Signify to repay wages cut at the start of the pandemic, Cnlight expects to turn a profit in 2020, and a subsidiary of Feilo Acoustics is preparing for mass production and delivery of automotive LED modules

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Signify to repay wages cut at the start of the pandemic

Signify recently announced that its strong financial performance in 2020 enabled the company to reward employees who participated in the 2020 Solidarity Program by reimbursing their salary reductions . It is reported that, in response to the COVID-19 pandemic, the vast majority of Signify's global employees voluntarily supported a 20% reduction in working hours and a proportional adjustment to their salaries from April to June 2020.

In addition, Signify recommends declaring a special dividend of €170 million (€1.35 per share) to its shareholders. This amount is consistent with the €1.35 dividend proposal for 2019, which was withdrawn to ensure the company's resilience and strengthen its financial position during the COVID-19 crisis. This special dividend will be in addition to the regular dividend for 2020, which will be announced on January 29, 2021, together with its full-year 2020 results. Both dividend proposals will be subject to approval at the Annual General Meeting to be held on May 18, 2021.

Signify also announced its intention to repay at least €350 million of debt in 2021, thereby reaffirming its commitment to further debt reduction and deleveraging, with a net debt/EBITDA ratio below 1x by the end of 2022. Signify expects to report a net debt/EBITDA ratio of 1.7x for 2020 at year-end.

Based on preliminary and unaudited data, Signify expects comparable sales for the full year 2020 to decline by approximately 12.7%. In addition, Signify expects adjusted EBITA margin to be approximately 10.7%, an increase of 30 basis points compared to 2019. This includes the costs of reimbursing employees participating in the 2020 Solidarity Plan. Signify also expects free cash flow for the full year 2020 to be approximately €815 million.(Compiled by China Lighting Network)

Cnlight expects to turn a profit in 2020, with significant contributions from its UV sterilization lamp business

Cnlight released its 2020 annual performance forecast, expecting revenue of RMB 320 million to RMB 350 million in 2020, with net profit attributable to shareholders of the listed company estimated at RMB 8 million to RMB 11 million, turning losses into profits.

C-Light stated that the reasons for the performance changes are:

1. During the reporting period, to meet the rapidly growing market demand for UV germicidal lamps, the Company expanded its production capacity and improved production efficiency, making every effort to develop the UV germicidal lamp business. In 2020, the revenue from UV germicidal lamps increased by over 90% Year-on-year (YoY), reaching approximately RMB 110 million to RMB 125 million; the subsidiary Shenzhen Zhuoyu Automation Technology Co., Ltd. intensified its business development efforts, strengthened cost and expense control, and improved profitability.

2. During the reporting period, the Company actively advanced debt restructuring initiatives to seek debt waivers from creditors and alleviate repayment pressure. By signing debt restructuring agreements (including enforcement settlement agreements and court civil mediation documents) with creditors and receiving notices of debt waiver/release, the Company has completed debt restructuring for a scale of approximately RMB 133 million (referring to the book value before debt restructuring), with a debt waiver amount of approximately RMB 92.1102 million.

3. During the reporting period, to improve the efficiency of the Company's asset utilization, the Company integrated and planned its production bases and office premises, converting some idle self-owned real estate into investment property for leasing to generate income. After the change, the Company's net assets increased by approximately RMB 96.112 million based on the fair value assessment of such investment property.

4. The estimated impact of non-recurring gains and losses on the net profit for the current period in 2020 is approximately RMB 36 million.

Feilo Electronics: Subsidiary preparing for first mass production delivery of LED modules for Tesla Model 3 front fog lamps

On January 14, Feilo Electronics announced that its subsidiary Chenlan Optoelectronics was awarded the contract for the Tesla Model 3 front fog light LED module project in October 2020, and is currently making every effort to prepare for the first mass production delivery. Over the past four months, the Chenlan team has completed all preliminary project work on schedule, including product development, process planning, production line setup, and raw material preparation.

As a platform-shared product, it will also be applied to the Tesla Model Y in the future, achieving mass production and large-scale sales.

The Tesla Model 3 is currently the best-selling electric vehicle in China. According to data released by the China Passenger Car Association, the Chinese-made Model 3 sold 137,459 units in 2020, topping the charts as the best-selling new energy vehicle in China last year.

It is reported that in 2020, in addition to continuously securing new project nominations for vehicle models from traditional automakers such as BMW, Mercedes-Benz, and Volkswagen, Shenglan will further obtain project nominations and supply supporting products for vehicle models from new energy vehicle manufacturers such as NIO, Li Auto, and XPeng. (Source: Feilo Acoustics)