M.L.S. increase LED investment, strengthen the scale of success

The Shenzhen Stock Exchange interactive platform for the latest disclosure of information shows that in March 15th, wood wood accepted a number of institutional research, the company said it will increase the field of LED equipment, R & D investment, in order to further reduce production costs.

It is worth noting that the company recently announced the results of the report showed that in 2015, our operating income of 3 billion 880 million, net profit of 256 million, down 3% and 41.09% respectively. Therefore, this research, the reasons for the decline in performance of the company, and how to improve the future profit margins become the focus of institutional attention.

The company said there are three main reasons for the decline in performance. First, 2015 is the lighting market fierce competition of the year, the company's lighting products is a newborn in this area is a new brand, in order to occupy the market and participate in the lighting industry price war (active price); in addition, Xiaolan headquarters plant is not enough, the company adjusted the relocation of lighting products production line Jiangxi to Xinyu, because of the relocation and resulted in increased costs; in addition, the market is expected to change quickly, the product replacement is also fast, so the old cost price.

As for how to maintain the company's future performance growth, Sen said, will further increase investment, enhance the company's production scale and the degree of automation, reduce product cost, strengthen the company scale and automation of the competitive advantage, to improve product gross margin; at the same time, increase investment in research and development, accelerate LED backlight, lighting and other large Home Furnishing high gross the rate of input and output, enhance the company's overall gross margin; in addition, also through financing companies to reduce financial costs, improve the company's financial structure, enhance the company's profitability.

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