Mixed Results! A Focus on the Semi-Annual Reports of Pak, Bull, MOSO, iLight, and Other Companies

Bull Group, Pako Aurora, Macpower, Aike Shares, Langte Intelligence and other listed companies centrally disclosed their 2021 semi-annual reports. Unlike chip companies that all saw significant gains, some of these enterprises achieved double growth in revenue and net profit, while others experienced a decline in net profit.

Bull Group's net profit in the first half of the year reached 1.42 billion yuan, a Year-on-year (YoY) increase of 76.85%

During the reporting period, Bull Group achieved revenue of RMB 5.82 billion, a year-on-year (YoY) increase of 41.65%, and net profit attributable to shareholders of the listed company of RMB 1.421 billion, a year-on-year (YoY) increase of 76.85%.

In the first half of 2021, the company focused intensively on three major sectors: electrical connections, smart electrician lighting, and digital accessories. It accelerated the incubation and layout of intelligent business, continuously strengthened its ToC channel advantages while vigorously expanding its ToB channels, and sped up the development of overseas markets, laying a foundation for sustained growth.

Specifically, the smart electrical and lighting business focuses on the pre-renovation stage of users' homes (referred to as "pre-installation"), including wall switches and sockets, LED lighting, bathroom heaters, circuit breakers, as well as smart door locks, smart clothes dryers, and smart curtain machines. This meets consumers' growing demand for bundled, one-stop purchasing. In the first half of 2021, the company's smart electrical and lighting business generated revenue of RMB 2.64 billion, a Year-on-year (YoY) increase of 61%.

In the LED lighting business, in the first half of 2021, the company adhered to its "Eye Care" positioning, guided by addressing users' spatial and behavioral lighting needs, and further accelerated the product line layout of modern decorative light sets, scenario-based light sources, and luminaires. In the first half of 2021, the company's LED lighting business revenue increased by 37% Year-on-year (YoY).

Regarding channels, in the decorative channel, the company vigorously promotes specialization and comprehensive services for the decorative channel, introducing electrical and lighting products such as Bull wall switches and sockets, LED lighting, circuit breakers, household appliances (bathroom heaters), and smart door locks. By the end of June 2021, more than 10,000 stores had been successfully developed. Meanwhile, in the traditional strong hardware channel, the company continues to strengthen the cultivation of super sales points to improve single-store efficiency and output.

In terms of B-end (sales) channels, in the first half of 2021, Bull Group expanded its regional customer base by partnering with over 6,000 leading regional decoration companies through dealers/distributors, thereby enhancing the influence of Bull's product categories in the B-end market. Sales revenue from B-end channels increased by 346% year-on-year (YoY) in the first half of 2021.

Pak's net profit in the first half of the year was RMB 72.0378 million, a slight year-on-year increase

During the reporting period, Sanxiong Aurora achieved revenue of approximately RMB 1.116 billion, a year-on-year (YoY) increase of 33.10%; net profit attributable to shareholders of the listed company was approximately RMB 72.0378 million, a year-on-year (YoY) increase of 2.33%.

In terms of revenue, from the perspective of business structure, the commercial segment is Sanxiong Aurora's core business segment, accounting for over 80%, while the residential segment accounts for approximately 10%. The company has established eight major project departments for the commercial lighting segment and achieved favorable market results. During the reporting period, each project department generally achieved high growth rates, with particularly outstanding growth in industries such as municipal transportation, public spaces, and hotel lighting. However, in terms of scale, real estate and public spaces account for a relatively larger proportion. The company's hardware (Sales) channel continues to maintain rapid growth, and outdoor landscape engineering projects have seen significant Year-on-year (YoY) growth due to a relatively small base.

From a regional market perspective, South China and East China account for a large share of revenue. The year-on-year (YoY) growth rates in East China, South China, North China, Northeast China, and Southwest China exceeded 30%.

In addition, in the first half of the year, the company's residential segment added 172 new terminals, and the commercial segment added 227 new terminals. We continued to vigorously expand our hardware channel, adding over 6,200 new hardware channel terminals. The company's channel layout and marketing network were further improved and strengthened, with continued optimization of professionalism and reach.

In terms of R&D innovation, Sanxiong Aurora has strengthened the R&D of Smart lighting products, with an R&D investment of 32.6548 million yuan, a year-on-year (YoY) increase of 16.47%. A total of 34 patents were granted by the China National Intellectual Property Administration, including 18 utility model patents and 16 design patents.

MOSO Power's revenue increased by 38.59% in the first half of the year

In the first half of 2021, Maoshuo Power achieved total operating revenue of RMB 740 million, a Year-on-year (YoY) increase of 38.59%; the Net profit attributable to shareholders of the Listed company was RMB 18 million, a Year-on-year (YoY) decrease of 41.03%.

Consumer electronics power supplies and LED power supplies are the company's core businesses. After years of vigorous development, Mao Shuo Power has become a global leading provider of power supply solutions and a landmark enterprise in China's power supply industry.

Among them, in the first half of 2021, LED power supplies achieved sales revenue of RMB 302 million, an increase of 53.26% year-on-year, representing a significant growth in sales revenue; the product gross profit margin was 22.56%, a decrease of 1.72% year-on-year. Of this, the impact of including transportation costs in operating costs under the new revenue accounting standards reduced the gross profit margin by 0.95%. Excluding the impact of transportation costs, the product gross profit margin was 23.51%, with little change.

During the reporting period, in the field of horticultural lighting, to respond to market demand, we developed a new generation of dedicated driver solutions for plant growth lamps - the P1/P1H series. In terms of design, this series breaks through traditional thinking and continues MOSO's pioneering "normalization" design concept, with compatibility as the design goal to meet the diverse needs of LED plant growth lamp products.

In the field of Road lighting, the X6 series has been enhanced, with power increased from the original 26W-320W to a maximum of 680W, expanding the product range. Additionally, its application areas have been extended to Horticultural lighting, Floodlight, and high-mast lighting scenarios.

In the field of landscape lighting, the company has added a key product line to its existing series of landscape lighting power supplies—the V6E series. This series features constant voltage and waterproof design, meets IP67 protection requirements, offers a power range of 75-350W, and is standardized across the product line.

In addition to its existing product lines, the company has actively entered the professional stadium lighting field by initiating the S6 series high-power smart LED driver. The S6 series is a programmable intelligent LED driver designed for professional stadium lights and other high-power application scenarios. Currently, the project has completed basic functional testing.

The industry's first digital 5G smart pole power supply, distribution, and management integrated Solution, the Navigator V10, launched by MOSO as a pioneer in the industry, has also been applied in multiple demonstration projects.

In the future, the company's LED power supply segment will continue to adhere to the technical direction of "high power and intelligence," advancing in an orderly manner. We will maintain our advantage in intelligent drivers for high-power lighting, continuously iterate and refine our product line, and establish MOSO as a global industry benchmark. Meanwhile, leveraging the new development pattern of "dual circulation" and the backdrop of "new infrastructure," we will persist in using smart light poles as carriers, combining our technical strengths to continuously improve and develop corresponding power supply solutions, supporting the nation's construction of new "smart cities."

Aike's revenue increased by 42.73% in the first half of the year

During the reporting period, Aike Shares achieved revenue of RMB 575 million, a year-on-year (YoY) increase of 42.73%. The net profit attributable to shareholders of the listed company was RMB 41.49 million, a year-on-year (YoY) decrease of 11.06%.

Aike provides global customers with comprehensive solutions for high-quality, high-performance smart lighting and intelligent cloud control systems. In the LED lighting field, the company focuses on LED landscape lighting, smart road lighting, and smart decorative lighting. Its business has risen rapidly in recent years, and it has become one of the core suppliers of products required for large-scale landscape lighting projects in China, establishing a strong brand image for "Aike" in the field of LED outdoor landscape illumination.

In the field of landscape lighting, Aike Holdings holds multiple patents and was among the first companies in China's landscape lighting industry to apply 4G wireless linked control technology, enabling real-time control of tens of millions of pixel points. The company's technology has been successfully applied to nearly 30 internet city cluster illumination projects across China, such as the themed light show for the SCO Summit in Qingdao and the Qianjiang New City themed lighting project for the G20 Hangzhou Summit.

In the field of smart road lighting, intelligent hardware is the core component of the company's smart road lighting products, including the single-lamp controller series, dual-lamp controller series, smart gateway series, and control module series. Customers can choose to purchase complete luminaires or just lamp caps and modules. Thanks to their standardized design, these components can be installed into various smart streetlight products developed by the company to meet different aesthetic requirements.

In the field of decorative lighting, the company applies technologies such as IoT, LED lighting control, wireless communication, voice recognition, and mobile app development to its lighting products. The CSP flexible light strip developed by the company adopts the new CSP+FFC process technology. It is smaller than ordinary light strips and is a type of outdoor decorative lighting specifically designed for outdoor decorative illumination, featuring an ultra-wide angle and higher luminous efficacy.

In addition, Aike's landscape lighting and smart road lighting production lines have achieved partial automation, significantly increasing per capita production capacity. The company's heavily invested automated production line for smart decorative lighting has been initially completed and, after optimization and debugging, can meet the company's future production capacity needs. Aike stated that landscape lighting, smart road lighting, and smart decorative lighting can all be deployed on a large scale relying on intelligent control technology.

Longte Intelligent's net profit increased by 103.65% year-on-year (YoY) in the first half of the year

In the first half of 2021, Longte Intelligent achieved revenue of RMB 420 million, a year-on-year (YoY) increase of 61.07%. Among this, off-grid lighting products generated revenue of RMB 99.2388 million, an increase of 101.67% compared to the same period last year; the net profit attributable to shareholders of the listed company was RMB 64.1337 million, a year-on-year (YoY) increase of 103.65%.

Longtech Intelligence has been engaged in the R&D, design, production, and sales of intelligent controllers and smart products. Its product portfolio mainly includes two categories: intelligent controllers and smart products, which are widely used in industries such as smart home and home appliances, off-grid lighting, automotive electronics, and new consumer electronics.

Longtech Intelligence stated that the main drivers of performance are:

During the reporting period, downstream industry prosperity continued to rise, and market demand maintained an overall positive trend. Leveraging its competitive advantages after its IPO, Longte Intelligent seized the opportunity to increase production capacity utilization and expand sales of intelligent controllers for robotic vacuum cleaners and automotive electronics, as well as bicycle lights and off-grid lighting products, resulting in steady growth in sales revenue.

Profit increase driven by changes in product revenue structure, with a higher sales proportion of high-gross-margin products such as intelligent controllers for robotic vacuum cleaners, automotive electronic intelligent controllers, and bicycle lights, leading to a continuous rise in overall gross margin.

In addition, during the reporting period, Longte Intelligent received various government subsidies and generated income from purchasing principal-protected wealth management products using idle raised funds and idle own funds, contributing to the company's performance growth.

Horse Lighting's net profit increased by 65.84% year-on-year

Horse disclosed its 2021 semi-annual report, which showed that the company achieved revenue of RMB 468 million, a year-on-year (YoY) increase of 84.55%; the net profit attributable to shareholders of the listed company was RMB 43.34 million, a year-on-year (YoY) increase of 65.84%.

Regarding the gradual recovery of performance in the first half of 2020, the Company stated that it mainly benefited from the effective control of the novel coronavirus pneumonia (COVID-19) epidemic in China in the first half of 2021, which allowed its various projects to proceed smoothly and improved its operating conditions. During the reporting period, the Company added seven new large-scale super high-rise projects over 200 meters. As of June 30, 2021, the Company had cumulatively undertaken a total of 61 super high-rise buildings with a height of over 200 meters.

During the reporting period, the Company became an official partner of the China Pavilion at Expo 2020 Dubai and the designated smart lighting art system service provider for the themed light shows. This participation in the Expo project marks another important milestone in the Company's internationalization strategy. With the Dubai market as its core, based in the Middle East and reaching out globally, it signifies that the Company has taken a solid step forward in entering the international market in the new era.

During the reporting period, the company achieved new breakthroughs in smart cultural tourism by launching the night tour product "Yuanmeng: Night Tour Experience". This product integrates big data algorithms, gamification mechanics, and cultural tourism operation management models, utilizing novel intelligent technologies such as hypermedia and multi-dimensional interaction. It represents a brand-new achievement in cultural tourism, resulting from the company's integration of smart lighting art, smart city domain, and smart cultural tourism resources to drive innovation in culture, technology, and business models.

Regarding future planning, HORSAY stated that it will accelerate the integration of lighting environments with related industries on the basis of consolidating its existing business and industry-leading position. It will deeply explore the close integration of existing businesses with smart technology and cultural tourism, adhere to the "Smart+" development strategy, focus on developing three major business segments—"Smart Lighting Art (Lighting), Smart Cultural Tourism, and Smart Urban Areas"—and the "HAO Platform" service model, forming a comprehensive smart service chain of "Three Smarts and One Network" to drive the company's future development into a technology-driven, international group.

Tuya Smart Releases Q2 2021 Financial Report with Revenue of $84.7 Million

In addition to the aforementioned companies, IoT cloud platform Tuya Smart, listed on the NYSE, recently announced its unaudited financial results for the second quarter of 2021.

The financial report shows that in the second quarter, Tuya Smart's total revenue was $84.7 million, a year-on-year (YoY) increase of approximately 118%.

Among them, IoT PaaS revenue increased by approximately 163.9% Year-on-year (YoY), reaching $76.9 million; SaaS and other income increased by approximately 171.4% Year-on-year (YoY), reaching $3.4 million; the company's overall gross profit margin reached 42.2%, remaining stable compared to the first quarter.

As of June 30, 2021, the number of premium IoT PaaS customers contributing over $100,000 in revenue over the trailing twelve months increased from 216 at the end of Q1 2021 to 285, accounting for approximately 86.6% of total IoT PaaS revenue this quarter. In Q2, new IoT PaaS customer additions exceeded 700, representing a Year-on-year (YoY) growth of 113% in the total IoT PaaS customer base. The total number of empowered brand customers further increased from over 3,000 at the end of the previous quarter to over 3,300.

For the 12 months ended June 30, 2021, Tuya Smart's IoT PaaS business achieved a Dollar-Based Net Expansion Rate (DBNER) of 211%, surpassing the industry average for the seventh consecutive quarter since tracking began. This demonstrates that developers building applications on the Tuya IoT development platform can effectively succeed across various sectors and capitalize on the growth dividends of smart commerce.

In the second quarter, Tuya Smart further strengthened its access capabilities across all brands and categories. Leveraging its rich Powered by Tuya device ecosystem and strong network effects, the number of supported device SKUs increased from 310,000 at the end of the first quarter to 410,000 at the end of the second quarter. Meanwhile, the number of registered developers on the Tuya Smart platform reached a new high, growing from over 320,000 in Q1 2021 to 384,000 in Q2 2021.

The developer ecosystem built by Tuya has formed a powerful network effect, attracting new customers from a wide range of industries and creating entirely new application scenarios, gradually expanding from indoor to outdoor environments. Examples include nine major industries: smart industry, smart agriculture, smart hospitality, smart elderly care, smart healthcare, smart real estate and industrial parks, smart retail, smart energy, and smart transportation.