Changfang Lighting's 2012 Q3 net profit decreased by nearly 47% year-on-year

On October 24, Changfang Lighting released the third quarter report for 2012. During the reporting period, the company's operating income was approximately 163 million yuan, an increase of 51.36% over the same period of last year; the net profit attributable to shareholders of listed companies was approximately 9.19 million yuan, a year-on-year decrease of 46.63%. The basic earnings per share was 0.034 yuan.

As for the year-on-year growth in operating income and the year-on-year decline in net profit, Changfang Lighting stated that in order to consolidate and expand its market share, it took an active price reduction strategy, resulting in a decline in product gross margin. In addition, the company implements a multi-brand marketing strategy, which is currently in an expansion period, and the cost investment is relatively high. Therefore, the sales expenses have increased significantly, and the company's net profit has decreased.

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