Sanan Optoelectronics 2022 revenue was 13.222 billion yuan

April 27, Sanan Optoelectronics released its 2022 annual report. The report shows that in 2022, Sanan Optoelectronics achieved revenue of 13.222 billion yuan, a year-on-year increase of 5.17%. Among them, the LED business segment achieved total sales revenue of 10.175 billion yuan, and the integrated circuit business segment achieved total sales revenue of 3.047 billion yuan. Net profit attributable to shareholders of the listed company was 685 million yuan, a year-on-year decrease of 47.82%.

Sanan Optoelectronics stated that during the reporting period, the proportion of sales to high-value customers in the LED business continued to increase , the automotive lighting segment seized development opportunities in new energy vehicles to overtake on a different track, the RF front-end business advanced steadily, and SiC products completed key market layout. However, the company's insufficient prediction of sudden industry conditions led to reduced equipment operational efficiency, and net inventory value increased by 25.75% compared to the same period last year. The increase of 1.189 billion yuan was mainly due to an increase of 673 million yuan in net inventory value at Quanzhou Sanan and 412 million yuan at Hunan Sanan.

Specifically, regarding the LED business segment, during the reporting period, influenced by domestic and international economic conditions, fluctuations in upstream raw material prices, a contraction in downstream consumer demand, insufficient capacity utilization, rising production costs, and sluggish market demand in traditional LED sectors, the company's LED chip business revenue declined, inventory increased, and profit margins were squeezed. The company's LED epitaxial chip business revenue decreased year-on-year by 18.46%, with traditional LED business down 28.42% year-on-year. With economic recovery and the gradual implementation of relevant policies, demand is expected to stabilize and rebound, and the traditional LED market will also return to a positive trend.

Company Mini/Micro LED, horticultural lighting, automotive lighting, UV, IR and other high-end LED product business scale further expanded, achieved sales revenue growth of 47.23% compared to the same period last year. Sanan Optoelectronics stated that the company is actively increasing the structural proportion of products in these niche segments.

In the Mini LED sector, the company's single international client has slowed its procurement rhythm in the second half of the year due to various factors, but its application solutions remain unchanged. Domestic clients are not only vigorously promoting the application of Mini backlighting solutions in products such as TVs and laptops, but RGB direct-view solutions are also rapidly penetrating the market. Consequently, the base of Mini LED customers will continue to grow. With the dense release of terminal products, the expansion of solution application scopes, and accelerated product penetration, the demand for Mini LED will accelerate significantly, thereby driving continuous capacity release from the company, and the proportion of the company's high-end products will further increase.

During the reporting period, wholly-owned subsidiary Sanan Optoelectronics achieved sales revenue of 1.997 billion yuan, a year-over-year increase of 34.16%. Following the acquisition of WIPAC, Sanan Optoelectronics deepened integration and management, strengthened operational collaboration, and steadily advanced its business, achieving significant improvements in efficiency, cost control, and quality management, with historic breakthroughs in operating performance. Sanan Optoelectronics has completed the development of pixel ADB lens modules, steering projection lamps, and other products; mass production of music-synchronized ambient lighting; and multiple star products including iterative headlights, rear combination tail lights, and full-width combination tail lights have received excellent industry reputation, penetrating high-end vehicles and new energy vehicles. The market share of intelligent vehicle lighting products in next-generation autonomous driving vehicles is gradually increasing.

On the same day, an announcement stated that Sanan Optoelectronics' first-quarter revenue was 2.908 billion yuan, a year-on-year decrease of 6.42%; net profit was 214 million yuan, a year-on-year decrease of 50.22%. The decline in Sanan Optoelectronics' net profit was mainly due to the slow recovery of consumer demand during the reporting period, slower recovery of the company's LED and RF front-end businesses, insufficient operating rates, rising costs, and narrow profit margins; while power electronics and optical technology businesses continued to advance, with continuous improvements in revenue and profit, their impact on performance during the reporting period was limited, resulting in a significant drop in the company's net profit.