On April 23, 2024, Lansi Technology disclosed its 2024 quarterly report. In the first quarter of 2024, we achieved operating income of 15.498 billion yuan, a year-on-year increase of 57.52%, a year-on-year high; net profit to mother was 309 million yuan, up 379.02% year on year; after deducting non-net profit of 235 million yuan, up 1,608.35% year on year, the balance ratio continued to decline to 37.96%. Performance achieved steady growth, and production and operation continued to improve.
Previously, Lansi Technology was interactive and easy to respond. The company insisted on R&D innovation and customer first, promoted vertical integration of the industrial chain through machine assembly, continuously improved its core competitiveness, and continued to improve production and operation. In the first quarter of 2024, demand for new high-end products from domestic and foreign consumer electronics and NEV customers was strong. The company still worked overtime on holidays. The parts and assembly business went hand in hand, customer service guarantee capabilities were further improved, and market share was steadily rising.
Net profit after deducting non-return to mother increased 16 times, and the results achieved a good start
According to financial reports, Lansi Technology's net profit for Q1 in 2024 was 309 million yuan, up 379.02% year on year; after deducting non-net profit of 235 million yuan, up 1,608.35% year on year. The performance showed a positive trend quarter by quarter, achieving a “good start” for 2024 results.
On the financial side, throughout 2023, Lansi Technology's sales expenses decreased by 4.79% year on year, management expenses decreased by 6.02% year on year, and financial expenses decreased by 0.68% year on year. As cost reduction and efficiency continue to be promoted, Lansi Technology's operating efficiency is expected to continue to improve in 2024.
Notably, Lansi Technology has plenty of cash flow. In the first quarter of 2024, the company's monetary capital was 9.850 billion yuan, short-term loans were 190 million yuan, a year-on-year decrease of 86.61%. The net cash flow from operating activities was 2,030 billion yuan. The company has sufficient capital to ensure long-term sustainable operation and development.
In terms of product innovation, Lansi Technology actively follows industry trends and market needs, takes scientific and technological innovation as the lead, continuously enriches the product structure, and strengthens the development of new fields and new businesses to better meet consumer needs. Since its launch in 2015, Lansi Technology has invested more than 15 billion yuan in R&D. Throughout 2023, Lansi Technology will invest 2,317 billion yuan in R&D. Continued R&D investment will consolidate and expand the company's technological advantages.
AI+Hardware continues to be empowered, and structural parts and assembly benefit from deep cultivation
Demand for consumer electronics has rebounded since the fourth quarter of last year, and the recovery trend is obvious. Smartphone shipments are improving, and PC demand continues to pick up. According to the latest data from Canalys, global smartphone shipments increased 11% year-on-year in the first quarter of 2024. According to IDC data, global PC shipments in the first quarter of 2024 were 59.8 million units, up 1.5% year on year, and ushered in quarterly year-on-year growth for the first time.
As a new addition to consumer electronics development, AI continues to receive attention in the market. On the AI mobile phone side, after the launch of the new Samsung S24, which focuses on the AI concept, it broke the sales record for Samsung phones and reached one million sales. The AI PC side has ushered in a switching cycle. In particular, the switching needs of enterprises have already been highlighted. In the first quarter of 2024, Lenovo led the PC market with 23% market share, with a year-on-year increase of 7.8%.
With the launch of new AI PCs, the market recovery is expected to continue in 2024. On the evening of March 21, Microsoft released two AI PCs, Surface Pro 10 and Surface Laptop 6, respectively. On April 18, Lenovo will hold an Innovation and Technology Conference in Shanghai. AI PCs will be launched first in China, explaining the “AI for All” strategy and continuing to promote the innovation and application of artificial intelligence in the fields of equipment, infrastructure, and solutions.
As a leading enterprise in the field of consumer electronics components and assembly, Lansi Technology is seizing the opportunities of the rise of AI. The new Meizu 21 Pro AI machine released in the first quarter of this year was assembled by Lansi Technology. According to industry insiders, Lansi Technology provides hardware support for Microsoft's AI PC and may provide it with parts such as metal parts, keyboards, and glass protective screens.
In the newly disclosed annual report, Lansi Technology stated that it will continue to deeply cultivate the consumer electronics market, strengthen new fields and new business development, actively embrace the industrial trend of upgrading smart terminal products to AI, vigorously explore new customers and products in the field of smart terminals and computing power such as AI phones, AIPC, servers, GPUs, etc., improve the company's current production capacity utilization rate, and further enrich the product structure.
As the AI model continues to develop and domestic manufacturers actively advance AI+ hardware equipment, Lansi Technology is expected to further enhance the company's share and core competitiveness in the global market with its outstanding product strength, which has been deeply involved in the industry for many years.
The growth of new energy vehicles continues, and the value of bicycles continues to rise
As the NEV industry continues to grow rapidly, compounded by the continuous strengthening of medium- and long-term industrial policies, the market prospects are still broad, and related industry chain enterprises are also expected to accelerate growth and maturity. In the first quarter of 2024, production and sales of new energy vehicles reached 2.115 million units and 2.09 million units, respectively, up 28.2% and 31.8% year-on-year, respectively, with a market share of 31.1%. Domestic sales of new energy vehicles reached 1.783 million units, a year-on-year increase of 33.3%.
On the policy side, on April 11, the State Council issued the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in”, which proposes to increase fiscal policy support and insist that the central financial administration and local governments work together to support the trade-in of consumer goods. Furthermore, the Ministry of Finance and three other ministries and commissions are jointly promoting the “100 Counties, Thousand Stations and Ten Thousand Piles” project, speeding up the layout of charging and switching facilities in counties, and continuing to promote the popularization and application of new energy vehicles in vast rural areas.
On the market side, on March 28, the Xiaomi SU7 was officially unveiled. According to official Xiaomi data, Dading broke 10,000 in 4 minutes, Dading broke 20,000 in 7 minutes, and Dading 88,898 units after 24 hours. The market response continued to rise. At the Xiaomi press conference, Lei Jun said that it is expected that by the end of this year, the sales network will expand to 39 cities, with 211 sales stores.
Cinda Securities pointed out that Xiaomi cars bring their own traffic, and more than 20 listed companies have indicated that they are cooperating with the Xiaomi car business since it was officially announced that the car was built. With Xiaomi's own advantages in intelligence, ecological collaboration, fan effects and channels, Xiaomi Auto Delivery is expected to gradually expand and fully benefit related parts suppliers.
Lansi Technology has been involved in the automotive sector for a long time, and new energy vehicles and smart cockpits are its key business segments. At present, Lansi Technology has established cooperative relationships with more than 30 domestic and foreign NEV and traditional luxury car brands. The customer structure continues to be optimized, and the customer base is constantly growing. According to the 2023 financial report, Lansi Technology's annual NEV and smart cockpit business achieved revenue of 4.998 billion yuan, an increase of 39.47% over the previous year.
Regarding future development, Lansi Technology mentioned that the company has begun supplying power battery structural parts to leading power battery customers. In the future, it will continue to expand the product range and further enrich the company's product line. It will also mainly promote new products such as large double screens and large automotive glass such as triple screens, side windows, windshields, and canopies. The bike value of the products is expected to continue to increase for downstream customers.