Really bright to losses for the half year report (April 1, 2011) to reflect LED lighting market bleak conditions at home and abroad.
Yesterday, really bright 2011.5 published half-yearly results showed that as at September 30, really bright first half revenues of HK $ 788 million, an increase of 7.9%, loss of HK $ 102 million. Really bright in earnings that, due to the economic environment is poor, leading to customer order lines generally shrinks. Domestic excessive investment, LED, led LED the clear demand outstrips supply, prices quickly fell.
Results showed that really bright first half revenue growth from acquisition of HCI in the beginning of overseas companies, HCI overseas companies contributed HK $ 219 million in revenue. If removing HCI overseas revenues, really bright for just HK $ 569 million in the first half, down 22.1%.
Fan Banghong, Chairman of really bright pointed out that the economic weakness in Europe and America, a direct result of customer orders decline. Company has passed the China market share to offset the effect of European and American market recession, China market is expected to become the main source of profit.
LED industry serious overcapacity, really bright gross margins falling fast. Results showed that really bright product gross profit margin from the 33.1% in the same period last year, falling fast to 13.7%, down nearly 20%.
Really bright, soaring raw material prices, rising labor costs and a stronger yuan, leading product gross profit margin fell, and the company to upper LED wafer business expansion, Equipment depreciation costs increased substantially. It is learnt that the really bright so far, 19 MOCVD equipment (LED wafer production facility) put into production, monthly production capacity of 55,000 LED Epitaxial films.
Many LED enterprises hope that the development and Reform Commission announced incandescent lamp out of the road map and not start two messages LED Lighting products of government subsidies. But a tall pointed out that LED lighting, now family is basically using a fluorescent lamp, rarely spend more than 60 watt incandescent lamps, incandescent lamps out of promoting the development of LED lighting, is a fantasy LED market expectations. As for LED lighting products the Government subsidies at present there is no exact message, even if implemented, may also be of benefit very few LED enterprise.
In fact, to ride a tiger is involved in the upstream industry LED all companies face the awkward situation.
Really bright because investment in the first half LED the upper obtained domestic local government subsidies of $ 43.1 million. Yesterday, the notice Elec-tech international co., through wholly-owned subsidiary Hong Runda, German international companies invested $ 35 million increase for Yangzhou Tak-Ho Runda, Tak-HO in Yangzhou run after the capital increase of the registered capital to $ 75 million.
"Local government subsidies are as LED businesses issued by MOCVD equipment in place, LED the enterprise to meet commitments and access to local municipal lighting orders, generally on the bite. "A LED industry analysts point out that this will only cause LED to overcapacity situation is even more serious. Because, once MOCVD equipment operation, taking into account the discontinuation of the loss, we will not stop.
