Inventory of LED listed companies in 2017 the decline in the performance of the "fancy" reason

Notice the performance ended, performance express prelude. Online Jun has counted 40 days before LED listed company's 2017 annual results notice / express, and merged into the "40 LED enterprises 2017 annual performance overview (table)". Since then, the sea Wang Zhaoming, three male Aurora have also released the results of letters.

Integrated 41 companies earnings (Note: three male Aurora disclosed results notice before), a total of 10 enterprises in the year 2017 is expected to net profit year-on-year decline, and another 1 companies (photoelectric) or performance is expected to increase or decrease, net profit margin (-10.66% ~ 19.12%). As for the reasons for the decline in performance, not the same, such as spending RMB exchange losses, increase R & D, impairment......

Disclosed in the announcement of the decline in performance reasons including RMB exchange losses of enterprises, Abison, pioneer and Elec-Tech Lehman shares.

According to Baidu encyclopedia definition of enterprise in foreign currency transactions, exchange business and final account adjustment and conversion of foreign currency statements, due to the use of different currencies, the exchange rate difference between accounting or the same currency price, according to the different functional currency conversion, known as foreign exchange gains and losses. Simply speaking, enterprises can exchange the RMB more, is to change the RMB exchange gains, less, is the exchange loss.

The State Administration of foreign exchange on the RMB exchange rate data show that in 2017 the annual dollar rose 4156 basis points, an increase of up to 5.98%. It's no wonder that the dollar exchange rate continued to decline in overseas business enterprises have some impact.

Among them, Elec-Tech in three of the quarterly bulletin said, because of the change of RMB exchange rate, the company expects 2017 annual produce exchange losses of about 130 million yuan, while the 2016 company of the year because of the change of RMB exchange rate of foreign exchange gains of $143 million 344 thousand and 700.

Increased spending on research and development

R & D expenditure refers to the depreciation and the use of assets in the research and development of the consumption of raw materials, directly involved in the development of staff wages and benefits, in the development process of the rent and the cost of borrowing.

With LED increasingly fierce market competition, the development of new products and new technology is particularly important, has technical advantages often means to win the core competitiveness, so many LED companies costly investment in R & D, which is why many enterprises of a decline in net profit. Three, Abison, OC Jufei, Elec-Tech ledone and 2017 annual have increased investment in research and development.

According to the 2017 semi annual report, Abison, Jufei, in the first half of 2017, the R & D investment were 26351759.01 yuan, 37280549.72 yuan, 34103807.72 yuan, year-on-year growth of 60.94%, 46.75% and 34.43% respectively. Elec-Tech and three in 2017, down slightly overclocking an R & D investment in the first half of the two companies, and said in a notice of annual performance, increase R & D is one of the reasons, in 2017 net profit decline in view of this, research both in the second half of 2017 there was a substantial increase in investment.

Impairment

In addition to foreign exchange losses and increase R & D investment, impairment is the more common cause of the decline in performance. Notice results in 10 of the reduction in the enterprise, there are 5 companies listed in the changes it causes performance.

Xiamen XinDa in the performance forecast said, based on the principle of prudence, the company on the basis of accounting policy requirements for the reporting period of the business risk provision for the impairment, is expected to have a greater impact on the 2017 annual profit.

Abison said that the acquisition of Shenzhen as a Wes Technology Co. Ltd., provision for impairment of goodwill.

Guangdong Gan Hua said, according to the company, a wholly owned subsidiary of Guangdong Deli shares photoelectric Limited company publicly listed on the transfer, the company needs to prepare a large asset impairment.

Jufei announced, according to the requirements of the accounting principle of prudence, the company will be provision for impairment of assets; a wholly owned subsidiary of poly fly (Hongkong) acquisition development Co., LiveCom Limited company, compared with the same period last year, the 2017 annual decline in performance is more, according to the impairment testing of goodwill, the company will be formed on the the acquisition of part of goodwill, impairment losses.

De Ho Runda said in the announcement, LED chip division plans to gradually shift to dress chip flip chip, the expected part of the chip equipment idle capacity, in the annual provision of related chip business for impairment of fixed assets of about 160 million yuan; other department provided for impairment of fixed assets of about 20 million yuan of idle and use no economic equipment. In addition, lighting and display business inventory disposal losses of about 190 million yuan (after deducting pre has made provision); chips and devices business inventories of the period of provision for decline in value of about 70 million yuan.

Of course, the cause of the decline in corporate performance more than 3 above, also includes business less than expected, the provision for bad debts, asset disposal proceeds decline. No matter what the cause of the decline in performance, hope each big enterprise can improve the profitability of an antidote against the disease, in the future, the achievements and development of better. (LEDinside / Nicole)

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