LED stock market downturn was a major shareholder holdings

LED market downturn, the lifting of the ban to a large shareholder, the Alto Electronics was busy reduction. July 3rd, alto Electronics announced that the company's second largest shareholder in Shenzhen city science and Technology Investment Co., total holdings of 3 million 482 thousand and 800 shares of Alto electronic cash in the amount of 36 million 160 thousand yuan. In recent years, along with the LED industry and change, the main LED photoelectric products, alto electronic performance is fluctuation. The major shareholder holdings, in addition to its own operating factors, the industry downturn is also one of the catalyst cash.

Reduction of major shareholders

Yesterday, alto Electronics announced that the company's second largest shareholder of Shenzhen weie Investment Company Limited holds 3 million 482 thousand and 800 shares of Alto electronics in June 21st 29 cumulative reduction, accounting for 3.19% of the total equity of the Alto electronic cash amounting to 36 million 160 thousand yuan.

The reporter interviewed the Alto electronic secretaries do a staff, the staff said that the holdings of major shareholders is the main reason for their own business considerations, "another reason is, alto electronics listed for a full year, but also to understand the ban period, large shareholders cash money is also expected something. "

Because the LED industry overall downturn, the performance of listed since Alto electronics is not stable. In the first half of this year, relying on pre orders, the company's performance has been a substantial increase. A quarterly disclosure of the results of the first half of this year to make a pre judgment, the company expects 2011 1-6 menstrual performance attributable to shareholders of listed companies net profit of 22 million 100 thousand yuan, an increase of 30% over the same period last year.

"But in the last year, the situation was unimaginable. According to the staff said, 2011, alto electronics has experienced the process of low to high before. In the first half of last year, affected by the overall downturn in the LED industry, as well as the slowdown in overseas market demand, resulting in a lack of orders for the company's semi annual results fell. But in the second half of the year, the industry winter gradually pick up, the company orders only began to increase. "

According to the staff, from the Alto electronic revenue in recent years, the domestic market and overseas markets accounted for half of the country. Because of this, once the overseas sales of cold, alto electronic performance is a serious blow.

Early signs of volatility

Reduction of major shareholders, perhaps also can find reasons from the LED industry. The first half of last year, affected by the earthquake in Japan and the second half of the continued deterioration of the European debt crisis in 2011, the company overseas traditional markets suffered a larger setback, while domestic major contracts than expected delay, also affect the company's current sales revenue target, bring greater impact on business performance. Alto electronic data show that in 2011 net profit of 33 million 560 thousand, down 30.47%.

The reasons for the decline in performance, the company explained that sales revenue did not meet expectations. In addition, on the expenditure side, compared with the same period in 2010 the average number of employees increased by 32.05% Alto electronics, human resource costs increased by 70.08%; at the same time, the company increased R & D investment, in 2010 compared with an increase of 23.92%.

In the face of this year's performance expectations, alto electronics said that 2012 plan according to the development prospect of the LED industry applications at present, to achieve the company's long-term planning, continue to implement strategic expansion. Alto electronics also said in its annual report, to 2012 annual sales income increased 50% more than the previous year, net profit growth of more than 40%.

Last year, the performance is not ideal, but does not affect the fund for Alto electronics favored. From the company disclosed in 2011 fourth quarter ten tradable shareholders situation, new China growth (000001, fund) securities investment fund holds about 3 million shares, more than 14.29% of total outstanding shares, the shareholders of the first row in the. In addition, from the last annual report, public offering, private placement fund has occupied most of the country Alto electronic fourth quarter of last year, the top ten tradable shareholders.

LED industry suffered closures

As one of the strategic emerging industries of the LED industry, despite the seemingly unlimited money, but after 2010, in 2011 this year the expansion of production capacity, production capacity excess, LED lighting companies are facing the risk of a sharp decline in prices and profits. From the beginning of the second half of last year, a number of small-scale LED lighting companies have suffered large losses. Bleak industry, but also led to the industry worried that the LED industry will replicate the trend of recovery industry.

Alto electronics is a high-end LED display system suppliers, company is the domestic financial sector the most important LED information release and indication system provider, the main business includes a LED video display system, LED information dissemination and instruction system, electronic receipt system.

Before listing on the first half of 2011, the performance of existing signs Alto electronics industry U-turn, and lower than expected. Alto electronics last year, semi annual report shows that the company profit attributable to owners of listed companies net profit of 22 million 110 thousand yuan, down 6.08% over the same period last year.

It is reported that the LED chip is the core material of LED lighting, LED lighting products at present most of Chinese chip, mainly imported from the United States, Japan, Taiwan and other places Chinese, and China enterprises mainly concentrated in the middle and lower reaches of the package and its application. The industry's point of view, in the entire LED industry chain, the upstream enterprises occupy 70% of the industry's profits, the middle and lower reaches of the remaining total of 30% of the profits, coupled with the downstream price war continues to further decline in corporate profits. Coupled with corporate financing difficulties, many companies in fact rely on export tax rebates or other financial subsidies to maintain operations.

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