AOTO Electronics: LED lighting will be the new growth engine 

In Jan-Sep 2011, operating revenue of Shenzhen AOTO Electronics (002587.SZ) reached RMB178 million, a rise of 41.25% YoY; while net income was up 23.36% YoY to RMB28.97 million. For the third quarter, its operating income hit RMB50.94 million, up 136.95% YoY; while net income increased by 12734.25% YoY to RMB6.86 million. 

The low growth rate of revenue and profit in 2011H1 was due to the modest performance of its main product LED display screen, which was mainly exported and its downstream advertising industry was badly impacted by the external economic environment. The quantity of orders was less than expectation in 2011H1. 

AOTO Electronics will invest RMB21.18 million on its LED lighting project, of which the construction period will be one year. It will take 3 years to realize full production, and for each year, the reachability of design capacity will be 30%, 60% and 100% respectively.