The gross profit margin of Zhaochi has increased significantly, and the LED business may break out.

Zhaochi shares disclosed its financial report for the third quarter of 2014: In the report period, the company achieved a main business income of 5.448 billion yuan, a year-on-year increase of 16.52%, of which the second quarter achieved 2.082 billion yuan, an increase of 0.01%; achieving net profit attributable to shareholders of the parent company 503 million yuan, an increase of 12.84%, of which 220 million yuan in the third quarter, an increase of 7.16%; in the report period, the company achieved EPS0.314 yuan, of which 0.138 yuan in the third quarter; at the same time the company announced that it is expected to belong to the parent company throughout the year Shareholders' net profit increased by 0-20% year-on-year.

Resettlement affected plant, the main growth is lower than expected <br> <br> despite the "World Cup" to exit impact, but in the context of economic recovery overseas export of color TV industry still continued good growth since the beginning, but the third quarter, the company's main The performance is relatively flat. The main reason is that the company's new industrial park has been put into production in the near future. The original four factories have begun to prepare for the relocation work in the early stage, which is caused by the current production capacity of the company. However, the demand in the LED industry is strong and the company Under the background of the gradual release of related production capacity, it is expected that the sales revenue of LED backlights and LED lamps will maintain a good growth in the future.

Gross margin increased significantly, profitability has improved <br> <br> in the TV business continued to optimize the product structure and high margin business income accounted for LED upgrade push the third quarter, consolidated gross profit margin reached 14.67%, up sharply upgrade 2.77 However, at the same time, the company's expense ratio has also increased. The company's management expense ratio increased by 0.68 percentage points in the third quarter due to the company's increased research and development and salary and salary expenses. The sales expense ratio and financial expense ratio also increased by 0.57 and 1.10 percentage points respectively. Under the combined influence, the net interest rate of the company in the third quarter was 10.58%, an increase of 0.71 percentage points year-on-year.

Capacity turning point has been to, LED business <br> <br> outbreak can be expected in the next year and end-product prices down to enhance consumer awareness of energy conservation background, LED lighting industry into the high-speed penetration period, but the key factor restricting the development of the company's LED business Still in the capacity bottleneck; the company has established LED business as the focus of future development, and is currently undertaking large-scale capacity building in Nanchang and Shenzhen, with a target of 500 production lines in the long-term, and the recent 100-package line of Nanchang base is being trial-produced. In the context of strong demand and inflection point of production capacity, the company's LED lighting business will enter a period of rapid development.

Although the growth rate of the company's main business has slowed down due to the relocation of the factory in the short term, with the successful completion of the new industrial park and the relocation of the factory, it will provide strong support for the company's long-term growth; based on the strong industry demand and the capacity bottleneck, the company The LED business is about to enter a period of rapid explosion. In addition, the TV business is expected to maintain steady growth under the trend of overseas economic recovery and domestic order transfer.

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