LED lighting industry overall decline Quanhua Optoelectronics suffered losses in 2016

Quanhua Optoelectronics (830867) released its annual report on April 18. In 2016, the company achieved operating income of 10.43 million yuan, down 51.98% year-on-year; net profit was -93.02 million yuan, a year-on-year loss; basic earnings per share -0.07 yuan.

During the reporting period, due to the economic environment, the LED lighting industry as a whole declined. Based on market development and company operation orientation, the business direction began to adjust in 2015. On the basis of continuing the lighting business of commercial lighting, municipal and industrial lighting, new smart nodes were added. The development of business and smart transportation business; the smart node business has completed several pilots and is in a leading position in China; the intelligent zebra line developed by Smart Transportation has won the Silver Award of the 2016 Innovation Competition of the Ministry of Public Security and is promoted nationwide.

During the reporting period, the company's business was adjusted and its operating income decreased. In 2016, the company achieved operating income of 10,430,545.15 yuan, a year-on-year decrease of 51.98%. Mainly affected by: 1. During the reporting period, the streetlight management departments of Hubei Province were restructured into operational legal persons. As a result, the streetlight management departments of all localities suspended procurement during the reporting period, and the procurement demand was squeezed into 2017. At the same time, the national industrial growth rate declined. The company reduced the risk of payment and reduced the proportion of pressure on the company, which affected the business income during the reporting period.

2. The strategic adjustment of the company's business direction, from the traditional lighting business to the intelligent business transformation. During the reporting period, the total profit was -929,205.23 yuan, down -125.48% year-on-year. The decrease in net profit of the company during the year was mainly due to the decline in income, and the fixed expenses such as staff salaries and rents could not be reduced.

In 2016, the company established a trading company in Yichang to develop the smart lighting market.


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