Dajin Jingdian announced on the 28th that it has established an LED street lamp joint venture company with Dongfang Optoelectronics. Dajin Jingdian invested 70 million yuan in cash (RMB, the same below), holding 70% of the shares; the remaining 30% was invested by Oriental Optoelectronics in cash, LED lighting technology and assets. Dajin Precision expects that the net profit of the joint venture company will be no less than 30 million yuan in the first two years.
Bai Jinquan, chief financial officer of Dajin Precision Electric Co., said that the gross profit margin of LED lights is higher than the company's existing core business printed circuit board PCB. According to industry data, the gross profit margin is at least 50%. However, he stressed that the company's core business is still based on the production of PCB, LED business is expected to account for about 25% of the overall profit.
Yang Kaishan, chairman of Dajin Precision Electric, said that the joint venture company will immediately sign two contracts, namely 10,000 street lights in Qingyuan City, Guangdong Province and 20,000 street lights in Nanshan District, Shenzhen. Based on the price of each lamp plus the installation cost of 6,000 yuan, 30,000 lamps can bring 180 million yuan in revenue to the joint venture company.
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