Over 80 percent of Chinese LED companies have reported good profits in first half of 2014, according to data compiled by Shanghai Securities News.

Out of 38 listed LED manufacturers 1H14 revenue performance, 31 have reported good performance as the market rebounds and business continues to grow.

Taking a closer inspection, 12 out of 38 of the companies reported net profit was up 50 percent including LED display manufacturer Liantronics (270 percent), HC SemiTek Corp (215 percent), Seastar (113%) and others.

Liantronics subsidiary Sichuan Time Share Advertising & Communication, consolidated revenue in May 2014 showed net profits were up from RMB 20 million (US $3.22 million) to RMB 21 million, while another subsidiary Liandong Entertainment revenue was up by nearly eight times from RMB 1.35 million in 1H13 to RMB 9.77 million in 1H14. 

Upstream LED chip manufacturers, such as HC Semitek attributed stellar performance during first half of the year to strong growth in LED chip market and production capacity expansions. Companies that reaped huge benefits this year including Leyard, Honglitronics, Aoto Electronics and others noted the LED market was growing rapidly. These companies have gradually expanded production capacity, and increasing revenue has led to growing net profits that contributed to strong growth

However, sapphire manufacturer East Crystal Electronic Co.(ECEC) reported its first net profit loss, having plunged 13 times below the same period last year. Other manufacturers including Mosopower, Refond, Changelight and others also saw profits plunge by 94.5 percent, 10 to 25 percent, and 5 to 25 percent respectively.

ECEC incurred heavy losses during first half of 2014 mainly because of intense competition from quartz crystal component sector, which led to lowered product prices. In addition, the company has been unable to manufacture LED sapphire substrates at mass production level, resulting in higher manufacturing costs.

Despite of losses most manufacturers agreed the LED market was rebounding in China. Mosopower for instance noted the company’s orders had increased compared to first half of 2013, and revenue from main businesses continued to grow steadily. Refond, Nata Opto-electronic Material, and Elech-tech International also made similar remarks.