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Lelon posts record-breaking monthly revenue for May thanks to its efforts toward high-end markets

4.7.2018
Reading Time: 2 mins read
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Source: DigiTimes news

Fueled by flourishing growth of applications in automotive electronics, high-performance computing, power supply and green energy, Taiwan’s No. 1 aluminum electrolytic capacitor manufacturer Lelon Electronics has recently posted its consolidated revenue for May 2018 of NT$720 million (US$24.2 million), up 22.1% on year, the highest single-month revenue in the company’s history. Consolidated revenue for the first five months of 2018 came to NT$3.276 billion (US$111.2 million), up 21.6% on year.

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Prices of aluminum electrolytic capacitors have been adjusted upward in correspondence to rising aluminum foil costs and the new prices will gradually take effect. With applications in high-end markets ramping up and additional polymer capacitor production capacity coming online by year-end 2018, Lelon can expect further revenue growth for the year.

Having made great achievements in the automotive electronics market, Lelon has developed aluminum electrolytic capacitors specifically for 48V power conversion systems of mild hybrid electric vehicles and expects to begin shipment in the second half of the year. With growing awareness on road safety and environmental protection, cars will be equipped with more and more electronic control modules in the future, which will give rise to increasing use of aluminum electrolytic capacitors.

With respect to polymer capacitors, their high stability, long life and ability to charge and discharge rapidly make them suitable for use in servers, high-performance computing and network communication equipment. Lelon’s new production line of polymer capacitors at its Huizhou plant in China is planned to begin operation in fourth-quarter 2018, and helping the company embrace opportunities arising from accelerated 5G and IoT developments.

As China has tightened environmental protection law enforcement, many small- and medium-size aluminum foil producers had no choice but to cut down or even shut down production. This resulted in an upstream supply shortage leading to rising aluminum foil costs. The plants of Lelon’s subsidiary Liton Technology, a formed aluminum foil producer, in Huizhou and Sichuan both comply with China’s environmental protection laws and therefore will fuel the company’s growth momentum for the year as aluminum foil remains in tight supply and new production capacity joins in.

Going forward, Lelon will continue to gear efforts toward high-end and value-added products with a focus on strengthening R&D and broadening product portfolio of SMD aluminum electrolytic capacitors and polymer capacitors. Lelon has a complete range of aluminum electrolytic capacitors as well as advantages in vertical integrations across industries and flexible manufacturing capability. These give the company a leading edge in a highly competitive marketplace where Lelon will be able to show its robust strength and sustain steady growth.

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