LED bubble near the explosion Neoneon huge loss of 1 billion 400 million provision for more than 900 million

Because once the LED concept stir industrial performance in recent years to go downhill, at the end of March this year the year from surplus to deficit, a loss of 1 billion 430 million yuan (below), sales fell, provision of more than 900 million yuan, stunned the market. Food is the concept of environmental subsidies LED industry bubble burst?

Chief financial officer and company secretary Chen Zhang said to the newspaper, 08 to 11 years of market scrimmage serious, especially the worst of the year, the size of the company's biggest loss in history". But he believes that after this year's market reshuffle, the war is expected to end.

Excess capacity is still optimistic about demand

Market concerns LED industry bubble finally burst, but Chen Zhang said that the current market is indeed the problem of excess capacity, but the overall demand is still large. With the promotion of LED technology, product prices fell, can attract more consumers, and a more important aspect, is still the government's environmental policies to promote. He pointed out that Guangdong province leader LED promotion, is expected within the next 3 years the government will promote the 500 billion LED consumer market, there is a total of more than 1 trillion, but 100 among the participating enterprises, the company as the industry leader, is still optimistic about the next few years development.

1 billion 100 million of the market value has been issued early warning

He refers to the company last year has been gradually shifted to the mainland business Chinese period, sales accounted for the mainland market and fell, there are more than 100 million government projects involving capital orders on hand, because of the change of government and capital turnover slowed, but once the administrative procedures for approval, can be expected to promote sales this year. The company's goal this year, the mainland market sales of up to HK $500 million, an increase of 286 million over last year's $75%.

Early in the mainland to promote energy saving and environmental protection, many companies are involved in the LED industry touted. Neoneon once every 07 years up to 18.34 yuan peak, later transferred, the highest in recent years as the beginning of 2010 to 6.75 yuan, only 1.22 yuan yesterday.

However, the company first half of the fiscal year from profit to loss, a loss of 100 million, although it has issued a profit warning, but the second half losses significantly expand the market value of 1 billion 100 million yuan of industrial annual losses of more than 1 billion 400 million, still surprising.

European sales fell half tired business minus 3

Chen Zhang said, accounting for 7 of sales in the US and Europe struggling to hit the company in Europe, sales fell more than 50%, more than 30% sales dragged down the overall backward. In addition, the provision of up to 950 million yuan last year, including the provision of inventory of $460 million, provision for receivables of $124 million, fixed assets and other provision of $140 million. He believes that this year the company's performance will be improved, there will be no significant action on the provision.