Longtech(SZ:300916)2022-11-11 00:22Financial Performance - In the first half of 2022, the company achieved operating revenue of 517 million CNY, a year-on-year increase of 23.16% [2] - The net profit attributable to shareholders was 75.21 million CNY, up 17.27% year-on-year [2] - In Q2 2022, the company reported operating revenue of 320 million CNY and a net profit of 55.23 million CNY, showing significant quarter-on-quarter growth [2] Revenue Growth Drivers - The growth was primarily driven by the rapid development of the new energy vehicle and energy storage industries, with increased sales in automotive electronics and off-grid energy products [2] - Off-grid lighting business generated 236 million CNY in revenue, a 138% increase year-on-year; automotive electronics revenue reached 51.83 million CNY, up 123% [2] - The company benefited from approximately 20 million CNY in foreign exchange gains due to the appreciation of the US dollar [2] Product Development and Market Strategy - The off-grid lighting products address the lack of industrial power grids in many regions, evolving from basic lighting solutions to systems capable of powering fans, TVs, and small refrigerators [3] - The company estimates it holds over 80% of the procurement share for off-grid lighting products among its clients [3] - The company plans to enhance its ODM (Original Design Manufacturer) ratio from the current 30% to over 70% in the automotive electronics sector [4] Challenges and Market Conditions - The automotive electronics sector faced a decline in gross margin due to increased costs from chip price hikes and customer demands [4] - Traditional smart home and appliance businesses experienced a downturn, attributed to decreased consumer confidence and increased living costs in key markets [5] - The company is managing sales and administrative expenses effectively, leading to a decrease in expense ratios despite rising sales volumes [6] Future Directions - The company aims to focus on automotive electronics and new energy storage as key growth areas [6] - There is an intention to develop proprietary brands as part of long-term planning, leveraging accumulated technology in smart controllers [6]