Zhen Mingli (01868.HK) reflected the bleak situation of the domestic and international LED lighting market with a loss of semi-annual report (April 1 to September 30, 2011).
Yesterday, the 2011 semi-annual financial report released by Zhen Mingli showed that as of September 30, Zhen Mingli had a revenue of 788 million Hong Kong dollars in the first half of the year, a year-on-year increase of 7.9% and a loss of 102 million Hong Kong dollars. In the financial report, Zhen Mingli said that due to the worsening economic environment, the amount of customer orders has generally shrunk. The excessive investment in domestic LEDs led to a significant oversupply of LED production capacity and a rapid decline in market prices.
According to the financial report, the growth of the revenue of Zhen Mingli in the first half of the year was entirely from the HCI overseas company acquired at the beginning of the year. HCI Overseas Company contributed HK$219 million in revenue. Excluding HCI's overseas company revenue, Zhen Mingli's revenue for the first half of the year was only 569 million Hong Kong dollars, down 22.1% year-on-year.
Fan Banghong, chairman of Zhen Mingli, pointed out that the weak economy in Europe and the United States directly led to a decline in customer orders. The company has offset the impact of the economic recession in the European and American markets by increasing the market share in the Chinese market. It is expected that the Chinese market will become the company's main source of profit.
The serious overcapacity in the LED industry has caused Zhen Mingli's gross profit margin to decline rapidly. The financial report shows that the gross profit margin of Zhenmingli products has dropped rapidly from 13.1% in the same period last year to 13.7%, a drop of nearly 20%.
Zhen Mingli said that the soaring prices of raw materials, rising labor costs and the appreciation of the renminbi led to a decline in the gross profit margin of the products, and the company expanded its LED epitaxial wafer business upstream, resulting in a significant increase in equipment depreciation expenses. It is reported that Zhen Mingli has 19 production units of MOCVD equipment (LED epitaxial wafer production equipment), with a monthly capacity of 55,000 LED epitaxial wafers.
Many LED companies hope that the National Development and Reform Commission will announce the roadmap for the elimination of incandescent lamps and the government subsidies for LED lighting products that have not yet been launched. But a senior executive of LED lighting pointed out that the family basically uses fluorescent lamps, and rarely uses incandescent lamps of 60 watts or more. Therefore, the incandescent lamp elimination map promotes the development of LED lighting, which is an illusory LED market expectation. As for the government subsidies for LED lighting products, there is no exact news yet. Even if implemented, it may be a rare LED company.
In fact, the difficulty of riding a tiger is the embarrassing situation faced by all LED companies involved in the upstream industry.
In the first half of the year, Zhen Mingli also received a subsidy of 43.1 million yuan from domestic local governments for investing in LED upstream. Yesterday, Dehao Runda (002005.SZ) also announced that it will increase the capital of Yangzhou Dehao Runda by US$35 million through its wholly-owned subsidiary Dehao Runda International. After the capital increase, the registered capital of Yangzhou Dehao Runda will reach 7500. Ten thousand U.S. dollars.
“Local government subsidies are issued with the MOCVD equipment in place of LED companies. LED companies are eager to fulfill their promises and obtain local municipal lighting orders.†An LED industry analyst pointed out that this will only lead to LED overcapacity is even more serious. Because once the MOCVD equipment is put into production, everyone will not stop considering the loss of production.
Yesterday, the 2011 semi-annual financial report released by Zhen Mingli showed that as of September 30, Zhen Mingli had a revenue of 788 million Hong Kong dollars in the first half of the year, a year-on-year increase of 7.9% and a loss of 102 million Hong Kong dollars. In the financial report, Zhen Mingli said that due to the worsening economic environment, the amount of customer orders has generally shrunk. The excessive investment in domestic LEDs led to a significant oversupply of LED production capacity and a rapid decline in market prices.
According to the financial report, the growth of the revenue of Zhen Mingli in the first half of the year was entirely from the HCI overseas company acquired at the beginning of the year. HCI Overseas Company contributed HK$219 million in revenue. Excluding HCI's overseas company revenue, Zhen Mingli's revenue for the first half of the year was only 569 million Hong Kong dollars, down 22.1% year-on-year.
Fan Banghong, chairman of Zhen Mingli, pointed out that the weak economy in Europe and the United States directly led to a decline in customer orders. The company has offset the impact of the economic recession in the European and American markets by increasing the market share in the Chinese market. It is expected that the Chinese market will become the company's main source of profit.
The serious overcapacity in the LED industry has caused Zhen Mingli's gross profit margin to decline rapidly. The financial report shows that the gross profit margin of Zhenmingli products has dropped rapidly from 13.1% in the same period last year to 13.7%, a drop of nearly 20%.
Zhen Mingli said that the soaring prices of raw materials, rising labor costs and the appreciation of the renminbi led to a decline in the gross profit margin of the products, and the company expanded its LED epitaxial wafer business upstream, resulting in a significant increase in equipment depreciation expenses. It is reported that Zhen Mingli has 19 production units of MOCVD equipment (LED epitaxial wafer production equipment), with a monthly capacity of 55,000 LED epitaxial wafers.
Many LED companies hope that the National Development and Reform Commission will announce the roadmap for the elimination of incandescent lamps and the government subsidies for LED lighting products that have not yet been launched. But a senior executive of LED lighting pointed out that the family basically uses fluorescent lamps, and rarely uses incandescent lamps of 60 watts or more. Therefore, the incandescent lamp elimination map promotes the development of LED lighting, which is an illusory LED market expectation. As for the government subsidies for LED lighting products, there is no exact news yet. Even if implemented, it may be a rare LED company.
In fact, the difficulty of riding a tiger is the embarrassing situation faced by all LED companies involved in the upstream industry.
In the first half of the year, Zhen Mingli also received a subsidy of 43.1 million yuan from domestic local governments for investing in LED upstream. Yesterday, Dehao Runda (002005.SZ) also announced that it will increase the capital of Yangzhou Dehao Runda by US$35 million through its wholly-owned subsidiary Dehao Runda International. After the capital increase, the registered capital of Yangzhou Dehao Runda will reach 7500. Ten thousand U.S. dollars.
“Local government subsidies are issued with the MOCVD equipment in place of LED companies. LED companies are eager to fulfill their promises and obtain local municipal lighting orders.†An LED industry analyst pointed out that this will only lead to LED overcapacity is even more serious. Because once the MOCVD equipment is put into production, everyone will not stop considering the loss of production.
Wire harness & Cable assembly: It is used to transmit data, audio, video, etc. it is a kind of electric energy or signal transmission device, which is usually composed of several wires or groups of wires.
The internal wires are generally used in the internal wires of household appliances, lighting, audio, and instruments, and the internal connection and internal cables of different types of wires.
Wire harness & Cable assembly:It is used to transmit data, audio, video, etc. it is a kind of electric energy or signal transmission device, which is usually composed of several wires or groups of wires.
The internal wires are generally used in the internal wires of household appliances, lighting, audio, and instruments, and the internal connection and internal cables of different types of wires.
Flat cable&Wire harness
ShenZhen Antenk Electronics Co,Ltd , https://www.antenkconn.com