Transforming into a brand enterprise, Sunshine Lighting has bright development prospects

During the company's 2013 reporting period, the company achieved sales revenue of 3.169 billion yuan, a year-on-year increase of 22.22%, and net profit attributable to shareholders of listed companies was 232 million yuan, a year-on-year increase of 10.27%. Revenue was in line with market expectations, but performance was lower than last year's market expectations, mainly due to a one-time impairment loss of the Indian subsidiary. In the first quarter of 2014, the revenue was 748 million yuan, a year-on-year increase of 14.65%; the net profit was 80.2664 million yuan, a year-on-year increase of 22.39%; but the net profit after deducting non-profit items was 75.198 million yuan, a year-on-year increase of 110.25%. The performance exceeded the market and our expectations. The gross profit margin in the first quarter was 24.25%, an increase of 7.61 percentage points year-on-year. This was mainly due to the loss-making purchase and purchase product shipments in the first quarter of last year and the increase in the proportion of LED products with high gross profit margins. In the first quarter of this year, the company's LED revenue reached more than 300 million yuan, compared with about 140 million yuan in the first quarter of last year, doubling year-on-year.

The LED field has far-reaching layout and ushered in explosive growth in 2013

In 2013, the company's LED revenue was 983 million yuan, a year-on-year increase of 170%, and its proportion continued to expand. We are very optimistic about the company's LED business in 2014. Among traditional lighting companies, we believe that the company is the most fully prepared for LED lighting and one of the companies with the best development situation. In 2013, the company's new product, full-angle LED light source, broke through the light source projects of core supermarkets in the United States with its leading products and technology, achieving sales of 50 million yuan. In addition, the company's business with major customers such as Lowes, Osrom, and Ge experienced rapid growth in 2013. At the same time, it opened up new customers such as Toshiba, laying a good foundation for the development of the business in 2014. At present, the development trend of global LED lighting is good, and household lighting in Europe and the United States is in the range of rapid increase in penetration rate. Judging from the current situation in our country, in public and commercial lighting places, such as clubs, commercial buildings, street lights, etc., due to the long lighting time and obvious power-saving benefits of LED, it will be the first field to explode. Benefiting from the continuous improvement in the cost performance of LED products, 2014 will be the first year for the launch of home lighting.

We are optimistic about the company’s prospects in the field of LED lighting. The company has a far-reaching layout and is fully prepared, and will fully benefit from theindustry development opportunities. n Transformation from OEM enterprise to brand enterprise has great development potential. The company used to rely on OEM for international brands. Its own brands and channels were at a disadvantage among first-line lighting enterprises. However, starting in 2013, the company changed its development thinking and accelerated the construction of its own brands and channels. Recently, the company has officially launched e-commerce channel operations. In the domestic market, it has launched a new brand promotion model based on the Internet, Weibo, and WeChat. It has fully launched the construction of Sunshine Lighting (600261) Tmall flagship store, JD.com, Amazon and other e-commerce platform channels. It plans the development of e-commerce operations through the three-step process of building self-operated stores, establishing an online distribution system, and realizing online and offline linkage. We believe that the company's transformation into a brand enterprise is correct and is the only way to develop and grow in the future. If the transformation is successful, the development potential is very large.