Zhen Mingli, who had been enthusiastic about the LED concept, has been declining in recent years. As of the end of March this year, the whole year turned from profit to loss, with a large loss of 1.43 billion yuan (the same below), and the provision for sales fell by more than 900 million yuan. Make the market look awkward. Is the LED industry in the concept of environmental protection subsidies a bubble burst?
CFO Chen Chen, the chief financial officer and company secretary, told this newspaper that the market warfare was serious in 2008-11, especially this year's worst. "Size companies have the biggest losses in history." But he believes that after the market reshuffle this year, the battle is expected to end.
Refers to overcapacity, but demand is still optimistic
The market doubts that the LED industry bubble is finally bursting, but Chen Hao said that there is indeed a problem of overcapacity in the market, but the overall demand is still large. With the promotion of LED technology, the price of products will fall, which will attract more consumers. Another important aspect is still the promotion of the government's environmental protection policy. He pointed out that Guangdong Province led the LED promotion. It is expected that the government will promote the consumption of 500 billion LED market in the next three years. The total number of LEDs in the country is more than 1 trillion. Among them, there are only 100 participating companies. As the industry leader, the company is still optimistic in the next few years.
The market value of 1.1 billion has been issued a profit warning earlier.
He pointed out that the company has gradually shifted its business to mainland China since last year. During the period, the sales in the mainland market fell due to the problem of account entry. There were more than 100 million government engineering project orders on hand, which slowed down due to the government change and capital turnover problems. Administrative procedures are approved, which is expected to boost sales this year. The company's target market sales in the mainland this year will reach 500 million Hong Kong dollars, an increase of 75% over last year's 286 million yuan.
The mainland has promoted energy conservation and environmental protection in the early years, and many companies in the LED industry have been enthusiastic. In 2010, Zhen Mingli was soaring to a peak of 18.34 yuan, and then turned down. In recent years, the highest was 6.75 yuan at the beginning of 2010, and only 1.22 yuan yesterday.
However, the company’s first half of the fiscal year has turned from profit to loss, with a loss of 100 million. Although the profit warning has been released before, the loss in the second half of the year has been greatly expanded. The true loss of the market value of 1.1 billion yuan is more than 1.4 billion. .
European sales fell half of the business, minus 30%
Chen Wei said that the disappointing sales of 70% of the European and American markets caused a heavy blow to the company. The sales in Europe fell by more than 50%, dragging down the overall sales by more than 30%. In addition, the provision for the year was as high as 950 million yuan, including 460 million yuan in inventory provision, 124 million yuan in receivables, and 140 million yuan in fixed assets. He believes that the company's performance will improve this year, and there will be no major moves after the provision.
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Yangzhou Langxu Lighting Technology Co., Ltd , https://www.street-lighting.com