H1 results released for seven companies including Sunshine, Ocean King, and Xuelait

Yangguang Lighting's revenue and net profit both declined in the first half of this year

Yangguang Lighting released its 2020 semi-annual report. The company's revenue in the first half of the year was RMB 2.366 billion, a Year-on-year (YoY) decrease of 10.38%, mainly due to the impact of the novel coronavirus epidemic and a Year-on-year (YoY) decline of over 40% in sales to major OEM customers.

The net profit attributable to shareholders of the listed company was RMB 278 million, a year-on-year (YoY) decrease of 23.8%. The main reason for the YoY decline was that the company recorded a gain from changes in fair value of RMB 97.971 million from its holdings in Great Wall Securities in the same period last year, while the gain from changes in fair value from its holdings in Great Wall Securities in the current period was -RMB 14.938 million.

Among them, the company's LED product revenue was RMB 2.223 billion, accounting for 95.19%, while traditional energy-saving lamp product revenue was RMB 112 million, accounting for 4.81%.

During the reporting period, the company's gross profit margin reached 34.52%, an increase of 4.35 percentage points compared to the same period last year. This was primarily due to: first, optimization of certain products and customers, along with effective control over raw material procurement prices; second, the depreciation of the RMB had a favorable impact on the USD settlement prices for the company's export revenue.

The announcement stated that during the reporting period, the Company completed the re-election of the Board of Directors and appointed a new senior management team. The new management will continue to firmly implement the Company's independent brand strategy. It is reported that Chen Wei is the Chairman of Yangguang Lighting, and Guan Yong is the General Manager.

During the reporting period, the Company increased its R&D investment and, driven by the Group's Technology Innovation Center, accelerated the intelligent development of its products. The Company attaches great importance to the expansion of its own brands and proprietary products, and the revenue share of its own brands continued to rise.

Meanwhile, the subsidiary Zhejiang Sunshine Urban Lighting Engineering Co., Ltd. obtained Grade I qualification for professional contracting of urban and road lighting projects and Grade B qualification for specialized lighting engineering design, enabling the company to expand its layout into new engineering fields.

In terms of production and manufacturing, the company has increased investment in and upgraded automation equipment, improving manufacturing efficiency, reducing production costs, and decreasing the number of laborers. By leveraging IT informatization combined with IoT technologies, we are actively promoting the upgrade and transformation of Yangguang's smart manufacturing factory, laying a solid foundation for more stable quality levels and better delivery performance.

Yangguang Lighting stated that in the second half of the year and for a considerable period thereafter, the company will continue to increase market investment, refine (Sales) channel construction, and establish a self-owned market of a certain scale. Meanwhile, the company will continue to strengthen R&D investment, with future products developing towards intelligence, Light quality, technological appeal, platformization, and modularization, developing innovative and differentiated proprietary products to enhance the recognition and reputation of its own brand.

Ocean King's Revenue and Net Profit Both Increased in the First Half of 2020

Ocean King's latest 2020 interim report shows revenue of RMB 562 million, a year-on-year (YoY) increase of 2.11%; net profit attributable to shareholders of the listed company was RMB 56.9968 million, a year-on-year (YoY) increase of 43.88%.

Ocean King stated that the company has achieved double growth in Revenue and Net profit for five consecutive years, with its production and operating performance reaching a record high despite adverse conditions. According to accounting standards and application guidelines, Mingzhihui's balance sheet was included in the consolidation scope for the first half of 2020, while its income statement and cash flow statement were not included in the consolidation scope for the first half of 2020.

Ocean King stated that in early 2020, uncertainties remained in China-US trade friction, and the full outbreak of the novel coronavirus pandemic impacted the global economy. Amid a complex international trade landscape, a severe macroeconomic situation, and a transforming industrial development pattern, the company continued to focus on the professional lighting sector, deeply exploring potential markets under new demands. Driven by technology, it further promoted the integration of lighting products with Internet and IoT technologies, committed to providing customers with higher-quality services, accelerating the intelligent and service-oriented strategic transformation and upgrading of the enterprise, and expanding new domestic and international markets.

In Q1, impacted by the COVID-19 pandemic, personnel movement and logistics activities were severely hindered, leading to a decline in the company's performance. In Q2, the domestic epidemic was basically under control, economic activities in various sectors gradually returned to normal, and downstream customers largely resumed full operations. The company strove to catch up, quickly closing the gap from Q1, achieving single-quarter Revenue of RMB 369 million, a Year-on-year (YoY) increase of 23.96%, ensuring steady development of the company's operating performance.

It is worth mentioning that in the first half of 2020, Ocean King acquired a 51% equity stake in Mingzhihui, expanding its business in lighting engineering construction, design, and maintenance.

In addition, to meet the growing domestic electricity demand and curb the rise in average energy consumption, the proportion of power supplied by clean energy sources such as nuclear power will further increase. The company's LED luminaires with radiation resistance certification have successfully completed an 18-month trial period in nuclear islands and been selected into the supplier pools of China's three major nuclear power groups. By replacing old light sources such as halogen lamps in nuclear islands with new LED light sources, the company has further expanded its business in the nuclear power market.

Ocean King's business has gradually transformed from the R&D, sales, and production of traditional special environment lighting equipment in its early stages to a service-oriented enterprise. With the development of new light sources and technologies such as LED and lasers, and the continuous upgrading of customer on-site and work requirements, the company combines special environment lighting products with the Internet, leveraging the product combination advantage of LED products + controllers + service platforms to provide customers with solutions of lighting + controllers + application software + services, promoting the development of customer lighting systems towards more energy saving and intelligent directions.

Tai Long Lighting's net profit in the first half of the year was 1.47 million yuan, a year-on-year decrease of 93.97%

TaiLong Lighting's latest 2020 interim report shows revenue of RMB 129 million, a year-on-year (YoY) decrease of 43.47%; net profit attributable to shareholders of the listed company was RMB 1.47 million, a year-on-year (YoY) decrease of 93.97%. Basic earnings per share were RMB 0.01.

As a provider of comprehensive commercial lighting solutions focused on creating light and shadow atmospheres, TaiLong Lighting's main business is to offer integrated commercial lighting solutions that combine lighting design, development and manufacturing, and comprehensive system services. Its main products include lighting fixtures, LED displays, and optoelectronic signage.

During the reporting period, lighting fixtures accounted for 65.16% of revenue, while LED displays and optoelectronic signage accounted for 29.79% and 4.33%, respectively.

The company's main revenue comes from lighting fixtures. However, as China's indoor commercial lighting market has continued to mature in recent years, supporting products for commercial lighting have gradually emerged. To align with industry development and meet the needs of downstream brand retailers, the company has vigorously developed LED display and optoelectronic signage products since 2014.

During the reporting period, uncertainties arising from China-US economic and trade frictions intensified, downward pressure on domestic and international economies further increased, compounded by the impact of the novel coronavirus pneumonia (COVID-19) epidemic,

The announcement stated that in the first quarter of 2020, affected by the COVID-19 pandemic, the company and its upstream and downstream customers in the industry chain experienced delayed resumption of work, slowing down the progress of various business activities, which led to losses for the company. As the domestic epidemic was effectively controlled, starting from the second quarter, the company promptly adjusted its operational arrangements and took various measures to ensure the safe and orderly conduct of production and operations, gradually restoring them to normal levels. The measures for resuming work and production yielded outstanding results, leading to a rapid recovery of production and operations. These measures enabled the company to achieve profitability in the second quarter alone, allowing it to turn losses into profits in the first half of the year.

On the other hand, the company plans to acquire Bodisi Da, a professional semiconductor distributor, to enter a new competitive track, seize the rapid growth opportunities in the semiconductor and consumer electronics industries, achieve parallel development of the dual core businesses of "commercial lighting + semiconductor distribution", further enrich and expand the business scope, and comprehensively enhance the asset scale, profitability, and overall strength of the listed company. Bodisi Da focuses on the semiconductor distribution field, possesses a professional technical team, and excels particularly in the application of RF chips related to 5G communications and various sensor devices in electronic products.

TaiLong Lighting will deepen its industrial layout in high-tech fields such as semiconductors through continuous product R&D and external investment, achieving the strategic goal of transforming the company into a technology-oriented enterprise.

C-Light's H1 performance shows a loss

Cnlight (*ST Cnlight) released its 2020 semi-annual report. In the first half of the year, the company's total operating revenue was RMB 103 million, a Year-on-year (YoY) decrease of 36.53%; net profit attributable to shareholders of the parent company was -RMB 18.3765 million, with losses increasing by 88.67% YoY, compared to a net loss of approximately RMB 162 million in the same period last year.

In 2020, Cnlight's main businesses were UV germicidal lamps, LED and Fluorescent lamp indoor lighting, Automotive lighting, and lithium battery production equipment.

During the reporting period, the COVID-19 pandemic had varying impacts on the Company's operations. In response to the rapidly growing demand for UV germicidal lamp products, the Company adjusted its business strategy, focusing on "UV germicidal lamps" as its core business during the reporting period. Revenue from related products increased by 66.01% year-on-year (YoY), accounting for 54.33% of the Company's total revenue during the reporting period. Affected by the pandemic and tight cash flow, the Company saw a significant year-on-year decline in revenue from its LED and fluorescent lamp indoor lighting, automotive lighting, and lithium battery production equipment businesses. During the reporting period, the Company's financing scale and financial expenses remained high, significantly impacting its profits.

To meet the rapidly growing market demand for UV sterilization lamps, the company has continuously expanded its production capacity and improved production efficiency, fully developing its UV sterilization lamp business. It has been included in the second batch of key enterprises guaranteed for COVID-19 prevention and control by the Ministry of Industry and Information Technology of China, and was also listed by the Foshan Municipal Bureau of Industry and Information Technology as one of the first batch of key production enterprises for epidemic prevention and control materials in Foshan.

The company's specific products related to the UV sterilization lamp business include: disinfection carts, disinfection table lamps, bracket lamps, wall-mounted disinfection lamps, integrated electronic lamps, UV lamp tubes, etc. They can be widely used for sterilization and disinfection in spaces such as hospitals, classrooms, shopping malls, and warehouses. They are also applicable in the fields of small home appliances (such as disinfection cabinets, water purifiers, air purifiers, mite removers, and disinfectors), medical device equipment, and industrial wastewater and exhaust gas treatment. The company is one of the few domestic enterprises capable of producing high-power UV sterilization lamps. It can provide low-pressure UV sterilization mercury lamp products with power ranging from 2W to 800W according to customer requirements. Currently, it mainly focuses on direct sales domestically, while overseas exports primarily go to the United States, the United Kingdom, Italy, Russia, South Korea, Malaysia, etc.

During the reporting period, to further enhance the Company's market competitiveness and brand recognition in the fields of UV sterilization and disinfection and LED lighting, and to promote business growth, the Company entered into the "Light of the Future" Strategic Cooperation Agreement with Guangzhou Institute of Respiratory Health Pharmaceutical Technology Co., Ltd. on June 26, 2020. Both parties will carry out in-depth cooperation in areas such as smart campuses and public health safety protection systems through new product R&D, platform construction, system establishment, and training operations.

Huati Technology's H1 net profit drops 32% to RMB 34.0414 million

Huati Technology released its semi-annual performance report on the evening of August 24, stating that revenue for the first half of 2020 was approximately RMB 367 million, a year-on-year (YoY) increase of 17.12%. Net profit attributable to shareholders of the listed company was approximately RMB 34.0414 million, a year-on-year (YoY) decrease of 32.19%. Basic earnings per share were RMB 0.3335, a year-on-year (YoY) decrease of 32.91%.

During the reporting period, affected by the COVID-19 pandemic, the domestic and international economic situation was relatively severe, with continued increasing downward pressure on the economy. The progress of the company's project acceptance, implementation, delivery, acceptance, and other related work was impacted by the pandemic.

Huati Technology mainly engages in solution planning and design, product R&D and manufacturing, project implementation, operation management and maintenance services, and system integration projects in the field of urban lighting. During the reporting period, the company's main business revenue was RMB 364 million, accounting for 99.24%, which is the primary source of Revenue.

Since 2019, the company has continued to invest heavily in the development of multi-functional smart light poles, operation and management software platforms for multi-functional smart light poles, edge computing gateways for smart light poles, and new scenario service systems for smart cities, while maintaining its technological advantages in the lighting sector. In 2020, the company achieved certain results in smart parking systems, including operation management platforms, O&M management platforms, user-side mini-programs, and PDA parking management software.

Huati Technology stated that in recent years it has focused on R&D and product design in the two major fields of urban cultural lighting and green lighting. While enhancing its capabilities in urban lighting planning and solution design, sales of culturally customized lighting products and LED lighting products have continued to grow, and corresponding utility model patents or design patents have been obtained. Meanwhile, the company has continuously increased R&D investment in new urban lighting technologies and independently developed smart streetlight products based on IoT technology, providing novel technical means for the construction of smart cities and the development of the big data industry across various regions. A rich product portfolio offers customers diverse choices, while strong R&D capabilities further meet customers' personalized needs; together, these form the company's core competitiveness.

In addition, the announcement states that smart streetlight operation services involve obtaining operational rights for street lights and their peripheral equipment for a certain period after the completion of street light projects. These services mainly include: charging pile operations, information and advertising publication, hosting 4G/5G base stations on licensed poles to provide services, WIFI value-added operation services, and smart parking value-added services. By adopting a model of construction followed by subsequent operations, the company has gradually evolved from single product sales to a full industry chain model combining product sales with smart city operation services.

Mingjiahui's first-half performance turned from profit to loss

Mingjiahui disclosed its semi-annual report. During the reporting period, the company achieved Revenue of RMB 130 million, a Year-on-year (YoY) decrease of 81.57%. The Net profit attributable to owners of the parent company was -RMB 70.4015 million, a Year-on-year (YoY) decrease of 136.02%.

The main reasons for the significant year-on-year decline in operating performance in the first half of the year are:

1. Impact of the COVID-19 pandemic: Since engineering projects involve continuity across the supply chain—from preliminary planning, surveying, and feasibility studies to design and construction—national and local governments implemented epidemic prevention measures such as delayed work resumption and quarantine for returning workers, causing delays in upstream operations. Although work has actively resumed in various regions, the lighting engineering construction industry is affected by this lag, and adverse impacts will persist for a certain period.

2. Impact of macroeconomic and industry policies: The lighting engineering construction industry in which the company operates is strongly correlated with the macroeconomic development cycle. Economic growth rates and macroeconomic fluctuations will directly affect the operational development of the entire construction industry. Therefore, slowing economic growth and macroeconomic volatility will impact the company's business development. Meanwhile, adjustments in industry policies and intensified market competition have also had certain adverse effects on the company's business expansion in the first half of 2020.

3. Adjustment of the company's development strategy: The company adheres to the "One Core, Two Wings" development strategy and actively lays out its presence in the cultural tourism night tour and smart pole Industry. The expansion of these new businesses has led to an increase in related expenses. Meanwhile, the implementation and performance realization of these new businesses require a certain period of time, thus having an adverse impact on the company's short-term performance.

Mingjiahui's core business includes lighting engineering and related lighting design, as well as the R&D, production, sales of lighting products, and Energy performance contracting (EPC / EMC) services. In the first half of 2020, the company closely aligned with its annual operational goals, vigorously expanded the lighting business market, and actively laid out its presence in the smart street light and cultural tourism night tour Industry.

(1) In the smart streetlight business sector, the results of the "Shenzhen Special Zone Construction and Development Group Co., Ltd. Multi-functional Smart Pole Project 2020-2021 Pre-selected Bidding for Construction Units" were announced. The company stood out among nearly 200 bidding entities, becoming one of the 10 winning bidders. In terms of strategic cooperation, Mingjiang Zhihui signed a deep strategic cooperation agreement with Zhongshan Guanxin Technology Co., Ltd., aiming to integrate the advantageous resources of both parties and plan to jointly carry out related project cooperation within Zhongshan City, jointly exploring the smart streetlight market. Regarding university-enterprise cooperation, the company reached a strategic cooperation agreement with the Guangdong Provincial Key Laboratory of Urban Spatial Information Engineering at Shenzhen University to jointly establish the "Joint Laboratory for New Infrastructure in Smart Cities." Meanwhile, the company invested in establishing a second-tier holding subsidiary, Mingjiang Zhihui (Zhongshan) Technology Co., Ltd., mainly engaged in the R&D and production of modular smart streetlights and related components, further accelerating the company's industrial layout in the smart streetlight sector and actively seizing strategic opportunities and directions for development.

(2) In the cultural tourism night tour business sector, the company increased investment and completed the Acquisition of a 20% equity stake held by minority shareholders in Dahua Shenyou, making it a wholly-owned subsidiary. Meanwhile, to implement cultural tourism night tour projects, Dahua Shenyou plans to jointly establish a joint venture with partners to promote the "Framework Cooperation Agreement on Wuhu City's Region-wide Night Tour Cultural Tourism Project" signed between the company and the Wuhu Municipal People's Government. The smart light pole and cultural tourism night tour business segments have accelerated market expansion and are further advancing the implementation of specific businesses and projects.

此外，名家汇同日还发公告称，为进一步开拓智慧灯杆业务，共同投资开发山东省智慧路灯、智慧交通等项目，公司拟投资 510 万元人民币与青岛交通科技信息有限公司（以下简称“青岛交通”）共同设立山东省名家汇交通科技有限公司（暂定名称，该公司名称最终以市场监督管理部门核准结果为准，以下简称“合资公司”）。该合资公司注册资本 1,000 万元人民币，其中名家汇占股权比例为 51%。

The business scope of this joint venture includes investment in energy-saving projects; Energy performance contracting (EPC / EMC); design and construction of energy-saving and environmental protection engineering; technical consulting and assessment for energy saving; R&D and sales of energy-saving and environmental protection equipment and general electronic products; investment in smart city projects (specific projects to be declared separately). Design, sales, installation, and construction of 5G smart light poles; development and sales of LED lighting and luminaire products; design and construction of IoT smart lighting management systems and smart street light projects; planning and design of urban smart lighting and R&D and construction of related systems; design and construction of electronic and intelligent engineering; construction and operation of smart transportation, smart public transit, and smart cities. R&D and sales of computer hardware and software; leasing of advertising facilities; advertising agency and publication, etc.

Mingjiahui stated that this outbound investment aims to establish a joint venture platform through equity cooperation, jointly investing with partners in the development of smart streetlights, smart transportation, and other projects in Shandong Province, marking a further expansion of the company's business in the smart pole sector.

MTC's net profit increased by 62% to 615 million yuan in the first half of the year

On the evening of August 24, MTC Co., Ltd. released its semi-annual performance report, stating that revenue for the first half of 2020 was approximately RMB 7.464 billion, a year-on-year (YoY) increase of 28.4%; net profit attributable to shareholders of the listed company was approximately RMB 615 million, a year-on-year (YoY) increase of 62.02%; basic earnings per share were RMB 0.1358, a year-on-year (YoY) increase of 61.67%.

MTC's current main business segments include: Home Entertainment Ecosystem, Smart Home Networking, LED Industry / Supply chain (Epitaxy & Chips + Packaging + Application Lighting), and Supply Chain Management. Adhering to the operational philosophy of "refined management," the company continuously promotes the upgrading of customer structure and product quality, while further optimizing raw material procurement strategies to achieve cost reduction and efficiency improvement, thereby increasing product gross margin.

In terms of the full LED industry chain, during the reporting period, the company's LED epitaxial wafer and chip projects gradually released production capacity, achieving close coordination with the company's LED packaging segment and expanding sales to well-known domestic and international packaging customers. The company's Mini LED chips entered the small-batch trial production stage, while steadily advancing the red and yellow light project to layout the monochrome LED niche market. This effort aims to enhance product added value, providing support for the company's high-end LED packaging products while further strengthening the competitive advantages of its LED epitaxial wafers and chips.

During the reporting period, Jiangxi MTC Optoelectronics Technology Co., Ltd., a controlling subsidiary of the company leading the midstream LED Packaging segment of the LED supply chain, completed its renaming and relocation to Nanchang, preparing for a spin-off listing on the ChiNext board of the Shenzhen Stock Exchange. The company has a coordinated layout across three major segments: LED backlighting, LED lighting, and LED displays.

In the Mini LED sector, the company leverages its years of accumulated technical advantages to develop a variety of Mini LED backlight products and Mini RGB display products, continuously supplying domestic and international brand manufacturers. The first phase of MTC Optoelectronics' expansion project, adding 1,000 LED packaging production lines, has been fully completed. The second phase, expanding by 1,200 LED packaging production lines, is progressing steadily. During the reporting period, the company signed an investment agreement with the Nanchang Municipal People's Government, planning to expand by 2,000 LED packaging production lines.

In the application lighting sector, the company has established its presence through the independent brand "MTC Lighting" and its ODM division, driving the development of finished LED lighting products. On the product front, the company has launched over a thousand models, covering more than ten categories across (Sales) channels such as commercial lighting, engineering, home lighting, and distribution.