LED chip prices EPISTAR Q3 net loss of over 200 million

LED epitaxial leading Taiwan crystal power plant (Epistar) today announced the 2015 Q3 earnings, Q3 after tax net loss of 1 billion 90 million yuan (NT, the same below, equivalent to approximately RMB 212 million yuan), EPS per share loss of 0.96 yuan, mainly by LED chip market prices, resulting in stock price decline, produced up to 1 billion 244 million yuan (RMB 242 million) single quarter operating loss, but also to influence the LED backlight demand is not strong enough, at this stage LED lighting still orders, but the average price is low, affect the overall operating performance.

The market forecast of Q3 crystal electric utilization rate has dropped to 50%-60%, gross margin to -5.18%. And 2015 Q1 =9.23% = gross margin compared to the performance of this season, if the performance of the control Q1, can be said to be a loss of profit Q1 out, the first three quarters of the total EPS of -0.33 yuan in 2015.

The LEDinside survey China market LED supply chain price, LED chip bargain related lighting is very fierce, the overall gross margin decreased with China chip plant in heavyweight competition in the lighting market. The crystal power, before the ship has been changed to LED bulb manufacturers LED chip design, has completed this cost-effective products, the supply to the market to meet the needs of ultra low price part of the LED lighting market.

Crystal 2015 Q4 operation will focus on LED lighting products and strengthen the promotion of new chip, special niche market, and look forward to the LED backlight orders back to temperature, but Q4 LED has opened new global wafer capacity, is likely to decline by the impact, let us intensive attention.

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