What are the 7 main reasons for the decline in the LED net profit

Is the last day of August, LED listed companies in the first half of the annual report in the near future basic disclosure. In the first half, weak foreign market demand, China's economic slowdown, while the LED industry to deepen the concentration of the industry, price competition white hot, mergers and acquisitions integration normalization, competition and challenges for enterprises in the same.

According to the company semi annual report shows that the majority of enterprises to realize the net revenue growth in both, but there are still some enterprise revenue growth but the decline in net profit, or double net revenue decline "horror".

The reason, or by the expansion of production capacity demand and market competition led to price decline, gross margin decrease, or affect the investment in research and development costs are too high, or merger integration, restructuring costs more......

Xiao Bian combing these net profit fell LED listed companies to understand the other side of the LED industry in the first half of the booming growth.

Kingsun

Net profit fell 70% in the first half of the larger impact of the company's equity

KingSun August 28th evening semi annual disclosure of the reporting period, the company achieved operating income of 442 million yuan, down 7.89%; net profit of 16 million 900 thousand, down 70%.

The reasons for the decline: KingSun correction in the earlier performance case said net profit decline reason is by the operating performance of the company shares of the company Erdos Raffles City Photoelectric Technology Co. Ltd. the downturn.

FSL

Net profit fell 46% in the first half of the continuing impact of litigation

FSL disclosed in August 28th 2015 report, during the reporting period, the company achieved operating income of 1 billion 524 million 362 thousand and 800 yuan, down 1.21%, total profit of 124 million 449 thousand and 400 yuan, down 45.64%, attributable to shareholders of listed companies net profit of 100 million 258 thousand and 800 yuan, down 46.94%.

Domestic sales revenue 1 billion 61 million 981 thousand yuan, an increase of 0.93%, export sales revenue of $462 million 381 thousand and 800, down by 5.79%.

The reasons for the decline: during the reporting period, the domestic economic downward pressure continues to increase, foreign economic recovery is slow, the increasingly complex global economic environment. The company is located in the lighting industry, although the rapid development of LED, but the product structure overcapacity, market competition is increasingly fierce, product prices continued to fall.

Data show that the gross profit margin of traditional lighting FSL is relatively high, up to 27.86%, while the gross profit margin of LED lighting was only $18.44%. The FSL LED product positioning is lower, the gross profit margin is relatively low, failed to fill the gap under the influence of traditional lighting replacement revenue.

At the same time, the investors claim lawsuit, FSL at the end of 2014, has announced the provision for compensation of 61 million 438 thousand and 300 yuan, the first half of this year to $14 million 167 thousand and 700 provision for investors compensation and litigation costs, caused some negative impact on performance.

Dry photoelectric

Net profit decline in the first half of 50% market acceptance is low

The evening of August 24th, according to the disclosure of the semi annual report, according to the sun in 2015. During the reporting period, the company achieved operating income of 221 million yuan, an increase of 11.24%, attributable to shareholders of listed companies net profit of $24 million 343 thousand and 900, down by 48.33%.

The reasons for the decline: changelight said, mainly from the expansion project of LED chip debugging to the cost of production process produced an increase in net profit of the company and the reduction of bank deposit and financial income year-on-year decrease.

Two is the company in the new business in the field of marketing, compared to some earlier than the company to enter the industry and has established a brand effect of competitors, their products are subject to a low degree of market acceptance.

In the face of the potential customers have not yet established a sales relationship to launch new products, may not be established because of the lack of trust and lack of brand awareness in the industry and other reasons to promote difficulties.

China Optoelectronics

Net profit dropped 71.53% in the first half of the investment costs

HC semitek August 24th released the 2015 semi annual report, the reporting period, the company LED chip production growth of 140.10% over the previous year, sales growth of 70.64% over the previous year, operating income of 434 million 235 thousand and 200 yuan, representing an increase of 42.64%; realize operating profit 454 thousand and 800 yuan, representing an increase of 106.21%; net profit of 12 million 569 thousand and 500 yuan. Representing a decrease of 71.53%. Net profit after deducting non recurring gains and losses of 2 million 318 thousand and 400 yuan, an increase of more than the same period last year, 207.32%.

The reasons for the decline: China can photoelectric said that the market competition is gradually intensified, the company's size is partially offset by the benefits, while the company's R & D investment, financial expenses increased compared to last year.

Overall, the company's operating income and profits are rising over the same period last year, but has not yet been able to make up for the decline in operating profit, so the consolidated net profit decreased compared to the same period last year.

Wan run Technology

Net profit fell 17.61% in the first half by the impact of increased management fees

Allring technology disclosed in August 20th semi annual report, the reporting period the company achieved operating income of 308 million 119 thousand and 100 yuan, representing a growth of 21.05%; attributable to shareholders of listed companies net profit of 20 million 734 thousand and 700 yuan, down 17.61% over the same period last year; net operating cash flow of 20 million 306 thousand and 500 yuan, up 183.26% over the same period last year; the acquisition of the company since the date photoelectric May 31, 2015 was included in the consolidated statements, June operating income of 42 million 191 thousand and 200 yuan, net profit of 2 million 934 thousand and 800 yuan.

Reasons for the decline: the increase in R & D investment during the reporting period as well as