Baihong SMD lighting module of LED factory has previously entered the lighting supply chain of Boeing 737 cabin. Recently, it is said that Boeing is expected to go around. Baihong believes that the order demand driven by go around will be clearer before the end of the year.

Baihong said that recently, the customer demand has not significantly recovered and the visibility is not high. However, in terms of the existing order mastery, it does not look bad at the future operation. In addition, it has begun to carry out the transformation layout and the transformation of operation strategy. It does not pursue the expansion of revenue, but focuses on niche products and strives for profit growth.

 

It is said that Boeing 737 aircraft is expected to go around, and Baihong's revenue will be clearer at the end of the year

Baihong SMD lighting module entered the Boeing 737 cabin lighting supply chain in 2016 and was shipped to the model foundry. Recently, it is reported that the Boeing 737 has been approved to go around and is expected to resume commercial flight as soon as September. In this regard, Baihong said that if it is approved to go around, the demand for this model is expected to recover, but it is expected that the demand for relevant orders will not be more clear until the end of the year.

LED lighting has become a red sea market with fierce price competition, and the gross profit margin of many peers has even turned negative. In order to get out of the industrial dilemma, Baihong began to transform from revenue oriented to product profit performance in 2013, gradually eliminated businesses with poor profits and focused on customized niche products.

Baihong’s transformation achievements have gradually blossomed recently. Last year, the revenue of customized products accounted for more than 60%, and SMD modules were the main driving force, mainly shipped to Taiwan, European and American markets. From the perspective of regional revenue, Chinese mainland and Taiwan account for more than 5 of revenue, and more than 20% of Europe and America, Korea has more than 1, and other regions account for about 1.

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