Tongfang 1H16 net profit surge in semiconductor lighting business profitability decline

Tongfang disclosure evening August 29th semi annual report shows that during the reporting period, the company achieved operating income of 10 billion 655 million yuan, compared with last year's 10 billion 561 million yuan flat, excluding factors year-on-year changes in consolidation scope, operating income rose steadily; attributable to shareholders of listed companies net profit of 4 billion 957 million yuan, an increase of 462.21%. This is mainly because of the reporting period, the company will be held in the core control rights transfer of purple to violet Chunhua, terminate the merger of its financial statements and confirmation of a large amount of investment income caused by disposal.

During the reporting period, the company's gross margin was 16.17%, compared to the same period also fell 4.30 percentage points, this is because in the external market demand continues to slump, some industries of intense competition environment, the company of various industrial sectors are subject to varying degrees of influence, at the same time in order to maintain market share and the status of the industry, the company increase investment in terms of price competition, market development and product development, the overall level of profitability decline; on the other hand, because the company during the reporting period, the results for the long-term downturn in the multimedia industry to increase integration efforts, will be incorporated into the computer industry sector, in order to purchase production and sales channels, technology development and other aspects to further explore internal synergy, however, further intensified competition in the market pressure and the consumer electronics market continued to shrink the situation, with a number of computer The media sector has yet to achieve improved operating performance, but also had a greater impact on the company's overall profit; in addition, the company's semiconductor lighting industry sectors affected LED chip industry supply and demand imbalance, product prices continued to decline sharply, while its high fixed costs, enhance the technology lag, which makes the sector profitability appear obvious decline, caused a drag on the company's overall profit.

In the lighting industry, on the one hand by the external market environment influence LED chip industry imbalance between supply and demand, product prices continued to decline, on the other hand, because of its high fixed costs, enhance the technology lag, semiconductor lighting business profitability, there has been a marked decline. Announcements, its subsidiaries with the same side friends of friends (formerly known as Neo-Neon Holdings Limited) in the first half of 2016 operating income of 287 million 824 thousand and 100 yuan. Tongfang Yohyo mainly engaged in the manufacture and distribution of LED decorative lighting products, LED lighting products, decorative incandescent lighting and stage lighting products, lighting products and accessories distribution.

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