Q1 net profit increased 76 times! Changelight staged the strongest counter attack"

The evening of April 17th, LED chip listed companies changelight released first quarter earnings, operating income reached 267 million, net profit reached 41 million 570 thousand, an increase of up to 76 times, staged a performance reversal record the maximum level of LED industry history.

In spite of this amazing growth is one of the reasons for the same period last year profit of only 540 thousand yuan, but it also proves that the rapid growth of dry as thanks to the LED chip business, the main business continues out of the shadow of loss.

Changelight Chinese is the largest manufacturer of four yuan LED, but by four yuan LED market matures, the development of space constraints, affect the company's growth, so in 2015 the fund-raising into more competitive market of blue and green LED. However, by 2015 green and blue chip prices fell sharply, the market promotion and ramp up progress is not urgent expectations, changelight in 2015 to a loss of up to 90 million.

Enter the 2016 LED chip industry in small spacing display strong demand pull, gradually into the price trend. As the main China LED display market red light chip suppliers, changelight from the full benefit of red and yellow light LED chips (blue and green Maori recovered significantly into the market before the changelight gross profit of more than 30% in the long-term). With the company production capacity gradually released blue and green, blue and green LED average cost is decreased, the level of overall gross profit in the upward trend in recovery.

For the ultra expected performance (performance forecast is an increase of 65%~73%), changelight in the earnings report also gives an explanation:

Through the integration of market of LED industry in 2015, 2016 began to rebound into the cycle of chip market, but in the first half of the market demand, the price did not change significantly; at the same time, the first half of 2016 blue chip production is gradually increasing and has not yet reached the production stage, gross margin is still at a low level, resulting in the first half of 2016 the cumulative net profit the loss of 6 million 174 thousand and 800 yuan.

Combined with the company's profitability and 1-3 months of 2017 the Ministry of Finance Ministry changelight preliminary estimates, the company expects 2017 1-6 month cumulative net profit of up to 80 million to 100 million.

In this regard, changelight believes that compared with the previous year's results have undergone significant changes in reason:

1) factors affecting the external market environment: since half market demand growth by 2016, the price of some products has increased, the company's main business ushered in the good development space.

2) the company's own advantages influence factors:

On the one hand, the company Blue and green project has been nearly two years after the project period of production experience, a significant effect was obtained in the production process, improve the yield improvement, the single variable costs decline, the yield increase also makes fixed costs have fallen, prompting chip gross margin increased markedly;

On the other hand, with the company's marketing strategy of sustainable developing, sales and manufacturing sectors, focusing on in-depth integration to provide customers with quality service, combined with the positive changes in the external market environment, the company's brand competitiveness is more and more strong, maintain healthy growth in the premise of the red and yellow green blue chip, chip market share further ascension, is expected in 2017 chip sales continued to record highs.

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