The huge loss of 140 million Chinese electronics CPT industry is facing the pain of transition

CPT industry's decline has been confirmed in radio and television electronic body.

In July 15th, Shanghai radio and television electronics (600602.SH) issued Yukui announcement, said the first half of 2005 business will be 130 million -1.4 billion loss, compared with the same period last year fell more than 250%. The stock market responded immediately, broadcast electronic stocks continued limit.

CPT industry losses

This is our company's first loss since the 1987 issue of A shares. As the first listed company in Shanghai, we feel very sad." Radio and television electronics secretaries Hu Zhikui said.

In fact, from the beginning of the first quarter of this year, the main business of radio and television and net profit compared with the same period last year have dropped significantly. Among them, the main business income 728 million yuan, down about 34% over the same period last year, profit of $5 million 95 thousand and 800, down by 88%. Radio and television is expected in the first quarter of 2005, net profit will decline by more than 50% over the same period last year.

Although a quarterly electronics raise huge losses of the alert, however semiannual reports nearly 140 million yuan of the huge loss is still unexpected.

At the same time, the domestic listed companies (000058.SZ) and Shen Saige CPT rainbow shares (600607.SH), is a radio electronic "fellow sufferers". The first half of this year, Shen Saige loss of 5 million yuan; and rainbow shares Electronics announced the same day, the first half of the year will be a loss of 35 million yuan.

The overall picture of a downturn in industry losses now become clear color eye-catching.

Radio electronics pointed to an important reason for the loss in the announcement: "this year, affected by the industry structure adjustment of color TV products of color kinescope, appeared reduced demand and inventory increase, a substantial decline in the price of our products."

CPT industry downturn, but also directly affect the electronics shares of Shanghai Asahi Electronic Glass Co. Ltd. Is specializing in the production of CRT (cathode ray tube) with glass enterprises CPT, its operating profit fell sharply, to further increase the electron loss.

Since last year, the emergence of flat-panel TVs, began to quickly erode the market share of traditional CRT tv. According to Lu Renbo, deputy director of the State Council Development Research Center, deputy director of the Institute of market economy, the domestic flat-panel TV sales in the first half of this year has reached 741 thousand units, the annual sales volume is expected to reach 1 million 850 thousand units. Although the flat-panel TV market is still far less than the size of CRT TV, but its sales this year is expected to account for 1/3 of the entire color TV industry sales.

In the huge interests of the call, many downstream manufacturers this year will focus on production and sales of flat-panel tvs. According to Hu Zhikui revealed that this year, Changhong CPT and TCL have reduced demand for large CRT CPT orders.

In addition, because of American TV anti-dumping and other factors, as the main force of China's TV industry exports, CRT TV exports also encounter obstacles, the proportion of the export quantity and amount in total exports, from 86.3% last year and 77.8% respectively, down to the current 72.1% and 54.2%.

The traditional TV market shrinking, caused a surge in CPT inventory. According to statistics, in 2004, the CPT industry inventory was 2 million 240 thousand, 367% higher than in 2003. And in February of this year, the CPT stocks climbed to 4 million 420 thousand. In this case, in 2004 a year, radio and television electronic inventory from the beginning of 535 million yuan, to the end of the year of $739 million, while the first quarter of this year, the report shows that its inventory was as high as $1 billion 163 million. At this rate, inventories will be higher in this year's semi annual report.

Pain and happiness

Picture tube enterprises to get out of the woods, the product to change, technology to change, otherwise it will be eliminated." Lu Renbo pointed. In his view, flat-panel TVs is the future trend.

In fact, the domestic CPT industry is not aware of it. Radio and television electronics is one of the few manufacturers to see the huge market potential of flat-panel TVs, and generous in the field of technology and capital investment.

2000, SVA electronics and Panasonic jointly invested $98 million 770 thousand, set up the Shanghai Matsushita plasma display Co., Ltd., with an annual output of plasma display 50 thousand. 2002, SVA electronics and Panasonic and $98 million 730 thousand increase in the construction of an annual output of 240 thousand units of plasma production line.

Before and after the two radio and television has invested a total of about 484 million yuan, with a joint venture company's equity of 41.9%. Let the radio electronic relief, in the next few years, the rapid growth of the plasma display production and sales, the company prospered: in 2004, Shanghai Matsushita plasma company achieved sales revenue of 1 billion 968 million yuan, an increase of 56%; profit 131 million yuan, an increase of 439%. Radio and television received a net profit of 55 million 366 thousand and 700 yuan, accounting for the proportion of the company's total profit of 44.29%.

However, before the big profits as Matsushita plasma company, this is in the electron loss plays a very important role. On the one hand, the flat panel display market competition, plasma TV LCD TV prices fell by the impact, leading to a joint venture profits decline; on the other hand, the reform of production line for half a year, also affect the joint venture company sales and profits.

Radio and television in the tradition and transformation suffered a double blow.

According to sources of radio electronic anonymity introduction, the technical transformation of plasma production lines, the joint venture company to reduce the profit of about 120 million yuan, according to equity ratio calculation, directly caused a loss of about 50000000 yuan to the listed company. At the same time, radio and television production line also changed