Hong Kong Dajin invests 100 million yuan to expand LED lighting business

Yang Kaishan, chairman of Hong Kong Dajin Precision Power, said recently that the company has invested 100 million yuan to expand its LED lighting business, taking into account the 40 million yuan that was previously issued for the issue of convertible bonds.

The company currently mainly focuses on LED street lights. The price of each LED street lamp is about RMB 3,500, and the government will subsidize 1,500 to 2,000 yuan per street lamp. Therefore, the gross profit margin of the business can reach 40% to 50%. The current joint venture company with a 70% interest has already received 45,000 street light contracts.

In terms of production capacity, Yang Kaishan said that Dajin Zhongshan Plant has been fully put into production, and the Sichuan plant will be put into operation in 2010. It is estimated that the annual production capacity will reach 100,000 in 2010. The production capacity is sufficient to meet the needs of the company. It is expected that 15,000 installations will be completed in 2010 and will increase to 30,000 to 40,000 in 2011.

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