Overview of 2024 performance of four LED packaging factories including Mulinsen and Ruifeng Optoelectronics

This week, the LED industry ushered in the peak of concentrated disclosure of annual reports and first quarter reports, and market attention continued to heat up. In the field of LED packaging, four companies, Mulinsen, Ruifeng Optoelectronics, Dongshan Precision and Wanrun Technology, have recently announced their latest performance.

In terms of financial performance, in 2024, Ruifeng Optoelectronics, Dongshan Precision and Wanrun Technology achieved growth in revenue, but their net profit performance varied. Among them, Ruifeng Optoelectronics successfully turned losses into profits, while Wanrun Technology achieved net profit growth.

The specific performance is as follows:

Mulinsen

Mulinsen is engaged in the LED packaging and lighting application business in the semiconductor lighting industry. Its products cover general lighting, intelligent lighting, landscape lighting, vehicle lighting and other segments. In 2024, Mulinsen achieved revenue of 16.910 billion yuan, a year-on-year decrease of 3.57%; net profit attributable to the parent company was 374 million yuan, a year-on-year decrease of 13.06%.

In terms of brand, Mulinsen has built a global brand matrix through "LEDVANCE" and "SYLVANIA", covering more than 150 countries and regions, deploying new lamps, intelligent lighting and LED-related electronic components; domestically, the "Mulinsen" brand has been deeply involved in the local market for more than 20 years, and its products are widely used in intelligent lighting, plant lighting, photovoltaic energy storage and other fields.

From the perspective of product classification, among the main business components of Mulinsen, the "Ledvance" brand occupies the largest share. During the reporting period, it achieved revenue of 9.647 billion yuan, accounting for 57.05%, a year-on-year decrease of 9.04%. In addition, the "Mulinsen" brand also contributed considerable revenue, with revenue reaching 6.768 billion yuan, accounting for 40.02%, a year-on-year increase of 2.86%.

By region, domestic business achieved revenue of 6.896 billion yuan, accounting for 40.78% of total revenue, a year-on-year increase of 5.99%; overseas business achieved revenue of 10.015 billion yuan, accounting for 59.22%, a year-on-year decrease of 9.21%.

In terms of intelligent manufacturing, Mulinsen has established an integrated system covering automation, intelligent control and data analysis to promote full-process digital and automated production to improve efficiency and product quality. At the same time, the company has increased its investment in research and development of cutting-edge technologies such as Mini/Micro LED and small-pitch display, and actively deployed the research and development and innovation of new packaging technologies.

Ruifeng Optoelectronics

Ruifeng Optoelectronics specializes in LED packaging and providing related solutions. Its revenue in 2024 will be 1.545 billion yuan, a year-on-year increase of 12.17%; the net profit attributable to the parent company will be 31.5845 million yuan, turning a loss into a profit year-on-year. The main reasons for the profit growth include a substantial increase in sales of some product lines, an increase in capacity utilization, a decrease in unit costs, and an increase in the sales proportion of high-margin products.

During the reporting period, the sales revenue of Ruifeng Optoelectronics' LED products was 1.358 billion yuan, accounting for 90.96% of the main business revenue, and the gross profit margin was 23.26%, an increase of 5.10 percentage points; the sales revenue of electronic paper products was 135 million yuan, accounting for 9.04% of the main business revenue, and the gross profit margin was 10.44%.

During the reporting period, the profitability of Ruifeng Optoelectronics' lighting products increased compared with the previous reporting period, mainly due to the merger and integration of lighting workshops in mid-2023, which reduced operating costs and optimized the product and customer structure.

The sales of Mini LED backlight products increased by 57% compared with the previous reporting period, and the gross profit margin increased significantly. This was mainly due to the gradual improvement of the supply chain and the continuous optimization of technology and costs. During the reporting period, Ruifeng Optoelectronics launched a series of Mini LED backlight products with high luminous efficiency, high reliability, and compliance with AEC-Q102 automotive regulations.

The sales revenue of automotive LED products increased by 44% compared with the previous reporting period. On the basis of maintaining existing customers, Ruifeng Optoelectronics actively expanded new customers and made certain progress. In terms of products, Ruifeng Optoelectronics has launched new ADB matrix light sources/modules, second-generation ceramic high-power technology, and diamond-based ultra-high power density packaging products.

In addition, the e-paper business is also actively exploring new customers, with sales increasing significantly and achieving significant growth.

Dongshan Precision

Dongshan Precision focuses on the research and development, production and sales of electronic circuit products, precision components, touch display modules, LED display devices, etc. Among them, LED display device products mainly include small-pitch LED, Mini LED and other packaged devices, which are widely used in indoor and outdoor small-pitch high-definition displays and other fields.

In 2024, Dongshan Precision achieved revenue of 36.77 billion yuan, a year-on-year increase of 9.27%; net profit attributable to the parent company was 1.086 billion yuan, a year-on-year decrease of 44.74%.

In 2024, Dongshan Precision LED display devices achieved revenue of 768 million yuan, accounting for 2.09% of total revenue, a year-on-year decrease of 35.48%. Based on the principle of prudence, the company optimized the operation and management of the LED business, integrated and optimized some inefficient equipment, resulting in an asset disposal loss of 164 million yuan. At the same time, the company made a provision for asset impairment losses of RMB 595 million on assets related to the LED business.

In 2024, the gross profit of LED display devices will decrease by 14.27% year-on-year, mainly due to the overall industry demand not meeting expectations, competition intensifying, resulting in further declines in sales and product unit prices, and continued reductions in capacity utilization. Although the company continues to reduce costs and increase efficiency, the decline in unit sales price of unit products is greater than the decline in unit costs, resulting in further decline in gross profit in 2024.

Wanrun Technology

Wanrun Technology is mainly engaged in LED, semiconductor memory, integrated energy services and advertising media. Among them, the LED business covers midstream packaging and downstream applications, integrating R&D, design, production, sales and construction. It provides mid-to-high-end LED light source devices, lighting applications and engineering services, mainly through its subsidiaries Hengrun Optoelectronics, Rishang Optoelectronics and Zhongzhutian.

In 2024, in the face of the complex macroeconomic and social situation, Wanrun Technology will promote the company's operational development to make steady progress, achieve steady growth in operating scale, and continue to improve operating quality, achieving revenue of 4.874 billion yuan, a year-on-year increase of 15.08%; net profit attributable to the parent company is 62.7254 million yuan, a year-on-year increase of 38.62%.

In the field of LED light source packaging and lighting, Wanrun Technology has achieved both growth in manufacturing business orders and performance. Its subsidiary Hengrun Optoelectronics actively expands the LED automotive electronics, fire security, indication display and other light source device markets, successfully won the bid for Dongguan Rail Transit Line 1 lighting project, and accelerated the delivery process of existing rail transit projects, continuing to expand revenue and profit scale.

Rishang Optoelectronics actively expands the international brand agent network, lays out the large circulation market, and vigorously develops the field of educational equipment, winning bids for multiple educational lighting projects. In order to lay out the international market in the long term, Rishang Optoelectronics will establish a wholly-owned subsidiary "Rishang Optoelectronics (Thailand) Co., Ltd." in Thailand in July 2024 to gradually develop the Southeast Asian market.

Focusing on Micro/Mini LED and automotive LED high value-added market segments

Judging from the performance disclosed above, although some companies have achieved revenue growth, their net profit performance varies, indicating that the market still faces multiple challenges during the recovery process. In fact, affected by factors such as weak terminal demand, slow inventory removal and intensified price competition, , the LED industry as a whole will fall into a downturn in 2023, and the impact will extend to 2024. Faced with continued market pressure, many LED packaging companies have begun to shift their focus to high value-added segments, trying to break through with differentiation and explore more resilient growth paths.

Micro/Mini LED and automotive LED fields have become high-growth markets with high expectations. According to TrendForce's latest "Gold+ Member Market Report: Global LED Industry Database and LED Manufacturer Quarterly Update", Micro/Mini LED, automotive LED and other fields have maintained growth, driving the LED market output value to grow to US$13.003 billion in 2025.

Against this background, Mulinsen continues to increase investment in cutting-edge fields such as Mini/Micro LED and small-pitch displays, and actively deploys the research and development and innovation of new packaging technologies to promote technology iteration and product upgrades.

Ruifeng Optoelectronics uses the business unit as an implementation carrier to vigorously expand the Mini LED business. In 2 In 2024, Ruifeng Optoelectronics' Mini LED backlight product series successfully passed the AEC-Q102 automotive grade reliability certification and has been mass-produced and used in terminal models. Its Mini backlight product sales increased by 57% compared with the previous reporting period.

Dongshan Precision explores the manufacturing process of core devices in the field of intelligent interconnection by increasing investment in research and development of new materials, new technologies and new processes, laying the foundation for industries such as AR/VR, Internet of Things, Mini LED display and new energy vehicles.

In addition, faced with the challenges of fierce competition and compressed profit margins in the traditional lighting product market, companies have accelerated the development of smart lighting and high value-added market segments. Among them, Mulinsen is actively promoting the upgrading of intelligent lighting products and overseas localization operations while consolidating its position in the general lighting market; Ruifeng Optoelectronics is focusing on the field of automotive intelligent lighting and continues to promote the application of related innovative products.

While responding to industry challenges, major companies are actively adopting technological innovation and strategic layout, especially in Mini/Micro LED and automotive applications. Seek breakthroughs in high value-added market segments such as LED. Looking forward to 2025, with the continued growth of these emerging markets and the layout of enterprises in related fields, LED packaging enterprises are expected to enter a new stage of development.