Strained by the oversupply in LED industry, China’s LED chip company Sanan Optoelectronics (600703.SH) has also suffered a lot. In 2012, its non-operating income exceeded net profit by 60% and its exclusive business of gold waste accounts for 30% of net profit.

The company’s core business LED application products achieved revenue of RMB 2.584bn, a surge of 345.35% from a year earlier, but the gross profit margin declined by 14.36% to 25.31%. Besides, its new launch of CPV suffered money loss.

Sanan’s chip and LED products accounted for 76.85% of operating revenue in 2012 and 75.42% of total profit. Although its sales revenue of materials and wastes took up merely 7.02% of operating revenue, they accounted for 27.14% of its profit in 2012, an increase of 12%.