Sunny Lighting's revenue is expected to break 10 billion in 2018

On the afternoon of April 30, Sunny Lighting announced the minutes of the 2013 annual results meeting. Sunlight Lighting Chairman Chen Wei, General Manager Guan Yong, Chief Financial Officer Wu Jie and Board Secretary Zhao Fanghua interpreted 2013 annual results.

In 2013, sunshine lighting revenue was 3.169 billion yuan, an increase of 22.22% year-on-year; net profit attributable to shareholders of listed companies was 232 million yuan, a year-on-year increase of 10.27%. In 2013, the company's LED lighting products revenue was 983 million yuan, an increase of 170% over the same period of last year. The sales volume was 32.01 million (sets), an increase of 271% year-on-year; the revenue of integrated electronic energy-saving lamps was 1.54 billion yuan, a year-on-year decrease of 0.06%, and the sales volume was 240 million. The year-on-year increase of 9.45%; energy-saving lamps and lanterns income of 578 million yuan, a year-on-year decrease of 7.91%, sales of 23.126 million sets, a year-on-year decrease of 14.91%.

The profit margin of self-owned brands is higher. In 2013, the LED revenue structure of corporate customers was 52% for Philips, 30% for other OEMs, and approximately 15%-20% for independent brands. The level of gross profit margin for OEMs is relatively low. The level of gross profit margin of independent brands is relatively high, generally a difference of 6-10 percentage points, and the net profit level is still higher than that of OEMs.

Therefore, the future development of solar lighting strategy and energy-saving lamps to LED transition, light source to the transformation of the lighting, OEM and OEM brand and re-transform. The focus of the next few years is to increase the proportion of lamps and lanterns in revenue, and at the same time strengthen the expansion of independent brand businesses.

Sunshine Lighting stated that the current price of LED products has dropped by 15-20% compared with the end of the previous year. The company's gross profit margin has improved mainly compared with the previous two factors. First, the cost of the company's cost decline is greater than the price decline rate. Second, the proportion of the LED's own brand revenue with higher gross profit margin is further increased.

The market demand for traditional businesses in the next three years is expected to decline by 15-20%, of which traditional lamps will decline faster than light sources. As for the end of market demand, it should not completely disappear in recent years, at least after 2020.

Sunshine Lighting mentioned in the annual report "1500 automatic hour bulb assembly line per hour" can currently reach an efficiency of 1200 per hour. The two automated production lines introduced by the company are LED products. Currently, the monthly production capacity of non-automated production lines is 200,000 light-months per month, and the automation line can reach a theoretical capacity of 600,000/month. As for the number of new automation lines added in 2014, the actual effect of the current two lines will need to be determined.

Sunshine Lighting won the bidding for the promotion of semiconductor lighting products in 2012/2013. For 2013, the company’s promotion subsidies were received based on shipments in 2012 and shipments in 2013. The actual promotion in 2013 was about 90 million yuan. . In 2014, the company's budget for national promotion subsidies was 60-70 million yuan, including about 10 million yuan in the previous year.

In the 2013 Annual Report of Sunshine Lighting, the operating budget for 2014 was 3.9 billion yuan in revenue and 330 million yuan in profits, of which traditional business was 2.1 billion yuan and LED business was 1.8 billion yuan. This also means that LED business revenue in 2014 will increase from 31% in 2013 to 46% in 2014. In 2018, it is estimated that sales will be 10 billion yuan. Sunny Lighting said that all income plans are LED products, but if there is energy-saving lamp business, it will continue to do.

In 2014, the e-commerce revenue target is around RMB 30 million. Sunshine Lighting has now officially launched the Tmall and JD.com flagship stores, followed by some promotional activities. At present, the person in charge of e-commerce has extensive experience in e-commerce operations. Companies previously employed in other companies have very good sales performance in the industry. At present, the proportion of e-commerce channels in the domestic lighting industry is about 7%. In 2014, the company’s revenue target for e-commerce was not high, ranging from RMB 20 million to RMB 30 million. The e-commerce channel will not have a significant impact on existing distributors. The company will follow the “three-step” development approach and will eventually achieve online and offline interaction. Currently, Tmall's fees are deducted according to the deduction method. JD.com determines the fees according to the annual agreement.

At the same time, Sunshine Lighting believes that the domestic market must do a good job. First, based on products and services, we must ensure that the products have a sufficient price/performance ratio. Second, cooperation in the dealership has not yet reached an optimal state of cooperation. It is necessary to strengthen the search for a good cooperation model with the dealers. If we can find the goal of complementing the company's business, we do not rule out the company's expansion.

Overseas markets are mainly strengthened through the construction of personnel and teams. The domestic market is mainly strengthened through brand promotion and advertising investment. At present, the main business of the international market network is in Asia, Europe, North America, and Latin America; the domestic market basically covers all provinces and most prefecture-level cities and county-level cities. At present, there are about 3,000 dealerships in domestic channels and about 3,000 hardware outlets. .

In the future, LED lighting will develop toward smart products to further expand the application boundaries of LED lighting. The company is currently actively preparing to build a dedicated smart product team, led by the general manager responsible for the formation. In the next few years, simple intelligent control products will start to be applied first, and the speed of popularization will be faster. The company’s target will increase the proportion of smart products to 30-40% in the future.