LED chip prices fall, prices fall, costs increase, Jucan Optoelectronics '2022 annual results suffer

On March 16, Jucan Optoelectronics said at the performance briefing that in 2022, from the price side analysis, due to factors such as the international situation, macroeconomics, and repeated epidemics, LED terminal applications will experience market fluctuations and weak demand. The trend, the price of LED chips has dropped; from the cost side analysis, expenditures on raw materials, energy, labor, etc. have increased, and product costs have increased significantly. Based on the above factors, the company's 2022 annual results showed a loss.

Jucan Optoelectronics said that in 2023, the company's specific business plans are: 1. Strengthen technological upgrades and optimize product structure; 2. Highlight marketing status and innovate marketing strategies; 3. Implement lean production and actively reduce costs and increase efficiency; 4. Create Smart factories to achieve intelligent manufacturing; 5. Strengthen talent training and improve team building. The company will continue to focus on deepening its main business, solidly promote refined management, explore customers, consolidate the market, and improve operational efficiency and efficiency. As the raised funds are invested in the project, high-end and high-priced products such as Mini LEDs, car lighting and backlights are launched one after another, and the company's product categories will be further enriched; as R & D investment increases, the structure will be further broken, performance will be further improved, and products will be upgraded, and the company's operating benefits will be further optimized.

Regarding silver mirror flip chip products in the field of car lighting, it said that with the further maturity of the company's various chip processes such as ICP and Metal evaporation, breakthroughs have been continuously achieved in performance and yield. Customers use them well and production capacity is fully released.

Affected by performance losses, Jucan Optoelectronics's share price has dropped 60% since last year. In this regard, Jucan Optoelectronics said that stock price fluctuations are a normal phenomenon in the secondary market and are affected by various factors such as macroeconomics and market conditions. The company has always adhered to the development strategy of focusing on resources and strengthening its main business, deepened the implementation of business strategies of adjusting structure, improving performance, creating efficiency, and building brands. It has not forgotten its original intention, focused on doing a good job in industrial operations, and looked forward to bringing long-term returns to investors.""""