Hongli packaging subsidiary will strengthen smooth margin automotive lighting business

Honglitronic on Thursday (4 days) the disclosure of the "investor relations activities record form" said, in 2014 the company LED product gross margin is relatively stable, no major fluctuations.

The company pointed out that next year the LED market will continue to maintain an upward trend. With the decline in the price of LED products, lighting demand increases, product penetration increased. Although the price decline in the short term affect the profitability of enterprises, but is conducive to long-term sustainable development of enterprises, is conducive to the development of the industry.

At the same time, also said that at present, small power chip company procurement to domestic based, high power chip mainly imported, domestic major supplier of three safety optoelectronics, Elec-Tech, HC semitek, branch, Tongfang etc..

According to the "investor relations activities record form", Forda signal subsidiary, mainly responsible for LED automotive lighting business, the main development abroad after market, will also intensify efforts to develop domestic and foreign markets, to expand overseas market share. At the same time, will actively explore the domestic vehicle matching market. Strengthen cooperation with the international manufacturers of OEM/ODM efforts to expand the scale of LED automotive lighting business.

Honglitronic through a wholly owned subsidiary of Jiangxi Hongli Jiangxi responsible for a project in Nanchang 300 acres of land use rights, plant construction and some LED product sales. The first phase of the project is 100 thousand square meters, and the construction period is expected to be about 15 months. The project is fully put into production, annual production capacity of LED devices is about 16200KK (with 3014 single core is estimated to represent capacity), LED with an annual capacity of about 90 million PCS (with LED bulb is estimated to represent capacity), the total annual output value of 1 billion 584 million yuan.

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