Last night, Qinshang Optoelectronics announced that due to the slow progress of the "Xinhua Frequency Media LED Display Screen Project", the company signed a cancellation agreement with Guangzhou Ji Cai Cultural Communication Co., Ltd. (hereinafter referred to as "Ji Cai Company"). This means that Qinshang Optoelectronics' five-year contract with a total amount of 1.5 billion yuan came to an end when it only completed 4.667 million yuan (the same below). Only fulfilled 4.667 million yuan in 2012 According to the LED display screen purchase agreement signed between Jinshang Optoelectronics and Ji Cai on December 21, 2011, the total purchase amount reached about 1.5 billion yuan, with a five-year period, and the annual purchase amount is expected to be 300 million yuan. "However, because the market demand for LED display screens has not been effectively released, the competition for LED display screen business has intensified, and the government's approval of screen construction applications has been stricter and more cautious." Wei Li, Qin Shangguang's Dong Mi, said each LED display All need to apply for approval separately, and LED display screens installed in different places are managed by different regulatory departments. Therefore, in these actual application processes, the strictness of the government's approval process and the uncertainty of the approval results have led to a very slow progress of the project. In addition, Ji Cai Company will carry out investment and construction of other display screen projects in other cities in the country, resulting in substantial changes to the originally agreed plans and conditions. From a prudent perspective, Qinshang Optoelectronics decided to negotiate with Ji Cai to cancel the original agreement. The announcement shows that the original agreement will be implemented from January 1, 2012, but only actual purchase contracts of 4.667 million yuan were signed throughout 2012, with a total screen area of ​​256.38 square meters. Wei Li said that despite the cancellation of the original agreement, Qinshang Optoelectronics and Ji Cai Company still keep in touch. The two parties have signed the display screen monomer project of Fangcun and Zhongshan Second Hospital on the basis of the original agreement. The signed contract stipulated execution. "Ji Cai Company promised that its follow-up LED display screen projects invested or participated in the construction in Guangdong Province and other regions will still use Qinshang Optoelectronics as the first partner and preferentially purchase LED display screens supplied by Qinshang Optoelectronics." Temporarily lost opportunities to expand profit growth points According to the announcement, Qinshang Optoelectronics' 2012 third, fourth quarter and 2012 full-year performance forecasts do not include businesses that did not occur under the original agreement. Therefore, the agreement to cancel the original agreement has no impact on the 2012 annual performance announcement and amendments that the company has disclosed. Wei Li said that the composition of Qinshang's optoelectronics business is mainly based on LED lighting business. In 2012, the contribution of LED display screen business accounted for less than 5% of the main business, while LED lighting business accounted for more than 90%. Wei Li also emphasized that Ji Cai was not a major customer of Qin Shang Optoelectronics, and the company did not rely on its sales contribution. Nevertheless, the cancellation of the LED display purchase contract has a greater impact on the future performance growth prospects of Qinshang Optoelectronics. Qinshang Optoelectronics' total operating income in 2011 was 769 million yuan, of which the display screen and other business revenue was 21.2643 million yuan; in the first half of 2012, the company's total operating income was 364 million yuan, and the display screen and other business contributed revenue was 12.5465 million yuan. If according to the original agreement, the LED display screen business in the next few years can bring in more than 300 million yuan in revenue, it is undoubtedly a good new profit growth point for Qinshang Optoelectronics. LED display screen face adjustment In 2012, the size of China's LED display screen market increased by about 10% year-on-year, reaching 24.1 billion yuan. Among them, the full-color LED display screen market size increased by 15% to 20% year-on-year, and shipments increased by more than 30% year-on-year. Even so, the LED display screen industry is still in a situation of oversupply, and fierce competition has forced manufacturers to actively lower prices and scramble for orders. According to industry insiders, the price of LED displays decreased by about 15% to 20% in 2012. In this process, large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars, but the price war has greatly affected the revenue performance of LED display screen manufacturers. fall back. 48V25Ah Lithium Ion Battery,48V25Ah Lifepo4 Battery,48V Lithium Battery For Electric Scooter,48V25Ah Lithium Battery Pack Jiangsu Zhitai New Energy Technology Co.,Ltd , https://www.zttall.com