Landing International (00582-HK) announced that it had a loss of 526 million yuan for the six months ended June 30, 2016 (a loss of 143 million yuan for the same period in 2015).
The company expects that the market trend of the LED lighting industry will continue to be poor. Therefore, the company has diversified its operations into different businesses. The company is concentrating resources and energy on integrated resort development and gaming business.
In view of the decline in the LED lighting industry, the company will closely monitor the market situation and adjust pricing strategies to improve the performance of the lighting business, or consider reducing or selling lighting business.
In the face of oversupply in the LED industry, manufacturers have weak bargaining power and LED products are under tremendous pressure on pricing. For the six months ended 30 June 2016, the revenue increased by approximately 10% to approximately HK$119,905,000 as compared to the same period in 2015, which was mainly attributable to the increase in turnover due to the intense price competition. • For the year ended 31 December 2016, the Group's segmental loss was approximately HK$7,290,000, compared with approximately HK$19,760,000 for the same period in 2015, representing a decrease of 63%.
The lighting-based products mainly include traditional low-end LED products such as in-line LEDs, and the entry barrier of the LED lighting industry is getting lower and lower with the increasing popularity of technology. Since 2013, the competition in the industry has intensified. Products are under tremendous pressure on pricing due to oversupply.
In March 2011, Lan Ding International held 69.44% each of Jiangsu Wenrun Optoelectronics Co., Ltd., Jiangsu Wenrun Optoelectronics Technology Co., Ltd., Zhenjiang Wenrun Semiconductor Lighting Engineering Co., Ltd. and Shanghai Bungy Electronics Co., Ltd. through its China Optoelectronics Investment Co., Ltd. Shares.
In the 2011 Annual Report, the Group will use its best efforts to reduce the production costs of LED-related products by expanding its production scale and achieving cost advantages; and reducing costs through technological innovation. The Group is considering the allocation of additional resources to invest in new LED-related products and technology research and development, enabling the Group to reduce production costs and stand out from competitors in the LED market. Furthermore, the Group will carry out a marketing plan to strengthen the brand image of the lighting business in order to attract new customers.
In June 2015, Wenrun Optoelectronics launched the 2015 lighting device capacity expansion project, which will spend tens of millions of dollars in batches, aiming to increase production capacity by 300 KK per month and achieve 60%-70% capacity increase. The project was carried out in two phases, with a new monthly production capacity of 200 KK.
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