Longda Electronics' second quarter financial gross margin was 28.7%

Yesterday, Lunda Electronics announced its own settlement of the second quarter financial statements. In the second quarter, the turnover was NT$2,381 million, an increase of 81.8% over the first quarter. The operating margin was NT$684 million and the quarterly growth rate was 149.6%. The interest rate reached 28.7%. In the second quarter, the operating net profit was 518 million yuan, with a quarterly growth of 210.7%. The net profit after tax was NT$460 million, a 201.4% increase from the previous quarter. The basic earnings per share for the second quarter was 1.42 yuan.

According to statistics, the turnover in the first half of the year was NT$3,691 million, the net profit after tax was 613 million yuan, and the basic earnings per share was 2.02 yuan, which was calculated as the return on equity for the whole year. (ROE) reached 25.4%. In addition, the LED shipments of backlight applications in the second quarter of 2010 (in terms of package count) were approximately 773 million, a 70% increase from the previous quarter.

According to Zhang Boyi, chief financial officer of Ronda Electronics, thanks to the strong demand for large-size LED backlight panels, the company's second-quarter production capacity was full, driving the second quarter revenue performance. Despite rising pressure on raw materials such as sapphire, the new machine has increased the self-made rate of LED chips, and through the company's internal vertical integration operation mode of upstream, middle and downstream, and the merger with Kaiding Technology in March this year. Under the multiple benefits of synergy, the production cost was effectively reduced, and the gross profit margin in the second quarter increased to 28.7%.

It is reported that the number of MOCVD machines in Ronda is currently over 50, and it is expected to increase to about 80 by the end of the year. It is planned to introduce 6-inch machines by the end of this year. In the future, Ronda will continue to adjust its product portfolio, actively expand the LED lighting market, develop lighting application products, and provide Total Solution services to enhance the added value of products. In addition, the grain self-made ratio will be increased to 70%, and new machines will be introduced to increase production efficiency. In the planning of the new plant, the Zhunan plant area currently under construction will be positioned as a lighting application plant. The production line includes SMT and lighting source assembly. It is the fourth plant of Ronda Electronics and is expected to be mass-produced in the fourth quarter of this year. In addition, the Suzhou plant area is currently undergoing civil engineering construction. It is expected to be installed in early next year and mass production in the first quarter of next year. At the same time, in response to the new plant, Longda Electronics is expected to recruit 1,800 new recruits by the end of the year, including 1,400 technicians and 400 manufacturing and R&D engineers.

Summary of the second quarter of 2010

Lunda Electronics announced its own settlement of the second quarter of 2010 financial statements, the summary is as follows:

l Turnover of NT$ 2.381 billion, an increase of 81.8% over the first quarter

l Net profit after tax is NT$460 million

l The basic earnings per share is NT$1.42

l Gross profit margin is 28.7%

l Operating net profit margin is 21.8%

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