Silan Micro LED business turned losses into profit in the first half of 2014, net profit increased by 66%

Silan Micro announced its 2014 semi-annual report on the evening of the 18th. The company achieved operating income of 871 million yuan in the first half of the year, up 16.64% year-on-year; net profit attributable to shareholders of listed companies was 61.574 million yuan, an increase of 65.8%.

Among them, LED chip revenue was 121.3728 million yuan, up 68.03% year-on-year, gross margin was 18.29%, up 29.83% year-on-year; LED device revenue was 59.325 million yuan, up 145.56% year-on-year, gross profit margin was 30.88%, up 15.31% year-on-year.

Silan Micro said that the subsidiary companies Silan Mingxin and Meikale have achieved a turnaround. In the first half of 2014, with the release of production capacity, the competitive advantage of the company in the high-end color screen pixel device market was consolidated and the brand image was further enhanced.

In the first half of 2014, Silan Mingxin's total output of LED epitaxial wafers reached 340,000, producing 13.7 billion LED chips, and the production and sales rate reached 80%. It has begun to expand production plants and further increase the production capacity of LED chips. With the expansion of production capacity, the production cost of Silan Mingxin has been further reduced.

In the LED business, Silan Micro's development strategy is to continue to promote the construction of the high-end LED device brand of Silan “Mikale”, actively expand high-end customers at home and abroad, expand production capacity, expand new high-end application market; continue in the field of LED chips Investing, on the basis of the industry that LED color screen chips have achieved good advantages, accelerate the development of lighting LED chip business.

Silan Micro expects to achieve an operating income of approximately 1.129 billion yuan in the second half of 2014, which is expected to achieve an operating income of around 2 billion yuan in 2014 (approximately 22% higher than in 2013).

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