Hengtai Lighting: Overseas demand decreases, revenue in 2023 will be 566 million yuan

On February 22, Hengtai Lighting released its 2023 performance report. During the reporting period, the company achieved revenue of 566 million yuan, a year-on-year decrease of 12.91%; net profit attributable to the parent company was 74 million yuan, a year-on-year decrease of 43.97%.

Hengtai Lighting is mainly engaged in the production, research and development and sales of LED lighting products. The products are mainly used in office lighting, industrial lighting, and commercial lighting. It mainly adopts a direct sales model based on ODM and supplemented by OEM. Its main sales source is the North American market.

Hengtai Lighting said that the decline in revenue was mainly affected by the destocking of overseas customers, and the company's new orders in the first half of 2023 decreased year-on-year; in addition, the company's Vietnam factory was put into trial operation in the second half of 2023, but the running-in period for factory operation and management was long, and the overall operational progress and shipments were lower than the company's expectations.

The decline in profits is due to three reasons. First, the order volume has decreased, competition in the existing market has intensified, and the gross profit margin of lighting products has declined; second, Hengtai Lighting has increased the scale of foreign exchange hedging and forward foreign exchange settlement and sales business. During the reporting period, exchange income fell more than the same period last year, resulting in an increase in financial expenses of 17.03 million yuan compared with the same period last year; third, the company received government subsidies during the reporting period, which was 18.05 million yuan less than the same period in 2022.

In January last year, in order to increase the layout of overseas markets and further accelerate the construction of production capacity, Hengtai Lighting will The investment project with an annual output of 5 million sets of LED lamps was changed to Vietnam for construction, and Hengtai Lighting (Vietnam) Co., Ltd. was responsible for implementation. The total investment in the project increased from 157 million yuan to 136 million yuan.

In order to seize the development trend of domestic industrial, mining and commercial LED lighting and implement the dual-cycle strategic development strategy at home and abroad, in August of the same year, Hengtai Lighting established a joint venture company Jiangsu Hengtai Electric, in which Hengtai Lighting invested 6 million yuan, accounting for 30% of the registered capital. The company mainly engages in the sales of lighting appliances, sales and installation of special electronic equipment.

Looking forward to the future, Hengtai Lighting stated that the company will increase the dual-core construction and integration of Nantong production base and Vietnam production base, further expand overseas channels, increase market expansion in non-U.S. regions, and at the same time actively expand domestic sales channels and establish a domestic and foreign dual circulation system.

In the LED industrial and commercial lighting segment, the company will give full play to its comparative advantages in quality and cost, while actively developing new products such as smart lighting and healthy lighting to further enhance the company's market share and profitability. (Compiled by LEDinside Irving)

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