Monday, January 16, 2012

17 LED company performance mainly depends on the Chinese government subsidies

According to incomplete statistics, from January 16, 2012, 40 in A shares and LED industry-related companies, 22 China LED lighting companies issued a performance notice, of which 17 companies pre-increase, five companies pre-cut. By the company from pre-view, a substantial part of the profits growth, government subsidies, is still an important source of income.

An optical three expected net profit up 110% more than expected net profit of 880 million RMB; BDO Runda 2011 net profit of approximately 3.52 billion yuan to 411 million RMB, an increase of 80% to 110%, the two are LED industry chain enterprises. Although a higher increase, but the financial data, government subsidies are still three optical important source of income. In its three quarterly profit or loss of government subsidies reached 598 million RMB, since they receive government subsidies totaling 467 million RMB. Similarly, BDO Runda three quarterly government subsidies reached 299 million RMB.

Without government subsidies, slower growth in the company's performance. Such as LED lighting in the area the highest proportion of total revenue Hongli Opto-electronic, is only a slight increase of net profit up 5% to 20%.

In these companies, the LED industry, the main industry of only eight companies, many of the other companies involved in LED industry just last year, the amount of investment from the hundreds of millions to billions of RMB range.

There are too many enterprises to enter the LED lighting industry, there are many large companies are doing
China LED Flashlight business, which also resulted in full ahead of the investment industry, blind investment and repeated investment phenomenon; In addition, the rapid production ahead of growth and product promotion, but also to expand the practical effects of the product. The adverse consequences of this, the industry entered a phase advance period of consolidation.

The industry believes that, LED industry as a new industry, at the moment is experiencing the pains of periodic overcapacity. The next two to three years the road still twists and turns the LED industry, shuffling will continue.

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