening product R&D capabilities, Creative Technologies has also expanded its business to African countries, where it has scored its first single solar project of more than 3 million dollars. Creative Optoelectronics expects that the company's performance will turn around in the second half of the year, thanks to the company's one-stop customization route from R&D to finished products, online and offline sales integration, and the development of the African market.——LED lighting

Q&A link

1. The company's performance experienced rapid growth before the first half of 2017, but it has declined since the second half of 2017. Why? Are competing companies in the same situation?

Answer: There are two main reasons for the decline in performance. From the industry point of view, the company's new three-board listing standards began in 2017, the company's various process modules continue to improve, resulting in a sharp rise in costs.——LED lighting

From the market point of view, in the second half of 2017, the whole LED market appeared serious homogenization products, and in a price war, so we have a certain impact on high-end products.——LED lighting

2. As a pioneer enterprise of customized lighting, Creative Photovoltaic participated in the 23rd Guangzhou International Lighting Exhibition held in June this year. The world's top lighting feast brought together 2,600 Chinese and foreign enterprises to attend the exhibitors. How did Creative Photovoltaic perform and how much did it promote the company's business orders?

Answer: During the exhibition, foreign customers showed great interest in our smart hard lamps. On the last day of the exhibition, customers came to visit our factory. The participation of the Asian Expo also opened up the African market for the company. In August, an African order for solar energy projects, with the first order of more than 3 million.——LED lighting

3. It is reported that Creative Optoelectronics Exhibition 2018 is mainly to show the industry intelligent lighting and customized lighting solutions. At present, the intelligent lighting market is growing rapidly. What is the layout of Creative Optoelectronics in the field of intelligent lighting? Will it become the company's next major growth point?

Answer: At present, the company's lighting layout in the field of human body induction lamp, infrared induction lamp, radar induction lamp and touch induction lamp. Next, the company's main performance growth point will continue to take intelligent lighting, outdoor lighting will become our main direction.——LED lighting

4. We notice that the company's gross margin has declined significantly in recent years. The semi-annual report explains that the decline in gross margin is attributed to fierce competition in the market and serious homogenization of products, resulting in a drop in sales prices. What is the company's response to this situation? When is the expected mitigation effect?

Answer: the main strategy is to strengthen the research and development of customized products and market development. As long as products are developed in the direction of intelligence, the market mainly opens up markets in African countries. It is expected that effective relief will be achieved in the second half of 2018.——LED lighting

5. Semi-annual report mentioned that the company management through in-depth analysis of the industry, redesigned the marketing strategy, opened up a variety of sales channels, the company's sales strategy on what adjustments? Compared with the same industry's marketing strategy has any advantages?

Answer: from the line to the line, the sales channel will increase cooperation with designers and the docking of government projects. Strengthen the development of African markets; the advantages are mainly reflected in our products from research and development to finished products, providing a one-stop customization route.——LED lighting

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