As in Varitronix LED lighting by the national recognition has not issued new shares to raise funds

On December 6th news, according to Hongkong media reports, as in (3.54, -0.04, -1.12% power, the economy through real-time quotes) (515) earlier announced that the group has been successful and become "three ministries" semiconductor lighting (LED) for each enterprise application demonstration project, the future will be the preferred unit demonstration project. The Group believes that this represents its LED lighting technology has been recognized by the state. In addition, the group also won the bid for the purchase and installation of LED street lamp in Zhengzhou municipal government, involving about 12 million yuan.

According to Hongkong, Oriental Daily reported that Wu Guangji also said that the group earlier announced the release of TDR, is still in the application stage, such as the current stock price, about to get about 200 million yuan to raise funds. Although the group has to consider the issue of new shares to raise funds, but because the management and shareholders believe that the current group's share price is undervalued, so at this stage will not issue new shares to raise funds.

Temporarily issued new shares

The development of the group is subject to the capital, because most of the transactions are payments, such as there are now about 150 million of funds, can only be about 500 million of the business, and now the 2011 fiscal year has more than 400 million sales contract. 2012 fiscal year contract sales of about $700 million, the annual turnover is expected to reach $1 billion in 2012.

"Three ministries" for the national development and Reform Commission, the Ministry of housing and urban rural development, Ministry of transport, is an open tender, including a number of LED products, the application and the successful bid is LED road and tunnel lights. Wu Guangji, head of equity finance, said the group's cooperation is in the form of payment or payment in one form, the general installment, such as the urgent needs of the local government, it will be a payment.

Wu Guangji continued that the gross profit margin mainly depends on the mode of cooperation, such as the installation, can reach 50%, if not included in the installation, only the sale of its LED to other companies to install, gross margin is about 35%.