Taiwan’s Lelon Electronics Achieves Record Sales in 2022

Taiwan-based Lelon Electronics Corporation saw its sales in 2022 exceed NT$10 billion (US$313 million) for the first time.  The company posted a net profit of NT$1.23 billion (US$38.5 million), increasing 25 percent from the previous year. These reflect improved business performance. At electronica China 2023, Lelon promoted its family of high-value-added products and solutions.  

While producing high-performance products, Lelon forecasts that the growth particularly of consumer equipment will slow down in 2023. 

Lelon Electronics’s booth at electronica China

“We have been working on the development of new products for high-end consumer equipment as well as on the optimization of manufacturing processes to further improve products and services,” stressed Jimmy Wu, Chief Executive Officer (CEO) of Lelon Electronics. 

Jimmy Wu, CEO, Lelon Electronics Corporation

This is because the company considers that the consumer equipment market is already saturated to some extent. In particular, there was a rush demand for devices, such as notebook computers and smartphones, amid the COVID-19 pandemic. As unit prices are high, there could be a delay in the recovery of demand for a couple of years. 

Despite these circumstances, automotive-related products enjoy strong demand and are driving the company’s business performance. In fact, orders from the automotive industry have dramatically increased. Applications for hybrid vehicles, battery electric vehicles (BEVs), and chargers are going strong. 

Ratio of Automotive Electronics Expands

As for the automotive electronics market, Lelon assumes sales in 2023 will be at par with 2022. The ratio of automotive-related products has increased from 16 percent in the first half of 2022 to about 25 percent in the entire 2022. The company expects that these situations will continue. Specifically, it enjoys brisk sales of digital dashboards, advanced driver-assistance systems (ADAS), on-board chargers (OBC), and charging systems. 

Customers have also expanded to the United States, China, and countries in Europe. In this regard, Lelon has entered the supply chain of leading EV manufacturers in the United States and China.  

Green Energy, Market Expansion

Lelon also enjoys brisk sales in the power supply and green energy fields. In particular, amid the rising energy costs, energy storage systems are gaining increasing attention. Moreover, demand from the information and communications field, smart factories, and industrial and medical fields is also brisk.

In consideration of geopolitical situations, many U.S. and European customers request the establishment of production bases outside China. In response to these calls, Lelon is considering establishing production bases in Southeast Asia, such as Thailand and Malaysia. Also, the company moves to strengthen its production capacities of main products. 

Markets of new energy vehicles, charging stations, photovoltaic inverters, and smart grids are steadily expanding. However, Lelon regards it should take into consideration the uncertainty of China’s economic situation. Specifically, Lelon views that while markets are markedly growing, uncertainty prevails in the overall economic landscape, thus caution is still needed.