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 profit has turned from a profit to a loss of 1.43 billion yuan. In addition to the decline in sales, the provision of more than 900 million yuan has made the market look awkward.
Zhen Mingli’s sales target for the mainland market this year is HK$500 million, an increase of 75% from last year’s 286 million yuan. However, the company's first half of the fiscal year has turned from a profit to a loss of 100 million. Although the profit warning has been issued before, the loss in the second half of the year has been greatly expanded, with a loss of more than 1.4 billion for the whole year.
Zhen Mingli believes that the sluggish sales in the European and American markets, which accounted for 70%, 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.
Zhen Mingli 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, product prices will fall and attract more consumers; another, more important aspect is still driven by the government's environmental protection policy. Zhen Mingli 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 which there are only 100 participating companies. As a leader in the industry, Zhen Mingli is still optimistic about the development in the next few years. .
Since last year, Zhen Mingli has gradually turned its business to the mainland, but the mainland market sales have fallen due to the problem of account entry. There are more than 100 million government engineering project orders on hand, which has slowed down due to the government change and capital turnover. Once the administrative procedures are approved, Can promote sales this year.
Zhen Mingli’s sales target for the mainland market this year is HK$500 million, an increase of 75% from last year’s 286 million yuan. However, the company's first half of the fiscal year has turned from a profit to a loss of 100 million. Although the profit warning has been issued before, the loss in the second half of the year has been greatly expanded, with a loss of more than 1.4 billion for the whole year.
Zhen Mingli believes that the sluggish sales in the European and American markets, which accounted for 70%, 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.
Zhen Mingli 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, product prices will fall and attract more consumers; another, more important aspect is still driven by the government's environmental protection policy. Zhen Mingli 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 which there are only 100 participating companies. As a leader in the industry, Zhen Mingli is still optimistic about the development in the next few years. .
Since last year, Zhen Mingli has gradually turned its business to the mainland, but the mainland market sales have fallen due to the problem of account entry. There are more than 100 million government engineering project orders on hand, which has slowed down due to the government change and capital turnover. Once the administrative procedures are approved, Can promote sales this year.
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