Tailong lighting products prices have been falling year after year, revenues led by less gross margin peers

On May 3, 2017, Tailong (Fujian) Commercial Lighting Co., Ltd. was listed on the GEM of the Shenzhen Stock Exchange.

The number of shares issued by Tailong Lighting was 15.787 million shares, and the total amount of funds raised from the listing was 220 million yuan. After deducting the issuance expenses, the net proceeds raised were 189 million yuan, which were used for “commercial lighting industry base construction projects” and “design and development”. Center construction project".

From 2013 to 2016, Tailong Lighting achieved operating income of 196 million yuan, 211 million yuan, 248 million yuan, and 273 million yuan, respectively. The net profit attributable to owners of the parent company was 2,978,260 yuan, 28,676,500 yuan, 3,570.17. Ten thousand yuan, 41.754 million yuan.

In the first quarter of 2017, the company achieved operating income of 49.995 million yuan, an increase of 29.78% over the same period of the previous year. The net profit attributable to the parent company was RMB 3,946,500, an increase of 85.25% over the same period of the previous year.

Tailong Lighting expects operating income for the first half of 2017 to be from 1.15 to 133 million yuan, an increase of 15% to 30% compared with the same period in 2016; it is estimated that the net profit attributable to shareholders of the parent company in the first half of 2017 will be 12,1,1,1,3,500,000 yuan. The year-on-year growth was 6%-20%.

Tailong Lighting focuses on the overall solution of commercial lighting created by light and shadow. Relying on innovative business model and mature business system, it provides individualized and customized lighting products as the carrier, providing lighting design, development and manufacturing, and comprehensive system services. The overall solution for commercial lighting. According to the characteristics of commercial lighting demand for products, the company's main products include lighting, LED display and photoelectric identification.

As a service provider of commercial lighting solutions, the company sells lighting products mainly for individualized products that serve brand owners. Although the core components of the same series of products have the same connectivity, the lighting products of different customers and different customers in different series of stores require They are all different, with many varieties and customized features. Based on product development, the production model based on forecast order + reserve production.

From 2013 to 2016, the gross profit margin of Tailong Lighting's main business was 34.30%, 36.01%, 37.35% and 37.60% respectively. In 2014 and 2015, the average gross profit margin of the main business of comparable companies in the same industry was 26.16% and 27.60%. Tailong Lighting is higher than the average gross profit margin of comparable listed companies' main business.

From 2014 to 2016, the gross profit of Tailong Lighting was mainly derived from LED lighting fixtures and ceramic metal halide lamps in lighting fixtures, which together contributed approximately 83% of the company's main business gross profit. With the increase in sales of LED lighting equipment, LED lighting equipment has become the company's main source of gross profit. Since 2016, with the decline in sales of ceramic metal halide lamps, the contribution of ceramic metal halide lamps to the company's gross profit has dropped to a lower level. Level.

In addition, LED display and photoelectric logo as part of the company's continued rich commercial lighting product system, the gross profit contribution during the reporting period showed an increasing trend.

During the reporting period, the gross profit margin of the company's LED lighting equipment was 45.49%, 44.09% and 41.07%, respectively, showing a downward trend.

In 2015 and 2016, the gross profit margin of the company's LED lighting equipment decreased by 1.40 and 3.02 percentage points respectively compared with the previous period. The gross profit margin of 2016 decreased relatively, mainly due to:

1 With the gradual maturity of the LED commercial lighting market, the price decline of major raw materials such as COB light source and LED driver is reflected in the price of LED lighting equipment in a timely manner, which reduces the profit margin of the company;

The purchase price of COB light source and LED driver required for 2LED lighting fixtures is relatively low, so the proportion of auxiliary materials and accessories is relatively high.

The auxiliary materials and accessories required in the production of LED lighting equipment include aluminum ingots, stretched aluminum and reflective equipment. During the reporting period, the purchase price of tensile aluminum and reflective equipment increased, thus reducing the gross profit margin of LED lighting equipment.


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