LED chip factory Guanghong held a business conference on the 17th, with Chairman Xu Mingsen saying that there is no good news in the next two quarters. At present, only vehicle use demand is relatively stable and the proportion of optohong vehicles is still maintained. With the growth of demand of electric cars and vehicle electronics, it will drive the growth of demand of automotive LED and IR. Strive to achieve the same revenue next year as this year.
Under the impact of the environment, Guanghong has posted deficits for two consecutive quarters and its gross profit margin declined for the third consecutive quarter last quarter to 6.14 percent, the lowest level in the last 14 quarters. With regard to this, Xu Mingsen said that due to rising inventories and the decline in the PMH, coupled with market chaos and uncertain demand, the price adjustment of products has further impacted the gross profit margin. Xu Mingsen said that with no good news in the next two quarters, we still actively enhance our competitiveness and Guanghong has the ability to cope with the changes in the environment.
Xu Mingsen stressed that at present, only the demand for vehicle is relatively stable, and the revenue in the first three quarters is higher than the same period last year. The main customers are LED packaging factories distributed in mainland China, Taiwan and Southeast Asia. In the future, both electric vehicles and vehicle electronics will drive the demand for vehicle LED and IR, and as the MiniLED becomes thinner and smaller, Automotive Mini LED has become the direction of transformation, and the research and development will turn to the trend of thin, small chip and no-wire (coated crystal), which is quite attractive to the designers of automotive light source and IR.
Xu Mingsen said that the company MiniLED is mainly applied in IR and high-brightness red and yellow light, and focuses on automotive applications. At present, only a small quantity of products are being sold, but also because of the low base period, there is relatively large growth potential. He believed that the MiniLED will become thin, which will drive the demand of automobile, AR or VR, and it has potential to replace the existing market.
Another popular product line with light weight is UVC. In terms of disinfection/curing application, it reached 21 percent in the first three quarters of this year, up from 19 percent in the same period of last year, with light UVC accounting for about 5 percent.
Xu Mingsen pointed out that the epidemic has some urgent demands, and with the advent of the post-epidemic era, the demand will return to a stable level, mainly in the application of household appliances and disinfection water. Due to the relationship between the product characteristics of UVC, the market will slowly grow, but will not grow quickly.