Honglitronic’s LED package gross margin has stabilized with few fluctuations, according to the company’s latest financial report.

The LED market will continue its upward climb in 2015, said the company. As LED product prices fall, lighting demands have gone up, as well as product penetration rates. Although, price falls have impacted the manufacturer’s profitability in the short term, it is beneficial to the manufacturers long term development as well as the industry’s development.

Meanwhile, the company procured small to mid-power LED chips, mainly for domestic manufacturing. High power LED chips rely mainly on chip imports, while major domestic LED suppliers include San’an Opto, NVC Lighting, HC Semitek, Zhongke Semiconductor Lighting, and Tongfang Lighting.

Forda Signal, a Honglitronic subsidiary, is mainly responsible for LED automotive lighting business. The company is currently expanding its oversea aftermarket, and also domestic and oversea markets shares. At the same time, the company is actively enlarging the domestic car accessory market, and strengthening cooperation with international OEM/ODM to expand LED automotive lighting businesses.

Honglitronic established a new factory for LED production and sales in a one phase construction project on a 49.46 acres land in Nanchang City, Jiangxi Province, China. The one phase 10 meter square factory construction project will take up to 15 months to complete, and is still in the planning phase. After completing construction, LED components annual production capacity will reach about 16,200KK according estimations based on 3014 LED production capacity. LED application’s annual production will reach about 90 million PCS based on LED bulb production capacity. The company’s accumulated output value is a about RMB 1.58 billion (US $260 million).