Silan's first-half loss of 10.21 million LED business revenue fell 54% year-on-year

On August 9, Silan Micro released the 2012 semi-annual report. During the reporting period, Silan's operating profit loss was 24.57 million yuan, down 127.23% year-on-year; total profit was 13.14 million yuan, down 86.23% year-on-year; net profit attributable to shareholders of listed companies was 10.21 million yuan, down 88.02% year-on-year;

Silan Micro said that in the first half of this year, due to the continuous impact of the European debt crisis, the semiconductor market fluctuated at the bottom, and demand was relatively low. The company's three main businesses, except for the operating income of integrated circuits, increased slightly, and discrete device chips and LED chips. Operating income decreased by 18.16% and 53.56% respectively compared with the same period of last year. Another factor that led to a significant reduction in LED operating revenue is that LED chip prices have been significantly reduced since last year due to increased competition in the LED industry. In the first half of this year, Silan Mingxin was mainly involved in equipment commissioning and process. During the product development phase, the MOCVD equipment capacity has not been fully released, resulting in less output and affecting sales.

It is reported that in the first half of this year, Silan Mingxin newly added two MOCVD equipments and put them into production. As of the end of June this year, Silan Mingxin has a total of 20 MOCVD equipment, and has formed the capacity to produce more than 40,000 LED epitaxial wafers per month. In the first half of this year, Silan Mingxin also completed the development of LED chips for large and medium power lighting. Among them, LED chips for medium power lighting have been introduced into mass production, and small batch sales have been realized. In the second half of the year, Silan Mingxin will add four new MOCVD equipment. It is expected that by the end of this year, the monthly production capacity of LED epitaxial wafers will be increased to more than 60,000, and the production scale of LED chips for lighting will be further expanded. In the second half of the year, with the further release of equipment capacity and the continued promotion of lighting chips, Silan Mingxin's operating income will improve.

In the first half of this year, sales of Silan's microelectronics power device products continued to grow rapidly. High-voltage HVICs and power modules also began to realize small-volume sales; new product development of power circuits, LED driver circuits, high-end new customers, and operating income. Continued progress has been made in the other areas; new products such as TV high-frequency tuner circuits and highly integrated remote-controlled toy circuits have also been introduced into mass production. In the first half of this year, the company has made good progress in the research and development of IGBT, MEMS sensors, a new generation of LED large-scale display control and drive systems and circuits, and applications in high-definition optical discs and digital home chips and systems. In the second half of the year, with the further increase in finished products, power modules, and new circuit products, Silan Micro said that its operating income will gradually increase and its profitability will improve.

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