Tongshi Lighting’s revenue dropped by 13.11% last year, and the European market is expected to recover this year

The annual revenue of LED professional lighting manufacturer Tongshi Lighting fell by 13.11% last year compared with the previous year. This is mainly because the company's customers and market focus are in the European market, and its own brands are mainly in the Chinese mainland market. However, last year, the European market was affected by the conflict between Russia and Ukraine. Market demand was affected, and the Chinese mainland market was also affected by the epidemic, so the full-year operations were affected. However, if the European market can gradually return to normal this year, it will be conducive to the company's operational recovery this year.

Tangshi Lighting announced that its revenue in December last year was 80.73 million yuan (NT$, the same below), a year-on-year decrease of 21.49%, and a monthly growth of 9.94%. The cumulative revenue for the whole year last year was 913 million yuan, which was also a 13.11% decline from the previous year's revenue.

Last year, most LED factories in Taiwan fell into the pressure of losses. However, the average gross profit margin of Tongshi Lighting in the first three quarters of last year remained at 32.21%. The company said that the gross profit margin was higher than that of most LED factories, mainly because the company mainly produces lighting fixtures and in terms of industry attributes, the market is concentrated. The market share is low and the competition is relatively low. There are many small and medium-sized factories. The products produced by each factory are differentiated and even customized. Under the small and diverse market structure, low-price mass production by local factories has been eliminated, and high gross profit margins are required to further develop products. Therefore, the gross profit margins of Tangshi Lighting are relatively stable.

As for the market situation and outlook for this year, the company pointed out that at present, it will take a neutral view, mainly because there are too many variables that cannot be controlled internally. However, judging from the current customers and orders, since the global epidemic has entered its fourth year this year, the impact is expected to fade. In addition, factors including economy, energy and war are also expected to affect market demand and slow down over time. Therefore, the company takes a neutral view of this year's full-year operating outlook.