China's QUEENDOM, an LED lamp module factory, pointed out on the 27th that orders in mainland China are full in the second half of the year, operations in the third quarter may return to the level of the first quarter, and shipments in the fourth quarter may be better than those in the third quarter. 13% to 15%, if the shortage of automotive chips improves, the growth rate will be even greater.

China's QUEENDOM participated in the online seminar held by a securities company to welcome the global new energy vehicle competition in the afternoon, and observed the operation in the first half of the year. Li Qing pointed out that the closure and control of COVID-19 in Shanghai in April and May affected the efficiency of the Shanghai plant, and June was in the adjustment period. Therefore, the Shanghai plant suffered losses in the second quarter; from the first half of the financial report, the Shanghai plant accounted for 75% of the output, and almost no shipments were made in the second quarter. Only the Taoyuan Guanyin plant in Taiwan and the Dongguan plant in Guangdong shipped.

China's QUEENDOM pointed out that although Shanghai's lockdown has been gradually lifted since June and production capacity has been adjusted, suppliers are also around Shanghai, and the recovery situation depends on whether the supplier's raw material delivery time is shortened.

China's QUEENDOM pointed out that the gross profit margin in the second quarter will be worse than the 12.17% in the first quarter.

China's QUEENDOM explained that the gross profit margin declined in the second quarter, mainly due to the lack of materials for automotive chips, resulting in a low utilization rate of equipment capacity, up to only 70%; in addition, the major customer Huayu Vision's performance accounted for a high proportion, requiring suppliers to give discounts, affecting gross profit margins.

Looking forward to the second half of the year, China's QUEENDOM pointed out that the Shanghai plant will gradually resume production in July, and customers in mainland China have placed orders for lamp modules. The half-year operating growth rate depends on the supply of automotive chips.

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Liqing predicts that operations in the third quarter will return to the level of the first quarter, shipments in July will be better than those in June, and shipments in the fourth quarter will be better than those in the third quarter. The annual revenue target will increase by 13% to 15% compared with last year. If the shortage of automotive chips improves, the revenue growth will be even greater this year.

Liqing explained that new customers can drive gross profit margins and increase capacity utilization. The target gross profit margin in the second half of the year will return to the range of 17% to 18%. In response to rising raw material prices, Liqing will also dynamically discuss price adjustment plans with customers.

Looking forward to next year's operation, Liqing has set a target of 15% to 20% growth next year, mainly due to the strong demand from consumers in the new car market in mainland China, the large number of orders for lamp modules, and the availability of the Guanyin factory in Taiwan to ship to the United States, which will help the company. operating performance next year.

Regarding the production capacity layout of Guanyin Factory in Taiwan, Li Qing pointed out that the second block of intelligent headlight controller production line will be expanded, and the market will be mainly sold to the United States. The monthly output value is planned to be 100 million yuan (NTD, the same below). The legal person said that Liqing has obtained orders for headlight controllers from American car manufacturers. It is estimated that the monthly output value from October to December will reach 100 million yuan, and the monthly output value will exceed 100 million yuan next year, with a maximum of 140 million yuan.

Liqing continues to deploy electric vehicle lights, which currently account for about 25% of the overall performance. The legal person pointed out that Liqing's electric vehicle lights customers are mainly Chinese mainland vehicle brands Great Wall and Geely, and they are also obtained through major customers Huayu Vision. Orders from OEMs such as Yiqi and Shanghai.

Liqing continues to deploy the LED vehicle lamp module market in mainland China. Its main customers include brand car manufacturers Great Wall Motors, etc., as well as major first-tier suppliers of automotive lamps in mainland China, Huayu Vision Technology (formerly Shanghai Koito), Guangzhou Koito, and Damo Wereco , OLSA (Tier 2), etc. (Source: CNA)