LED industry seems to be rebounding

China's LED industry has recovered in the first half of this year, as about 60 percent of the country's listed LED companies have reported growth expectations or expecting growth for the first half, securities news portal stcn.com reported Monday.

Among 25 major listed LED companies, seven companies have released their first-half reports and another 16 companies have released earnings forecast for the first half. The 23 companies are expecting a total net profit of 1.6 billion yuan ($260 million) to 1.9 billion yuan, up 5 percent to 26 percent from one year earlier.

Shenzhen Refond Optoelectronics recorded a net profit of 26.18 million yuan in the first half, up 31.61 percent year-on-year. Its sales of large-scale LED backlight increased 112.55 percent year-on-year to 135 million yuan in the period, due to the increasing popularity of LED televisions. Its LED lighting products also increased 49.23 percent compared with one year earlier.

However, some insiders expressed doubts whether such good days would last for long. Some company executives told an industry forum in June that LED companies must pay attention to technology, quality, patents and standards to avoid problems, the report said.

With the blooming of the market, some companies began refinancing for expansion, but bankruptcy befell some small companies due to breaks in the capital chain.

The half-year report of the listed companies showed that the unbalanced development of the LED industry has not improved, with LED lighting growing fast while companies in chips and packaging for these lights are seeing slow profit growth due to dropping prices.