China's new car sales market is slowing down. With the continuous improvement of LED lamp penetration, Liqing, a LED lamp manufacturer, last year's revenue of 4.405 billion yuan (NT, the same below), continued to grow by 7.75%, after-tax net profit of 206 million yuan, net profit of 302 yuan per share.
This year, the market share of LED headlamp will continue to increase. Liqing executives said that Liqing has received many new orders for LED headlamp modules. Among them, the number of new orders for LED headlamp modules is twice that of last year. The period from R&D, design and certification to production of LED headlamp modules is about 1 to 2 years, which will help the company maintain good visibility for the overall orders.
On the other hand, Liqing executives said that in order to improve profitability, the company also continued to optimize the production process, adjust product and customer structure and other important strategies, which are expected to promote the overall gross margin and profit, and the future operation will grow steadily.
According to the latest report of LED inside, the production value of Chinese automotive LED will exceed 1 billion US dollars in 2019, with an annual growth rate of more than 20%. Among them, the growth performance of LED headlights will be 35%, highlighting the huge market opportunities of Chinese LED headlights.
Liqing executives believe that the penetration rate of LED headlights will continue to rise in the future, and the production capacity will have the opportunity to effectively reduce the average cost of each vehicle carrying LED headlights and accelerate their application with the maturity of technology, which will help to promote the sales growth performance of its LED headlights module products and create a new wave of Liqing operating growth momentum.
Liqing director pointed out that last year, the company successfully entered the new customer supply chain and obtained brand car factory certification. Although R&D and design, together with new orders from Huayu Visual Technology, Damao Weiruiko and other major customers, led to the increase of R&D costs from 5% to 6%, but with Liqing's new models of LED taillights, headlights and other orders gradually output goods, to focus on the production capacity of each production base. The overall gross profit rate and operating profit rate are 17.93% and 5.33% respectively, with the utilization rate above 80% and the replacement strategy of old and new products.
Liqing executives said that the company continued to expand its close cooperation with the world's major first-class lamp factories, strengthen the research and development of LED lamp module products design technology, has successfully cut its LED lamp module products into a variety of vehicles, including SAIC Group, Guangzhou Automobile Group, etc. At present, the shipment structure, from the joint venture brand car factory revenue share has reached 70%.