What does lighting tap enter the car to save “increase income does not increase profit” get state
In early March, general lighting leading enterprise Debang Lighting (603303.SH) released 2021 annual report.In 2021, the company achieved operating revenue of 5.273 billion yuan, up 16.98% year on year, and net profit of 328 million yuan, down 4.19% year on year.”Increase income does not increase profit” became the biggest doubt in the hearts of investors.In March 2021, Debon Lighting acquired two enterprises, Shanghai Liangqin and Wuhan Liangxin Peng, and formally launched a large-scale layout of vehicle business;And since April 21, Debon Plastics is no longer included in the scope of the company’s consolidated statements, and the plastic business has been stripped from the operating income of Debon Lighting.Under the influence of both, the state lighting financial statements produced “increase income does not increase profit” phenomenon can be explained.Stripping out the impact of the acquisition of Shanghai Liangqin and the spin-off of engineering Plastics, revenues rose 28.3 per cent and net profit rose 10.5 per cent year on year.In 2022, the state lighting we will vigorously support vehicle business line, formally set up r&d center in Shanghai, and was founded on March 16 new wholly owned subsidiary Shanghai state intelligence control technology development co., LTD., a registered capital of 30 million yuan, this is the general lighting leading enterprise in the face of the difficulties at present stage under a brave attempt.When it comes to Hengdian, everyone’s first reaction is film and television city.And in the “film and television city”, but out of a listed light enterprises.In 1996, Debond Lighting was founded in a four-story building in Hengdian.Debang Lighting belongs to the private enterprise Hengdian Group, and Hengdian World Studios are subsidiaries of Hengdian Group.Established for more than 20 years, Debang lighting has developed into a leading enterprise in China’s lighting industry.According to its official website, the main production of lighting products covering civil and commercial lighting products, layout of the world.The company maintains long-term good cooperative relations with nearly 500 importers, distributors, agents and distributors in more than 80 countries and regions around the world.Thanks to the good layout of overseas markets, in the real estate industry since last year in the storm, the state survived.In 2021, Debon still maintains a high operating income and continues to maintain a leading position in the global civil lighting industry.In addition to the old line of lighting, vehicle is its focus on the emerging business in recent years.According to the official website, Debon Lighting’s vehicle business started in 2018, and now focuses on the research and development, manufacturing, sales and service of automotive lighting products, including LED headlight controller and plastic products of headlights.Debang lighting has said that the company will focus on the “greater civilian lighting, stronger commercial lighting, do special car carrying business” development strategy, in the field of vehicle industry continues to increase the layout.For general lighting plate, bon lighting ideas are also more clear.In the civil field, continue to improve its product iteration ability, maintain the sales status quo;For commercial lighting, we upgraded the production bases, including the main base in Hengdian and overseas base in Vietnam, etc. The further upgrading of these production bases also ensured the international competitiveness of Debang Lighting.Now, bon lighting has occupied the leading position in the industry, the market share is at a higher level.Under the background of “dual carbon”, the future trend will inevitably be energy saving, intelligent and low carbon. This is not only the development trend of general lighting market, but also the requirement of Debon Lighting for its pillar business.02 stripping plastic scraping bone healing “increase income does not increase profits” is the pain point of many enterprises, debang lighting is no exception.In March 2022, Debang Lighting released the 2021 annual report, during the period of revenue 5.273 billion yuan, a year-on-year growth of 16.98%, net profit 328 million yuan, a year-on-year decline of 4.19%, deduct non-net profit 234 million yuan, a year-on-year decline of 10.78%.Although this includes the layout of vehicle business lines, it is also closely related to the further decline of the net profit margin of the main business.In 2021, global raw material prices continue to rise.And this trend has been maintained for a long time, general lighting end of the gross margin is further squeezed.Moreover, the sales price of the company’s main products lags behind that of raw materials, which leads to a certain decline in the gross profit margin of these products compared with the same period.At the same time, due to the chip shortage, the development of vehicle-mounted business line has brought side effects to the increase of vehicle-mounted controller production capacity.The weakness of overseas markets is also an important reason for the decline in gross margin.In 2021, with the aggravation of the global epidemic, the company continues to face severe restrictions on transportation and raw materials, the continuous rise of dry bulk index, coupled with the rise of international oil prices and the turmoil of the international situation, all lead to the instability of the overseas market.Specifically, the company’s lighting application products and other gross margin of 13.58%, down 5.69%;Gross profit margin of lighting engineering construction 16.56%, down 2.36%;Engineering plastics gross margin 11.91%, down 5.41%.Obviously, engineering plastics have the lowest gross margin.Plastic business line, in order to save the decline, the state “scratch bone healing”.At the end of 2020, Debon Lighting transferred 100% equity of its wholly-owned subsidiary, Debon Engineering Plastics Co., LTD. (referred to as “Debon Plastics”) to donghengdian Group Holding Co., LTD.The transfer price will be used for the development of the company’s main business, general lighting.After divesting the plastic business line, Debon Lighting focuses more on the investment in the research and development of general lighting business, with 55 new authorized patents in 2021.03. The on-board business will make great efforts to stabilize the on-board business, and Debon Lighting is trying to focus on the business development strategy of “on-board controller + on-board lighting”.Enterprise chumcha shows that on March 16, Shanghai Debon Intelligent Control Technology Development Co., LTD. (hereinafter referred to as “Debon Intelligent Control Technology”) was established, the legal representative is Chen Xinping, the registered capital of 30 million yuan, the company’s business scope includes: auto parts research and development;Auto parts retail;Information technology consulting services;Software development, etc.The company is 100 per cent owned by Debon Lighting.30 million dollars set up a new company, the state ambition to do now.In fact, since 2021, Debang lighting on vehicle business continued to carry out acquisitions, cooperation and the establishment of subsidiaries and other actions.Last September, Debang Lighting signed a contract with Hangzhou Dianzi University to promote the in-depth cooperation between the two sides in the vehicle business.In 2021, Debond Lighting will acquire Shanghai Liangqin and Wuhan Liangxinpeng, layout vehicle business lines, carry out intelligent equipment transformation and upgrading in Shanghai base and Wuhan base, and increase its output to achieve higher operating income and profit margin.Crazy layout also harvested good revenue results.The 2021 annual report shows that debon Lighting vehicle business segment to achieve operating revenue of 281 million yuan, year-on-year growth of 191.53%.With the global layout of the general lighting line before, when entering the vehicle business line, the state does not need a lot of manpower and market.At present, Debang lighting has reached good cooperation with large enterprises at home and abroad, such as Panasonic, Hua Yu Vision, Wanxiang, zero run, Hela and Sanli and other companies.According to the customer project planning, the total orders of debon Lighting’s existing platform vehicle controller fixed-point projects and vehicle lighting projects are estimated to be about 3 billion yuan, including porsche, Audi, Volkswagen and other famous automotive host brand suppliers.It is worth mentioning that the support of national policies for the new energy automobile industry is accompanied by support for upstream and downstream enterprises.Last year, Debang Lighting and its subsidiaries received a total of 43.139 million yuan in government subsidies.Automotive lighting industry, which is the important part of vehicle business line, is a high quality and important segment of auto parts.During the period of technical reform in general lighting industry, car lighting also underwent drastic technical improvement simultaneously.State lighting said, although the industry is still dominated by foreign-funded enterprises, but with the impact of industrial transfer, policy support for new energy vehicles, the development of domestic new energy vehicles, in recent years, domestic automotive lighting enterprises are constantly catching up.Completed car industry layout can no longer be “income not ZengLi” reason, can make a lot of investment state lighting again in 2022, the whole diameter increase market share and net profit margin, intensive development can obtain the company expected revenue, tandem alongside’s flooding will gain market favor and recognition, it remains to be the test of time.