Refond Optoelectronics (300241.SZ) is the leading SMD LED packaging enterprise focusing on lighting and LED backlighting packaging in China. In 2011 Q3, its operating revenue increased by 13% YoY but net income and integrated gross margin dropped by 40% and 8.6% YoY respectively.

Backlighting business accounted for 35% of the total revenue of Refond. In the third quarter of 2011, growth rate of large-sized backlighting business exceed 66%. Currently, Refond obtains 6% backlighting module procurement of Konka. Procurement value from Konka’s backlighting reached about 10 million in 2010 and attained 12.58 million in the first half year of 2011. 

At present, penetration rate of LED backlighting in the field of television set hits about 50%, and it is expected to be enhanced to over 90% in the next few years. After entering into TV backlighting industry through Konka, Refond also acquired recognition of other color TV manufacturers such as Changhong and gained more and more backlighting clients.

Lighting business takes up 53% of the total revenue of Refond. In the third quarter of 2011, lighting business grows by 30%. LED lighting price has dropped constantly, wherein average price of 40W LED bulb is hoped to be USD10 in 2012 or early 2013. The substitution pace of LED lighting will be further accelerated.

Investment Project and Newly Added Capacity of Refond Optoelectronics