East 2016 revenue over 1 billion 800 million this year, to adjust the product to improve gross margin

Taiwan LED packaging manufacturers in the fourth quarter of 2016, due to the loss of electricity assets valuation of about 500 million yuan (NT, the same below), resulting in a loss of $1.41 per share for the year, the performance is not as good as expected. The company said, is to accelerate the adjustment of product sales and customer portfolio, hoping to improve the gross margin, if a wise man for lighting, including optical module and vehicle lighting and other new products and new orders for shipment, this operation should improve.

However, affected by the Lunar New Year and the traditional off-season, the impact of factors such as the decline in the price of lighting products, the East this year, 1 and February, a total revenue of about $1 billion 24 million, an annual reduction of 17.5%. Estimates should be back in March, but in the first quarter revenue may be lower than the previous quarter and the same period last year.

East 2016 revenue of about 8 billion 77 million yuan (equivalent to about RMB 1 billion 844 million yuan), an annual reduction of 0.19%. Among them, the first three quarters of the cumulative net profit after tax of 41 million yuan, 0.13 yuan EPS, originally expected in the fourth quarter should be flat loss or small profit, but because the company for the assets impairment evaluation of listed reserve of about 500 million yuan, resulting in tax loss of 460 million yuan per share, after tax losses amounted to 1.41 yuan.

Back in 2016, the East Bay, is the main cause of competition in the whole industry, coupled with last year listed overseas litigation expenses increased, although the company faced many challenges, the industry (lighting products and components of LED) remained profitable, but based on conservative principles, are still the assets of the project evaluation and put out about 500 million yuan impairment. Since this part of the loss provision does not affect the cash flow, there is no impact on the financial and business.

Outlook 2017, the company will focus more on product and customer structure, while the product mix has been adjusted to enhance the gross margin. Low lighting products, increase the proportion of shipment shipment well-known lighting products to reduce the one hand, on the other hand the backlight manufacturers focus on international orders, and avoid the mainland industry price competition, is expected to improve in the product profit this year.

Part of the new product, the East is expected to be launched in the third quarter of 2017, a new generation of intelligent people due to lighting, as well as optical module products, while car lighting products shipments also have the opportunity to grow by quarter.

LED was originally a large package, consumer products and backlight applications. In recent years, restructuring, and actively expand the development of lighting products. Last year, the proportion of lighting lamps, wisdom lighting system lighting products such as total about 5-6, the proportion of nearly 4 into backlight (TV and mobile phone backlight each half), this year for new customers to join, backlight lighting product mix adjustment, plus the proportion and infrared and other niche products can multiply, estimate the backlight proportion will rise to 5 as above, lighting evaluation is reduced to 4, the proportion of niche products. 5%-10%.

At present, the East Bay lighting products to large channel customers in the United States mainly supply, sales to the Toshiba brand in Europe and Taiwan (China in the fourth quarter of 2015 achieved Toshiba brand lighting products in Europe and Taiwan China sales rights). Among them, the United States market share of about 7, the proportion of about 2 in Europe, China, Taiwan, Southeast Asia and other parts of the proportion of about 1.

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