Elec-tech International Co., Ltd ETI (002005.SZ) announced that it has made revision to its result forecast for 2012 and the net profit is predicted to see a decline of 45%-65% year-over-year, greater than the previous forecast of 10%-30%. ETI’s 2011 net profit reached RMB 392m.
According to ETI, the revision to the forecast is due to lower-than-expected level of the release of the company’s LED chip capacity and great growth in financial cost, deriving from bank financing increase to accommodate the capital demand for NVC equity purchase in the fourth quarter. In addition, government subsidies supposed to be counted into profit and loss in the fourth quarter were not in place as expected.