Mulinsen Acquires LEDVANCE for LED Integration
In the first quarter of 2018, the company's revenue increased by 31.70% year-on-year, and its net profit attributable to the mother was 24.94% year-on-year, basically in line with expectations.
In the first quarter of 2018, the company's revenue was 2.023 billion yuan, a year-on-year increase of 31.70%, net profit attributable to the mother was 166 million yuan, a year-on-year increase of 24.94%, net profit attributable to non-return to the home was -0.14 billion yuan, and gross profit margin was 13.69%. The year-on-year decrease was 11.27 pct, and the net interest rate was 8.15%, which was basically the same as the same period of last year. It is expected that the net profit for January-June 2018 will be approximately RMB 330-450 million, representing an increase of approximately 7.80%-47.00% over the same period of last year.
The company's revenue increased steadily year-on-year, but deducted non-net profit slightly, mainly due to the relocation of the company's production capacity and expansion of production in Jiangxi Province. The new production capacity was not fully released and dragged down the performance. The capacity utilization rate is expected to increase significantly from the second quarter.
Due to the relocation of some of the company's old factory production capacity to Jiangxi and the expansion of production capacity in Jiangxi, during the reporting period, the net value of fixed assets increased by 1.2 billion year-on-year, resulting in a significant increase in depreciation. Meanwhile, due to the impact of recruitment during the Spring Festival, the utilization rate of new capacity was low. In addition, the large amount of investment for expansion and the short-term debt exchange of the company led to a 100% year-on-year increase in financial expenses of the company. As a result, the company's gross profit margin and net profit margin decreased. It is expected that the company's production capacity relocation will be near the end from the second quarter, and the new production capacity will be released smoothly. The capacity utilization rate will be increased. At the same time, supporting financing will be available in the future to reduce the company’s liabilities and the company’s profitability is expected to increase.
The company's packaging rankings rose to the fourth place in the world. At the same time, the acquisition of LEDVANCE was completed, and the entire industry chain layout achieved the LED integration carrier.
According to the LED INSIED data, in 2017, Mulinsen has been promoted to the world's fourth largest packaging plant, and since April of this year, LEDVANCE 100% equity has been transferred to the name of Mulinsen. Mulinsen has become the integrated aircraft carrier of the LED industry chain. Through LEDVANCE's double-hundred-year brand awareness, the company has won important bids in the Indian market, and successfully explored the global sales area, from 120 countries to 140 countries. The synergy effect of integration shows a good momentum. LEDVANCE’s LED business in fiscal year 2018 is expected to exceed 60%. At the same time, the company continues to strengthen the supporting capabilities of the entire industry chain and build a global LED integration aircraft carrier. The upstream strategic alliance LED chip leader, including Australia, Huacan, Crystal, etc., to ensure the safety of chip supply, increase the technical investment in IC packaging and smart manufacturing production center. The downstream continued to vigorously expand the lighting industry, and accelerated the completion of the lighting implementation and distribution of sales outlets in Yiwu and Xinyu.