HC Semitek, Sunshine Lighting, Leedarson and other listed companies have released their semi-annual reports

The disclosure of semi-annual reports by listed companies has entered a sprint phase, with a large number of reports being released intensively. Let's take a look at the semi-annual reports from the lighting industry published in the past two days to see which companies have outstanding performance.

HC Semitek achieved revenue of RMB 1.594 billion in the first half of the year, with Mini LED sales surging by 140%

HC Semitek released its 2021 semi-annual report. During the reporting period, it achieved revenue of RMB 1.594 billion, a Year-on-year (YoY) increase of 49.20%. The net profit attributable to shareholders of the listed company was -RMB 25.4278 million, an improvement of RMB 85.76 million compared to the same period last year. The asset-liability ratio decreased from 58.59% in the same period last year to 38.72%.

The company stated that the improvement was mainly due to a significant increase in LED chip sales revenue, coupled with rapid growth in its high luminous efficacy lighting, backlighting, display, and Mini LED businesses. During the reporting period, the company's gross profit margin improved significantly, with the LED chip gross profit margin increasing by 9.12 percentage points year-on-year (YoY).

It is reported that in the high-growth Mini LED market, HC Semitek's Mini LED product sales increased significantly by 140% Year-on-year (YoY) in the first half of the year, with new end-user products frequently appearing on the market. Currently, Mini LED backlight chips are widely used in end products such as smart screens, high-end TVs, laptops, gaming monitors, and automotive central control screens. Mini LED RGB chips are being applied in large volumes in the ultra-high-definition display market, with shipments continuing to rise. As a leading enterprise in Mini LED, backed by an excellent management team and a powerful major shareholder, HC Semitek possesses advantages in technology, Production capacity, and quality, along with years of customer reputation resources, positioning it to capture market share amid the rapid growth in Mini LED demand.

HC Semitek has delivered impressive performance across other market segments: In the high-end display market, it innovatively launched four patented technologies—Self-Cover, Real-Dry, True-Colour, and Side-Protection—addressing industry pain points and challenges to achieve display consistency and better color saturation; shipments in high luminous efficacy lighting and traditional backlight markets continue to rise; horticultural lighting and automotive LED products have been adopted by mainstream global manufacturers with mass supply; the UV market has achieved breakthrough progress, with products supplied in volume to mainstream packaging manufacturers.

In addition, during the reporting period, the Company’s controlling shareholder and actual controller changed. The controlling shareholder was changed to Zhuhai Huafa Industrial Investment Holding Co., Ltd. (hereinafter referred to as “Huashi Holdings”), and the actual controller was changed from no actual controller to the State-owned Assets Supervision and Administration Commission of the Zhuhai Municipal People’s Government. Huashi Holdings is a wholly-owned subsidiary of Zhuhai Huafa Group Co., Ltd. (hereinafter referred to as “Huafa Group”), which means that Huafa Group has officially taken control of the Company.

As the largest shareholder, Huafa Group provides strategic empowerment. The company has launched an equity incentive plan with high performance targets, demonstrating confidence in future development. HC Semitek will maintain its first-mover advantage in the Mini/Micro LED market, increase market share in high-end displays, horticultural lighting, automotive LED, and UV applications, accelerate cooperation across the entire supply chain, form strong alliances, and achieve win-win outcomes through joint efforts.

Changfang Group: Revenue in the first half of the year was approximately RMB 578 million, a Year-on-year (YoY) increase of 3.94%

In the first half of the year, Changfang Group achieved total operating revenue of RMB 578 million, a Year-on-year (YoY) increase of 3.94%; the Net profit attributable to shareholders of the Listed company was -RMB 10.803 million, with a narrowed loss.

Changfang Group's packaging products are mainly SMD LED lighting source devices; lighting application products mainly include off-grid lighting products such as flashlights, emergency lights, and eye-protection desk lamps, as well as general lighting products such as bulb lamps and ceiling lights. Its subsidiary, Kangmingsheng, focuses on off-grid lighting and is a leader in the global off-grid lighting industry.

During the reporting period, Changfang Group's revenue increased compared to the same period last year, mainly because the domestic epidemic was gradually brought under control and domestic orders gradually recovered. At the same time, the company took various measures to reduce costs and expenses, strictly controlled costs, strove to develop marketable products, vigorously expanded the domestic market, and increased sales.

In addition, Changfang Group saw a significant decrease in credit impairment losses and financial expenses, as well as a substantial increase in gains from asset disposals compared to the previous period.

In terms of revenue composition by product, SMD light sources (including high-power) generated Revenue of RMB 168 million, a Year-on-year (YoY) decrease of 8.25%; mobile lighting application products generated Revenue of RMB 259 million, a slight Year-on-year (YoY) increase of 1.59%; other electronic products generated Revenue of RMB 127 million, a Year-on-year (YoY) increase of 25.61%; other business income was RMB 24.0377 million, a Year-on-year (YoY) increase of 42.17%.

In terms of product manufacturing, Changfang Group has production bases in Shenzhen, Huizhou, and Jiangxi, covering a comprehensive manufacturing system that includes design, R&D, mold making, injection molding, production, quality management, and warehousing. With high-level packaging technology and high production efficiency, its off-grid lighting business operates at a large scale, providing a leading cost control advantage.

The company leverages the advantages of its full industry chain layout, utilizes resources from Nanchang Optics Valley, actively collaborates in product R&D, production management, and customer resource sharing, expands high-quality customers, reduces production costs, and enhances corporate competitiveness.

Yangguang Lighting: Net profit in the first half of the year was approximately RMB 279 million, a Year-on-year (YoY) increase of 0.29%

Yangguang Lighting released its semi-annual performance report, stating that revenue in the first half of 2021 was approximately RMB 2.164 billion, a year-on-year (YoY) decrease of 8.53%; net profit attributable to shareholders of the listed company was approximately RMB 279 million, a year-on-year (YoY) increase of 0.29%.

报告期内，公司由原来简单的代工模式转而大力发展自主品牌产品，提升自主品牌产品的销售占比，并且积极开拓自主渠道。公司自主品牌产品的销售占比正在逐年提升，从 2019 年的 29%提升至2020 年的 40%，2021 年预计将达到 50%。

In overseas sales, the company achieves sales of its own-brand products by expanding brands such as "Energetic", "MEGAMAN", and "Nordlux". In domestic sales, the company focuses on its own brands "Sunshine" Lighting and "Yankon". The company's independent brand strategy is continuously advancing, effectively reducing reliance on major customers and increasing product gross profit margins (brand premium). In the future, the company will completely abandon OEM business and fully commit to the production and sales of its own brands.

Sunshine Lighting has a first-mover advantage in the overseas LED market. From 2019 to the first half of 2021, the company's overseas revenue accounted for approximately 76%, 80%, and 87%, respectively. On one hand, the company acquired well-known overseas brands, transferred production to China, and focused on building sales channels and providing after-sales services abroad; on the other hand, it provides OEM production for internationally renowned lighting companies, overseas lighting wholesalers, and overseas chain supermarkets. The company has established a Group Marketing Management Center to uniformly plan and manage its overseas markets.

In addition, the company's cost reduction and efficiency improvement capabilities at all levels continue to improve. For example, in terms of scale, Yangming Lighting has established four major bases in Shangyu (Zhejiang), Xiamen (Fujian), Yujiang (Jiangxi), and Jinzhai (Anhui). In 2020, it achieved an annual production capacity of 400 million LED light sources and 120 million sets of LED luminaires, realizing large-scale production. In terms of supply chain, the company's upstream involves numerous raw materials. It has established a strategic cooperation mechanism with suppliers and cultivated strategic suppliers for core materials to address issues of raw material price fluctuations and shortages.

The company is continuously increasing its investment and layout in the field of intelligence.

Leedar: Net profit of 178 million in the first half of the year, a Year-on-year (YoY) increase of 6.50%

In the first half of 2021, Leedarson achieved total operating revenue of RMB 2.778 billion, a Year-on-year (YoY) increase of 24.22%; net profit attributable to shareholders of the Listed company was RMB 178 million, a Year-on-year (YoY) increase of 6.50%.

Leedarson's existing business can be divided into two major segments: lighting business and Internet of Things (IoT) business. Regarding performance growth, the company pointed out that the main reasons are:

1. Since early 2021, China has been one of the few major economies to comprehensively contain the COVID-19 pandemic. The entire supply chain system has operated relatively smoothly, further highlighting its position as the global manufacturing center and supply chain hub for the lighting industry. The export situation for Chinese lighting products is very positive;

2. Although the epidemic has not been effectively controlled in major economies in Europe and America, the gradual rollout of vaccines has enabled a pressured restart of their economies. For China's lighting exports, external demand has continued to improve marginally. Meanwhile, stimulated by loose monetary policies in various countries, demand-side recovery remains stronger than supply-side recovery, with consumer demand being steadily released.

3. The company's continuous R&D investment has built strong R&D and innovation capabilities, as well as robust vertical supply chain management and automated production capacity, enabling it to provide safe, continuous, stable, and efficient assurance for large-scale procurement by downstream key customers, thereby securing more orders.

In addition, the company has promoted education lighting-related products through various (Sales) channels such as China Education Daily and the China Educational Equipment Exhibition, achieving good results. It has successively opened up the education lighting markets in Hunan, Beijing, Sichuan and other regions, realizing rapid growth in revenue from its education lighting brand.

In the second half of the year and for an extended period into the future, severe risks such as the deterioration of the global supply chain are expected to persist. Leedar will continuously optimize internal management processes, increase R&D investment, and mitigate the decline in product gross profit margins caused by exchange rate fluctuations and rising raw material prices through process improvements, optimization of product design solutions, and supply chain integration and optimization. Meanwhile, the company will continue to optimize its business layout and product and customer structure, align with the development trend of the new pattern of "strengthening domestic and international dual circulation," increase investment in the domestic market, refine channel construction, and enhance brand awareness and market share.

Leedar: Appointment of Deputy General Manager

On the evening of August 29, Leedarson also issued an announcement stating that Leedarson IoT Technology Co., Ltd. held the 12th meeting of the first Board of Directors on August 26, 2021, during which it reviewed and approved the "Proposal on the Appointment of Deputy General Manager." The board agreed to appoint Mr. Huang Zhixiong as the company's Deputy General Manager, with his term commencing from the date of appointment by the Board of Directors and ending upon the expiration of the current Board's term. He may be reappointed for consecutive terms.

Huang Zhixiong, male, born in 1972, Chinese national, without permanent residence rights abroad, graduated from Xiamen University with a master's degree. He previously served as General Manager of Didi Chuxing Business Unit, General Manager of E-commerce at Yonghui Group, Vice President of Yihaodian, and Head of Sales Operations at Dell China. He currently serves as Deputy General Manager of the company.

Ocean King: Net profit in the first half of the year was approximately RMB 95.9 million, a Year-on-year (YoY) increase of 68.25%

Ocean King's revenue for the first half of 2021 was approximately RMB 844 million, a Year-on-year (YoY) increase of 50.21%; the Net profit attributable to shareholders of the Listed company was approximately RMB 95.8979 million, a Year-on-year (YoY) increase of 68.25%. The company has not only achieved double growth in Revenue and Net profit for six consecutive years, but also reached a new historical high.

Ocean King's business has gradually transformed from the R&D, sales, and production of traditional lighting equipment for special environments into 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 operational needs, the company combines workplace lighting products with the Internet. By leveraging the product combination advantage of LED products + controllers + service platforms, it provides professional lighting Solutions to customers, promoting the development of customer lighting systems towards informatization, digitalization, and intelligence.

In the first half of 2021, to adapt to the rapidly changing market environment, the Group adjusted its organizational structure and established five holding subsidiaries. The subsidiaries feature a more segmented and specialized organizational structure. By further decentralizing authority, organizational vitality was unleashed, driving rapid revenue growth in domestic business segments such as railway lighting and Green lighting, while steadily improving operational quality.

The company continues to increase R&D investment in new light sources and the application of new technologies, continuously incubating new technologies and products. It actively carries out R&D on applications such as LED, laser light sources, 4G/5G transmission technology, and fast wireless charging technology, ensuring the company's technological leadership in the professional lighting industry.

During the reporting period, the company mitigated the impact of rising raw material costs through integrated supplier management and proactive measures such as optimizing product design and improving processes, maintaining stable overall gross profit margins.

In the second half of 2021, Ocean King will continue to carry out work in line with its 2021 business plan, striving to achieve significant leapfrog growth on the basis of its previous high performance.

Xingyu Shares: Net profit of 570 million yuan in the first half of the year, a Year-on-year (YoY) increase of 45.63%

In the first half of 2021, Xingyu Shares achieved Revenue of RMB 3.951 billion, a Year-on-year (YoY) increase of 37.27%; Net profit attributable to shareholders of the Listed company reached RMB 570 million, a Year-on-year (YoY) increase of 45.63%.

Xingyu Automotive Lighting Systems Co., Ltd. specializes in the R&D, design, manufacturing, and sales of automotive lighting (primarily for passenger vehicles). It is one of China's leading manufacturers of automotive lighting assemblies and providers of design solutions. Its product portfolio mainly includes headlamps, rear combination lamps, fog lamps, daytime running lights (DRLs), interior lights, and ambient lights.

The company pointed out that the performance drivers mainly include two factors:

1. External driving factors: OEM production volume. The development of China's automotive market has a significant impact on the automotive lighting industry. The automotive luminaires produced by the company are mainly used for new vehicle original equipment, and the growth in new vehicle production volume of the company's major customers is the main factor driving the company's performance.

2. Internal driving factors: improvement of the company's technical capabilities, expansion of production capacity, and enhancement of market competitiveness. With the growth in the number of customers and orders, the company has timely expanded its production capacity to meet market demand. Meanwhile, strong market competitiveness helps the company acquire more customers and orders. During the reporting period, the company's performance steadily improved, benefiting from the steady increase in new orders.

In the first half of 2021, the company undertook headlight development projects for 27 vehicle models and launched mass production for 31 new models. These high-quality new projects provide strong support for the company's future development.

The company has successfully developed two types of pixelated headlamps: one is an imaging smart headlamp using DMD as the core optical component, and the other is an imaging smart headlamp using Micro LED as the light source, which features a simpler structure and higher optical efficiency. It has successfully resolved multiple technical issues such as imaging optics, electronic driving, and thermal management.

In addition, to enhance Xingyu's technological innovation and R&D capabilities, the company established the Xingyu Shanghai R&D Center in Shanghai. Furthermore, it is strengthening production capacity layout and continuously improving intelligent manufacturing; the construction of the Intelligent Manufacturing Industrial Park and the Serbia factory building are both progressing steadily.

PCCOOLER: Net profit in the first half of the year was approximately 1.4 million yuan, a Year-on-year (YoY) decrease of 63.91%

In the first half of 2021, PCCOOLER's revenue was approximately RMB 237 million, a year-on-year (YoY) increase of 15.44%; net profit attributable to shareholders of the listed company was approximately RMB 1.3989 million, a year-on-year (YoY) decrease of 63.91%.

The main reasons for the changes in the company's operating performance are as follows: In the same period last year, the company's domestic engineering projects and LED lighting sales business were significantly restricted due to the impact of the epidemic. However, with the effective control of the domestic epidemic, the revenue from engineering projects and LED lighting sales has increased significantly compared to the same period last year.

The company accelerated product transformation and upgrading, and deepened the development of market (Sales) channels across various business segments, resulting in a significant year-on-year increase in operating expenses for the first half of 2021. Increased R&D investment in new products also led to higher R&D expenses. Additionally, government subsidies decreased significantly compared to the same period last year. Affected by these major factors, the Net profit attributable to shareholders of the Listed company decreased compared to the same period last year.

Building on its heatsink business, PCCOOLER has extended its main products from cooling components downstream to LED lighting luminaires, energy saving services, and lighting engineering. Leveraging its industry-leading thermal management technology and industrial design advantages, the company provides a complete set of cooling solutions for various industries and scenarios. It is one of the few enterprises in the LED lighting market capable of offering high-power LED luminaires and cooling solutions, holding a leading position in the field of high-power LED lighting thermal management. Meanwhile, as one of the major domestic manufacturers of PC cooling accessories, its CPU heatsinks and other PC cooling components enjoy a high reputation in the industry.