Lelon Electronics, the number one aluminum electrolytic capacitor manufacturer in Taiwan, released its financial report of year 2020. Company sales rises 11.1% to NT$7.82 billion with after-tax profit at NT$680 million and EPS at NT$5.13. Thanks to soaring markets in all market segments, especially 5G base stations and automotive electronics, Lelon is expecting an even better year of 2021. With backlog of sales orders expanding into August, Lelon is optimistic about the business of this year.
Driven by demands brought by COVID-19 last year, Lelon has been growing fast in the 5G and medical equipment markets. Regarding 5G, 5G base station deployments, pushed by China's new infrastructure policy, are set to continue this year. Throughout the entire EU and America area, the 5G infrastructure is set to explode after COVID-19 waning down which will raise demands by the telecom and networking industry. The pandemic is pushing demands for medical care equipment, including ventilators, physiological monitoring and biochemical testing devices. Lelon is getting more market share by not only adding more new customers but also being blessed with more sales from existing ones.
With respect to automotive electronics market, Lelon is now getting into the sector of powertrain system in addition to those for infotainment system, advanced driver assistance (ADAS), and digital instrument cluster. The world's leading automakers is flocking to launch models with 48V mild-hybrid systems as they are expected to outperform the electric vehicles in replacing the conventional motorcars. Lelon's automotive capacitors for the 48V system are now in mass production. These products are steadily shipped to automotive electronics manufacturers in China while undergoing verification process in EU. In addition to the 48V mild hybrid, Lelon is working with peer makers to design On-Board Charger (OBC) for electric vehicles in China, EU, and USA. The project is now in process of test and verification. It may become a growth driver in the future once verified in the second half of 2021 or in 2022. Recently, automakers are downing or cutting production due to shortage of automotive chips. This is not the case with Lelon as its customers of automotive electronics remain demanding early delivery of automotive capacitors by Lelon.
Lelon always watches details of things made and is now focusing on developing high-end aluminum capacitors. Addressing demanding high-end markets, it has been expanding and upgrading production equipment continuously. Planned to complete this year, the new factory in Suzhou is aimed to provide customers with more prompt and flexible services and capacity for growth in future.
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