MLS: In the future, we will comprehensively develop towards finished product brands...
01
On November 18, 2020, MLS Co., Ltd. announced that on November 17, 2020, the company received visits from 13 institutions, including Shenzhen Jianyi Investment. The hosts were Chairman Sun Qinghuan, Board Secretary Li Guanqun, and CFO Yi Yanan. The meeting was held in the conference room on the first floor of No. 1 Mulinsen Avenue, Xiaolan Town, Zhongshan City.
Main Research Content
1. Q: What is the company's plan for the next three to five years?
Answer: The company's brand revenue currently accounts for 70% of total Revenue. In the future, the company will comprehensively develop its finished-product brands, and the brand segment will have significant growth potential. The proportion of the Packaging segment will decrease year by year.
2. What is the current situation of LEDVANCE?
Answer: LEDVANCE has already completed the plan ahead of schedule, significantly reducing the number of employees and greatly improving labor costs. In the future, the internal management organizational structure will be optimized, with operations, management, and supply chain departments all relocating to Shenzhen to reduce management costs and increase profit margins.
3. Q: How to leverage the brand advantages of LEDVANCE?
Answer: In recent years, our company has been committed to transforming from a manufacturing enterprise to a brand-oriented business. During this transition, we have accumulated extensive experience and forged a unique path distinct from other lighting brands. We match different products with suitable partners and (Sales) channels, while deploying management personnel under unified company arrangements to leverage the flexibility of sales channels. Our most prominent advantage is having strong international brand channels, whereas most domestic lighting brands are still limited to the domestic market.
4. Q: What is the status of Xiaomi's strategic investments and partnerships?
Answer: The strategic investment by Xiaomi is currently in the pre-application stage, awaiting policy implementation. The company's decision to introduce Xiaomi as a strategic investor is primarily based on the strong synergies both parties can achieve in the industry. Currently, industrial collaboration between the two sides is gradually progressing through discussions.
5. What is the current state of the industry?
Answer: The lighting market demand is stable, with the global market growing by more than 10%-20% annually. In recent months, demand for packaging products has grown rapidly, leading to supply shortages for many products and a steady rise in prices.
6. What will the competitive landscape of the industry look like over the next three years?
Answer: The industry concentration of finished product brands is relatively fragmented. With the acceleration of urbanization, the state's requirements for product quality are increasing, and the threshold for technological innovation is also rising. These factors will lead to higher industry concentration among finished product brands, with a predicted trend towards consolidation among large manufacturers.
7. How do the company's sales channels and products complement each other?
Answer: Our understanding of the brand is primarily centered on providing high-quality products to end customers, sharing benefits with all parties in the sales channel chain, and fostering healthy partnerships. We are vigorously developing online sales by recruiting e-commerce teams with proven track records to join the company, providing strong support for our future channel sales strategy. On the product side, the company aims to maintain its existing advantages while developing differentiated, high-value-added, and technologically advanced products that empower the brand.
8. What measures can the company take to increase revenue?
Answer: First, we completed the transition of LEDVANCE's traditional lighting products to LED products, with LED products now accounting for 80% of light source products. Secondly, in markets such as Europe and the United States, we expanded the range of luminaires and introduced more smart lighting products to the market. The increased product variety helps raise market share and creates more points for profit growth. At the sales terminal, the LEDVANCE brand enjoys strong customer recognition, making the promotion and sales of new products very easy. As we gradually promote products such as deep UV products, human centric lighting products, and display lighting, we further strengthen our position. Furthermore, we hope to leverage our strong international brand presence in emerging markets such as Asia-Pacific and Latin America to further expand our reach and increase market share in these regions.
02
Leyard announced on November 18, 2020 that on November 17, 2020 the company received visits from a total of 25 institutions including Lazard Asset Management LLC. The hosts were Board Secretary and Deputy General Manager Li Nannan, and Investor Relations Specialist Liu Yang. The reception took place via teleconference system.
Main Research Content
This investor relations activity was conducted via a conference call. During the meeting, Mr. Li, the Company's Board Secretary, introduced the Company's current operational status and Micro LED progress, and answered investors' questions.
It is an industry consensus that Micro LED represents the future direction of display technology. Leyard began tracking related technologies in 2013, officially invested in R&D in 2016, and moved products out of the laboratory in 2019, solving mass production issues from a technical perspective. After one year of cooperation with upstream partner Epistar, a joint venture was finally established to implement Micro LED mass production. The company and Epistar jointly established Li Jing Microelectronics—the world's first Micro LED display mass production base, which officially commenced operations and held a ceremony on October 29.
Company globally launched four mass-produced Micro LED commercial display products on July 15: 40-inch 2K (P0.4), 54-inch 2K (P0.6), 67-inch 2K (P0.7), and 81-inch 2K (P0.9). Among them, the 40-inch 2K (P0.4) is the world's smallest pixel pitch LED display product.
Since its release, orders have been successively formed and handed over to Li Jing for production. Based on Li Jing's current production capacity, orders are relatively saturated, and expansion is planned for the first half of next year.
Investor Relations
Q1: What is the progress of the company's Micro LED production capacity?
A: The production capacity for self-emissive displays is expected to reach 1,600KK/month in 2022. Due to strong demand, there are already plans for capacity expansion, with the second phase scheduled to commence production next May. Micro has received a very positive market response; commercial display products are gradually ramping up volume, mini LED backlights will gradually increase in volume next year, and Micro LED consumer TVs will officially go public.
Q2: What is the situation with Micro's downstream customers?
A: Large orders for disclosed commercial display products will be delivered by the end of this year.
Mini LED backlighting is expected to ramp up in volume by mid-next year during customer engagement and sample approval.
Q3: What is the yield of Micro LEDs and the status of mass transfer?
A: Currently 1,000-1,500 units/second, with a yield rate of 98.9%.
Q4: What is the progress of the glass substrate solution?
A: Glass substrates are not yet ready for mass production.
Q5、公司明年对文旅板块的拓展计划是怎样的？
Answer: In the past two years, the cultural tourism sector has indeed been affected by deleveraging policies, and this year it has also encountered the pandemic, causing many projects to be postponed. Without these factors, it is achievable for the cultural tourism sector to maintain an annual growth rate of 20%, because the cultural tourism projects undertaken by the company are new experience projects created using high-tech means such as sound, light, and electricity technologies and VR/AR scenarios. These projects can quickly generate benefits after implementation, so customers are motivated to proceed. At the current stage, demand is temporarily suppressed.
Q6: What is the progress of the NP spin-off?
A: The spin-off is proceeding as planned, and the restructuring has been fully completed. Next steps include incentives and shareholding reform, with filing expected next year.