Honglitronics is making adjustments to their general lighting products this year, said Deng Shoutie, Secretary to the Board of Directors. Speaking to investors on January 21st, Deng said that the company plans to focus on construction companies in their China channels, especially for engineering projects. The company will begin market segmentation in their international channels, increasing market development efforts.

The company is currently focused on construction companies in China, and has made joint bids with companies that have construction credentials, said Deng. Revenue proportions from other models are much smaller. Additionally, in regards to channel construction, the company is also actively searching for regional companies to cooperate with.

“To develop international markets, the company has placed advertisements in B2B and B2C websites, and might hire local sales representatives in the future,” Deng added.

LED lighting channel establishment is becoming competitive as traditional lighting manufacturers and newly established LED application manufacturers become aware of the importance of distribution channels, said industry insiders. Traditional large manufacturers such as Philips have expanded LED products into their original dealer and market channels. NVC Lighting and Yankon Lighting, who have been developing their companies for over 10 years, are strengthening dealer cooperation as well as investing more in franchise stores. Changfang Lighting and Honglitronics have extended cost control considerations from LED packaging manufacturers to downstream application manufacturers. Investment in in-house channels is conservative, with focus mainly on dealers.

Honglitronics released their 2013 year performance report on January 15th. The company estimated a net profit for market listed shareholders of between NT $54.36 million and NT $63.82 million (US $1.8 million and US $2.1 million), a YoY increase of 15 percent to 35 percent. Two main factors led to growth for the company in 2013. The first is the strong demand in the 2013 LED lighting market, which allowed the company to increase capacity utilization and helped it maintain steady growth in the main business line. The second is the gradual progress of the company’s construction project, which greatly benefited its operation performance.