Sen's Main Business Gross Profit Declined To Respond To Reason And LED Product Development

 LED zhuangao Sen recently received the Shenzhen Stock Exchange small plates Management Department sent 'on the Linsen Co., 2015 semi-annual report of the inquiry letter,' according to the Inquirer letter of request, the Board has organizational issues related personnel inquiry letter the company raised a serious discussion, self-examination, and the formation of responses. In the report period, your company's main business SMD LED, LED stadium lights applications and other gross margins were 26.33%, 19.67%, down 4.39%, respectively, 6.74%. Please combined with the development of listed companies in the same industry-related businesses, the above detailed description of your company's main business gross profit margin decline. backpfrontp [reply] reporting period, the company's main business SMD LED stadium lighting, LED applications and other gross margin is as follows: backpbackpfrontp company's main business SMD LED, LED applications and other gross margin decline was mainly due to: backpfrontp With the rapid development of the global LED industry, LED packaging technology continues to mature, declining raw material costs, LED tunnel light packaging and application products along with declining prices, and unit price of magnitude greater. The company's main business SMD LED, LED applications and other sales price declining, consistent with the overall trend of LED packaging and application industries. As follows: Unit: yuan Note: Due to the product structure adjustment, from January to June 2015 the company high power LED flood light application products in the indoor and outdoor lighting, lighting, display and digital control and other applications classified as LED, while last year LED application products company in the same period of indoor and outdoor lighting, lighting, displays and other LED applications and classified as other, because two kinds of classification methods lead to inconsistent application of 1000W LED flood light product structure, and classify the two main products for the LED interior outside lighting, and therefore the above table LED applications and other indoor and outdoor use LED lights to compare gross margin. backpfrontp can be seen from the table, the company's main business SMD LED, LED applications and other products unit selling prices and unit costs compared with last year, are showing a downward trend. Since the second half of 2014, LED bay light industry has intensified competition in the market, the company said sales prices continued to decline, while the unit price fell more than unit costs decline, so SMD LED, LED applications and other products gross margin compared with the same period last year dropped significantly. backpfrontp and product structure and business model similar to the changes in the listed company consolidated gross profit margin on backpbackpfrontp table listed the main business of listed companies mainly in LED arena light, LED applications and other, supplemented by the business model and the company substantially similar. All listed companies because the product mix is not exactly the same, so only include each of the companies consolidated gross profit margin for comparison. backpfrontp can be seen from the table, January-June 2015, the company's industry gross profit margin was 24.89%, compared with year earlier, down 2.94 percentage points from January to June 2015, the company consolidated gross profit margin was 26.79%, compared with It dropped 3.46 percentage points from a year earlier, and industry trends remained the same. In summary, the Board believes that competition in the industry mainly due to the company's main business SMD LED, LED high bay light applications and other gross margin decline is more intense, the unit selling price fell more than unit costs fell due. Our products change public backpfrontp main business gross profit margin remained consistent with the industry. backpfrontp Second problem: your company's accounts receivable balance of the reporting period was 451 million yuan, representing an increase of 19.49% beginning, provision for bad debts amount only 3,090.47 million. Please combined with aging of accounts receivable, payment, and so after the period, indicating that the provision for bad debts is sufficient.report period, the aging of accounts receivable is as follows: backpbackpfrontp As of the end of June 2015, the aging of accounts receivable within one year of 47,184.66 million, less likelihood of bad debts. backpfrontp  accounts receivable backpfrontp Cause Analysis for the reporting period, net accounts receivable Closing of 45,096.08 million, representing an increase of 19.49% beginning, mainly for the company to expand production scale and increase in sales volume due. Accounts receivable ending balance of large, mainly as follows: According to industry practice, LED tennis court lights packaging products suppliers usually give downstream LED application vendors 60-90 days credit period. Downstream customers for domestic companies engaged in lighting, household appliances and other industries in the more well-known enterprises, due to the good reputation of its repayment is guaranteed, the company in order to expand the market and enhance the long-term strategic partnership clients usually give some credit period; and For dealers, the company is generally given 30-60 days credit period. backpfrontp  As of June 30, 2015, the company's top five accounts receivable balances as follows: proportion of bad debt provision backpfrontp corporate clients for a number of reputable, long-term customers, customers with a higher level of credit and compensation debt capacity, the company has guaranteed the recovery of accounts receivable, less likelihood of bad debts. The company according to the principle of prudence, is still a moderate proportion of the annual provision for bad debts. Provision for bad debts proportion to the Company as follows: receivables management company for the management of accounts receivable to take the following measures: First, carefully select the Sales client,gym lights using strict credit terms of accounts receivable, including credit assessment and management, credit approval and execution, will be paid as a business sector recovery of an important basis for performance evaluation; second, by establishing a client dynamic management system, timely follow and understand the customer's business and credit conditions, focusing on the development of commercial credit good The stable customer base, the existence of operational risk and debt overdue customers to take timely measures to increase recycling efforts receivables. backpfrontp Board considers that: During the reporting period, the company management of accounts receivable to maintain continuity and consistency,high power led flood light accounts receivable policy remained stable. Credit policies and accounts receivable management measures established in line with the actual situation of the company and the company's internal control requirements, credit growth in recent years, good company bad debts in full, reasonable and non-existent due to the impact of excessive accounts receivable company continued viability of the case.