Overview of first-quarter performance of 11 companies including Zhaochi, Ruifeng, and Longli

Recently, 11 LED-related companies released their performance reports for the first quarter of 2024. Among them, Zhaochi Technology, Fuman Micro, Xiamen Cinda, Bull Group, Halsey, Tailong Technology, and Netac Intelligent achieved net profit growth, Ruifeng Optoelectronics and Longli Technology turned losses into profits, Mingjiahui's revenue and net profit declined, and Delong Laser's net profit turned from profit to loss.

Zhaochi Shares

Zhaochi Shares achieved revenue of 4.106 billion yuan in the first quarter, a year-on-year increase of 11.14%; net profit attributable to the parent company was 415 million yuan, a year-on-year increase of 8.25%.

Zhaochi Co., Ltd. stated that after the strategic development of the Mini LED vertical industry chain last year, the company's LED industry chain has achieved significant performance improvements in all aspects. In the first quarter, in terms of consolidated net profit attributable to the parent company, the contribution of the LED industry chain accounted for more than 50% in a single quarter for the first time.

During the reporting period, Zhaochi's Mini RGB chips shipped 10,000KK sets in a single month, with a market share of more than 50%; COB direct display achieved a single-quarter revenue of 295 million yuan, a significant year-on-year increase in revenue. As of April this year, COB's monthly output was 16,000 square meters (measured at P1.25 point spacing), a year-on-year increase of more than 400%; Mini New orders for LED TV backlight modules have been gradually shipped, and in collaboration with the chip business, it has helped TV ODMs complete the expansion of Mini LED TV share.

Ruifeng Optoelectronics

Ruifeng Optoelectronics achieved revenue of 329 million yuan in the first quarter, a year-on-year increase of 7.77%; net profit attributable to the parent company was 80 million yuan, turning losses into profits.

Ruifeng Optoelectronics’ business categories are mainly divided into LED products and electronic paper products. LED products include backlight LED, CHIP LED, RGB LED, and Mini LED. Other LEDs include automotive LEDs, infrared LEDs, laser business, etc. Among them, the proportion of backlight LED performance is increasing year by year, while lighting LED is more focused on the high-margin market.

In recent years, Ruifeng Optoelectronics has achieved sales revenue growth in its automotive LED and Mini backlight businesses, and its sales revenue from electronic paper products has also increased.

It is worth noting that in January this year, Ruifeng planned to set up a subsidiary, Ruihua Automotive Electronics, in Hubei to further develop the automotive LED business. At present, Ruihua Automotive Electronics has completed industrial and commercial registration and obtained the "Business License" issued by the Gedian Branch of Ezhou Municipal Administration for Market Regulation.

Longli Technology

In the first quarter, Longli Technology achieved revenue of 296 million yuan, a year-on-year increase of 89.63%; net profit attributable to the parent company was 20 million yuan, turning losses into profits year-on-year.

Based on the LED backlight display module business, Longli Technology expands new technologies such as Mini LED and Micro LED, and at the same time extends the company's LED technology to automotive, smart wearables, e-sports displays and other fields.

Previously, Longli Technology told investors that with the accelerated recovery of terminal consumption and the gradual release of orders, the company has continued to optimize its product structure based on the first-mover advantage of Mini LED. Currently, the proportion of high value-added businesses such as Mini LED automotive backlight is gradually increasing. Looking forward to 2024, Longli Technology expects that as the demand for smart cockpits increases, the penetration rate of automotive Mini LEDs will continue to increase.

Fuman Micro

In the first quarter, Fuman Micro achieved revenue of 145 million yuan, a year-on-year increase of 5.95%. Fuman Micro's main products are LED screen control and driver, MOSFET, MCU, fast charging protocol chips, and various ASIC and other chips. The products can be widely used in consumer electronics, communication equipment, industrial control, automotive electronics and other fields, as well as the Internet of Things, new energy, and wearable devices.

Currently, Fuman Micro is focusing on adjusting its product structure, increasing the sales proportion of power management, power devices and other products, and reducing the impact of LED display applications on the company.

Xiamen Cinda

During the reporting period, Xiamen Cinda achieved revenue of 12.881 billion yuan, a year-on-year decrease of 38.70%; net profit attributable to the parent company was 80 million yuan, a year-on-year increase of 13.31%.

In February this year, the Yancheng Xinda LED chip packaging project, jointly invested by Xiamen Xinda's subsidiary Xinda Optoelectronics, Jiangsu Yueyang Industrial Fund, and Yancheng Sancai Intelligent Technology, officially started construction. The project has a total investment of 3 billion yuan, with an initial investment of 500 million yuan, using 16,000 square meters of factory buildings. After completion and production in May, it will be able to produce 50,000 KK of LED packaging products annually with an output value of 600 million yuan. After the first phase reaches production, the second phase of the project will be quickly implemented.

Bull Group

Bull Group achieved revenue of 3.803 billion yuan in the first quarter, a year-on-year increase of 14.06%; net profit attributable to the parent company was 929 million yuan, a year-on-year increase of 26.27%.

Bull Group focuses on three major businesses: electrical connection, intelligent electrical lighting, and new energy. Among them, smart electrical lighting products mainly include wall switches and sockets, LED lighting (smart without main lights), safety circuit breakers, smart bathroom heaters, etc.

At the end of December last year, Bull Group's intelligent lighting R&D and manufacturing project officially started construction in Huizhou. The project is positioned as Bull Group's R&D center and intelligent manufacturing center in the Guangdong-Hong Kong-Macao Greater Bay Area. The first phase plans to invest approximately 700 million yuan and has a planned land area of approximately 40,000 square meters.

Haoersai

In the first quarter, Haoersai achieved revenue of 144 million yuan, a year-on-year decrease of 21.69%; net profit attributable to the parent company was 50 million yuan, a year-on-year increase of 197.91%.

Halsey currently focuses on lighting engineering as its main business, and at the same time actively expands into new business areas, forming a development strategy led by the overall strategic layout of "Smart+", "three intelligences and one network" and "two-wheel drive" of Haonenghui New Energy. With the gradual recovery of the domestic economy, Haoersai's various business segments and engineering projects are progressing smoothly, and the operating conditions have improved significantly.

Tailong Shares

Tailong Co., Ltd. achieved revenue of 734 million yuan, a year-on-year increase of 36.92%. The net profit attributable to the parent company was RMB 7 million, a year-on-year increase of 44.21%.

The main business of Tailong Co., Ltd. is mainly semiconductor distribution business, supplemented by commercial lighting business. At the same time, Tailong Co., Ltd. is actively transforming into an innovative technology enterprise. Nowadays, the semiconductor distribution business has become the main source of Tailong's revenue; while the commercial lighting business mainly provides customers with overall commercial lighting solutions that integrate lighting design, development and manufacturing, and system comprehensive services. The main products include lighting fixtures, LED displays, and photoelectric signs. Tailong's total commercial lighting revenue in 2023 is 455 million yuan, accounting for 17.21% of total revenue.

Mingjiahui

In the first quarter, Mingjiahui achieved revenue of 25 million yuan, a year-on-year decrease of 12.68%; net profit attributable to the parent company was 11 million yuan, a year-on-year decrease of 29.05%.

Mingjiahui's main business is the design and construction of lighting projects, the research and development, production and sales of lighting products and a small amount of contract energy management business. The performance of Mingjiahui declined due to the decrease in lighting engineering projects.

In 2024, Mingjiahui will focus on positioning lighting engineering as a strategic core business and positioning the semiconductor sector as an innovative and breakthrough business to develop. It will also leverage the advantages of the "Mingjiahui" brand and main business to continue to attack traditional channels. At the same time, it plans to establish an overseas business unit or develop international markets through agents, dealers, and partners.

Netac Intelligent

Netac Intelligent achieved revenue of 350 million yuan, a year-on-year increase of 19.27%; net profit attributable to the parent company was 80 million yuan, a year-on-year increase of 179.96%.

Netac Intelligent’s main business includes two major segments: electrical controllers and finished products and intelligent power supplies and controllers. Among them, intelligent power supplies and controllers include new energy battery packs, BMS, plant lighting and other products.

In 2024, Netac Intelligence will continue to focus on chip applications, based on intelligent control technology, strengthen the development of motor technology and battery management technology, and gradually expand the application of new consumer home appliances, energy storage inverters and automotive electronics products.

Delonghi Laser

Delong Laser was established in 2005. It focuses on application fields such as semiconductors and optics, display, consumer electronics and scientific research, and provides customers with laser processing solutions.

In recent years, Delonghi Laser has continued to increase investment in research and development and has successfully developed a number of new products in the fields of semiconductors and new energy. This includes Micro LED laser mass transfer repair and equipment. At present, De'Longhi Laser's Micro LED laser stripping and laser repair equipment has been delivered to customers and generated revenue, and Micro LED laser mass transfer equipment has received orders from leading customers.

In the first quarter, Delong Laser achieved revenue of 116 million yuan, a year-on-year increase of 18.20%; net profit attributable to the parent company turned from profit to loss.

Delong Laser stated that during the reporting period, the company continued to increase its business expansion efforts and actively participated in market competition. Orders were delivered and accepted one after another. The revenue for this period increased by 18.20% compared with the same period last year. However, in order to support the expansion of new products and new businesses, the company's number of employees has increased, and related expenses have increased significantly, which has affected the profit level of the current period.

In early January this year, De'Longhi Laser announced that it plans to build a De'Longhi Laser headquarters R&D center and laser industry base in Suzhou Industrial Park, with an investment scale of approximately 450 million yuan, to produce lasers, optical detection systems, optical modules, new energy and hydrogen energy intelligent equipment and other products.