In Jan. to Sept., operating revenue of XIAMEN FARATRONIC (RCode:600563) increased by 18.81% YoY, which was lower than 23% in 2011H1. In 2011Q3, operating revenue obviously slowed down and merely improved by 11.45% YoY. Net income rose by 28.86% YoY in Jan. to Sept., which was also lower than 38% in 2011H1. Net income just increased by 12.25% YoY in 2011Q3.

Influenced by the overseas economic downturn and rocketed price of phosphor powder, energy saving lamp market experienced sluggish growth, which lead to less demand of thin-film capacitor and further resulted in performance slowdown of FARATRONIC.

Growth of thin-film capacitor turned out to be unobvious in new energy and communication industries. In the field of home appliance, application of thin-film capacitor for inverter air conditioner improved, since the penetration rate of inverter air conditioner reached 39% in China. Growth of inverter air conditioner looks set to slow down.

Performance of XIAMEN FARATRONIC will probably decline, due to the depressed demand of downstream applications of thin-film capacitor.