In the first quarter of Hong Yang, the increase in product prices was less than the price increase of raw materials, coupled with foreign exchange loss, resulting in revenue growth. However, the profit was reduced. The EPS was 0.06 yuan. However, the company’s recent quotation has been adjusted to estimate this season. Gross profit and profit will benefit from this.
Hong Yang is still using solar diodes and bridge rectifiers as its main business. In May, the consolidated revenue was 220 million yuan, up by 18.2% on a monthly basis. The cumulative consolidated revenue in the first half of May was 979 million yuan, an increase of 17.9% year-on-year. The company’s performance this year should be able to grow to a double-digit percentage.
As for the automotive business, Hong Yang stated that its automotive product TVS has passed AECQ certification, and in contact with many large manufacturers, it is expected to join more depot parts supply next year.
At present, Hong Yang's automotive products have been applied to the rear lights of Mercedes-Benz vehicles. In addition, it has actively expanded overseas vehicle markets such as Japan, South Korea and India.
Hong Yang will handle cash increase and convertible corporate bonds to raise 600 million yuan for the construction of Yangzhou No. 2 Plant, to pay for the acquisition of Taiwan Boseo Electronics’ final amount, and to repay bank loans to enrich the company’s working capital. It is still at a loss. It is expected that we will have to fight for a single month before the end of this year.