LIAN photoelectric main sideline comprehensive profitability

LIAN today announced the announcement of the board of directors, the first half of 2007 is expected to achieve net profit over the same period last year, an increase of more than 100%.

As one of the leading enterprises in the field of optoelectronics, LIAN has not shown the potential for growth since the listing of the company's growth potential, its leading product LED growth is slow, low gross margin. On March 19, 2006, the board of directors of the company made a strategic goal in 3 years more than 50% companies make LED industry industry share, and take on strength, increase investment, looking for strategic investors, internal restructuring, the introduction of talent and other means, to promote the rapid development of LED industry company. Not long ago, LIAN photoelectric board decided in the next 3 years, will be in LED cable products and products in the field of investment 200 million yuan to implement key projects, to quickly enhance the company LED and cable product competitiveness, aiming at the photoelectric enterprises with international competitiveness.

LIAN relevant responsible person said that the first half of this year's growth is mainly due to the momentum of development of the business well; not only the increase in business profits, loss of the original sideline also improved, and there is profit; and these were mainly due to the company's industrial structure adjustment this year. Data show that the company in Japan before passed to light to increase company and implement communications cable technology renovation project of two motion; also released shareholders meeting examined and approved the project of Xiamen Hongfa capital gold Hejie. According to LIAN photoelectric 2006 annual financial report, the company was put forward to actively promote the Xiamen Hongfa listed as the goal, a modest reduction of Xiamen Hongfa equity ratio, promote Acer raise funds in the capital market, to achieve the sales target of 1 billion yuan, in order to consolidate and expand the dominant position in the domestic field of Acer relay. According to the projections of the fastest time, Xiamen Hongfa should be listed in the second half of next year. Insiders said that the listing will help LIAN Xiamen Hongfa photoelectric focus on stronger light power industry.

Source: Shanghai Securities News