Guoxing Optoelectronics earned 120 million yuan last year and its Q1 profit fell more than 10% this year.

Guoxing Optoelectronics announced its 2011 financial report. The company achieved operating income of 1.1 billion yuan, an increase of 22.58% over the previous year. The total profit was 150 million yuan, a decrease of 15.74% over the previous year. The net profit attributable to shareholders of listed companies was 120 million yuan. The annual decrease was 18.23%; the basic earnings per share was 0.56 yuan.

The company's current product structure is divided into three categories according to product classification: Lamp LED, SMD LED, and LED lighting products. According to the client classification, it is divided into display products, home appliances, and lighting products, among which display products and Home appliances are the company's traditional products.

With the intensification of competition, the gross profit margin of the company's main traditional products declined rapidly in 2011, and the comprehensive gross profit margin dropped from 30% in 2010 to around 22%. In 2011, the white light device products for lighting with better performance in the market, because the proportion of white light device products for lighting in the company's total product revenue is relatively low (about 6%), the effect of such products on improving the company's gross profit margin is negligible.

Guoxing Optoelectronics estimates that the net profit attributable to shareholders of listed companies in 2012 Q1 will be 17.85 million yuan - 22.95 million yuan, which will be 10%-30% lower than the previous year's profit of 25.909 million yuan.

Guoxing Optoelectronics said that the reason for the decline in performance was mainly affected by the global debt crisis. In the second half of 2011, the export of the home appliance industry was sluggish, which led to the decline in sales revenue of LED products for home appliances in the first quarter of 2012, and the domestic LED lighting market demand was lower than expected.

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