[Source: "High-tech LED - Research and Review" October issue reporter / Liu Qiaomei]
On August 7 this year, Nanda Optoelectronics was listed on the Shenzhen GEM, and it was “stunning†with a high issue price of 66 yuan/share. However, due to the sudden release of the second quarter financial report data, it was questioned. On August 14, Nanda Optoelectronics released the first half of the financial report that it achieved operating income of 112 million yuan from January to June this year, down 15.48% year-on-year; net profit was 55 million yuan, down 27.71% year-on-year.
The relevant person in charge of Nanda Optoelectronics said: “The market price of MO source products has returned to rationality. Although the sales volume has increased significantly year-on-year, the decrease in sales unit price has led to a decline in operating income.â€
Only half a year later, Nanda Optoelectronics' operating income and net profit both fell to different degrees compared with the same period of last year. It is really a double-fire. From the “new upstart†of the GEM to the “performance of the face of the faceâ€, what potential risks are hidden behind Nanda’s performance? Will the risk of future market competition increase?
Product price returns to rational
The third quarter 2012 financial report released by Nanda Optoelectronics stated that from July to September 2012, the company realized operating income of 39.385 million yuan, down 72.44% year-on-year; net profit was 21.415 million yuan, down 74.81% year-on-year; operating income was 1.52 in the first three quarters. 100 million yuan, a decrease of 44.99% over the same period of last year; net profit of 76 million yuan, down 52.42% over the same period of the previous year.
For the performance change face, Nanda Optoelectronics explained that due to the impact of the European debt crisis and the slowdown of the domestic economic growth rate, the development of the LED industry is not as expected, the demand for MO sources is slowing, the relationship between supply and demand has changed, causing the price callback to fall. As for the operating income decreased by 124 million yuan from the same period of the previous year, a decrease of 44.99%, Nanda Optoelectronics attributed to "mainly due to the reversal of sales prices."
"In 2011, the MO source was seriously out of stock, so the price was very ridiculously sold. One gram can be sold for fifty or sixty yuan. Now it can only sell for less than fifteen yuan." Saifusi Technology Co., Ltd. (hereinafter referred to as " Cheng Weifan, General Manager of China, confirmed to the "High-tech LED" reporter the price fluctuation of the MO source market in the past year.
At present, the mainstream MO source suppliers in the mainland China market are mainly Nanda Optoelectronics, SAFC Hitech and Akzo Nobel. In 2010, Saifusi temporarily lags behind Nanda Optoelectronics in the market share due to insufficient supply in the Chinese mainland market. However, by the end of 2011, Safran began to gradually increase its production capacity in the Chinese market. "It is expected that by the end of 2012, Safuse's market share in mainland China is expected to exceed that of Nanda Optoelectronics." Cheng Yufan said.
Safran is one of the four business groups of Sigma-Aldrich (Nasdq: SIAL), a US listed company. The parent company is the world's top ten well-known precision chemical materials manufacturer, the group's annual turnover of about 2 billion US dollars.
“The main reason for Nanda’s performance change is the oversupply of the market. The best performance of the company is because the MO source market is in short supply, but now the price has fallen, and the accumulated profits in the past two years may have to be recovered.†Cheng Yifan said .
According to GLII statistics, the number of new MOCVDs in the first three quarters of this year was only 93. It is expected that the number of new MOCVDs in the whole year will be much smaller than the 242 expected at the beginning of the year. At the same time, in the first three quarters, the average operating rate of domestic MOCVD was 58.4%, and the capacity utilization rate was about 30.1%.
Nanda Optoelectronics Board Secretary Zhang Jianfu told Gaogong LED reporter: "The only reason for the decline in Nanda Optoelectronics' performance is due to the impact of the European debt crisis and the slowdown of the domestic economic growth rate. The LED industry development is not as expected, the demand for MO sources is slowing, and supply is increasing. The relationship between supply and demand has changed, causing the price callback to drop."
Nanda Optoelectronics' 2009-2012 third quarter revenue net profit list:
On August 7 this year, Nanda Optoelectronics was listed on the Shenzhen GEM, and it was “stunning†with a high issue price of 66 yuan/share. However, due to the sudden release of the second quarter financial report data, it was questioned. On August 14, Nanda Optoelectronics released the first half of the financial report that it achieved operating income of 112 million yuan from January to June this year, down 15.48% year-on-year; net profit was 55 million yuan, down 27.71% year-on-year.
The relevant person in charge of Nanda Optoelectronics said: “The market price of MO source products has returned to rationality. Although the sales volume has increased significantly year-on-year, the decrease in sales unit price has led to a decline in operating income.â€
Only half a year later, Nanda Optoelectronics' operating income and net profit both fell to different degrees compared with the same period of last year. It is really a double-fire. From the “new upstart†of the GEM to the “performance of the face of the faceâ€, what potential risks are hidden behind Nanda’s performance? Will the risk of future market competition increase?
Product price returns to rational
The third quarter 2012 financial report released by Nanda Optoelectronics stated that from July to September 2012, the company realized operating income of 39.385 million yuan, down 72.44% year-on-year; net profit was 21.415 million yuan, down 74.81% year-on-year; operating income was 1.52 in the first three quarters. 100 million yuan, a decrease of 44.99% over the same period of last year; net profit of 76 million yuan, down 52.42% over the same period of the previous year.
For the performance change face, Nanda Optoelectronics explained that due to the impact of the European debt crisis and the slowdown of the domestic economic growth rate, the development of the LED industry is not as expected, the demand for MO sources is slowing, the relationship between supply and demand has changed, causing the price callback to fall. As for the operating income decreased by 124 million yuan from the same period of the previous year, a decrease of 44.99%, Nanda Optoelectronics attributed to "mainly due to the reversal of sales prices."
"In 2011, the MO source was seriously out of stock, so the price was very ridiculously sold. One gram can be sold for fifty or sixty yuan. Now it can only sell for less than fifteen yuan." Saifusi Technology Co., Ltd. (hereinafter referred to as " Cheng Weifan, General Manager of China, confirmed to the "High-tech LED" reporter the price fluctuation of the MO source market in the past year.
At present, the mainstream MO source suppliers in the mainland China market are mainly Nanda Optoelectronics, SAFC Hitech and Akzo Nobel. In 2010, Saifusi temporarily lags behind Nanda Optoelectronics in the market share due to insufficient supply in the Chinese mainland market. However, by the end of 2011, Safran began to gradually increase its production capacity in the Chinese market. "It is expected that by the end of 2012, Safuse's market share in mainland China is expected to exceed that of Nanda Optoelectronics." Cheng Yufan said.
Safran is one of the four business groups of Sigma-Aldrich (Nasdq: SIAL), a US listed company. The parent company is the world's top ten well-known precision chemical materials manufacturer, the group's annual turnover of about 2 billion US dollars.
“The main reason for Nanda’s performance change is the oversupply of the market. The best performance of the company is because the MO source market is in short supply, but now the price has fallen, and the accumulated profits in the past two years may have to be recovered.†Cheng Yifan said .
According to GLII statistics, the number of new MOCVDs in the first three quarters of this year was only 93. It is expected that the number of new MOCVDs in the whole year will be much smaller than the 242 expected at the beginning of the year. At the same time, in the first three quarters, the average operating rate of domestic MOCVD was 58.4%, and the capacity utilization rate was about 30.1%.
Nanda Optoelectronics Board Secretary Zhang Jianfu told Gaogong LED reporter: "The only reason for the decline in Nanda Optoelectronics' performance is due to the impact of the European debt crisis and the slowdown of the domestic economic growth rate. The LED industry development is not as expected, the demand for MO sources is slowing, and supply is increasing. The relationship between supply and demand has changed, causing the price callback to drop."
Nanda Optoelectronics' 2009-2012 third quarter revenue net profit list:
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