On March 1, Azure Lithium Core stated at the 2020 annual online performance briefing that in 2021, the company’s LED business is expected to turn losses into profits, reaching a profit of more than 50 million yuan.
Prior to this, Azure Lithium Core disclosed its 2020 annual report. The report shows that Blue Lithium will achieve revenue of 4.233 billion yuan in 2020, a year-on-year increase of 21.63%; realize net profit of 278 million yuan, a year-on-year increase of 136.33%. Among them, LED business achieved revenue of 859 million yuan, a year-on-year increase of 7.5%, accounting for 20.3% of total revenue.
However, it is worth noting that the after-tax net profit of Huai'an Aoyang Shunchang Optoelectronics Technology Co., Ltd., a subsidiary of Azure Lithium Core responsible for the LED business, attributable to the listed company was a loss of 46.4502 million yuan.
So, why does Azure Lithium Core predict that it will turn losses into profits this year? At the briefing, Azure Lithium stated that the company will continue to increase research and development in the LED business and carry out product transformation and upgrading, from the main production of general lighting chips to the production of higher value-added chips such as high light efficiency, backlighting, and plant lighting.
In terms of LED business strategic planning, the company stated that the LED business will continue to explore the technology application of “sending more light with the least amount of light”, unswervingly take the road of high-end and differentiated development, and always take “high-end "Technology, high-end products, and high-end customers" are the goals of the company. Continue to expand product series, optimize product structure, and continue product upgrades based on high-end core products such as large-size flip-chip, high-voltage, and high-efficiency, backlight, and MiniLED. Adhere to the long-term and normalized R&D system construction, and regard technological leadership as the basic concept of enterprise development. In the company's core products, always one step ahead.
At the same time, the blue lithium core will actively implement the patent layout and continue to broaden the moat. Continuously optimize the balance of capacity matching and production line utilization due to the increase in the proportion of orders for high-end products, and timely supplement and adjust production line equipment to ensure that the production capacity utilization rate is at a high level. In 2021, we will continue to research and develop, continue to adjust the product structure and customer structure, increase the proportion of high-end products to more than 80%, maintain the highest domestic technical level in some product areas, and achieve a non-net profit of 50 million yuan.
In fact, in the past two years, the LED chip industry as a whole has been in a downward adjustment period. Second-tier manufacturers and backward production capacity have withdrawn from the market. The concentration of the LED chip industry has gradually increased, and the head effect has begun to appear.
At the same time, Micro/MiniLED is in a critical period of tight capacity expansion and market expansion. In the context of trade friction and the new crown epidemic, the third-generation semiconductor is also in an important incubation period. In this context, a new round of growth curve for LED chips is starting, and related companies will also get further development.