① Qianzhao Optoelectronics turned a loss into a profit in 2023, with Q4 earning more than 100 million in a single quarter; ② there were signs of a recovery in market demand, and a continuous increase in the revenue share of middle- and high-end products boosted performance.
Financial Services Association, March 25 (Reporter Lu Tingting) Benefiting from the gradual recovery in demand in the LED market, Qianzhao Optoelectronics (300102.SZ) turned a positive profit in Q3 last year, earned more than 100 million yuan in Q4, and was able to turn a loss into a profit for the full year of 2023.
This evening, Qianzhao Optoelectronics released its 2023 annual report. Operating revenue increased 40.63% year on year to 2,387 billion yuan; net profit to mother increased 162.77% year on year to 30.073 million yuan, with a loss of 50.355 million yuan in the same period last year.
In fact, Qianzhao Optoelectronics's net profit for the first half of 2023 was still in loss. The turning point occurred in the third quarter, and the fourth quarter was the key to achieving a “turnaround” in performance. Looking at a single quarter, Q1 to Q3 companies achieved net profit of -102 million yuan, -06 billion yuan, and 21 million yuan respectively; 2023Q4 net profit to mother was 119 million yuan, an increase of 510.34% year-on-year, and 466.67% month-on-month.
Judging from the market conditions in 2023, the LED chip industry in which Qianzhao Optoelectronics is located experienced a downturn at the beginning of the year, ushered in a recovery in the middle of the year. However, the company also confessed that “LED chip prices are still declining in 2023, and overall industry demand recovery is slow.”
In this context, industry manufacturers are also “rolling” into the high-end category. The results of the same industry company Jucan Optoelectronics (300708.SZ) also turned a loss into a profit in 2023, and net profit increased 291.41% year over year to 121 million yuan. In response to performance drivers, Jucan Optoelectronics mentioned that “production and sales of high-end products represented by products such as backlighting, high light efficiency, and inverted silver mirror are booming. Capacity utilization and production and sales rates have remained consistently high, sales scale has reached record highs, and revenue continues to grow steadily.”
The development of market segments, particularly high-end categories, may also be an important reason for the “color addition” of Qianzhao Optoelectronics's performance. Qianzhao Optoelectronics revealed in its annual report. The company is increasing its efforts to expand high-value-added products such as mini LEDs, backlights, plant lighting, automotive LEDs, solar cells, and VCSELs, and the revenue share of medium- and high-end products continues to increase.
According to the data, the overall revenue of Qianzhao Optoelectronics's new business increased by 50% year-on-year in 2023, with backlight chip revenue doubling compared to 2022. According to reports, the company's backlight chip products can be used in the fields of vehicle backlights, TV backlights, MNT backlights, NB backlights, and mobile phone backlights, and have been successfully introduced into TV manufacturers. In the field of lighting, various products with high light efficiency have already been produced and shipped in large quantities to clients.
In addition to the LED main business, “expanding high-end business” is still the focus of Qianzhao Optoelectronics's future business plan. The company mentioned that in the micro LED field, it will continue to promote mass production of micro LED products, and will continue to focus on high uniformity, high yield, and high light efficiency to meet customer needs. The VCSEL laser field will expand into emerging fields such as medicine, aesthetics, automotive, etc., and lay out the data communication market.