According to reports, Lu Yong, chairman of Luxiao Technology, said on the online performance statement on the 27th that the company will focus on adjusting the industrial structure, expanding the aluminum wire product market this year, and increasing investment in the sapphire industry to moderately diversify.
The main business of Luxiao Technology is the research, development, production and sales of electromagnetic wire products. The main products include copper core and aluminum core electromagnetic wire. The product structure is relatively simple.
The annual report shows that the company achieved operating income of 2.648 billion yuan in the whole year of 2014, a decrease of 2.98% year-on-year, and realized a net profit attributable to shareholders of listed companies of -39,138,200 yuan, a year-on-year decrease of 202.70%. The reporter compared the company's previous years' annual report and found that the company's performance losses have been the first in recent years. The company said that the main reason is the sluggish market demand.
However, this situation may be improved this year. The company's quarterly report shows that the company's first-quarter results turned losses into profit, and the first half of this year's performance increased by 116.63%-224.94%.
It is understood that the performance increase is due to the company's optimization and adjustment of the industrial structure. The company's fund-raising project “15,000 tons of aluminum core magnet wire project†has reached the expected usable status. Chief Financial Officer Luo Yongxin said that it will replace some of the copper core magnetic wire capacity according to the actual market conditions.
Due to the increase in copper prices, the gross profit of the company's copper core wire is less than 5%, and the gross profit margin of the aluminum magnet wire is about 15%. Therefore, the project is put into production, and even if the income scale does not change much, the company's gross profit margin is expected to increase significantly.
On the one hand, it optimizes and adjusts the industrial structure, and on the other hand, it seeks new growth points for diversification. In 2014, the company invested 200 million yuan to establish a joint venture with Berne Optics to set up Borneo Sapphire (40% of the company), wading sapphire industry. Up to now, the company's 200 sapphire crystal growth equipment has been put into trial production. Dong Chen Li Chentao said at the meeting that in order to avoid competition in the same industry, the company will put Lu Xiaoguang's operational assets into the Berne Luxiao Company as soon as possible.
It is reported that the company's partner, Bourne Optics, is one of the world's largest mobile glass screen glass processors, and its screen glass products account for 30% of Apple's equipment supply and 20% of Samsung's. In addition, Berne Optics also provides screen products for companies such as Nokia and Lenovo.
Industry analysts believe that in 2016, the sapphire application market will have nearly $2 billion in new space, which will be more than three times the market for LED substrate materials. Qilu Securities released a research report saying that the sapphire that Apple currently uses on mobile phones is only $1, but if it expands to full screen, the value will soar to $28. Even if the price declines due to the popularity of technology in the future, its value is still far more than ten times. Luxiao Technology and Berne have set up a joint venture company, which binds the customers with the largest demand for sapphire and has huge development space.
In addition, among all the listed companies involved in sapphire in China, only three orders for Apple products were determined. Except for Luxiao Technology, the remaining two are Dazu Laser and Southwest Pharmaceutical.
The main business of Luxiao Technology is the research, development, production and sales of electromagnetic wire products. The main products include copper core and aluminum core electromagnetic wire. The product structure is relatively simple.
The annual report shows that the company achieved operating income of 2.648 billion yuan in the whole year of 2014, a decrease of 2.98% year-on-year, and realized a net profit attributable to shareholders of listed companies of -39,138,200 yuan, a year-on-year decrease of 202.70%. The reporter compared the company's previous years' annual report and found that the company's performance losses have been the first in recent years. The company said that the main reason is the sluggish market demand.
However, this situation may be improved this year. The company's quarterly report shows that the company's first-quarter results turned losses into profit, and the first half of this year's performance increased by 116.63%-224.94%.
It is understood that the performance increase is due to the company's optimization and adjustment of the industrial structure. The company's fund-raising project “15,000 tons of aluminum core magnet wire project†has reached the expected usable status. Chief Financial Officer Luo Yongxin said that it will replace some of the copper core magnetic wire capacity according to the actual market conditions.
Due to the increase in copper prices, the gross profit of the company's copper core wire is less than 5%, and the gross profit margin of the aluminum magnet wire is about 15%. Therefore, the project is put into production, and even if the income scale does not change much, the company's gross profit margin is expected to increase significantly.
On the one hand, it optimizes and adjusts the industrial structure, and on the other hand, it seeks new growth points for diversification. In 2014, the company invested 200 million yuan to establish a joint venture with Berne Optics to set up Borneo Sapphire (40% of the company), wading sapphire industry. Up to now, the company's 200 sapphire crystal growth equipment has been put into trial production. Dong Chen Li Chentao said at the meeting that in order to avoid competition in the same industry, the company will put Lu Xiaoguang's operational assets into the Berne Luxiao Company as soon as possible.
It is reported that the company's partner, Bourne Optics, is one of the world's largest mobile glass screen glass processors, and its screen glass products account for 30% of Apple's equipment supply and 20% of Samsung's. In addition, Berne Optics also provides screen products for companies such as Nokia and Lenovo.
Industry analysts believe that in 2016, the sapphire application market will have nearly $2 billion in new space, which will be more than three times the market for LED substrate materials. Qilu Securities released a research report saying that the sapphire that Apple currently uses on mobile phones is only $1, but if it expands to full screen, the value will soar to $28. Even if the price declines due to the popularity of technology in the future, its value is still far more than ten times. Luxiao Technology and Berne have set up a joint venture company, which binds the customers with the largest demand for sapphire and has huge development space.
In addition, among all the listed companies involved in sapphire in China, only three orders for Apple products were determined. Except for Luxiao Technology, the remaining two are Dazu Laser and Southwest Pharmaceutical.
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