The data behind Mulinsen’s listing

From successfully passing the issuance review committee review on July 27, 2011, to getting the IPO application approved by the China Securities Regulatory Commission on January 30, 2015, Mulinsen shares survived for three and a half years, and finally reached the critical time point of ringing the listing bell again. After going through strong winds and waves, dodging open guns and hidden arrows, we finally came to the long-awaited day.

The compound annual growth rate of net profit is as high as 98.22%

According to Mulinsen’s public prospectus, Mulinsen’s operating performance has shown rapid growth, with operating income increasing from 1,273.578 million yuan in 2011 to 2013 in 2013. 873.6466 million yuan, with a compound annual growth rate of 50.21%. Net profit increased from 111.0043 million yuan in 2011 to 436.1439 million yuan in 2013, with a compound annual growth rate of 98.22%, maintaining a rapid growth trend.

Looking at the performance of mainland China's LED packaging factories from January to September 2014: Nationstar Optoelectronics' revenue was 1.142 billion yuan and net profit was 100 million yuan; Hongli Optoelectronics' revenue was 687 million yuan and net profit was 54.8625 million yuan; Jufei Optoelectronics' revenue was 761 100 million yuan, with a net profit of 131 million yuan; Ruifeng Optoelectronics has a revenue of 688 million yuan, with a net profit of 40.1828 million yuan; Changfang Lighting has a revenue of 680 million yuan, with a net profit of 38.2818 million yuan; Wanrun Technology has a revenue of 400 million yuan, with a net profit of 34.1138 million yuan.

Mulinsen’s revenue from January to September 2014 was 2.77 billion yuan, with a net profit of 338.248 million yuan. There is no doubt that for LED packaging factories in mainland China, Mulinsen has undoubtedly become the largest company.

Data source: Mulinsen Shares Prospectus

According to the "2014 China Packaging Industry Market Report" by LEDinside, a green energy division of global market research organization TrendForce, the market share of China's LED packaging market shows that Chinese LED packaging manufacturer Mulinsen jumped to fourth place in 2013, an increase of nearly 70% compared with 2012.

Large-scale production has always been Mulinsen's competitive advantage. As of September 30, 2014, the company had an annual production capacity of 127 billion Lamp/SMD LED packaging devices, and owned 1,635 fully automated die bonding machines, 2,093 fully automatic wire bonding machines, 2,189 fully automatic spectrometers, 434 fully automatic phosphor machines and other production equipment.

Large-scale production has also led Mulinsen to implement large-scale procurement of chips, thus obtaining lower chip prices. In addition, large-scale production can also effectively reduce unit labor costs and manufacturing expenses shared by products, and reduce product production costs.

In the first three quarters of 2014, Mulinsen's gross profit margin was 27.99% and net profit margin was 12.22%, while Nationstar Optoelectronics' gross profit margin was 25.62% and net profit margin was 7.95% in the same period. Hongli Optoelectronics' gross profit margin in the same period was 23.78% and net profit margin was 8.11%.

Data source: 2014 third quarter financial reports of each company

2014 revenue exceeded 4 billion yuan

Mu Linsen said that 2014 revenue was 400 million yuan , 1.6679 million yuan, an increase of 1.1280213 million yuan compared with 2013, an increase of 39.25%, and the net profit was 439.4244 million yuan, basically the same as in 2013.

In 2014, the company's operating income continued to grow significantly, but its net profit did not achieve simultaneous growth. Mulinsen believes that the main reasons are: First, the company continued to increase its efforts to expand LED lighting in 2014. The sales staff salary, advertising investment, and exhibition and exhibition expenses for LED lighting increased significantly. As a result, sales expenses in 2014 increased by 86.7018 million yuan compared with the previous year, an increase of 122%, which ate up part of the profit for the current period. At the same time, due to the low threshold and fierce competition in the lighting market, the company, as a new entrant in the market, needs to continue to improve its production technology, the advantages of scale have not yet emerged, and labor costs and manufacturing expenses remain high. Therefore, the gross profit margin of lighting fixtures is low, which lowers the company's comprehensive gross profit margin. ; Secondly, since the second half of 2014, competition in the SMD product market has intensified, sales prices have continued to decline, and the decline in unit selling prices has been greater than the decline in unit costs. As a result, the company's gross profit margin of SMD products in 2014 dropped by 5.31 percentage points from the previous year, which reduced the current profit level.

Mulinsen expects that its operating performance will continue to grow in the first quarter of 2015, with operating income expected to increase by 10%-30% year-on-year and net profit expected to increase by 0-20% year-on-year.

It is worth noting that Mulinsen has increased its investment in LED lighting fixtures since 2013. The sales of LED lighting fixtures mainly rely on dealer channels. From January to September 2014, the company's LED lighting fixtures contributed sales revenue of 301.8528 million yuan, an increase of 194.0283 million yuan compared with the same period last year, an increase of 180%.