Neoneon LED lamp business rose 70%

Decorative neon lamp manufacturers (1868) announced this year as of June 30th interim results, recorded a net profit of 83 million 327 thousand yuan, an increase of 37.47%, earnings per share 0.11 yuan, 0.027 yuan interim dividend. Neoneon shares yesterday plunged 23.59%, to close at 11.66 yuan, turnover surged to 310 million yuan.

Interim earn 83 million 330 thousand increase of 37%

During the period of the company's core product sales increased 70.1% LED decorative lamp to 202 million yuan, the traditional lighting sales will rise not fall, increased 8% to 152 million yuan, LED lighting and launched for the first time this year to achieve sales of 7 million 600 thousand yuan, accounting for about 1.5% of total revenue, but the overall gross margin fell 3.3 percentage points to 34.5%. Executive director Tom Yiming refers to the gross profit fell mainly affected by the depreciation of machinery and products increased seasonal demand, with the increase of sales of high margin products, believe that the annual gross margin will be improved.

Next month LED light production increased to 400 million

Tang Yiming said, energy-saving and environmental protection and safety LED replace incandescent lamp is the EU and Australia will represent the general trend, legislation to prohibit the use of incandescent lamps, the U.S. government also explicitly required to promote LED lamp, LED lamp is expected in 2010 the global market share will reach 55%. This will greatly improve the capacity of LED lighting, LED bulb at the end of the month of August's 200 million (last June 30 million), the end of this year will be increased to 250 million per month by the end of 08, can be increased to 3 per month to 400 million. In addition, in Vietnam the first phase of the project will be opened in the fourth quarter, the company will gradually transfer to the labour intensive operations in Vietnam, the local labor price is only half of Guangdong Province, and ample supply, and coastal port facilities, convenient exit.

Tang said that in the first half of the company's contribution to the company's LED product sales of 41%, is expected to account for more than half of the second half of sales of more than 50%. Tang said the company's gross profit margin LED products higher than 50%, while the traditional lighting for the 30%. At the same time, the company is actively preparing to start next year in Guangdong province chip (wafer) production business, change the current situation is entirely dependent on imports from Taiwan and Japan, when production costs can save 30% to 40%.

Source: Hongkong Wen Wei Po