Fucai predicts that Q1 revenue will decline year-on-year, and the Micro LED production line will be

Fucai, a major LED manufacturer, has been affected by continuous revisions in working days and the consumer electronics market since the beginning of this year. Its cumulative revenue from January to February was 2.744 billion yuan (NT, the same below), an annual decrease of 50.91%.

Fucai estimates that revenue in the first quarter may decrease by double-digit quarters and year-on-year, and will drop to a new low in the past two years. As for the first production line of Micro LED, it is expected to be completed before the end of this year, and the specific contribution time is estimated to be after 2024. The initial demand for Micro LEDs from wearable, automotive, display and other applications can be first met by its subsidiary Jingcheng.

At present, about 40% of Fucai's revenue comes from various backlight products such as TV and information applications, including sensing, UV, automotive and other special application products, which together account for approximately 25%-30% of revenue. There are also display billboards, lighting and other products.

Last year, Fucai's annual revenue was approximately 28.878 billion yuan, a year-on-year decrease of 20.72%, due to a sharp correction in demand for consumer electronics products and lower shipments of new Miniled products. Among them, Fucai lost money for two consecutive quarters in the second half of the year, and its annual earnings per share fell to 0.05 yuan.

The company plans to focus on products such as Micro LEDs and invisible light this year, and hopes that in the future, new products will be mass-produced and the benefits will be fermented to improve operations. The board of directors has also decided not to distribute dividends. The company also expects to hold a general meeting of shareholders on May 31. The agenda of this session includes the election of the second term of directors.

It is speculated that Peng Shuanglang, chairman of Fucai's parent company, AUO Optronics (2409), will gain a board seat and take over as chairman of Fucai. Dr. Li Bingjie, who is currently the chairman of Fucai and has single-handedly built crystal electronics into one of the world's largest LED epitaxy factories, will retire.