2011 Sunshine Lighting 1 billion yuan into LED lighting projects

On March 8, 2011, Zhejiang Sunshine Lighting (600261) released its 2010 annual report, showing that the company achieved operating income of RMB 2,170,044,400 in 2010, and completed 102.04% of the planned target, up 24.52% from the previous year's 1,741,132,300 yuan; The net profit attributable to the owner's equity of the parent company was RMB 18,163,460, which was 122.73% of the planned target, up 50.77% from the previous year's RMB 12,047,900; the fully diluted earnings per share was RMB 0.73, and the fully diluted return on net assets was 16.27%. In the whole year, a total of 240 million energy-saving lamps and 25,846,400 sets of various types of lamps were sold.

During the reporting period, the proportion of product revenue structure was 63.64% for integrated electronic energy-saving lamps; 22.24% for T5 high-power fluorescent lamps and supporting lamps; 8.90% for special lamps; and 5.22% for others.

In 2010, the company accelerated the transition from the traditional lighting industry to the emerging lighting industry, and focused on the progress of the research and development of new products for micro-mercury environmentally-friendly energy-saving lamps and new LED lighting products, among which the top in the national “semiconductor lighting product application demonstration project” bidding and winning the bid. Several domestic projects have promoted the company's transformation to the emerging lighting industry through various basic work.

Premium acquisition of Japanese LIREN accelerates the manufacturing level of LED light sources

On July 26, 2010, the board of directors of Xiamen Sunshine Enner Lighting Co., Ltd., a wholly-owned subsidiary of the Company, reviewed and approved the “Proposal on Subscription of Equity of Overseas LED Companies” and decided to subscribe to Japan LIREN INTERNATIONAL CORPORATION for 50,000 yen/share. (hereinafter referred to as “Japan LIREN Company”) issued 3.2 million shares with a total investment of 16 million yen (approximately RMB 1,237,600). After the completion of this investment, Xiamen Sunshine holds 30.188% equity of the overseas company.

Japan LIREN Company is a limited liability company established in September 1997 with a capital of 37 million yen. It is mainly engaged in the production and sales of light-emitting diodes (LEDs). As of March 31, 2010, the total assets of Japan's LIREN company was 42,478,400 yen.
The net assets were 32,630,400 yen, and the sales from April 1, 2009 to March 31, 2010 were 17,770,100 yen, and the net profit was -69.20 million yen.

Xiamen Sunshine's premium acquisition is mainly based on Japan's LIREN company's rich R&D experience in LED lighting products. Through cooperation between the two parties, the manufacturing level of Xiamen Sunshine LED light source has reached the same level as Japanese or international high-level manufacturers.

In 2011, 1 billion yuan invested in LED lighting projects

The report also mentioned that the company's main investment direction in the past three years is: micro-mercury environmental protection energy-saving lamp project, LED lighting source and lighting project. Among them, the micro-mercury environmental protection energy-saving lamp expansion project is expected to have a total investment of about 400 million yuan; the LED lighting project is expected to have a total investment of about 1 billion yuan. In addition, the company also plans to make appropriate investments depending on the specific conditions of the project in terms of extending the industrial chain and carrying out upstream and downstream strategic cooperation.

According to the company's plan for the whole year of 2011, the operating income was 2.552 billion yuan, an increase of 17.60% over 2010; the operating cost was 2.16 billion yuan, up 22.17% over 2010; the sales expenses, financial expenses and management expenses totaled 329 million yuan, compared with 2010. The annual growth rate is 11.15%; considering the price level, labor cost, and the rising factor of the RMB exchange rate, the net profit attributable to the owner's equity of the parent company is planned to be 2.04 in 2011.
100 million yuan, an increase of 12.09% over 2010.

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