Representatives of companies such as Haiyangwang and Aoyang shared this information on the investor interaction platform

Recently, companies including Haiyangwang, Aoyang Shunchang, Hongli Zhihui, Aoto Electronics, Foshan Lighting, and Mulinsen have provided explanations on various interaction platforms regarding issues of concern to investors.

Haiyangwang: The proportion of LED products continues to increase

Haiyangwang's 2017 annual results online briefing was held on the afternoon of May 7 on P5W (Quanjingwang). At the event, the company's Chairman and CEO Zhou Mingjie stated that, in accordance with the company's overall strategy for 2018-2025, the company will be guided by its vision and mission to deeply explore traditional market lighting demand, use technology to drive new areas as pillars of corporate development, improve the organizational operation system, carry out in-depth integration with suppliers, identify and solve problems in autonomous operations, promote the fighting spirit of the middle and senior leadership team, and achieve the company's 2025 operating targets.

In addition, Zhou Mingjie also revealed that the "13th Five-Year Plan for the Development of the Semiconductor Lighting Industry" issued in 2017 clearly set forth the development goals for the semiconductor lighting industry by 2020, requiring continuous breakthroughs in key semiconductor lighting technologies, steady expansion of the industry scale, and gradual improvement in industry concentration. Since 2016, the company has required all new products to use LED. The proportion of LED products is continuously increasing, and the company will also embrace new development opportunities.

Tang Xiaofen, the company's board secretary and CFO, stated that the company specializes in the R&D, production, sales, and service of lighting equipment for special environments. The equipment needs to adapt to harsh conditions such as strong vibration, strong impact, strong corrosion, high/low temperatures, and electromagnetic interference, with high technical requirements. The products are mainly positioned in the mid-to-high-end market. The company has not only mastered core production technologies but also has advantages in meeting differentiated customer needs and providing rapid response. With its comprehensive strength in R&D, sales, and service, the company holds a competitive edge in the domestic special-environment lighting industry. The equipment provided by the company delivers consistent and stable lighting experiences in environments with flammable and explosive atmospheres, strong vibration, strong impact, strong corrosion, high/low temperatures, high humidity, high pressure, electromagnetic interference, and wide voltage input, meeting special lighting needs such as special light distribution, signaling, and emergency lighting. At the same time, it satisfies requirements for energy saving, safety, environmental protection, health, intelligence, and personalization, achieving industry-leading performance. Leveraging its rich variety of products, the company responds quickly to customers' personalized needs, organizes production according to customers' diverse requirements, and holds an advantageous position in order competition and acquisition.

Aoyang Shunchang: LED chip production capacity is currently at full production and full sales

Aoyang Shunchang stated on May 7 in response to investor questions on the interactive platform that the company's LED business operated normally in Q1, with the new 400,000-piece capacity advancing in an orderly manner. Currently, equipment is gradually being delivered to the factory for installation, and is expected to reach full production in Q3. LED chip production capacity is currently at full production and full sales.

Some investors asked about the progress of the company's LED business in Q1 and when the new 400,000-unit capacity is expected to reach mass production. In response, the company made the above statement.

Hongli Zhihui: Products exported to the US account for about 3%

Hongli Zhihui (002477) held its 2017 annual performance online briefing on the afternoon of May 3 on Panorama · Roadshow World. Sun Changyuan, Chief Financial Officer, stated at the event that the company's main products exported to the US are LED general lighting products, LED commercial vehicle lamp products, and LED device products, accounting for a total of about 3%.

In addition, Deng Shoutie, Board Secretary of Hongli Zhihui, stated that the company's Internet car owner services maintained steady growth in 2017, exceeding performance commitments. Jiangxi Hongli is now operating normally, and the company's current LED packaging capacity totals 5,000 KK/month.

Deng Shoutie also stated that the company will focus on its core business, review equity investment projects that do not belong to the three major business segments of LED packaging business, LED automotive lighting business, and Internet car owner services, and exit them in a reasonable manner.

Aoto Electronics: LED display system will be applied at the 2018 Russia World Cup

On May 4, Aoto Electronics (002587) stated on the interactive platform that the LED display system developed by the company has been applied in two World Cups in South Africa and Brazil, and will be applied to the 2018 Russia World Cup.

Foshan Lighting: Studying measures to avoid foreign exchange rate market risk

Foshan Lighting's Board Secretary Lin Yihui stated at the event that in 2017, the company's export revenue accounted for 39.18%, reaching 1.489 billion yuan, mainly settled in US dollars. According to the tariff list, the company's LED products are not included on the tariff list, so the trade war has little impact on the company. The company is currently studying measures to avoid foreign exchange rate market risks. The industry in which the company operates belongs to the downstream industry chain of lighting, with relatively low entry barriers. Coupled with various policy support, a large number of enterprises have poured into the LED field, leading to relatively obvious structural overcapacity problems in the LED industry, especially in downstream application industries, which has led to disorderly vicious competition in the market — one manifestation being the prevalence of price wars, which is also an inevitable stage of industry reshuffling. It is believed that with the development of advantageous enterprises and the gathering of advantages, the development of the industry will become increasingly rational.

In addition, he also revealed that the company's main business is lighting equipment and lamps, accounting for over 99%. In the future, the industry market of the main business will continue to develop under stable macroeconomic conditions. In 2017, through efforts, the company has reached cooperation with well-known domestic automobile main supporting factories such as Dongfeng Nissan, Dongfeng Liuqi, Geely, Chery, and Changfeng Leopard, and the LED automotive lighting business sales revenue increased by 225% year-on-year.

Regarding R&D, Lin Yihui stated that in 2018, the company's R&D work will mainly focus on the development of new products, especially the R&D investment in smart products and supporting lamps. The annual R&D investment accounts for no less than 3% of operating revenue.

Mulinsen: Domestic brand positioning similar to Xiaomi

Mulinsen Lighting released an investor relations activity record on May 3rd. Regarding its relationship with upstream chip manufacturer Aoyang Shunchang, Mulinsen stated that the cooperation with Aoyang Shunchang is primarily in the chip area; this is an important part of the company's industrial layout, playing a critical role during the chip shortages of the year before last and last year. As for brand value, Mulinsen stated that the positioning of Mulinsen as a domestic brand is similar to Xiaomi—fine quality at affordable prices. The brand positioning of Ledvance Osram, on the other hand, is somewhat like that of Samsung and Apple, brands that may differ in terms of technology and specifications. Therefore, from Mulinsen Lighting to Ledvance, different product lines carry different brand values, with their own distinct requirements and respective strengths.

Regarding the new Jiangxi factory, Mulinsen stated that the first two years were mainly spent on infrastructure construction. With the continuous investment in equipment in 2017, part of the equipment was relocated from Zhongshan, while the other part was newly purchased. With infrastructure construction, equipment investment, and staff recruitment and training in place, the company currently expects to basically meet its targets in the second quarter as planned.

In addition, Zhen Zhihui, securities affairs representative of Mulinsen, revealed during an investor Q&A session that the company's products are primarily oriented toward domestic sales, and the recent China-US trade frictions will not have a significant impact on the company's business.