Foshan Lighting's revenue growth slows down in the

2022-08-12
  • Detail

Foshan Lighting in the cold winter of the car market: the revenue growth slowed down, and the net profit fell for two consecutive times

Foshan Lighting in the cold winter of the car market: the revenue growth slowed down, and the net profit fell for two consecutive times

08:59 author: Zheng Bingxun Tong Haihua source: China operations

this newspaper/Zheng Bingxun/Tong Haihua/Guangzhou report

for the lighting enterprise Foshan Electric Lighting Co., Ltd. ("Foshan Lighting"), 2019 is still not a good year. According to the recently released third quarter report of 2019, the revenue and net profit growth of Foshan Lighting in the first three quarters of 2019 showed a double-digit decline. Before that, Foshan Lighting has experienced negative growth in net profit for two consecutive years

since 2017, Foshan Lighting has announced the establishment of a motor vehicle lighting division to increase the automotive lighting business. Unexpectedly, China's auto market immediately ushered in the first negative growth in 28 years in 2018. In the past three quarters of 2019, the auto market continued to decline

since this year, Foshan Lighting has encountered many changes in succession. First, in order to revitalize assets, Foshan Lighting transferred all shares of its subsidiary Chengdu Hongbo Industrial Co., Ltd. in March. Soon after, the chairman of the board of supervisors and the Secretary of the board of directors resigned one after another

how will Foshan Lighting deal with the impact of the "cold winter" of the car market on its main business? What impact will internal changes bring? China business daily sent a letter to the Secretary Office of Foshan Lighting and the certificate agent. As of press time, no reply has been received

the performance continued to be depressed

on October 30, Foshan Lighting, a large lighting enterprise, released its third quarter report of 2019. The report shows that the operating revenue of Foshan Lighting in the first three quarters was 2.442 billion yuan, a year-on-year decrease of 15.35%; The net profit attributable to the parent company was 231 million yuan, a year-on-year decrease of 28.72%; The basic earnings per share was 0.1649 yuan, a year-on-year decrease of 28.71%

meanwhile, the operating revenue of Foshan Lighting in the third quarter was 755 million yuan, a year-on-year decrease of 7.98%; The net profit attributable to the parent company was 63.44 million yuan, a year-on-year decrease of 32.79%; The basic earnings per share was 0.0453. Deng Fei, Ph.D. of the University of Tokyo in Japan and researcher of the composite material center of the University of Delaware in the United States, resigned from his post, with a year-on-year decrease of 32.89%

in fact, Foshan Lighting has experienced a slowdown in revenue growth for many years, with negative net profit growth for two consecutive years

in 2017, Foshan Lighting achieved a revenue of 3.800 billion yuan, a year-on-year increase of 12.88%, while the net profit attributable to the parent company was 740 million yuan, a year-on-year decrease of 30.96%. When the total extension rate (AG,) of Dali FM was measured manually,%; In 2018, Foshan Lighting achieved a revenue of 3.802 billion yuan, a year-on-year increase of 0.05%, and the net profit attributable to the parent company fell again by 48.99% to 378million yuan

in fact, the LED industry has been under pressure as a whole in recent years, and many enterprises have experienced a decline in performance

according to the data of Guosen Securities, the revenue growth of the LED industry in the third quarter slowed down to 3% year-on-year, and the net profit fell by 54% year-on-year, which was the low point in recent three years. Zhongtai securities further pointed out that the growth rate of LED lighting revenue fell slightly in the third quarter, from 1.26% in the previous quarter to -1.23%. At the same time, the inventory of lighting enterprises maintained a downward trend for nearly four quarters, indicating that lighting demand is still relatively low

however, China business daily horizontally compared the performance of many lighting enterprises in the industry since 2016, and found that the situation of Foshan Lighting is even less optimistic

among them, the net profit growth of Sanxiong Aurora () in 2018 fell by nearly 30 percentage points year-on-year, and the net profit of sunshine lighting () in 2017 and 2018 fell by 11.31% and 4.12% year-on-year respectively. They wrapped two layers of carbon fiber outside the central ultra light nuclear structure. However, in the first three quarters of 2019, the net profits of these two enterprises began to pick up, with year-on-year growth of 19.24% and 80.98% respectively

OPP lighting () and MuLinSen (), which have developed rapidly in recent years, experienced a slowdown in the growth of revenue and net profit in 2018, but the net profits of these two enterprises were in an upward state in the first three quarters of 2019

in contrast, the net profit of Foshan Lighting has been declining since 2017, and has not stopped falling so far

overweight automotive lighting business

according to the disclosed annual report, Foshan Lighting's main products include LED light sources, LED lamps, LED automotive lighting, traditional lighting, switches, sockets, etc. At present, Foshan Lighting has formed three business segments: lighting, electrician and automotive lighting

in recent years, Foshan Lighting has suddenly made efforts to increase its layout in the field of vehicle lighting. However, China's auto market has experienced a "cold winter" in recent years, which has aroused the market's focus on Foshan Lighting's move

Copyright © 2011 JIN SHI