Sanan Optoelectronics’ first-half profit tumbled nearly 82% on year

 

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Sanan Optoelectronics, the largest LED epitaxial wafer and chip maker in China, said its net profit attributable shareholders of the listed companies reached 170 million yuan in the first half of the year, slumping 81.76% from a year earlier. Revenue reached 6.47 billion yuan, down 4.33% year over year. 

The company attributed the slumping profit to the factors including falling selling prices of its products, adjustments to product structure falling short of expectations, as well as increasing provisions for inventories. 

Sanan’s revenue from its its main business LED chips reached 4.9 billion yuan in the first half, falling by 6.67% from a year earlier due to falling prices amid increasing market competitions. 

The company’s assets impairment loss surged by 96.3% in the first half from a year earlier, mainly because its provisions for inventory surged by 177 million yuan to 362 million yuan, while operating cost rose by 7.4%.