St Xiamen's performance dropped 40% last year said the negative factors are decreasing

St Xiamen (600870) released its 2010 Annual report today. 2010, the company realized operating income of 4.29 billion yuan, an increase of 3.23%, flat-screen TV sales accounted for 92.85% of total income, achieve net profit of 64.4326 million yuan, down 39.85%. However, the company also said that the operation of the targeted additional plans, if successful implementation, will raise capital of 1.1 billion yuan, net assets are expected to turn positive, and restore normal financing function, to get rid of relying on the two major shareholders to finance the status quo.　　And with the internal management in place, orders continue to increase, the company will usher in a burst of growth. 1995 on the landing of a shares of St Xiamen has a glorious history, but in the fierce competition in the color TV industry gradually weakened. 2006, 2007 and 2008 three years, the company continued to appear large losses, as at the end of last year, the cumulative loss is still up to 2.3 billion yuan, net assets of 907 million yuan.　　At the end of 2005, Taiwan Enterprises of China Ying-Ying, a subsidiary of the company to take ownership of the St Xiamen, to become the largest shareholder, in order to achieve St Xiamen and Taiwan LCD panel manufacturers China Ying Tube Strategic alliance. St Xiamen to open up overseas markets, the main business of the foreign market last year accounted for 92% of the main revenue.　　Overseas sales, maintaining stable sales in the North American market, while Australia, South America, South Africa and Taiwan market have a larger growth, especially in the fourth quarter of last year, the company a large number of high-end color TV successfully exported to the traditional "home Appliance Kingdom", the market threshold has always been very high in Japan market. In addition, the Indian flat color TV market growth has become a new growth point. The company said the year-on-year decline in net profit was mainly due to overcapacity in the upstream LCD panel, caused by the continuous decline in the price of color TV sets, resulting in a decline in profits, the second due to the increase in loans, interest rates, the appreciation of the renminbi to bring exchange losses and other factors, resulting in increased financial costs; again, the successful but unable to carry out accounts receivable to the loss of bad debts.　　These unfavorable factors will be gradually reduced as the liquid crystal panel production and marketing tends to balance, the price tends to stabilize, the historical problems are basically clarified and the exchange rate risk is reasonably avoided. The company said that in recent years the first to second largest shareholder in the company's most difficult time to give full support.　　As the company's business improves, the two major shareholders say they will continue to support the company and keep it on track. Due to the support of major shareholders, St. Xiamen also has the opportunity to intervene in advance the development of the upstream display, synchronous development can make the company's products and the upstream screen optimization use of circuit boards and other components, improve product quality, reduce product manufacturing costs, for the company to create new products development advantages. At present, the company is a very small number of countries can be synchronized development of all major international standard color TV production enterprises, for the company to explore the international market to bring greater advantages.