Dehao Runda released a performance forecast on the evening of the 30th. The company expects a loss of 81 million yuan to 98 million yuan in the first quarter of 2015 (January 1 to March 31), an increase in the year-on-year loss. In the same period of 2014, the loss was 35.606 million yuan. Dehao Runda said that the main reason for the company's year-on-year loss in the first quarter of 2015 was the decline in gross profit margin. In the first quarter of 2015, the gross profit margin fell to around 15 from 20.51 in the same period of last year, a decrease of about 5.5 percentage points. The main reasons for the year-on-year decline in gross profit margin of the company: First, due to fierce competition in the LED industry, the price of LED chips and lighting products has decreased compared with the same period of last year. Secondly, the production capacity of the company's LED chips and lighting products was fully released in the first quarter of 2015, but the first quarter was the off-season of the company's production and sales, the capacity utilization rate was low, resulting in the fixed costs not being diluted, and the manufacturing cost of the products was higher than the same period of the previous year. Finally, due to changes in product structure, high-margin LED display products accounted for a decline in operating revenue, down from 15 in the same period last year to around 3; small household appliances and LED chip products with lower gross profit margins accounted for sales revenue. The proportion increased from 66 in the same period last year to about 70.
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