Lextar wins LED orders in mainland China, LED automotive lighting market share reaches 2.50%

Longda Electronics Co., Ltd. (hereinafter referred to as "Longda Electronics"), a manufacturer of LED automotive lighting fixtures, recently stated that it has received orders for three models of LED headlights from mainland automotive lighting suppliers, with shipments expected to begin in the second quarter of 2016.

Longda Electronics stated that the LED automotive light modules supplied by the company are mainly used in the Haval SUV model of the Chinese automaker Great Wall Motors, accounting for 95% of the total demand. In addition, the company is also the exclusive OEM manufacturer of Shanghai Koito Auto Lighting Co., Ltd., a mainland automotive lighting supplier.

Longda Electronics pointed out that in the first half of 2015, Great Wall Motors sold approximately 415,300 Haval SUVs in China, with unit sales increasing 19.56% year-on-year, becoming a first-class SUV manufacturer.

In addition, Lextar Electronics focuses on LED tail lights and daytime running lights, and currently holds 25% of the mainland LED automotive lighting market.

According to Lextar Electronics, the current global penetration rate of LED car taillights and daytime running lights reaches 60% to 70%, and the penetration rate in Taiwan alone reaches 50% to 60%.

Since the price of LED car headlights is 5 to 6 times that of high-intensity lighting headlights, the current global LED penetration rate is only about 5%. However, the global penetration rate of LED headlights is expected to rise to 10% by 2016, and the mainland market will reach 5%~7%.

In view of the huge growth potential of the mainland market, Lextar Electronics stated that the company will expand the production capacity of the Shanghai factory by 50% in the first quarter of 2016.

According to Longda Electronic Financial Report, the company's consolidated revenue in the first half of 2015 was NT$1.345 billion (approximately RMB 267 million), with a gross profit margin of 20. 75%, net operating profit reached NT$105 million (approximately RMB 20.85 million), net profit reached NT$5.7 million (approximately RMB 1.13 million), and net income per share was NT$1.03. Lextar Electronics expects consolidated operating income and net profit to increase by more than 20% year-on-year in 2016.