On April 2nd, Azure disclosed its annual report, stating that the company achieved a revenue of 5.222 billion yuan in 2023, a year-on-year decrease of 16.92%; The net profit attributable to shareholders of the listed company was 141 million yuan, a year-on-year decrease of 62.78%.
It is understood that Azure is mainly engaged in three major businesses: lithium batteries, LED chips, and metal logistics and distribution. Among them, the LED business is mainly engaged in the research and manufacturing of LED products, with a complete industrial chain from sapphire substrate cutting and polishing, PSS, epitaxial wafers, LED chips, and CSP special packaging. Azure pointed out that the company is equipped with advanced LED epitaxial wafers and chip manufacturing equipment in the industry, and its technology level, production capacity scale, and cost control level are at the forefront of the industry. It is one of the main LED chip suppliers in China.
In terms of the market, the demand for LED chips has been sluggish since the second half of 2022, which has had a negative impact on manufacturers' inventory, capacity utilization, and other factors. Meanwhile, in order to clear inventory, LED chip prices continue to decline, which in turn affects the profitability of LED chip companies.
This phenomenon will begin to ease in the second half of 2023. Azure pointed out that since the second half of 2023, there have been obvious signs of a rebound in demand for downstream LED applications, and the MiniLED series products have gradually increased in volume, resulting in a better overall market environment.
Specifically, in 2023, the LED business turned losses into profits, with an overall operating revenue of approximately 1.24 billion yuan, an increase of 10.04% compared to 2022. Aucksun achieved a turnaround from losses to profits, with a net profit attributable to the listed company of approximately RMB 4 million.
In terms of gross profit margin, the LED business gross profit margin of Azure is 13.11%, an increase of 3.51% compared to 2022.
Azure also stated that in 2023, the company will continue to implement the strategic development plan to promote the transformation of LED business from the general lighting field to the display field. With the R&D concept of "pre research, development, and mass production of one generation", the competitiveness in the high-end product field will continue to improve. The company has successfully launched silver mirror products and won the favor of customers. Mini LED and other backlight chip fields have successfully entered the supply system of major global customers, ranking among the top in market share; Successfully launched CSP special packaging products and promoted them to the market. For the promotion of Micro LED product research and development projects.
In the future, Azure will continue to promote its high-end strategy in the LED chip business, committed to becoming an advanced LED enterprise that provides high-end chips and special packaging components for international LED manufacturers, ultra high definition new displays (backlight, direct Micro display), automotive lighting, and industrial and commercial lighting applications. Only in 2024, Azure will continue to promote the strategy of transitioning to displays, continuously invest in product upgrades through research and development, maintain a leading position in advantageous products, and promote the bulk supply and market share growth of advantageous products such as Mini LED. (organized by LEDinside Lynn)
