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

In the fourth quarter of 2016, due to the loss of about 500 million yuan (NT $, the same below) of the listed asset evaluation, Tai Tung photovoltaic (LED), a maker of Taiwan series, caused a loss of 1.41 yuan per share per year, which was worse than 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, lighting products and other factors, East Bay in 1 and February this year, the cumulative revenue of about 1 billion 24 million yuan, 17.5% less. March is expected to return, but first quarter revenue may be lower than last quarter and the same period last year.

East Bay 2016 revenue of about 8 billion 77 million yuan (equivalent to about 1 billion 844 million yuan), an annual decrease 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. As this part of the provision for loss does not affect cash flow, it has no financial or business implications.

Looking forward to 2017, the company will focus more on the product and customer mix, and adjust the product portfolio to increase 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.

New product segment, East shell is expected in the third quarter of 2017 has launched a new generation of smart people, because lighting, as well as optical module products, while vehicle lighting products shipments also have the opportunity to increase quarterly.

Bei Bei was originally a LED packaging manufacturer, mainly consumer products and backlight applications. In recent years, we have carried out the transformation and actively expanded 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 (Chinese in the fourth quarter of 2015 achieved Toshiba brand lighting products in Europe and Taiwan Chinese sales rights). Among them, the U.S. market share of about 7 into Europe, the proportion of about 2 Cheng, China, Taiwan, Southeast Asia and other Asian regions accounted for about 1.

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