Another company announces price increases, MLS changes its main business, and OPPLE Lighting's South China industrial park with a total investment of over 2 billion yuan starts construction

ULT announces price increase of 2-7%

US lighting manufacturer Universal Lighting Technologies (ULT) recently issued a price increase notice, stating that, like many other industries, the lighting industry is being affected by recent increases in raw materials, electronic components, and freight costs. ULT stated:

"We have seen a significant overall increase in raw materials, with the largest increases in semiconductors, copper, magnetic materials, PCB, aluminum, and steel. In addition, there are exchange rate pressures, packaging material costs, and increased freight charges."

Over the past few months, ULT has been absorbing these costs while implementing aggressive cost-reduction initiatives to minimize the impact on customers; despite these efforts, we have been unable to offset these increases. We have seen significant rises in these costs, ranging from 5% to 20%.

Therefore, ULT will implement price increases for selected products starting March 8, 2021, ranging from 2% to 7%. The new price list will be available on or before February 8, 2021." (Source: China Lighting Network)

MLS changes its core business and transforms into a lighting brand and lighting channel

On the evening of January 19, MLS announced a change in its industry classification, with its core business transitioning from LED packaging to primarily focusing on lighting brands and lighting (sales) channels.

MLS Co., Ltd. completed the acquisition of LEDVANCE in April 2018, with revenue mainly derived from sales of LED materials and finished products. In 2019, MLS Co., Ltd. achieved total revenue of nearly RMB 19 billion, among which finished product business generated revenue of RMB 13.75 billion, accounting for 72.47% of total revenue.

According to the regulations of the China Securities Regulatory Commission, if the proportion of revenue from a certain type of business of a listed company is greater than or equal to 50%, it will be classified into the industry corresponding to that business. Therefore, MLS Co., Ltd. submitted an application for change of industry classification to the Association of Listed Companies in China, and the industry classification has been changed from "Computer, Communication and Other Electronic Equipment Manufacturing" to "Electronic Machinery and Equipment Manufacturing".

In fact, not only is the core business transforming, but MLS Co., Ltd. also revealed last November that it will gradually reduce the proportion of its LED packaging business year by year, concentrating resources to comprehensively develop its finished product brands . The company believes that the concentration of finished product brands will gradually increase and consolidate among major manufacturers.

MLS Co., Ltd. owns the "LEDVANCE" brand and the "MLS" brand, with global brand and channel operations being one of its core businesses. The company is vigorously developing online sales, and currently, the sales networks for both brands have been fully established. (Source: LEDinside)

Total investment exceeds 2 billion, OPPLE Lighting's South China Park breaks ground

On January 18, 2021, OPPLE Lighting held the groundbreaking ceremony for its South China Park in Minzhong Town, Zhongshan City, Guangdong Province. According to the plan, OPPLE Lighting's South China Park covers an area of approximately 435 mu, with a total construction area of about 480,000 square meters and a total investment exceeding 2 billion yuan. The project is planned to be constructed in two phases, creating a comprehensive park integrating functions such as R&D, office space, manufacturing, warehousing and logistics, and living amenities .

OPPLE Lighting South China Park Groundbreaking Ceremony Site

OPPLE Lighting stated that the establishment of the new South China campus will create a new strategic hub for OPPLE Lighting to radiate into Southeast Asia, further driving the intelligent transformation of the industry value chain and supporting the high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area during the "14th Five-Year Plan" period.

Based in China, Building a Highland of Intelligent Manufacturing in the Greater Bay Area

OPPLE Lighting will transform the new South China campus into a national demonstration base for intelligent manufacturing and a highland for smart product R&D through the construction of digital smart factories, intelligent product upgrades, and smart product development .

The South China Park will focus on three core features: first, the construction of a digital smart factory, through smart property management, automated立体 warehouses, automated assembly, MES digital management systems, etc., continuously exploring more efficient and low-consumption methods to drive value innovation for OPPLE Lighting and even the lighting industry; second, product intelligence, OPPLE Lighting will establish an intelligent product production center in the South China Park to assist in the intelligent transformation and upgrading of products, providing users with more value; finally, the park will focus on intelligent product R&D, establishing an intelligent product R&D center dedicated to the research and design of intelligent products, achieving integrated solutions for smart home scenarios.

"As Chinese enterprises continue to climb in the industry chain, supply chain, and value chain, China's manufacturing sector is advancing towards high-end digitalization and intelligence," stated Ms. Ma Xiuhui, President of OPPLE Lighting, at the groundbreaking ceremony. "As a representative enterprise in the lighting industry, OPPLE Lighting will uphold its corporate mission of 'Creating Value with Light' and its brand philosophy of 'Beyond What You See.' We will continue to provide industry-leading smart lighting solutions, constantly innovate in products, services, and experiences, drive industry development through our intelligent product portfolio, and accelerate the empowerment of the manufacturing industry's digital transformation."

OPPLE Lighting South China Campus Design Drawing

Global Vision, Striving to Become a World-Class Lighting Enterprise

With the signing of the Regional Comprehensive Economic Partnership (RCEP), the world's most populous, largest in trade scale, and most development-potential free trade zone has officially set sail. This provides significant support for building a new open economic system in the new era and forming a new development pattern dominated by domestic circulation with mutual promotion between domestic and international dual circulations. Against this backdrop, OPPLE Lighting's South China Park will leverage its unique locational advantages to further expand into the Southeast Asian market, accelerate the company's global layout and "going global" steps, helping achieve the strategic goal of "becoming a leading domestic and internationally first-class provider of comprehensive solutions for lighting systems and integrated home furnishing" .

The economic recovery in the Guangdong-Hong Kong-Macao Greater Bay Area is trending positively, providing a solid foundation for OPPLE to continuously increase its investment in the Greater Bay Area market and scale new heights of innovation. OPPLE stated that, looking ahead, the company will embrace the era's opportunities for intelligent transformation and upgrading, driving substantial development of the lighting industry in the Guangdong-Hong Kong-Macao Greater Bay Area, and setting a forward-looking new benchmark for the global lighting supply chain. (Source: OPPLE)