Dajin Dongfang Lighting issued a warning for half a year
On August 15th, Dajin Dongfang Lighting (00515-HK) issued a profit warning. It is expected that the results for the six months ended June this year will be a loss compared with the same period in 2013.
The loss in performance was due to the decline in gross profit margin of the printed circuit board (PCB) business. It is believed that this is mainly due to increased competition in the PCB industry, overcapacity of the PCB business, and a decline in the average selling price of PCBs.
In addition, due to the impairment loss of property, plant and equipment in the PCB business, the pricing competition in the LED lighting business is fierce, resulting in the reduction of the Group's projects after balancing risks and returns, from LED lighting (LED lighting) business. Revenue and gross profit margin decreased.
The loss in performance was due to the decline in gross profit margin of the printed circuit board (PCB) business. It is believed that this is mainly due to increased competition in the PCB industry, overcapacity of the PCB business, and a decline in the average selling price of PCBs.
In addition, due to the impairment loss of property, plant and equipment in the PCB business, the pricing competition in the LED lighting business is fierce, resulting in the reduction of the Group's projects after balancing risks and returns, from LED lighting (LED lighting) business. Revenue and gross profit margin decreased.
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