Wanrun Technology's net profit decreased by 63.74% in the first half of the year

On the evening of August 18, Wanrun Technology released its semi-annual performance report, stating that revenue for the first half of 2020 was approximately RMB 1.915 billion, a Year-on-year (YoY) decrease of 1.2%. Specifically: LED business revenue was RMB 452 million, accounting for 23.61%, a Year-on-year (YoY) decrease of 8.14%; advertising and media business revenue was RMB 1.449 billion, accounting for 75.68%, a Year-on-year (YoY) increase of 0.54%. Net profit attributable to shareholders of the Listed company was approximately RMB 39.2525 million, a Year-on-year (YoY) decrease of 63.74%.

Wanrun Technology is mainly engaged in LED packaging, lighting, landscape illumination, integrated energy services, as well as advertising and media businesses for the internet and television. Its wholly-owned subsidiaries Hengrun Optoelectronics and Rishang Optoelectronics, and its controlling subsidiaries Wanrun Energy and Zhongzhu Tianyou are engaged in LED-related businesses. Its wholly-owned subsidiaries Dingsheng Yixuan, Yiwan Wireless, Wanxiang Xindong, and Xinli Media are engaged in advertising and media businesses, each with distinct business models.

In the LED business, the company's LED source packaging continues to focus on fire and security, automotive products, smart home, large-size backlighting, and 3C home appliance applications. While maintaining and enhancing customer loyalty among existing clients, we actively expand our base of high-quality new customers.

In terms of product intelligence, the company's small lighting control platform—i sense—went live at the end of the reporting period. It is currently available for download and use by providing customers with QR codes and download links, and is suitable for intelligent control of street lights, industrial and mining lights, and triple-proof lights.

在智慧灯杆方面，公司现已拥有自主知识产权的智慧灯杆产品十余款，均采用模块化设计，可根据项目需求自由组合，满足不同客户的各项需求。在智慧城市方面，公司借助5G微基站布局的契机结合自身智慧照明的丰富经验，进行软硬件方面的整合与开发，使公司具备自有知识产权的“智慧城市控制平台”及配套解决方案。

In international business, affected by the pandemic, some countries such as Italy, Spain, the Philippines, Nepal, and South Africa blocked import (Sales) channels, and the world's largest Light + Building exhibition was also canceled, resulting in the indefinite postponement of the company's original customer visit and reception plans. To ensure the normal operation of international business, the company immediately changed its business communication mode, adopting dedicated line network live streaming and online video product launch events for communication.

In the landscape lighting business, during the reporting period, the Company's controlled subsidiary Zhongzhu Tianyou seized the opportunity presented by the smart road demonstration project to expand into the construction and operation of smart city infrastructure. It made new attempts primarily in smart pole networks and smart roads, gradually aligning with the trend of modern urban development characterized by "multi-pole integration and multi-use poles."