Dehao and Qinshang reported net losses in the first half of the year, while Maidaa Digital reported a net profit of approximately RMB 43.32 million.

*ST Dehao's net profit fell by 69.05% in the first half of the year

*ST Dehao released its 2020 semi-annual report. During the reporting period, the company achieved revenue of RMB 874 million, a Year-on-year (YoY) decrease of 39.90%, mainly due to a 77.64% Year-on-year (YoY) decline in the LED business and a 5.08% Year-on-year (YoY) decline in the small home appliance business;

Achieved a net profit attributable to shareholders of the listed company of -183 million yuan, a year-on-year decrease of 69.05%. This was mainly due to the combined impact of year-on-year decreases in revenue, operating costs, taxes and surcharges, selling expenses, R&D expenses, financial expenses, other income, investment income, and asset disposal income by 39.90%, 38.88%, 32.70%, 40.00%, 62.69%, 89.34%, 28.60%, 81.84%, and 82.95% respectively, as well as year-on-year increases in administrative expenses and non-operating expenses by 50.20% and 2492.32% respectively.

In terms of the LED business, during the reporting period, the company's LED business generated revenue of RMB 142 million, a year-on-year (YoY) decrease of 77.64%. This was mainly due to the continued downturn in the LED chip market environment during the reporting period, where overcapacity caused by industry production capacity expansion was not effectively alleviated, coupled with industry inventory backlog, leading to a continuous decline in LED chip prices; the company's management shut down the chip factory operations in 2019, resulting in a 99.98% YoY decrease in LED chip revenue and a 52.24% YoY decrease in gross margin; affected by intense industry competition and real estate sector regulatory policies, the company sold part of its domestic lighting business at the end of 2019, causing a 91.54% YoY decrease in LED lighting revenue and a 24.34% YoY decrease in gross margin; due to reasons such as intense industry competition, both revenue and gross margin for the LED packaging and display business decreased YoY.

The semi-annual report shows that *ST Dehao (Dehao Runda)'s main business is small home appliances and LED business. The company entered the LED industry in 2009, and its business scope once covered the entire LED supply chain. Currently, the company's LED business mainly includes: LED packaging, LED display, LED lighting T8, bulb lamps, etc. The company's LED packaging business mainly involves packaging upstream LED chip products for downstream applications such as LED lighting and displays; LED display products are sold under its own brand RETOP, while LED lighting products are mainly sold through Zhuhai NVC Lighting and other market channels.

*ST Qinshang's net profit decreased by 315.46% in the first half of the year

*ST Qinshang (Qinshang Optoelectronics) released its semi-annual report for 2020. During the reporting period, the company achieved revenue of RMB 479 million, a Year-on-year (YoY) decrease of 16.93%; the net profit attributable to shareholders of the listed company was -RMB 15.1903 million, a Year-on-year (YoY) decrease of 315.46%.

The company's main business activities are education and training, and Semiconductor / Solid-state lighting (SSL).

The main reasons for the loss in operating performance for the first half of 2020 were: (1) Affected by the epidemic, the revenue of the education and training business decreased by 33.62% year-on-year, while operating costs increased, resulting in an 8.73% decrease in gross profit margin, which was the primary reason for the company's operating loss in the first half of 2020; (2) The Semiconductor / Solid-state lighting (SSL) business was also affected by the epidemic. During the reporting period, cash received from sales of goods and provision of services decreased by 27.31% year-on-year, and collections on receivables were lower than expected. The company accrued credit impairment losses on relevant amounts in accordance with current accounting policies, which had a significant impact on the operating performance for the period.

In the semiconductor lighting sector, *ST Qinshang stated that the company has focused on LED lighting applications for over 20 years. With leadership in LED outdoor lighting and at the forefront of LED smart lighting, it has deeply developed application areas such as LED landscape lighting and LED indoor lighting. Leveraging robust technical capabilities, it has become an industry-leading supplier of semiconductor lighting products and comprehensive solutions. In recent years, the company has fully focused on the smart lighting field. After years of technological accumulation, the company possesses strong comprehensive strength and advantages in smart city construction based on smart streetlights. The Qinshang Smart City Management Platform has achieved "multi-pole integration".

The company mainly engages in the construction of smart streetlight pole platforms through its wholly-owned subsidiary, Guangdong Qinshang Smart City Technology Engineering Co., Ltd. Its main business includes smart city operations such as interconnected smart transportation, smart security, and smart urban management. During the reporting period, Guangdong Qinshang Smart City Technology Engineering Co., Ltd. won the bid for a RMB 318 million smart transportation project in the Shenzhen-Shanwei Special Cooperation Zone, which has a positive guiding effect on the company's future development.

In addition, as one of the earliest established training institutions, Longwen Education’s core business, "one-on-one personalized tutoring," ranks among the top in the K12 sector. By the end of the reporting period, Longwen Education’s presence decreased from 320 campuses across 21 cities in 2019 to 290 campuses across 18 cities. The year-on-year decline in Longwen Education’s coverage and number of campuses is attributed to national policy controls on the education and training industry, the rapid development of online education institutions causing multiple impacts on Longwen Education’s business, and the impact of the pandemic since the beginning of this year. In the future, Longwen Education will pursue steady and solid development of offline education while strengthening exploration of online education: offline learning centers will undergo strategic upgrades, continuing to focus on first-tier and major second-tier cities, while Longwen Education Online will promote and expand the Longwen Education brand to more cities nationwide through a rich and diverse range of online products and services.

Maida Digital's net profit in the first half of the year was approximately 43.32 million yuan

According to the 2020 semi-annual report disclosed by Maida Digital, the company achieved revenue of RMB 505 million from January to June this year, a year-on-year increase of 41.77%; net profit attributable to shareholders of the listed company was RMB 43.319 million, a year-on-year decrease of 61.65% (the main reason for the decline was the high base in the previous year due to non-operating factors); net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 29.7618 million, an increase of 2,062.07% compared to the same period last year.

The main reason why MaiDa Digital achieved strong performance growth in the first half of the year under the shadow of the COVID-19 pandemic is that the company actively responded to the impact of the epidemic, reasonably arranged the resumption of production and work on domestic and overseas production lines, rationally planned and allocated production capacity, quickly restored normal production and business operations, effectively ensured customers' regular supply needs, and guaranteed order delivery. By business segment, MaiDa Digital's smart hardware business contributed revenue of RMB 289 million in the first half, a Year-on-year (YoY) increase of 44.44%; the smart marketing business contributed revenue of RMB 201 million, a Year-on-year (YoY) increase of 39.38%. Both major business segments of the company achieved rapid growth, with dual-wheel drive jointly promoting the overall performance growth of MaiDa Digital in the first half.

Smart Hardware

智能硬件方面，麦达数字近些年持续增加研发和新产品开发投入，通过自主创新不断拓展产品品类，公司旗下的智能硬件产品品类已从成熟的智能照明、智能硬件制造拓展到智能锁具等消费级智能产品等细分领域，前期接入的基站电源项目在报告期内也开始进入量产。正是由于前期的厚积薄发，才让公司能够克服极为不利的外围环境，实现经营业绩的逆势增长。

In the first half of 2020, Maida Digital also set its sights on the wearable device sector with broad market prospects and completed the Acquisition of "Yizhifei," which has extensive experience in the TWS earphone field. The company believes that with the advent of the 5G and IoT era, wearable devices will rapidly gain popularity and become important gateways and application terminals for the IoT. As a new favorite in the smart wearable device industry, TWS earphones will become the fastest-growing category among wearable devices. The Acquisition of "Yizhifei" will inject new vitality into the company's business and is expected to become a new growth point for its future operations.

To further promote the development of its wearable business, Maida Digital also launched a private placement plan in the first half of this year, aiming to raise no more than RMB 588 million. The majority of the funds raised will be invested in the "AI Wearable Device Production Base Construction Project" and the "AI Wearable Main Control Chip and Application Technology R&D Project." The implementation of these fundraising investment projects will help leverage the company's technological and talent advantages accumulated in the smart hardware business segment, assist the company in deeply laying out the smart product industry / supply chain, and bring a new engine for the company to achieve sustainable and rapid development in the future.

To continuously ensure and enhance product competitiveness, Maida Digital continued to increase R&D investment during the reporting period. R&D investment in the smart hardware business segment increased by 19.83% Year-on-year (YoY), with 22 new Patents granted. Continuous R&D investment ensures the innovativeness and market competitiveness of the company's products.

Smart Marketing

In terms of smart marketing, the nearly 40% growth in Revenue for Maida Digital's smart marketing segment in the first half of the year was mainly due to two factors: First, the company seized the development trends of emerging digital technologies such as 5G, big data, and artificial intelligence, embraced new marketing models like influencer live-streaming e-commerce and short-video marketing, collaborated deeply with invested enterprises, leveraged respective advantages to jointly expand performance-based marketing business, and achieved initial results, leading to rapid growth in the company's performance-based marketing business. Second, to further improve comprehensive customer service capabilities, enhance management efficiency, and reduce management costs, the company carried out deep integration of three marketing subsidiaries in the first half of this year, involving business synergy, team integration, and back-office consolidation, thereby building overall customer service capabilities.

Maida Digital believes that as 5G information-related functions are implemented and frontier technologies continue to develop, new opportunities will emerge for the company's digital marketing business, especially in performance marketing.