LED car lighting manufacturer Lianjia is optimistic about its operating performance in the second half of the year

Huang Fangyu, general manager of Lianjia, a major LED car lighting module manufacturer, pointed out on the 6th that the recent surge in the New Taiwan dollar has put pressure on this quarter's revenue. It is estimated that for every NT$1 appreciation of the New Taiwan dollar, Lianjia's monthly revenue will decrease by NT$15 million. Despite the exchange rate headwinds, the full-year revenue growth target currently remains unchanged, and there is no sign of downward revision.

Huang Fangyu explained that about 50% to 60% of Lianjia's raw material purchases are paid in US dollars, which is a natural hedging effect; the remaining 40% of operating costs also have a natural hedging effect, and wages at the Mexican factory are paid in local currency, which helps to alleviate the impact of overall exchange rate fluctuations.

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Looking forward to the market outlook, Huang Fangyu said that the capacity utilization rate this quarter can reach a high level of 90% to 100%, and he is optimistic that operations in the second half of the year will be better than those in the first half.

Talking about the auto market, Huang Fangyu said frankly that some consumers choose to postpone repairs or replace vehicles because of their reservations about future expenditures. At the same time, automakers have different cost-passing strategies, which also leads to confusion in market prices, further affecting consumers' willingness to purchase. However, some consumers who originally planned to buy cars purchased in advance to avoid possible price increases in the future, injecting some buying momentum into the market. Taken together, Lianjia remains confident in achieving its full-year revenue growth target.