OSRAM's Fluence partners with BFG; Qinshang expects a loss in the first half of the year

OSRAM's Fluence partners with BFG to expand horticultural lighting business in the US

On July 8, Fluence, the horticultural lighting subsidiary of OSRAM, announced a partnership with US-based BFG Supply (BFG). By combining Fluence’s high-efficiency LED technology with BFG’s decades of experience serving the green industry, the two parties will provide integrated LED horticultural lighting solutions for growers in the United States.

Fluence's high-efficiency LED lighting solutions are widely used in cannabis cultivation and food production, with horticultural lighting operations spanning North America, Europe, the Middle East, and Africa.

Founded in 1972, BFG primarily provides high-level customer service, an extensive product range, and innovative technical solutions to the green industry. Applications include watering tools, control systems, and large-scale fully integrated professional greenhouse structures. The company has extensive service experience with professional growers, lawn and garden centers, landscape designers, and indoor gardening stores.

Through this partnership, Fluence's LED technology will be integrated with BFG's cultivation solutions, while expanding its product portfolio. Fluence's entire product line will be available to BFG's customers, providing efficient, broad-spectrum LED solutions for hydroponic stores, garden supply centers, and commercial growers across the United States, helping customers improve crop yield and product quality in indoor farms, greenhouses, and other cultivation facilities.

Hongguang Lighting clarifies: Reports claiming failure to pass quality inspections by the Beijing Municipal Administration for Market Regulation are false

Hongguang Lighting (06908.HK) announced that the Board of Directors has noted recent media reports claiming that Hongguang Group's products failed quality inspections conducted by the Beijing Municipal Administration for Market Regulation. The Board strongly denies these rumors and considers the reports to be false and misleading.

The Board also noted recent media reports that a company in Zhongshan City, China, failed the quality inspection by the Market Supervision Administration, and that the company's name is similar to those of Hongguang Group's member companies, including Zhuhai Hongguang Semiconductor Co., Ltd. (formerly Zhuhai Hongguang Lighting Equipment Co., Ltd.).

The Board of Directors hereby clarifies:

(1) Zhongshan Company has no direct or indirect relationship with Hongguang Group;

(2) Hongguang Group is not involved in any incidents that failed the quality inspection by the Market Supervision Administration;

(3) As of the date of this announcement, no member of the Hongguang Group is located in Zhongshan City, China.

The announcement stated that Hongguang Group strictly monitors product quality at every stage, from product development and manufacturing to product testing, and is committed to enhancing the quality of Hongguang Group's products and its market reputation, striving to create greater value for the company's shareholders.

According to public records, Hongguang Lighting (06908.HK), fully named Hongguang Lighting Holdings Limited, focuses on the development and sales of LED beads and LED lighting products, and is not the other company with a similar name mentioned in reports. The official website of Hongguang Lighting shows that its main wholly-owned subsidiary, Zhuhai Hongguang Semiconductor Co., Ltd. (“Zhuhai Hongguang”), was established in 2010 and specializes in the design, manufacturing, and supply of high-quality Surface-mounted device (SMD) LEDs as well as lighting products for commercial and residential use. In recent years, Zhuhai Hongguang has developed into a top-tier LED manufacturer, with products complying with safety standards in China, the European Union, Australia, and New Zealand, and our customer base has also extended to Australia.

Longte Intelligence's net profit for the first half of the year is expected to increase by 85.00%~105.00%

Longte Intelligence released a preliminary announcement of increased performance for the first half of the year, with an estimated net profit of RMB 58.2604 million to RMB 64.5589 million, representing a Year-on-year (YoY) increase in net profit of 85.00% to 105.00%.

During the reporting period, the net profit attributable to shareholders of the listed company increased significantly compared with the same period last year. The main reasons are as follows:

1. In the first half of 2021, as the domestic and international economies recovered, market demand across the company's downstream industries continued its overall positive trend. Leveraging competitive advantages following its IPO, the company increased production capacity utilization and expanded sales of products applied in robotic vacuum cleaners, automotive electronic smart controllers, bicycle lights, and off-grid lighting, resulting in steady growth in sales revenue.

2. The company's overall gross profit margin increased, mainly due to an increase in the proportion of sales revenue from products with higher gross profit margins, such as intelligent controllers for robotic vacuum cleaners, automotive electronic intelligent controllers, and bicycle lights.

3. The impact of non-recurring gains and losses on net profit for this reporting period is estimated to be approximately RMB 13.1447 million. The main items of non-recurring gains and losses are various government subsidies received and income from the Company's use of idle raised funds and idle own funds to purchase principal-guaranteed wealth management products.

*ST Qinshang significantly lowers its first-half earnings forecast

On the evening of July 12, *ST Qinshang released a correction announcement for its 2021 semi-annual performance forecast, showing that the company's revised estimate for the net profit attributable to shareholders of the listed company for the first half is a loss of RMB 65 million to RMB 80 million, whereas the company had previously estimated a loss of RMB 8 million to RMB 12 million.

Regarding the reasons for changes in the company's performance, *ST Qinshang stated that the company and its subsidiaries conducted a comprehensive review of various assets, including accounts receivable, other receivables, long-term receivables, and intangible assets. Based on the principle of prudence, the company provided for expected credit losses and related impairment provisions for assets showing signs of impairment. During the reporting period, fluctuations in the USD exchange rate and the appreciation of the RMB led to increased foreign exchange losses, which had a significant impact on profits.

In addition, due to intense market competition, the prices of major raw materials for the company's semiconductor lighting products and labor costs have risen, leading to a decline in product gross profit margin.

*ST Qinshang also stated that during the reporting period, Longwen Education rectified non-compliant offline training sites to meet regional policy requirements. Additionally, due to the impact of the COVID-19 pandemic, 74 offline training sites located in Guangzhou and Foshan, Guangdong Province, were temporarily closed. The revenue and profit from these sites in Guangzhou and Foshan accounted for a significant proportion of Longwen Education's overall performance, and the store closures had a severe adverse impact on course consumption, end-of-term enrollment, and summer peak season recruitment. Therefore, policy changes and the pandemic significantly affected the company's education business performance.

Sources: LEDinside, company announcements; compiled and summarized.