During the reporting period, the profitability of Crystal Optoelectronics' main business decreased year-on-year. The main reason was that SLR and single-power sales did not meet the expectations at the beginning of the year. The blue-glass infrared filter for high-end smartphones did not reach the expected mass production. The price of LED sapphire substrates was higher than last year. Significant declines, as well as yield fluctuations and overall rising operating costs.
Crystal Optoelectronics Analysis, the macroeconomic downturn in the first half of 2012, the slow growth in demand for the entire consumer electronics market, resulting in the company's sales orders in the first half of the year did not meet the expected target at the beginning of the year. At the same time, affected by the industrial layout, product structure adjustment, and rising operating costs, the company’s leading product yields fluctuated in the first quarter. In addition, the wholly-owned subsidiary was just put into operation at the beginning of the year, and the production capacity was not fully utilized. Production organization to schedule control has encountered unprecedented challenges, these factors directly affect the company's first quarter operating results, which seriously affect the company's first half of the net profit.
In the past two years, Crystal Optoelectronics has begun to lay out the LED industry chain. With the sapphire substrate and PSS processing as the entry point, the company has gradually entered the field of semiconductor lighting from the field of optical imaging. Due to the fierce competition in the new industry market, the demand has not exploded. The company itself is gradually accumulating and precipitating in terms of technology and market development; the micro-projection market is still waiting for the current period. At present, the two major industries are still in the stage of starting and cultivating the industry, and have not made contributions to the performance of Crystal Optoelectronics. There are certain risks and challenges. However, Crystal Optoelectronics said that the current trend of the two new industries has gradually improved.
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