HongliZhihui(SZ:300219)2022-12-04 10:26Group 1: Market Growth Factors - The growth of the LED packaging market is driven by several factors: 1) Demand for LED lighting is increasing; 2) International giants are exiting the domestic lighting market, leading to a shift in the industry; 3) The concentration of the LED packaging industry is gradually increasing [2][3]. Group 2: Supplier and Strategic Partnerships - The company primarily sources medium and small power chips domestically, while large power chips are mainly imported from suppliers like Sanan Optoelectronics and HC Semitek [3]. - A strategic cooperation agreement was signed with Epistar on October 27, 2017, to address intellectual property issues and reduce costs for automotive-grade LED products [3][4]. Group 3: Automotive LED Lighting Layout - The automotive LED lighting supply chain includes LED chips, automotive-grade LED packaging, LED lamp modules, and complete automotive LED lighting fixtures [4]. - The company has completed the R&D and testing of automotive-grade LED packaging products and has begun mass supply to clients such as Jiali Co., Chunjun Motorcycle, and Magna [4]. Group 4: Product Distribution and Market Share - Currently, 100% of the company's commercial vehicle lighting fixtures use LED sources, with over 90% sold internationally, serving brands like Hella and Bosch [4]. - Approximately 35% of the passenger vehicle lighting fixtures are LED sources, with plans to increase this to 85% in the next three to five years [4]. Group 5: Internet Services and Business Development - The internet car owner service provides marketing and automotive internet services, including vehicle violation queries and new car pricing, generating revenue through advertising fees and transaction sharing [5]. - In 2017, the company established a subsidiary to provide loan consulting and intermediary services, holding a 51% stake [5]. Group 6: Equity Incentives and Share Buyback - The company implemented an equity incentive plan to motivate management and core technical personnel, with performance targets set for net profits of 163 million RMB, 220 million RMB, and 271 million RMB for 2018, 2019, and 2020 respectively [5][6]. - A share buyback plan was initiated to maintain shareholder interests, with a budget of 50 million to 100 million RMB and a maximum buyback price of 14 RMB per share [6]. Group 7: Strategic Collaborations - Strategic cooperation agreements were signed with Hesheng Haoshu Investment and Zhangjiagang Management Committee to enhance collaboration in the LED automotive lighting sector, aiming for mutual benefits and resource integration [7]. - The agreements include provisions for Hesheng Haoshu to acquire at least 10% of the company's total shares and support for production expansion projects [7].