Everlight of Taiwan Set to See Bright Q3 Prospects in China

Taipei, Sept. 10, 2012 (CENS)--With light emitting diode (LED) lighting projects to peak in China, Everlight Electronics Co., Ltd., a major LED supplier in Taiwan, expects to win such tenders for street lighting through cooperation with local companies, hence set for promising prospects in the third quarter.

The firm posted NT$ 1.577 billion (US$ 52.56 million) in August revenue, a two-year high, with third-quarter operations expected to better the second one.

An executive indicated that 8% of corporate revenues in the first half came from LED lighting, with such figure to exceed 10% annually, and rising gross profit margin (GPM) in the second half also relying on LED lighting due mainly to predicted increasing shipments.

Everlight, the leading LED lighting brand in Taiwan, has been ambitiously deploying cross-strait sales channels in recent years, targeting to distribute LED lighting through 3,000 outlets to be set up there.

However, 80% of LED light bulbs in China are generic with only three month supply but priced extremely low, a major obstacle to promoting Everlight products there. The executive said the firm is mapping counter strategies but needs time to adjust mainlanders' consuming habits, with current tactics being building brand value and product exposure in China.

According to insiders, Everlight is establishing sales channels in China via governmental tenders, LED street lighting, LED lighting for commercial use as for hotels and department stores, and residential applications.