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DQC: Explanation for business result in Q3/2008
Dien Quang Lamp Joint Stock Company has given explanations to the business result in Q3 against the second quarter of 2008 and the same year of 2007 as follows:
- Regarding revenue: Revenue in Q3 rose by 10% compared to Q2/2008 (equivalent to 36% compared to the same period last year).
Reasons: The decline was resulted from difficulties in approaching export markets, including anti-dumping tax on lamp products. In domestic market, the quarterly revenue growth of 35% on quarter and 43% on year failed to offset the shrinkage in export markets. In Q3, Dien Quang made a joint-venture contract to set up a new energy-saving bulb factory in Venezuela, which is expected to start operating at the beginning of 2009 and bring in more profit to the company in future.
- Regarding expenses and profits: Short-term contraction of production scale continued being a financial burden on the company in Q3.
+ Expenses: In Q3, the company had to cover rising input costs, increasing material cost, high USD/VND exchange rate, fuel costs, especially interest rate on loans.
+ Profits in Q3 were higher than Q2 on incomes from non-production activities.
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