Inventronics accepted an institutional survey on September 9, 2021 to analyze the current situation of raw material supply, the company's production capacity, and the prospects of the LED plant lighting market.
In response to the global industry shortage of materials, Inventronics said that from the current situation, the most difficult time has passed, and the problem of raw material supply has been alleviated to a certain extent.
Inventronics further analyzed that the increase in the cost of the company's products in the first half of the year was mainly due to the imbalance between the supply and demand of raw materials and the procurement through higher-priced channels. At present, the large-scale and abnormal price increase of electronic raw materials has ended, and price fluctuations tend to be reasonable and stable; and the prices of raw materials such as chips are not expected to have a major impact on the company's product costs.
In addition, fluctuations or rises in the prices of bulk commodities in the international market may cause fluctuations in the prices of other raw materials. For example, fluctuations in the price of copper will affect the price of PCB boards. But in general, Inventronics believes that based on the current situation, product costs in the second half of the year are controllable.
In view of the situation of the Mexican plant, Inventronics said that the plant has achieved mass production at present, with a current monthly output of about 20,000 units, and its production capacity is still in a ramp-up stage.
Inventronics stated that the company's positioning of the Mexican plant in addition to the production of LED drive power also includes:
1. Alleviate tariff barriers caused by trade frictions;
2. The manufacturing base is close to customers, providing customers with closer and faster services;
3. Provide OEM services for customers with bottlenecks in production capacity and customers who are unable to open factories overseas, including providing other product services such as lamp assembly.
Regarding the Tonglu production base, Inventronics introduced that at present, the LED lighting drive power supply industrialization base project (Tonglu) Phase 1 and Phase 2.1 have been completed, and Phase 2.2 is under construction. Currently, it can provide more than 1 million units/month of production capacity.
Inventronics also pointed out that under the national rural revitalization strategy, LED plant lighting will usher in development opportunities; the company's LED drive power products are an important component of LED lamps and are expected to usher in a larger market space in the plant lighting segment.
Inventronics mainly explains from three aspects.
1. The cost-effectiveness of LED plant lighting is better than traditional high-pressure sodium lamps. European greenhouse cultivation and North American cannabis cultivation markets have begun to switch to LEDs. The luminous efficiency of LED continues to improve, and the cost of equipment is still declining.
2. LED supplementary light can significantly improve the output and quality of fruits and other agricultural products, and the equipment can have a longer service life. With the support of national and local policies for digital, innovative, and modern agriculture, LED supplementary light will have high economic value. At present, the research on plant supplementary light is still at a relatively preliminary stage, and the supplementary light scheme is still relatively mechanical and has a low degree of intelligence. There is still a lot of room for development and optimization in the future.
3. The LED plant lighting program can effectively solve the impact of limited land resources and unstable climate on agricultural industrialization and harvest stability, which will greatly increase production and help ensure the safety of food and agricultural products.
Based on this, Inventronics believes that under the national policy background of promoting rural revitalization, accelerating agricultural and rural modernization, and solving the "three rural" issues, LED plant lighting solutions will develop rapidly, corresponding to the market demand for important components, such as LED drive power supplies. Will rise simultaneously.
