Aucksun’s financial statement for first half of 2015 revealed, the company’s revenue rose 9.73% from a year earlier in 2Q15 to RMB 732 million (US$ 126 million), with RMB 137 million net profit, translating into 31.27% Year-on-Year (YoY). Net profits rose71.17%YoY to RMB 152 million. The reported net income attributable to shareholders is RMB 132 million, reflecting a 92.93% growth compared to the same period last year.

Aucksun’s 2Q15 Accounting Data and Financial Report

LED net profit amounts to more than 50%

During the reporting period, competitive production capacity and differentiation strategies, good LED business operations, has led to fully utilized production lines. Therefore, the company has benefited from economics of scale and achieved good profitability performances. In the first half of 2015, the company’s LED production has seen RMB 225 million revenue with RMB 67 million in net return of equity that accounts for 50.64 percent of the company’s total net profit.

In the first half of 2015, flip-chip solutions matured and some of the research results have entered mass production. The enhanced technical know-how improved LED products competitive advantages.

Aucksun plans to invest RMB 925.71 million in the second phase of the mass production of LED EPI-wafer and LED chip. The company and had invested RMB 41 million so far, reflecting a 4.51 % progress.

Although LED sales grew 207.16% from a year earlier, operation costs also rose 234.94%. Gross profit margin slid from 39.23% to 33.73%.

Expanding LED businesses through acquisition

LED EPI-wafers and LED chips are both cost-intensive as well as skill-intensive business. The company will take advantage of its technical innovation and supreme managing strategies to create higher margin, but lower-cost LED products.

With further production capacity expansions, Aucksun will continue to invest in R&D. The company will focus on developing products to meet market demands, while differentiating its products and establishing core technology know-how by acquiring patents to establish a patent network. The company has applied and acquired many patents.

Aucksun future business strategy will involve in-depth R&D of chemical compound based semiconductors for LED applications, which will become its resource and advantage to compete in the LED lighting market. Meanwhile, the company will be active in acquiring potential firms so as to enter emerging businesses and increasing profitability.

(Author: Skavy Cheng, Editor, LEDinsidehttp:// Translator: Emma Chang, Editor, LEDinside)