Sanan Optoelectronics Third Quarter Operating Report

According to the 2012 third quarterly report released by Sanan Optoelectronics, in the third quarter of 2012, Sanan Optoelectronics realized operating revenue of 2.35 billion yuan, an increase of 101% over the same period of the previous year; operating profit of 432 million yuan, an increase of 26% over the same period of the previous year; attributable to shareholders of listed companies The net profit was 667 million yuan, a year-on-year increase of 14%, corresponding to an EPS of 0.46 yuan.

management analysis:

Revenue maintained rapid growth, LED street lamps confirmed lower than expected: the company achieved sales revenue of 980 million yuan in the third quarter, an increase of 118% year-on-year, an increase of 14% from the previous quarter, and the main reason for the further growth in sales in the third quarter was the sale of concentrating photovoltaic products by approximately 2.3%. Billion yuan, while sales of LED chips were about 630 million yuan, basically maintaining stable growth, and the lower than expected revenue of LED street lamps confirmed that the profit growth slowed down.

The significant change in gross profit margin in the third quarter was due to the change in product structure. The gross profit margin of LED chips was stable: The company’s gross profit margin in the third quarter was only 18.8%, a sharp drop of 14% from the gross profit rate of 32.8% in the first half of the year. The decline was mainly due to three Changes in quarterly product sales structure, including sales of high-margin LED street lamp products of approximately RMB 50-60 million, and sales of negative margin concentrating PV products of RMB 230 million, based on the income composition of the third quarter, LED The gross profit margin of chip products is maintained at a stable level of 17% to 18%, and the gross profit margin of LED chips after material recycling is controlled at a normal level of around 30%.

The growth rate of revenue in the fourth quarter will further increase: The company currently produces about 110 MOCVD equipment in stable production. The company’s sales of LED street lamps in the third quarter were lower than expected, and according to the contract company’s sales of about 640 million street lighting products in 2012, 50MW concentrating photovoltaic products will be confirmed sales during the year. Therefore, we expect the company’s revenue recognition in the fourth quarter will be Speed ​​up further.

The company's operating cash flow needs to be improved: In the first three quarters, the operating cash flow of the company was -227 million yuan, while the total of accounts receivable and bills receivable increased by 1.027 billion compared with the beginning of the year. Although 670 million yuan was bill receivable, it was considered at that time. Downstream LED packaging plants are relatively decentralized and fiercely competitive. We believe the company has certain risks of bad debts.