Company Study of Xiamen Faratronic Co.

In 2006, China's import and export volume of lighting products reached USD 2 billion and USD 18 billion respectively, up 25% and 40% year-on-year separately. Among the advantageous products, the compact energy-saving lamp accounted half of the export volume, which exported to 167 countries and regions.

Xiamen is one of the three largest energy-saving lamp production bases in China. The energy-saving lamp output from Xiamen has rose to 330 million units in 2006 from 68.78 million units in 2001. In the first quarter of 2007, the energy-saving lamp export volume was nearly 80 million units only from Xiamen, up 93% from a year earlier; and the total value reached nearly USD 100 million, rising 84% year-on-year.

There were about 215 fluorescence lamp manufacturers in China in 2005, among which 103 were integrated energy-saving enterprises, and the downstream of the film capacitor was comparatively dispersed.

In the downstream application of Faratronic, the market share of lighting products, household electric appliance, communications and power supply (including PC) was about 35%, 28%, 20% and 8% respectively in 2006.