China Electrical Counts on CCFL and LED Lamps for Profits

Taipei, Oct. 12, 2005 (CENS)--Cold cathode fluorescent lamps (CCFL) and light emitting diode (LED) lamps have become two major moneymaking products at China Electrical Mfg. Corp. (CEMC), Taiwan's No. 1 lamp manufacturer, according to the company's president, Tsai Eel-peeng.

The company has changed to manufacturing lamps featuring hi-tech lighting sources and manufacturing solar cells from the production of traditional lamps, in hopes of boosting profits, which have waned with traditional lamps.

To make the advanced products, the company has transformed its electronic-ballast affiliate, Meltonic, into an LED lighting-fixture manufacturer, and has also invested in CCFL manufacturer Wellypower Optronics Co., Ltd. CEMC has also employed LED specialists at the government-backed Industrial Technology Research Institute (ITRI) to help it develop the lamps.

Tsai pointed out that Wellypower had begun making money, and expected his company's LED business to begin taking off next year. Wellypower, in which China Electrical holds a 27% stake, is estimated to return approximately NT$100 million (US$3 million at US$1:NT$33) to CEEC as investment earnings by the end of this year. Tsai attributed the hefty earnings mostly to the high demand from TFT-LCD TV suppliers for CCFLs worldwide.

Meltonic began shipping products last month. Tsai pointed out that LED lamps would be his company's pivotal products over the next one or two years. He added that his company had installed LEDs in desktop lamps, ceiling lights and decorative lamps. Tsai expects LED to begin being used in automotive headlamps in 2007, and predicts that the LED business will account for 10% of its total revenue next year.

China Electrical has set its annual revenue goal at NT$3.3 billion (US$100 million) for this year, with its solar-cell business slated to contribute from NT$70 million to NT$100 million (US$2.1 million to US$3 million). In the first half of this year alone, the company reported pre-tax earnings of NT$87 million (US$2.6 million), or NT$0.3 per share.