Tospo Lighting and Shunzhou Intelligence both achieved growth in net profit in the first half of the year

Tospo Lighting's net profit in the first half of the year rose 41.08% to RMB 172 million

On the evening of August 19, Tospo Lighting released its 2020 semi-annual report, stating that revenue for the first half of 2020 was RMB 2.084 billion, a year-on-year (YoY) increase of 5.56%, mainly driven by significant year-on-year growth in LED luminaire products, automotive lighting products, and modified plastic PP products.

The net profit attributable to shareholders of the listed company was RMB 172 million, a year-on-year (YoY) increase of 41.08%, mainly driven by strong production and sales of the company's LED lighting products and modified plastic PP products, which pushed the overall gross sales margin up by 4.2 percentage points compared to the same period last year.

Tospo Lighting's product portfolio covers four major categories: LED luminaires and light sources, smart lighting, modified plastics, and automotive lighting, widely used in residential and commercial sectors. Leveraging its comprehensive strength in general lighting, the company ranks fifth in the "Top Ten Enterprises in the Light Industry Lighting Electrical Appliance Industry" published by the China National Light Industry Council.

During the reporting period, Tospo Lighting achieved balanced global development in its international business, while advancing through multiple channels in the domestic market.

In the international market, the company adheres to the market strategies of "stabilizing core customers" and "balanced global development," strengthening cooperation with existing customers while continuously expanding into new markets and acquiring new customers. It persists in promoting intelligent, differentiated, and high-end product strategies for consumer lighting and professional lighting, continuously increasing product added value and improving product gross profit margins. The automotive lighting business is progressing smoothly, having started bulk supply to relevant customers and officially obtained IATF16949 system Certification.

Tospo Lighting continues to deliver high-quality lighting projects. In the first half of the year, the company successively won bids for the Jianshui project in Yunnan, multiple smart street light pole projects, and educational lighting projects, continuously expanding its market share.

Affected by the pandemic, sales of Teyes' commercial supermarket lighting business declined slightly year-on-year (YoY) in the first half of the year, but achieved YoY growth in the second quarter alone. Significant progress was made in maintaining and developing core customers, and the corporate upgrade initiative for dealers/distributors nationwide was successfully launched.

The number of e-commerce sales channels continues to increase. The company is promoting the store group model, successfully establishing new e-commerce channels such as Pinduoduo, while actively expanding smart lighting products based on IoT platforms from Alibaba, Baidu, Huawei, and Xiaomi.

To meet urgent market demand, Debang Plastics upgraded 6 and added 8 modified plastics production lines. With strong supply and demand in the first half of the year, net profit surged by 290%.

The report also shows that the company continues to invest in process automation and refined management of production lines, effectively advancing smart manufacturing technologies, promoting vertical integration and development of the Industry / Supply chain, and building an automated, intelligent, and digital manufacturing platform. During the reporting period, construction of the Hengdian new production base for the "Annual Production of 110 Million Units (Sets) of LED Lighting Series Products Project" and the "Annual Production of 1.16 Million Sets of LED Outdoor Lighting Luminaire Construction Project" proceeded smoothly, with main structures completed and gradually put into use.

Tospo Lighting stated that the company is actively deploying smart lighting and on-demand lighting in the general lighting sector, with a focus on increasing R&D investment in smart lighting products, educational lighting products, and UV LED products. In the field of new chemical materials, while consolidating industrial modified plastics, the company is prioritizing R&D in special engineering plastics and biodegradable materials.

Shunzhou Intelligence's net profit increased by 107.06% in the first half of the year

Shunzhou Intelligence recently released its semi-annual report for 2020. In the first half of 2020, the company achieved revenue of RMB 32.0316 million, a Year-on-year (YoY) decrease of 5.16%, mainly due to a slight decline in sales performance affected by the pandemic.

During the reporting period, operating profit was RMB 205,700, an increase of 116.64% year-on-year; net profit attributable to shareholders of the listed company was RMB 123,200, an increase of 107.06% year-on-year. The main reason is that the company's revenue during this period was basically flat compared with the same period last year. Benefiting from the government's tax reduction and fee reduction policies during the epidemic, while strengthening internal management, the company's period expenses were effectively controlled and significantly reduced during the reporting period, resulting in a relatively high growth in operating profit and net profit compared with the same period last year.

Shunzhou Intelligence stated that although the epidemic at the beginning of 2020 impacted businesses across various industries to some extent, the company's Revenue remained basically stable compared to the same period in 2019. Period expenses were effectively controlled, and Net profit increased. Compared to the beginning of 2020, total assets changed little. The company's operational scale generally shows a stable development trend.

Since its establishment, Shunzhou Intelligent has been engaged in the R&D, production, and sales of short-range wireless products such as ZigBee and smart lighting systems. Currently, the company's ZigBee products are widely used in industry application areas including smart lighting, smart industry, and smart home. The complete smart lighting control system has begun cooperating with major luminaire manufacturers and engineering companies, gradually achieving large-scale deployment.