MLS unveils 2021 performance; Sanan Optoelectronics secures international major client orders; Han's Laser plans to spin off a subsidiary for IPO

1. MLS net profit increased by 283.76% year-on-year

MLS released its performance bulletin on the evening of March 9. The company's revenue in 2021 was 18.615 billion yuan, a year-on-year increase of 7.1%; Net profit attributable to shareholders of MLS Co., Ltd. was 1.158 billion yuan, a year-on-year increase of 283.76%; Basic earnings per share were 0.78 yuan, a year-on-year increase of 254.55%.

The company stated that financial indicators such as profit and earnings per share for the year 2021 showed significant growth compared to the same period last year, mainly due to the full release of the company's production capacity during the reporting period, with high capacity utilization and sales-to-production ratios, increased industry concentration, and effective reduction of unit product costs through economies of scale, thereby driving steady performance growth.

At the same time, the company continues to implement and optimize its integration plan for overseas subsidiary LEDVANCE (朗德万斯), further leverages industry / supply chain advantages, scientifically controls cost and expense expenditures, and achieves significant results in cost reduction and efficiency improvement. By strengthening brand effects and marketing network channel construction, continuously enriching product structure, and persistently enhancing R&D innovation capabilities, the company improves its sustainable profitability.

The company's Board Secretary stated at the investor communication meeting that since 2021, the global LED lighting market has remained robust. The company's Packaging business orders are full, and capacity utilization remains at a high level. The company's market share in domestic and international markets is gradually increasing, with Lumileds' revenue and profit in China improving. Meanwhile, the company is actively expanding into new energy storage, Horticultural lighting, and Mini LED sectors, establishing close cooperation with stakeholders along the Industry / Supply chain. The company is proactively developing emerging industries to enhance its profitability.

2. Sanan Optoelectronics secures international major client order and subsidy payment

On March 8, Sanan Optoelectronics announced that since the beginning of 2022, has continuously received Mini LED chip purchase orders from a single major international client, with an amount exceeding 170 million yuan. Of this, approximately 100 million yuan was delivered in January-February 2022, and the remaining amount will be delivered to the customer within March. The company has organized production capacity to actively manufacture products meeting customer needs to satisfy the chip demand for March.

At the same time, company filter products have been certified by major international smartphone customers and are procured by domestic ODM manufacturers. The launch of this business marks that the company's filter products have officially entered the smartphone supply chain, laying a solid foundation for future market expansion.

Sanan Optoelectronics stated that the progress of the above matters will have a positive impact on the company's first quarter of 2022 and lay the foundation for future business operations.

同日，三安光电还发布公告称，根据公司与长沙高新技术产业开发区管理委员会签订的《项目投资建设合同》，长沙高新技术产业开发区管理委员会同意按合同约定拨付本公司全资子公司湖南三安半导体有限责任公司科技研发专项扶持资金人民币2亿元。

Hunan Sanan received the payment on March 7, 2022.

3. Han's Laser plans to spin off its subsidiary for an IPO on the ChiNext board

On the evening of March 8, Han's Laser announced that it plans to spin off its controlling subsidiary, Han's Optoelectronics, for an on the ChiNext Board of the Shenzhen Stock Exchange. The company stated that this spin-off IPO will help consolidate Han's Optoelectronics' core competitiveness, deepen its layout in the semiconductor and general semiconductor packaging and testing industry, and broaden financing channels.

大族激光表示，通过本次分拆，大族光电作为公司独立的半导体及泛半导体封测专用设备研发、生产和销售的平台将实现独立上市，并通过上市融资增强资金实力，提升半导体及泛半导体封测专用设备业务的盈利能力和综合竞争力。

The aforementioned announcement states that Han's Optoelectronics' "HANS" series high-speed fully automatic wire bonding machines, high-speed fully automatic DIP insertion testers and sorters, high-speed semiconductor tape-and-reel machines, high-speed flat die bonders, fully automatic die bonding and wire bonding production lines, and integrated tester and tape-winding machines have, after years of optimization and improvement, firmly secured a leading position in the domestic market. It is reported that Han's Optoelectronics' current patent layout focuses mainly on wire bonding machines, die bonders, and related technical fields.

Among them, Han's Optoelectronics' self-developed high-speed fully automatic semiconductor gold/copper wire bonding machine has basically reached parity with international well-known packaging and testing equipment manufacturers such as ASM and K&S in terms of performance efficiency, welding stability, reliability, and consistency , and has achieved domestic substitution in the pan-semiconductor field (LED packaging) , effectively reducing procurement costs for domestic downstream customers and dependence on foreign equipment, supporting the rapid development of China's LED industry.

Financial data shows that Sanan Optoelectronics' net profit for the three years from 2018 to 2020 was 22.7468 million yuan, 13.5597 million yuan, and 2.8752 million yuan respectively.

Currently, Han's Laser directly holds 59.28% of the equity in Han's Optoelectronics and is its controlling shareholder. Gao Yunfeng indirectly controls Han's Optoelectronics through Han's Laser and is the actual controller of Han's Optoelectronics. Upon completion of this spin-off, Han's Laser's equity structure will remain unchanged, and it will continue to maintain control over Han's Optoelectronics.

It is worth mentioning that Han's CNC, a subsidiary of Han's Laser, successfully listed on the ChiNext market on February 28. Han's CNC is the leading domestic PCB equipment manufacturer.