Yankon semi annual performance that will focus on improving the proportion of light: the future

The afternoon of September 5th, Yankon held the 2017 semi annual performance of the on-site meeting, general manager Mr. Guan Yong, chief financial officer, Ms. Zhou Yamei, the Secretary of the board of directors Mr. Zhao Fanghua and part of the company's shareholders and institutional investors were present on a series of questions to answer. The minutes of the meeting are as follows, to readers.

Q: how LED industry trend in the future?

Answer: from the overall lighting industry shipments, more than 80% of all LED lighting products. From the perspective of replacement, the permeability is only 20%-30%, within three years the whole industry has not reached a bottleneck, industry concentration will gradually increase.

Q: in terms of brand promotion and channel construction of some what measures?

Answer: at present, the brand promotion in the development of more independent brands, like a good market in Australia last year, nearly half of the business is its own brand, but there are also facing competition and OEM customer problems, however, we are still the key to the independent business adjustment, so, Oceania business this year has a larger adjustment. This year we conducted a capital U.S. subsidiary, continue to increase the engineering investment channels, because the business development of own brand is smaller than the retail channel difficulty, including us in Germany and France, the new company, is to develop the own brand business. Domestic sales, the future focus is to establish strategic cooperative relations, real estate decoration company, gradually expand the field of residential projects, channels.

Q: the lighting level of gross margin decreased rapidly, mainly what is the reason? Whether the bargaining power is weak? The frequency of negotiation with clients about how long?

Answer: lighting materials prices rose more obvious, such as packaging, cover plastic parts and metal parts, it was more than the rise in the cost of light source. This material rises greatly, slightly exceeded company expectations, negotiation with clients will lag, mainly when the rising cost pressure becomes larger, as the company cost capacity, and then negotiate with the customer.

Q: how much is about LED in the first half year-on-year sales growth? The first half of the income growth rate is lower than the beginning of the budget is the main reason for what?

Answer: LED sales growth of more than 60%, but sales growth of 22%, so the price dropped to about 25%, more than 15% of the budget at the beginning of the decline, resulting in income growth rate is lower than the beginning of the budget target.

Q: the company semi annual report this year because of accounting policy adjustments affecting about 12000000, if the last year according to the new accounting standards, what is probably the last year included in other comprehensive income, the estimated amount?

Answer: This is a part of government subsidies, deferred income ten years amortization, because no new year increase in government subsidies, so, even last year, according to the new accounting policy adjustment, last year included in other comprehensive income amount is estimated with this year almost.

Q: in the past few years the company's operating income project government subsidy income in 50 million yuan? In this part of the subsidies will continue?

Answer: the operating income of government subsidies, mainly from the local government's income tax return, the next few years will have, but the specific amount could be decreased with increased year.

Q: in 2016, the company of all kinds of provision for impairment of assets about 90000000, how will this year?

Answer: since this year, energy-saving lamp volume is very small, if there is a provision for more LED devices, we will do the book value and the market price of the test, if there is impairment, however, accounting is provided, this year on a lot less than last year.

Q: how many do OEM lighting enterprises gradually listed, how to look for OEM competition?

Answer: a part of our business is now a foundry, part of the domestic market, including domestic engineering and Home Furnishing. Do the project of listed companies are mainly three male aurora and NVC; and OPPLE Home Furnishing a similar piece of FSL lighting, and similar; the main foundry of Shanghai under the Ya Ming audio and lighting state. The company's business is relatively complex, and it is generally similar to the scale of state lighting, but greater than he. So the company specializes in the field or a difference, with industry concentration increased, the advantage of large enterprises emerged, and small enterprises shut down more obvious, large enterprises OEM market still has space to rise. The company needs to increase efforts in the domestic production base is still relatively small, because so much space to rise.

Q: the company operating cash flow is very good, but from the capital operation look a bit conservative, the company has to consider what?

Answer: the company has a capital operation changes in the concern of the industry, but it is very difficult to obtain good standard, the company in the industrial layout is focused on expanding channels, including engineering lighting, commercial lighting etc.. The second half of the company also carried out overseas mergers and acquisitions, but also not disclosed.

Q: at present, the introduction of talent what measures?

Answer: this year, we are no longer confined to recruit people into Shangyu, many marketing personnel are recruited from the local overseas, such as the United States, germany. Technical personnel recruitment is difficult, the company has set up R & D center in Shanghai and Hangzhou, the introduction of talent will be relatively easier.

Q: the focus of the next few years the company where?

Answer: the next few years the company's focus or in the lighting industry, of course, from the product category will focus on improving the proportion of lamps.

Q: the company staff incentive has what the next step? Whether it will consider incentive schemes of the group level employees?