Taiwan's LED packaging plant Yuhong's revenue in February 2017 increased by 50%, mainly due to the difference between the Lunar New Year holiday and the same period last year. The accumulated revenue in the first two months was still 0.8%, roughly flat. The company said that it will not sprint revenue this year, and will continue to focus on optimizing product mix, increasing the proportion of niche applications, and improving profitability. Among them, orders for infrared products are expected to maintain steady growth this year, and SMD products have strong kinetic energy in the cabin. As for outdoor lighting/street lights, Suihong currently mainly undertakes the road marking project for the Taiwanese government in China and supplies a small amount to the mainland market. Last year, the Taiwan street lamp standard contributed a lot to the overall revenue, accounting for 20% of the revenue. This year, it is reported that there are still several county and city streetlights will be shipped. Qihong is an LED packaging factory. The factory is located in Dongguan, Guangdong, China. In recent years, the operation has been revised. Since 2012, the industry has suffered continuous losses. In the past two years, we have adopted a cautious order-taking strategy and actively adjusted our customer structure and product mix. Last year, LAMP accounted for about 10%, SMD (mainly for consumption and traditional applications) accounted for nearly 30%, and infrared products accounted for more than 40%, public works/standards. The proportion is about 20%. It is estimated that the growth momentum of SMD may increase this year. The main reason is that the SMD product line has entered the US aerospace supply chain. Since the fourth quarter of 2016, it has been supplying cabin application products. It is estimated that the scale of aerospace application shipments will be enlarged in 2017, and the initial estimated order visibility will last for 4 or 5 years. Infrared products have recently been focused on a small number of niche market applications, including printers, robots, sweeping robots, industrial equipment, sensing devices, etc. This year, shipments are expected to maintain steady growth. In 2016, the revenue of Haohong was approximately 2.164 billion yuan (NTD, the same below), an increase of 8.2%. In the third quarter of last year, the gross profit margin of the single quarter came to 21.5%, a record high of nearly six years since the fourth quarter of 2010. Accumulated the first three quarters of operating profit of 45 million yuan, the industry turned profit, after-tax net profit of 132 million yuan, earnings per share of 0.67 yuan, an annual increase of 1.5 times. It is estimated that the profit in 2016 may be the best performance in the past five years in 2012. However, the company believes that the profitability in the past few years has not been very good. Last year, it finally stabilized. The goal this year is to hope that the revenue will remain stable and the profitability of the industry will be further improved. In February this year, revenues reached 130 million yuan, a decrease of 12.3%, and an annual increase of 52.63%. The accumulated revenue for the first two months was approximately 279 million yuan, down 0.83% year-on-year.
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