China’s white LED packager Hongli Tronic (300219) announced its annual report for 2012, indicating that its operating revenue was RMB 520m, a decline of 3.65% year-over-year and net profit attributable to shareholders was RMB 47.84m, down by 34% compared with the same period last year.

The company attributes the unfavorable result to the following reasons: in 2012, overall LED industry was stagnant due to global financial crisis; LED lighting market, in particular, fell short of expectation, although government rolled out related policies to promote semiconductor lighting, yet more time required for implementation; the company has just seen a proper-scale domestic channel network and time is needed for market expansion; and there are as well additional expenditures for the company’s relocation, operation of the new industry park and greater investment in R&D.