2020 annual reports from LED companies such as Ocean King, Dehao, Aoto, and BPS are here

Ocean King's 2020 Revenue and Net Profit Both Increased

Ocean King released its 2020 annual report. The company's Revenue in 2020 was RMB 1.704 billion, a Year-on-year (YoY) increase of 14.03%; Net profit attributable to shareholders of the Listed company was RMB 301 million, a Year-on-year (YoY) increase of 16.90%; basic earnings per share was RMB 0.4011. Ocean King has achieved dual growth in Revenue and Net profit for five consecutive years.

According to the introduction, 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 and changes in customer on-site and work requirements, the company combines workplace lighting products with the Internet, leveraging the product combination advantage of LED products + controllers + service platforms to provide professional lighting solutions for customers, promoting the development of customer lighting systems towards informatization, digitalization, and intelligence.

During the reporting period, the company combined lighting products with Internet technology to develop "Lighting + Internet" products featuring real-time data transmission, online diagnostics, image retention, and image recognition. These products are available in explosion-proof and non-explosion-proof series to meet the specific needs of different industries and application scenarios.

The company uses work lighting luminaires as the connection and control objects, combining intelligent control technology and wireless transmission technology to develop smart control series products. This achieves scientific and systematic management of work lighting luminaires in the working environment, including illuminance adjustment, energy efficiency monitoring, fault alarms, lifespan prediction, and information traceability.

The state is vigorously developing and strengthening the energy saving and environmental protection industry and the circular economy. In the future, nuclear power will be the mainstay of the grid's power supply, and the national restart of new nuclear power plant construction will become an important guarantee for future performance growth. The company's LED luminaire with radiation resistance certification passed an 18-month trial period in the nuclear island and was successfully selected into the supplier pools of China's three major nuclear power groups. Products that replace old light sources such as halogen lamps inside the nuclear island with new LED light sources have further expanded business in the nuclear power market.

In addition, the company actively accelerates its strategic layout and promotes Epitaxy development through capital operations, completing the Acquisition of Mingzhihui. Mingzhihui has provided high-quality planning, design, and construction services for many large and medium-sized projects in China.

Ocean King also released its Q1 2021 report. The company's revenue for Q1 2021 was approximately RMB 315 million, a year-on-year (YoY) increase of 63.71%, mainly due to leveraging its technological portfolio advantages to drive business growth; net profit was approximately RMB 27.3106 million, a year-on-year (YoY) increase of 103.37%; basic earnings per share were RMB 0.0350. In Q1, the company also invested in establishing five controlling subsidiaries: power grid lighting, petroleum lighting, railway lighting, ship and venue lighting, and Green lighting.

Aoto Electronics reported a net profit loss of approximately RMB 153 million in 2020

Aoto Electronics released its 2020 annual performance flash report. The company's revenue in 2020 was approximately RMB 820 million, a Year-on-year (YoY) decrease of 34.18%, mainly due to the decline in revenue from smart lighting projects and Export revenue from LED video display systems.

The net profit attributable to shareholders of the listed company was a loss of approximately RMB 153 million, a year-on-year decrease of 184.04%. The main reasons for the decline in net profit are as follows:

(1) Due to the impact of the COVID-19 pandemic, national policies, and other factors, the landscape lighting industry has entered an adjustment period with intense market competition. The revenue and profit of our wholly-owned subsidiary, Qianbaihui, declined significantly in 2020. In accordance with relevant requirements, the Company conducted a preliminary impairment test on the goodwill formed from the prior Acquisition of Qianbaihui. The estimated goodwill impairment provision for the current period is approximately RMB 160 million, resulting in a loss for the Company during this reporting period. After the aforementioned goodwill impairment, the Company's remaining goodwill is approximately RMB 30 million.

(2) The proportion of export revenue from the company's LED display business is relatively high. Affected by the global COVID-19 pandemic, demand from customers in sectors such as sports and advertising declined, leading to delayed shipments or cancellations of overseas sales orders, which resulted in a decline in revenue. Impacted by the COVID-19 pandemic and national policies, smart lighting projects were delayed or canceled, leading to a decrease in sales revenue.

(3) The company actively responded to the impact of the COVID-19 pandemic by developing and launching new products, actively expanding the domestic LED display market, enlarging the domestic sales team, and optimizing sales strategies, which led to an increase in domestic business selling expenses in 2020.

(4) The company's overseas business is mainly settled in US dollars. Affected by exchange rate fluctuations, the estimated foreign exchange loss for 2020 is approximately RMB 18.12 million, compared to a foreign exchange gain of RMB 2.16 million in the same period last year, resulting in an increase in foreign exchange loss of approximately 938.89% year-on-year.

(5) During the reporting period, the company's non-recurring gains and losses were approximately RMB 26.59 million.

Aoto Electronics stated that during the reporting period, the company actively responded to the impact of the COVID-19 pandemic by increasing investment in the R&D and promotion of products such as all-in-one smart meeting machines and LED display systems for film and television production, while actively expanding the domestic market. Significant progress was made in sectors including large-scale transportation, finance, education, conference rooms, and film/TV studios.

To date, the company has completed a private placement of shares to raise funds, strengthening its corporate strength. Preliminary investments have been made in the "Mini LED Intelligent Manufacturing Base Construction Project," and production capacity is being gradually released. The company began R&D on Mini LED in 2012 and has accumulated over 30 global Patent applications related to Mini LED, achieving commercial application of Mini LED display products and increasing orders.

In addition, Aoto Electronics released its earnings forecast, estimating the net profit attributable to shareholders of the listed company for the first quarter of 2021 to be RMB 1.6 million to RMB 2.4 million, turning a loss into a profit year-on-year (YoY); basic earnings per share were RMB 0.0025 to RMB 0.0037.

The main reason is that, compared to the same period last year, the impact of the epidemic on the company's operations relatively weakened in the first quarter of 2021. With sufficient orders for LED display business, revenue is expected to increase Year-on-year (YoY) in the first quarter of 2021, leading to an expected turnaround from loss to profit.

MTC's net profit increased by 57.16% in 2020

MTC shares released the 2020 preliminary earnings report, achieving revenue of RMB 20.218 billion, a year-on-year (YoY) increase of 52.09%; net profit attributable to shareholders of the listed company reached RMB 1.739 billion, a year-on-year (YoY) increase of 57.16%.

MTC's core business consists of three segments: Smart Display, Smart Home Networking, and the LED industry chain. In the LED industry chain segment, upstream LED chip products have demonstrated excellent performance, quickly gaining market validation and recognition, achieving full production and sales by the end of 2020. The midstream LED packaging business has further expanded its scale advantage through increased production capacity, accelerating the mass production of Mini LED for direct display and backlight applications, laying a solid foundation for the steady development of the entire industry chain. The downstream "MTC Lighting" brand business has successfully transitioned from channel operations to strategic centralized procurement with real estate companies. Centralized procurement for commercial real estate projects has developed rapidly, continuously bringing incremental revenue and profit to the company.

MTC also released its earnings forecast, expecting the net profit attributable to shareholders of the listed company for Q1 2021 to be RMB 403 million to RMB 503 million, a year-on-year (YoY) increase of 100%-150%.

MTC Electronics stated that the company has maintained the strong momentum of full orders from the end of last year, with rapid market development across all business segments and an increase in overall sales revenue compared to the same period in 2020. Meanwhile, due to the impact of the pandemic in Q1 2020, the company's production and sales declined; therefore, the year-on-year (YoY) growth rate in Q1 2021 was relatively faster. The LED chip products within the company's LED business segment achieved full production and sales since the end of 2020, and turned losses into profits in Q1 2021, expected to continue bringing incremental revenue and profit to the company.

ST Dehao reported a net profit loss of approximately 571 million yuan in 2020

ST Dehao (Dehao Runda) released its 2020 annual performance flash report, with total operating revenue of approximately RMB 2.218 billion, a Year-on-year (YoY) decrease of 25.59%; the Net profit attributable to shareholders of the Listed company was approximately -RMB 571 million, a Year-on-year (YoY) decrease of 316.27%.

In 2020, ST Dehao's small home appliance revenue remained basically flat compared to the same period of the previous year. However, as the company sold most of its domestic LED lighting business and shut down its LED chip factory in 2019, and further discontinued its LED display business in 2020, the company's LED business revenue saw a significant year-on-year (YoY) decline in 2020.

According to calculations, in 2020, the company's overall sales revenue from its LED business decreased by approximately 75% Year-on-year (YoY), and the overall gross profit margin of the LED business decreased by approximately 5.50% Year-on-year (YoY); the Revenue from the small home appliance business increased by approximately 0.96% Year-on-year (YoY) in 2020, while the gross profit margin decreased by approximately 2.81% Year-on-year (YoY).

During the reporting period, the company achieved an operating profit of -752,123,900 yuan, a year-on-year decrease of 359.33%. This was mainly due to a 4.38% decrease in the company's comprehensive gross profit margin and a significant reduction in profits recorded by its associate company NVC International, which led to a 102.63% year-on-year decrease in the company's investment income. The net profit attributable to shareholders of the listed company decreased, mainly because the total profit decreased by 321.33% compared to the same period last year.

ST Dehao also released its earnings forecast, estimating a net loss attributable to shareholders of the listed company of RMB 50 million to RMB 75 million for Q1 2021, a year-on-year (YoY) reduction in losses of 5.61% to 37.07%; basic loss per share was RMB 0.0283 to RMB 0.0425.

ST Dehao stated that the company's small home appliance business is mainly export-oriented. The first quarter is traditionally the off-season for production and sales in this segment, resulting in lower overall production capacity utilization and reduced absorption of fixed costs, which led to a year-on-year (YoY) increase in product manufacturing costs. Additionally, rising labor costs and higher raw material costs caused the gross profit margin to decline year-on-year (YoY).

After the company's LED-related business was shut down, the related assets that have not yet been disposed of still require depreciation and necessary maintenance expenses, leading to increased losses. During the reporting period, the company expects the impact of non-recurring gains and losses on net profit to be approximately RMB 20 million, mainly due to government subsidies recognized in current profit and loss.

*ST Qinshang's net profit increased by 112.37% in 2020

*ST Qinshang released its 2020 annual performance flash report. The total operating revenue in 2020 was approximately RMB 995 million, a Year-on-year (YoY) decrease of 20.56%; the Net profit attributable to shareholders of the Listed company was approximately RMB 46.0991 million, compared to a loss of approximately RMB 373 million in the same period last year, representing a Year-on-year (YoY) increase of 112.37%; basic earnings per share were RMB 0.03.

The main reasons for the increase in profit during the reporting period compared to the same period last year are: (1) During the reporting period, the Company actively responded to the global COVID-19 pandemic and adverse impacts from the external environment, while improving internal management efficiency, resulting in a decrease in related expenses; (2) The Company's wholly-owned subsidiary, Kingsun Optoelectronics Co., Ltd., generated disposal gains from the sale of its equity interest in Guangdong Kingsun Optoelectronics Technology Co., Ltd.; (3) During the reporting period, the Company continuously strengthened credit management and intensified collection efforts, leading to a significant reduction in credit impairment losses compared to the same period last year, thereby enhancing the Company's overall profitability.

*ST Qinshang also released its earnings forecast, estimating the net profit attributable to shareholders of the listed company for Q1 2021 at RMB 1.2 million to RMB 1.7 million, a year-on-year (YoY) increase of 284.96% to 362.02%; basic earnings per share ranged from RMB 0.0008 to RMB 0.0011. The main reason for the performance change was that revenue and net profit declined last year due to the impact of the COVID-19 pandemic. In Q1 2021, the company's production and operations improved.

Wanrun Technology's net profit increased by 23.39% in 2020

Wanrun Technology released its preliminary earnings report, achieving total operating revenue of RMB 4.16 billion in 2020, a Year-on-year (YoY) decrease of 0.48%; net profit attributable to shareholders of the parent company was RMB 81.0075 million, a Year-on-year (YoY) increase of 23.39%.

The growth in net profit is attributed to Wanrun Technology's continued deep cultivation of traditional niche stock markets, strengthened layout in differentiated niche markets, and simultaneous adjustment, optimization, and innovation in business models, R&D technology, and product lines. By targeting incremental markets and emerging customers in trends such as 5G, new infrastructure, smart cities, healthy lighting, and the "stay-at-home economy," the company has created new profit growth points.

In addition, during the reporting period, Wanrun Technology effectively revitalized its accounts receivable by innovating collection and recovery methods and launching accounts receivable securitization, thereby further improving asset quality.

Wanrun Technology released its earnings forecast, expecting a profit of 40–50 million yuan for the first quarter of 2021, compared to a loss of 3.4073 million yuan in the same period last year, achieving a turnaround from loss to profit.

Wanrun Technology stated that the company's operating performance is expected to turn from a loss to a profit compared to the same period last year, mainly due to: (1) The company's production and operation as well as sales orders were in good condition during the reporting period, with multiple LED landscape and night tourism lighting projects won and implemented, ensuring steady growth in operating performance. (2) Production resumed later in the same period last year due to the impact of the pandemic.

BPSemi's net profit decreased by 25.4% in 2020

BPS disclosed its 2020 annual report. The company achieved total operating revenue of RMB 1.103 billion in 2020, a Year-on-year (YoY) increase of 26.24%; net profit attributable to shareholders of the listed company was RMB 68.8633 million, a Year-on-year (YoY) decrease of 25.43%; earnings per share were RMB 1.12.

Throughout 2020, the company's Revenue transitioned from a slight decline to steady growth. Affected by the pandemic, the company's Revenue in the first half of the year decreased slightly compared to the same period last year; in the second half, benefiting from factors such as the easing impact of the pandemic and strong industry demand, the company achieved breakthrough growth in its operating performance.

BPS is one of the leading domestic chip design enterprises for power management driver ICs. Its main business is the design, R&D, and sales of analog semiconductor power management chips. The company's current product portfolio includes LED lighting driver chips, motor driver chips, and AC/DC power supply chips. Among them, LED lighting driver chips include general-purpose LED lighting driver chips and smart LED lighting driver chips; AC/DC power management chips include integrated AC/DC power supply chips and external AC/DC power supply chips.

Among them, the annual sales revenue of general-purpose LED lighting driver products reached RMB 629 million, representing a year-on-year increase of 7.29%. The company's stable cooperative relationships with upstream suppliers have provided a solid foundation for sales growth. Further growth in sales volume also helps the company consolidate its leading position in the general-purpose market and strengthen its scale advantages.

In 2020, the company's revenue from smart LED lighting driver products reached RMB 406 million, a year-on-year increase of 78.79%. The smart LED lighting market is in the early stage of development, with rapid overall growth. Leveraging its prior R&D accumulation and first-mover advantage from entering the market early, the company has established strong competitiveness. During the reporting period, the company sold 69 models of smart LED lighting driver chips. Among them, the wireless dimming and color tuning solution within the smart product line generated sales revenue of RMB 139 million, representing a 121.26% increase compared to 2019.

In 2020, the company started with LED lighting drivers and motor drivers, continuously expanding its product categories and enriching the application fields of its products. During the reporting period, the company established an AC/DC business unit. Building on its existing core power management technology R&D, it actively recruited relevant talent, focusing on the R&D of built-in AC/DC power chips for large and small home appliances, as well as external AC/DC power chips used in chargers and adapters. As of December 31, 2020, the company's sales revenue from AC/DC power management chips was RMB 11.4079 million.

In 2020, the company's R&D expenses were 158 million yuan, a year-on-year increase of 132.78%.

During the reporting period, the company completed the Acquisition of 100% equity in Shanghai Laishi Semiconductor Technology Co., Ltd. and 51% equity in Shanghai Xinfei Semiconductor Technology Co., Ltd. Through the mergers and acquisitions of these two subsidiaries, the company enriched its LED lighting driver product portfolio and added external AC/DC power supply chip products.