NVC Lighting earned 250 million LED profit in 2013 less than expected
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On the evening of March 26, NVC Lighting released its 2013 performance report. The report shows that the company's revenue last year was 3.774 billion yuan (RMB, the same below), a year-on-year increase of 6.4, gross profit was 797 million yuan, an increase of 4.7. But because of the significant decrease in management fees and other expenses, the company's net profit achieved 28 times. The growth has reached 245 million yuan.
It is worth noting that the LED business is not as profitable as traditional lighting products. NVC Lighting revealed in the report that the price of LED lighting is prevalent, and the profitability of LED products is lower than that of traditional lighting products.
Last year, management and other expenses dropped sharply. According to the 2013 performance report released by NVC Lighting, there was no large-scale growth in revenue. However, the reporter noted that NVC Lighting's trade receivables last year was 1.16 billion yuan, compared with 711 million yuan in 2012, an increase of more than 60. In addition, NVC Lighting's net profit performance is eye-catching, 2013 profit is 245 million yuan, a 28-fold increase over the same period last year.
The reporter learned that the reason why the company's net profit can have such a high increase is related to the significant drop in management fees and other expenses.
In 2013, the management fee for NVC Lighting was 259 million yuan, and in 2012 this cost was 316 million yuan. Under other expense subjects, NVC Lighting's data for 2013 was 2.618 million yuan, compared with 231 million yuan in 2012. It is understood that other expenses mainly include loss of assets, loss of property, plant, equipment and waste, and donation expenses.
In the 2012 performance report, NVC Lighting explained that other expenses have increased significantly. During the reporting period, the significant increase in other expenses of the company during the same period was mainly due to the impairment loss of 2.2 caused by the Group's acquisition of WorldCom and its wholly-owned subsidiaries in 2008. 100 million yuan.
WorldCom refers to WorldCom Investment Co., Ltd., which was established in August 2005 in the British Virgin Islands. In order to strengthen the layout of the energy-saving lamp project, NVC Lighting acquired the company and its subsidiaries.
The LED market price war is fierce as a traditional lighting company. In the past two years, NVC Lighting has continuously increased its layout in the LED field. In 2013, the company's revenue in LED lighting products reached 741 million yuan, accounting for 19.6 percent of total revenue.
In its 2013 performance report, NVC Lighting stated that with the concept of energy conservation and environmental protection being deeply rooted in the hearts of the people, the green property of LED lighting has been widely accepted by the market. With the sharp decline in the price of lighting products, the government has vigorously supported and promoted it, and the implementation of the incandescent lamp elimination plan has been gradually implemented. The LED lighting industry has grown significantly in 2013 and is unique in many industries with weak market demand.
According to the data provided by NVC Lighting Performance Report, the company's LED business growth in 2013 reached 197.4. However, the profitability of the company's LED lighting products currently lags behind traditional lighting products.
NVC Lighting Performance Report shows that the gross profit of the company's LED products last year was 16.4, but some traditional products, such as T4, T5 brackets, the gross profit margin was 34.9, HID source gross margin was 59.9; only CFL lamps, a product's gross profit ratio The LED is low at 15.1.
NVC Lighting explained that the LED lighting industry is an emerging industry, especially in the lighting application market, with a large number of companies and intense price wars.
Wu Yulin, president of Foshan Lighting Association, said in an interview that traditional lighting companies are now transforming toward LEDs. In order to increase sales and seize market share, they have to sacrifice profits.