Taiwanese LED chip manufacturer Genesis Photonics Inc. (GPI) announced record high revenues in July of NT$ 368 million (US$ 12.32 million), as lighting products revenue ratio jumped to 50%. Increased shipments in flip-chips, 3D COB products, and stable orders from Japanese lighting clients contributed to the increase in lighting revenues. Under the pressure of lowering prices caused by oversupply in the LED industry, the upstream LED chip manufacturer has established a clear lighting transformation strategy for 2013.
As LED lighting applications matures, GPI is actively transforming and adjusting its product portfolio. The company pointed out it received steady flow of orders from Japanese lighting clients in 2013, and is gradually providing flip-chips and 3D COB products to luminaire manufacturers in China, Japan, Europe, U.S. and emerging markets. GPI’s lighting revenue ratio has hit 50% as a result. It is estimated revenue ratios for new business operations flip-chips and 3D COB will land on 5%-10% in 2Q13 and 10%-15% in 4Q13.
In the past, most of GPI’s green light chip production capacity was supplied to outdoor display markets. However, the company has lowered estimations of green light chip production capacity as the Chinese outdoor display market eases. GPI is actively expanding in the lighting market. Besides receiving stable orders from Japanese lighting clients, the company is focused on flip-chips and 3D COB product lines because of limited competition in these two fields. Accompanying rising product revenue ratios in these two product lines, it can also improve the company’s product portfolio and optimize gross profit performance.
Out of GPI’s product portfolio, lighting product revenue ratios reached 50%, while backlight TV revenue ratio that includes Japanese and Chinese TV brands is about 20%. In addition, GPI is cooperating with Chinese package manufacturers to tap into China’s smartphone backlight supply chain, including Huawei, ZTE and Lenovo. Small-midsized backlight products accounted for about 20% of total revenues.
GPI announced a day earlier that revenues in July reached US$ 12.32 million, an increase of 13.58% compared to US$ 10.63 million in June. Revenues also grew 11.77% compared to the same period in 2012. The company forecasted total revenues will grow 10% in 3Q13 compared 2Q because of strong lighting demands and signs of rebound in the backlight TV market. As LED backlight market enters low season in 4Q, quarterly performance will depond on the speed of rising lighting demands.
