Nearly 30 LED companies release 2022 earnings forecasts

In the past month, LED lighting companies that have gone public have intensively disclosed their "2022 Annual Performance Forecasts". Among them, there are more companies with negative performance forecasts (including expected declines and continued losses) than those with positive forecasts (including expected growth and turning losses into profits).

Hongli Zhihui

Hongli Zhihui expects to achieve a net profit attributable to shareholders of the parent company of RMB 144 million to RMB 181 million in 2022, a year-on-year (YoY) decrease of 31.95% to 45.86%; and a net profit after deducting non-recurring items of RMB 125 million to RMB 162 million, a year-on-year (YoY) decrease of 19.94% to 38.22%.

Hongli Zhihui stated that the complex domestic and international environment in 2022 led to a decline in LED demand, intensified market competition, and pressure on the company's business development. In the future, the company will focus on its long-term strategic development goals to further enhance its scalable profitability.

Refond Optoelectronics

Refond Optoelectronics expects that the company's net profit attributable to shareholders in 2022 will be RMB 12 million to RMB 18 million, a year-on-year (YoY) decrease of 81%–88%; net profit excluding non-recurring items continues to show a loss.

Refond Optoelectronics stated that the decline in performance was influenced by three major factors: first, affected by the pandemic and insufficient demand for consumer electronics both domestically and internationally, the company's Revenue declined slightly; second, to digest inventory, the company proactively adopted a price reduction strategy, leading to a decrease in gross profit margin; third, the Hubei production base, headquarters building, and fundraising project equipment were put into use, with significant initial investment, resulting in a substantial increase in asset depreciation, amortization, and relocation expenses in 2022.

Yangguang Lighting

Yangguang Lighting expects its 2022 Revenue to be between RMB 3.411 billion and RMB 4.264 billion, representing a Year-on-year (YoY) change of -20% to 0% compared to the same period last year (statutory disclosure data). The Net profit attributable to shareholders of the Listed company for the full year 2022 is estimated to be approximately RMB 142 million to RMB 205 million, representing a change of approximately RMB -174 million to RMB -111 million compared to the same period last year, with a Year-on-year (YoY) change of -55% to -35%.

The main reason for the change in performance is that, during the reporting period, the company's sales revenue decreased compared to the same period last year due to factors such as the recurring pandemic and the downturn in the real estate industry. At the same time, intensified industry competition led to a certain decline in both the Revenue and gross profit margin of the company's lighting business. In addition, in the first half of 2021, the compensation for demolition of industrial real estate located in the Lidong area of Lihai Street, Shaoxing, affected the pre-tax Net profit by approximately RMB 125 million, while there was no such item during the reporting period.

Huati Technology

Huati Technology expects the net profit attributable to shareholders of the listed company for the year 2022 to be between approximately -65 million yuan and -78 million yuan. Compared with the same period last year, the net profit will decrease by 10.1828 million yuan to 23.1828 million yuan.

Huati Technology stated that during this period, mainly affected by the macroeconomic environment and the COVID-19 pandemic, the overall market sentiment was sluggish, leading to a significant decrease in orders. Both sales volume and unit selling price declined, resulting in a substantial reduction in revenue, with a drop of approximately 25%. Meanwhile, due to reduced production output, the allocation rate of fixed costs increased, causing a significant year-on-year decline in performance for this period, with an expected loss. Impairment indicators emerged for the Shuangliu Airport Project, which is invested and operated by the company. Based on the principle of prudence, a significant amount of asset impairment provision was accrued.

Feilo Acoustics

Feilo Audio expects the net profit attributable to shareholders of the listed company for 2022 to be around RMB 305 million, turning losses into profits compared with the same period last year. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is expected to be around -RMB 178 million.

Chenfeng Technology

Chenfeng Technology expects the net profit attributable to owners of the parent company for 2022 to range from -50 million yuan to -35 million yuan, resulting in a loss.

The main reason for the change in performance is the impact on core business. In 2022, affected by the recurring COVID-19 pandemic, normal operations of the upstream and downstream supply chains in the industry were disrupted in terms of market demand. Customers were unable to assemble complete luminaires or ship goods, leading to a decline in demand for the Company's products. Additionally, in terms of production and operations, the Company's major domestic production bases experienced work stoppages or operated below capacity, directly adversely affecting production. Poor logistics prevented equipment parts required by the Company from being delivered on time, impacting production. Furthermore, the Company's products could not be delivered to customers in a timely manner or in sufficient quantities, resulting in a decrease in the Company's sales revenue.

The main raw materials for the company's products are aluminum, copper, etc. In recent years, the prices of these raw materials have fluctuated at high levels. Although the company has actively taken multiple measures to reduce costs, it cannot fully offset the impact of the rigid increase in various costs such as raw materials, logistics, energy, and fixed asset amortization. In addition, since the market for lighting product structural components is in a stage of full competition, product prices are relatively open and transparent, and the related impacts cannot be fully passed on to downstream customers, resulting in a significant year-on-year (YoY) decline in the company's product gross profit margin in 2022.

Space-Time Technology

Shikong Technology expects the net profit attributable to owners of the parent company for 2022 to range from -220 million yuan to -200 million yuan, remaining at a loss compared to the same period last year.

The main reasons for the change in performance are that, affected by the recurring outbreaks of the epidemic, the investment demand and scale of landscape lighting projects mainly undertaken by the company have shrunk, the amount of new orders signed by the company in 2022 has decreased, and the construction progress of some projects has been delayed. In addition, the company's new businesses such as cultural tourism and smart parking are still in the expansion stage, and revenue conversion is slow. Affected by the above factors, the company's revenue scale in 2022 declined significantly year-on-year (YoY); in recent years, competition in the landscape lighting industry where the company is located has continued to intensify, and the industry's gross profit margin has shown an overall downward trend. During this reporting period, the bargaining space for new orders signed by the company has been compressed, resulting in the gross profit margin of projects under construction in this period being lower than the level of the same period last year.

PCCOOLER

Chao Pin San expects the net profit attributable to shareholders of the listed company in 2022 to be RMB 15.54 million–RMB 23.31 million, turning losses into profits year-on-year (YoY).

The main reason for the change in performance is that, during the reporting period, with the continuous and rapid development of the new energy industry, the production capacity of the company's lithium battery cathode material business continued to be released, driving a significant year-on-year (YoY) increase in revenue. In addition, the company's traditional heat dissipation, LED lighting, and other businesses maintained stable operations. Last year, the company incurred operating losses due to large provisions for goodwill impairment and credit impairment. This year, in accordance with its operational strategic planning, the company further strengthened control over various business segments, increased revenue and reduced expenditures, and optimized operational strategies; it fully integrated resources, deregistered some subsidiaries, eliminated inferior assets and retained superior ones, continuously improving the quality of company assets and development capabilities.

Qinshang Shares

Qinshang Shares expects the net profit attributable to shareholders for 2022 to be between RMB 26 million and RMB 39 million, compared to a net loss of RMB 862 million in the same period last year, turning losses into profits Year-on-year (YoY).

Regarding the reasons for the change in performance, Qinshang Shares mentioned that during the reporting period, affected by policies in the education and training industry, the company divested its education and training-related subsidiaries, Guangzhou Longwen Education Technology Co., Ltd. and Beijing Longwen Cloud Education Technology Co., Ltd., generating investment income of approximately RMB 182 million. Furthermore, the company recorded a significant goodwill impairment in the previous year, whereas there was no goodwill impairment impact in 2022.

Regarding the reasons for the continued loss after deducting non-recurring gains and losses during the period, Qinshang Shares stated that in 2022, the company's semiconductor lighting business was affected by factors such as the recurring COVID-19 pandemic, fierce market competition, and rising raw material prices and labor costs, leading to a decline in the gross profit margin of semiconductor products and impacting current profits. Furthermore, the company conducted a comprehensive inventory of various assets at year-end and made asset impairment provisions for relevant assets showing signs of impairment.

Ocean King

Ocean King expects that the net profit attributable to shareholders of the listed company in 2022 will be RMB 90 million to RMB 117 million, a year-on-year decrease of 70.18% to 77.06%; the net profit after deducting non-recurring gains and losses will be RMB 47 million to RMB 74 million, a year-on-year decrease of 79.49% to 86.93%.

Ocean King stated that the company's revenue growth slowed due to factors such as scattered COVID-19 outbreaks across multiple regions, lockdown measures, and a downturn in the macroeconomic environment. On the other hand, the company continues to invest in R&D and strategic layout to prepare for its long-term future development.

Changfang Group

Changfang Group stated that, affected by non-recurring events such as the relocation of its packaging business, the company experienced a decline in business revenue, increased expenses, and insufficient production capacity utilization. It is expected that the company's revenue in 2022 will be between 680 million yuan and 780 million yuan, with continued net losses.

Leyard

In 2022, Leyard expects to achieve revenue of approximately RMB 8.5 billion, a decrease of about 4% compared to the same period last year; among which, the revenue of the intelligent display segment is approximately RMB 7.2 billion (accounting for about 85%), achieving historical growth compared to the same period last year, with an increase of about 5% (setting a new historical high).In terms of net profit, Leyard expects to achieve net profit attributable to shareholders of the parent company of RMB 220 million to RMB 285 million, a decrease of 63.99%-53.35% compared to the same period last year.

Regarding the reasons for the decline in performance in 2022, Leyard stated that new orders in 2022 decreased compared to the same period last year. Among them, orders in the cultural tourism and night tour segment dropped by approximately 61% year-on-year, resulting in significant losses in this segment. It is expected to gradually recover in 2023 as the national economic situation improves; non-recurring gains and losses amounted to approximately RMB 80 million.

During the reporting period, the company achieved phased breakthroughs in Micro LED technology, significantly improving cost-effectiveness. The Black Diamond series officially entered mass production and shipment in October 2022; on January 12, 2023, the company acquired a controlling 56.6667% equity stake in Lijing Company.

HC Semitek

HC Semitek expects a net profit attributable to shareholders of the listed company to be a loss of RMB 69 million to RMB 99 million in 2022, turning from profit to loss year-on-year (YoY).

The main reason for the change in performance is:

1. During the reporting period, affected by multiple factors such as recurring epidemics, volatile domestic and international economic environments, and shrinking consumer market demand, sales of some products in the traditional LED sector failed to meet expectations.

2. Market demand softened, LED chip prices declined, and upstream raw material costs rose, leading to a decrease in product gross margin during the reporting period.

3. Decrease in government subsidy amounts. The impact of non-recurring profit and loss items, such as government subsidies, on Sanan Optoelectronics' net profit in 2022 is estimated to be approximately RMB 329 million, a decrease of about RMB 30 million compared to 2021.

Mingwei Microelectronics

For the year 2022, Mingwei Microelectronics expects revenue to be RMB 670 million–RMB 700 million, a year-on-year (YoY) decline of 44.05%–46.45%; net profit attributable to shareholders of the listed company is expected to be RMB 10 million–RMB 13 million, a year-on-year (YoY) decline of 97.99%–98.45%.

Regarding the changes in performance, Mingwei Microelectronics pointed out that in 2022, affected by macro factors such as recurring epidemics, global geopolitical turmoil, and inflation, the demand in the consumer electronics market was sluggish. Based on the economic situation and market supply and demand, the company actively worked to digest inventory and consolidate its market share, proactively adopting a price-reduction strategy to clear inventory. Coupled with the high cost of raw material stockpiling in the second half of 2021, these combined factors led to a significant decline in the company's Revenue and gross profit margin.

Looking back at 2021, driven by a surge in downstream demand and compounded by tight production capacity at wafer fabs, prices for some chips skyrocketed. As a result, LED driver chip companies generally saw their performance improve. Mingwei Microelectronics, as one of the A-share companies that raised prices most aggressively during this chip price hike wave, saw its performance surge nearly fivefold in 2021, achieving a net profit of 647 million yuan in just one year, exceeding the total net profit of the previous seven years.

Biyiwei

For the year 2022, Biiwin Micro expects to achieve revenue of RMB 500 million to RMB 550 million, a year-on-year (YoY) decline of 37.99%–43.63%; the net profit attributable to shareholders of the listed company is expected to be RMB 33.5 million to RMB 40.2 million, a year-on-year (YoY) decline of 83.23%–86.02%.

Regarding the "reasons for performance changes," Biquan Micro pointed out that in 2022, facing an industry "winter," the company actively expanded into new consumer markets such as high-power fast charging and cleaning appliances, and continuously launched new products in fields including industrial control, network communications, computers, power conversion, and energy storage. Although the company's sales revenue in the fourth quarter increased significantly quarter-on-quarter, its overall annual Revenue still declined compared to the previous year.

At the same time, BPS Microelectronics also mentioned that due to the chip supply shortage in 2021, manufacturers in the general LED lighting sector adopted a more aggressive inventory stocking strategy. As a result, 2022 saw a prolonged destocking cycle. Changes in supply and demand led to a decline in gross profit margins for general LED driver chips, and caused asset impairment losses to increase Year-on-year (YoY) compared to the previous period, collectively leading to a decline in the company's net profit.

Haoyang Shares

Haoyang Shares expects the net profit attributable to shareholders of the listed company in 2022 to be RMB 320 million–RMB 390 million, a year-on-year (YoY) increase of 135.36%–186.85%; the net profit after deducting non-recurring gains and losses is expected to be RMB 310 million–RMB 370 million, a year-on-year (YoY) increase of 153.28%–202.30%.

Regarding the "reasons for performance changes," Haoyang Shares stated that the company's main products are primarily sold overseas, with overseas business accounting for more than 75% in recent years, mainly focusing on the European and American markets. As COVID-19 prevention and control measures became normalized in various countries, compared to the first half of 2021 when overseas performing arts events and large-scale gatherings were significantly restricted, Haoyang Shares' overseas business was less affected by the pandemic in 2022, resulting in rapid growth in overseas sales revenue.

Haoshanghao

In 2022, Haoshanghao's revenue is expected to be RMB 6.366 billion to RMB 6.545 billion, a year-on-year (YoY) decline of 4.33% to 6.95%; the net profit attributable to shareholders of the listed company is expected to be RMB 98 million to RMB 107 million, a year-on-year (YoY) decline of 42.77% to 47.69%.

Haoshanghao stated that during the reporting period, due to the combined impact of further weakening demand in downstream consumer electronics and other markets, a decline in comprehensive gross profit margin, increased exchange losses caused by exchange rate fluctuations, and adjustments to epidemic prevention policies in the fourth quarter, the company's revenue in the fourth quarter failed to meet expectations and declined significantly.

At the same time, Haoshanghao also mentioned that the company will seize the favorable market environment and development opportunities brought by the post-pandemic adjustments, expand new product lines, strengthen cooperation with leading industry customers, and increase investment in high-margin products and markets, continuously enhancing the company's profitability and market competitiveness.

Tai Long Shares

For the year 2022, TaiLong Shares expects the net profit attributable to shareholders of the listed company to be RMB 50 million–60 million, a year-on-year (YoY) decrease of 51.22%–59.35%; the net profit after deducting non-recurring gains and losses is expected to be RMB 46.6 million–56.6 million, a year-on-year (YoY) decrease of 50.65%–59.37%.

Tai Long Shares stated that the company's commercial lighting products are mainly used to meet the commercial lighting needs of offline stores. During the reporting period, the recurring pandemic had a significant impact on commercial activities in many domestic industries, leading to a noticeable decline in demand for commercial lighting terminals. Coupled with intensified industry competition, this resulted in a certain degree of decline in both Revenue and gross profit margin for the company's commercial lighting business, causing the commercial lighting segment to incur losses during this reporting period.

Tai Long Shares also mentioned that the company's main business is primarily semiconductor distribution, with commercial lighting as a secondary focus, while the company is actively transforming into an innovative technology enterprise.

Horse

In 2022, HORSER expects the net profit attributable to shareholders of the listed company to be between -152 million yuan and -164 million yuan, a year-on-year (YoY) decline of 1245.56%–1332.88%; the net profit after deducting non-recurring gains and losses is expected to be between -166 million yuan and -177 million yuan, a year-on-year (YoY) decline of 1648.64%–1771.13%.

Horse Lighting stated that in 2022, the global economic growth slowed down, and the domestic COVID-19 epidemic generally showed a trend of frequent outbreaks. The company was significantly affected in terms of market expansion, project advancement, supply chain stability, and daily office operations, resulting in a decline in revenue. The aforementioned adverse factors also had a major impact on the progress of project payments, leading to significant impairment losses on accounts receivable and contract assets.

MLS

For the year 2022, MLS Co., Ltd. expects the net profit attributable to shareholders of the listed company to be RMB 200 million–230 million, a year-on-year (YoY) decline of 80.16%–82.74%; the net profit after deducting non-recurring gains and losses is expected to be RMB 193 million–223 million, a year-on-year (YoY) decline of 78.82%–81.67%.

MLS stated that during the reporting period, recurring pandemic impacts and the implementation of epidemic prevention measures led to a decline in market demand, affecting domestic performance; on the other hand, all overseas factories completed their closures, resulting in increased closure-related expenses and causing a decline in the company's performance.

Changelight Optoelectronics

For the year 2022, Changelight Optoelectronics expects the net profit attributable to shareholders of the listed company to be between -35.9 million yuan and -69.9 million yuan, and the net profit after deducting non-recurring gains and losses to be between -128 million yuan and -160 million yuan.

Regarding the "reasons for performance changes," Changelight stated that during the reporting period, the gross profit of its products decreased significantly year-on-year (YoY). On one hand, affected by the global economy and the LED industry environment, market demand slowed down, LED chip selling prices dropped, and shipment volume decreased YoY, resulting in a YoY decline in the company's chip revenue. On the other hand, considering inventory levels and market demand, the company adjusted its production strategy starting in the third quarter, reducing output on some production lines. Due to the impact of fixed cost allocation, the cost of some chips increased.

Inventronics

For the fiscal year 2022, Inventronics expects the net profit attributable to shareholders of the listed company to be RMB 191 million–RMB 227 million, representing a year-on-year increase of 5%–25%; the net profit after deducting non-recurring gains and losses is expected to be RMB 168 million–RMB 187 million, representing a year-on-year increase of 3%–15%.

Inventronics stated that during the reporting period, in the face of macroeconomic uncertainty, the entire company worked together with determination, fully integrating internal and external resources to leverage the systemic advantages of its global layout. By capitalizing on brand strength and high-quality "customer-centric" services, it achieved rapid growth in overseas orders. It is expected that both Revenue and Net profit will continue to maintain dual growth for the full year of the reporting period.

Hengtai Lighting

For the year 2022, Hengtai Lighting is expected to achieve a net profit attributable to shareholders of the listed company of RMB 118 million to RMB 124 million, representing a year-on-year (YoY) increase of 47.78%–55.29%. The net profit attributable to shareholders of the listed company in the same period last year was RMB 79.851 million.

Hengtai Lighting pointed out that during the reporting period, the company's Revenue remained basically stable. Management strengthened refined management, continuously carried out technological upgrades and production process optimization, and enhanced cost control. Meanwhile, thanks to falling raw material prices, exchange gains from the depreciation of the RMB exchange rate, and the recognition of relevant government subsidies, these factors led to a significant increase in the company's profit compared to the same period last year.

Pak

In 2022, Sanxiong Aurora is expected to achieve a net profit of RMB 88 million to RMB 108 million, representing a year-on-year increase of 233.89% to 309.77%. The net profit for the same period last year was RMB 26.3563 million.

Sanxiong Aurora stated that in 2022, affected by factors such as the recurring pandemic and the downturn in the real estate industry, the company's sales revenue decreased compared to the same period last year. However, due to the company's continuous efforts to reduce costs and increase efficiency, total operating costs decreased compared to the same period last year.

In 2022, Leedarson is expected to achieve a net profit of RMB 472 million to RMB 532 million, representing a year-on-year (YoY) increase of 56.65% to 76.57% compared to the same period last year. The net profit for the same period last year was RMB 301 million.

Regarding the expected increase in net profit, Leedarson stated that in 2022, both the revenue and gross profit from its domestic and overseas sales businesses increased. Additionally, as the company's export products are mainly settled in US dollars, the depreciation of the RMB against the US dollar resulted in significant exchange gains during this period.

Everfine Information

For the year 2022, Yuanfang Information expects the net profit attributable to shareholders of the listed company to be RMB 80 million–105 million, a year-on-year (YoY) decline of 0.34%–24.07%; the net profit after deducting non-recurring gains and losses is expected to be RMB 56 million–72 million, a year-on-year (YoY) decline of 0.54%–22.64%.

Yuanfang Information pointed out that during the reporting period, the company's business was generally stable with a slight decline; the main reason for the difference in net profit attributable to shareholders of the listed company compared to the same period last year was: a decrease in revenue from the driving service information system and services business of the company's wholly-owned subsidiary, Zhejiang Weier Technology Co., Ltd.

Jiuliang Shares

For the year 2022, Jiuliang Shares expects the net profit attributable to shareholders of the listed company to be between -20 million yuan and -30 million yuan, a year-on-year (YoY) decline of 340.01%–460.01%; the net profit after deducting non-recurring gains and losses is expected to be between -20 million yuan and -30 million yuan, a year-on-year (YoY) decline of 474.53%–661.80%.

Jiuliang Shares stated that the main reasons for the performance change in 2022 were the impact of the pandemic, which led to a decline in sales revenue, as well as rising upstream raw material prices since last year and low production capacity utilization, resulting in higher depreciation and amortization expenses. This drove up product costs and reduced gross profit margin.