Off-season, the Spring Festival hit a series of short-term pressure on the crystal

LED epitaxial wafer manufacturers EPISTAR / the third quarter of this year due to climate modification, product competition, LED decline, resulting in low capacity utilization, gross profit, losses and negative, single season operation nearly 11 low season, the first three quarters of the cumulative loss per share of 0.33 yuan (NT, the same below). Because of the fourth quarter has entered the traditional off-season, coupled with the first quarter of next year on the lunar new year, estimated in the short term operating pressure is still in.

Crystal is LED epitaxial / wafer manufacturer, the product is used in panel backlight, lighting, LED billboards, automotive lighting and other niche applications market. The factory is located in Taiwan, Miaoli, Tainan and Hsinchu, Changzhou, Xiamen and other regions. The scale of operation Department and at the end of last year after the whole, and incorporated into canyuan, and this year has officially joined the operation.

Originally expected in canyuan merged, revenue this year is expected to maintain growth, but affected by the industry boom continued to decline and LED correction factors such as crystal electric this year revenue weak trend, 10 months before the cumulative revenue has nearly 1 decline over the same period last year. Among them, the third quarter capacity utilization rate is low, gross interest rates turned negative, plus listed inventory valuation losses and restructuring costs, industry losses.

Outlook, with the industry into the traditional off-season, followed by the lunar new year, is expected in the fourth quarter to the first quarter of next year, limited operating space, revenue may decline, the loss of pressure is still large. In the medium term, it is generally believed that in the case of no significant recovery in the economy, before the end of this year, the introduction of new capacity may also make the next LED industry competition intensifies.

The company hope to increase product added value, product differentiation and expansion of sea strategy for downstream distribution industry changes, new products including LED, IR, HV high pressure infrared ultraviolet UV, auto LED, lighting applications etc.. But in the boom correction and adjustment of industrial structure under the influence of the specific benefits to brewing time.

EPISTAR revenues of 6 billion 177 million yuan, the third quarter of this year, quarter by 9% years by 19%, gross profit, gross margin negative rate of 5.18%, operating loss of 1 billion 240 million yuan, the industry losses, although the contribution of industry profits (foreign exchange, financial evaluation) 500 million yuan, after tax losses still amounted to 1 billion 36 million yuan, the loss per share of 0.96 yuan, the highest since the in 2013 11 quarter operating point.

Before the three quarter total revenue of about 19 billion 593 million yuan, the annual reduction of 11%, gross margin of about 5.55%, operating losses of 1 billion 546 million yuan, industry revenue more than 2 billion 200 million yuan (exchange gains and financial benefits, tax assessment) loss of 359 million yuan, 0.33 yuan per share loss. In October this year, revenue fell to 1 billion 947 million yuan, down by $9.3%, an increase of 1.5% in the previous year, the cumulative total revenue of about $21 billion 500 million, an annual reduction of 9.9% yuan. Pressure is still forecast for the fourth quarter.

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