Mulinsen: Actively promote new businesses such as plant lighting and photovoltaic energy storage in the future

On May 10, Mulinsen released a record of investor relations activities, disclosing the company's latest status to investors. Faced with the poor prosperity of the LED industry, Mulinsen has consolidated its brand product sales and smart manufacturing business while focusing on developing overseas energy storage and plant lighting businesses to consolidate its corporate position.

Mulinsen: LED industry will bottom out in 2023

In 2022, Mulinsen's revenue was 16.517 billion yuan, a year-on-year decrease of 11.27%; net profit attributable to the parent company was 194 million yuan, a year-on-year decrease of 83.27%; in the first quarter of 2023, Mulinsen achieved revenue of 4.080 billion yuan, a year-on-year increase of 2.13%; net profit attributable to the parent company was 141 million yuan, a year-on-year decrease of 22.62%.

Mulinsen said that due to the impact of overseas conflicts and macroeconomic changes, domestic demand has dropped significantly, and the closure of overseas factories has led to increased expenses, so performance will decline in 2022; and as domestic demand continued to be weak in the first two months of this year, the company's domestic business profit margins declined, and net profits fell during the reporting period.

Regarding the future development of the LED industry, Mulinsen believes that although the prosperity of the LED industry will be at a low level in 2022 and the industry will accelerate its concentration, as domestic consumption recovers and municipal and public facilities-related infrastructure projects gradually increase, the demand for the LED industry will bottom out this year. In the future, the LED industry prosperity will change with the macroeconomic cycle.

LEDVANCE's profits improved; orders for photovoltaic energy storage and plant lighting have been received

Facing the sluggish industry climate, Mulinsen is focusing on the energy storage and plant lighting business while consolidating its brand products and smart manufacturing business.

Specifically, the overseas lighting brand LEDVANCE has continued to improve its revenue and profits in recent years. Mulinsen said that at present, LEDVANCE's revenue continues to be stable and profits have improved significantly. As of the end of 2022, the company has initially completed the business integration of LEDVANCE, optimized the internal organizational structure, improved incentives, and continued to develop and launch new products; at the same time, the company continues to develop new channels in Asia Pacific, South America and other regions, and the company maintains high gross profit margin and net profit levels. In the first quarter, Mulinsen's revenue increased slightly year-on-year due to the stable growth of LEDVANCE.

Regarding the layout of emerging businesses, Mulinsen continues to be optimistic about the development prospects of the two major businesses of plant lighting and photovoltaic energy storage, and said that the company will continue to invest in new businesses. In the future, new businesses will become the company's new performance growth points.

In terms of plant lighting business, Mulinsen revealed that the company's plant lighting business has received orders for pasture growing warehouses and plant factory projects, and has delivered some projects, which have been widely recognized by customers. In the future, the company's plant lighting products will be used in pasture, rice seedlings, lawn grass, fruits and vegetables, and other cash crops in vertical agriculture and biofactories.

In terms of photovoltaic energy storage business, Mulinsen said that the influence of the LEDVANCE brand in Europe and the United States and its complete global marketing channels have brought advantages to the company's overseas photovoltaic energy storage business development. In the first quarter of this year, the company's overseas photovoltaic energy storage demand was relatively high, with its main customers coming from Poland, the Czech Republic in Eastern Europe, and Germany, the Netherlands, and Italy in Western Europe. In the future, the company will combine its overseas channel advantages and the manufacturing capabilities of the domestic photovoltaic energy storage industry to further promote the development of overseas photovoltaic energy storage business.

Regarding the company's future development strategic plan, Mulinsen said that on the one hand, the company will continue to innovate production technology and product processes, and expand segmented tracks; on the other hand, it will continue to explore emerging markets, increase brand influence, adhere to the "brand + intelligent manufacturing" operating model, and actively promote new businesses such as plant lighting and photovoltaic energy storage.