The accumulation of Q1 exchange loss impact profit, the annual revenue estimated annual increase of 10-12%

The accumulation of the first quarter of 2017 is the most traditional business off-season, but shipments continued to rise, driven by revenue by more than 10% years, but the legal analysis, because the proportion of total revenue of RMB is high, and in the first quarter of the corporate forecast depreciation rate, and will affect the quarter gross margin fell to about 30-31%, industry foreign exchange loss estimated up to 10 million yuan (NT, the same below), about 0.3 yuan EPS. This year the company benefit from the mainland market is still strong on small pitch LED display market demand, annual growth rate of 45-50%, the company estimated this year shipments can increase more than 20%, because the product price by the market price competition effect, the large decline in estimated revenue this year, the annual increase of approximately 10-12%.

The accumulation of IC design company, main products for the LED driver IC, to display the application side, other applications include building lighting, general lighting and TV backlight. The terminal application: the proportion of total revenue accounted for about 90%, LED display lighting accounts for about 10%. From 2014 the company focused on super dense display screen, small spacing (pitch (spacing) <3mm) products, the niche products (including small spacing accounted for 6-7 percent) the proportion of consolidated revenue of about 70%. The company shipped to the mainland market, accounting for revenues of 75%.

The accumulation continued to benefit from the mainland market for small spacing of the display screen increased demand, shipments rose, driven by the first quarter is the traditional off-season operation most, but revenue reached 610 million yuan, quarter by 0.42%, the annual increase of 13.33%. But because the proportion of total revenue of RMB is high, and the corporate estimates in the first quarter of devaluation, and will affect the Ji Mao rate down to about 30-31%, the foreign exchange industry estimate loss amounted to 10 million yuan, about 0.3 yuan of EPS.

More than 20% other competitors have also invested in mainland China, and the price of the product to grab the city price pressure, product price decline, estimated the overall price drop of about 15%, but this year accumulated in the mainland price decline amounted to 20-25%. Legal person said to last year's IC shipments of about 900 million this year, shipments can be increased more than 20%, but because the product price decline, the annual revenue growth of about 10-12%.

The second, third season will enter the trading season, optimistic about the future of higher corporate operations, but at present in the mainland market to remind the accumulation of market share of about 35-40%, this year 4 to target to maintain market share, in order to maintain the competitiveness of the company, sales strategy "to measure the price of system", fear of affecting the gross margin performance, expected this year gross margin range of about 31-34%, power struggle to maintain last year's level.

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