Recently, Neo-Neon announced the consolidated results for the year ended 31st March, 2013. The revenue during the notice period is 827 million Hong Kong dollars (HKD) (about 654 million Yuan), a decrease of 23.69% over the previous year; After-tax loss is 617 million HKD (about 488 million Yuan), each share losses 65.7 HK cents (about 0.52 Yuan). LED decorative lights business suffered a loss of 289 million HKD, and LED general lighting suffered a loss of 145 million HKD.
Announcements indicated that turnover and gross margin of LED lighting business declined due to weak global demand and fierce competition in LED lighting industry, it is expected that he consolidated results for the year ended 31st March will appear substantial loss, making the company to make greater provision for impairment loss in respect of property, plant and equipments.
Neo-Neon said that the market has not fully opened in 2012, the entire LED industry is currently caught in a structural crisis of overcapacity; Group has been expanding business in mainland China and overseas markets in recent years, due to deterioration of the economic environment, the company decided to conduct collocation and provision for non-performing assets, so it suffered operating loss in last year.
