Ocean's King and HC Semitek see double growth in revenue and net profit in the first three quarters

Ocean King's net profit increased by 49% in the first three quarters of 2021

On the evening of October 17, Ocean King released its Q3 2021 report. The company's revenue for the first three quarters reached RMB 1.369 billion, a Year-on-year (YoY) increase of 33.03%; Net profit attributable to shareholders of the Listed company was RMB 219 million, a Year-on-year (YoY) increase of 49.05%.

Of which, revenue in the third quarter reached RMB 525 million, a year-on-year increase of 12.37%; net profit attributable to shareholders of the listed company was RMB 123 million, a year-on-year increase of 36.88%.

Ocean King stated that in the first three quarters of 2021, the company's overall sales maintained steady growth. Among them, the revenue from Ocean King product sales was RMB 1.116 billion, a year-on-year increase of 20.03%, and the revenue from construction engineering business (Mingzhihui) was RMB 253 million.

Ocean King's business scope 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. Meanwhile, with the development of new light sources and technologies such as LED and lasers, and the continuous upgrading and changing needs of customer sites 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.

Compared to residential and commercial lighting, industrial professional lighting places greater emphasis on addressing safety, energy saving, and work efficiency in the customer's lighting environment. For example: Lighting equipment must feature vibration resistance, explosion-proofing, corrosion resistance, and anti-glare capabilities to withstand harsh industrial conditions such as high temperatures, heavy dust, high corrosion, and flammable or explosive environments. Additionally: Lighting equipment integrates functions such as cameras, monitoring, image recognition, and sensor programs to meet the needs of on-site work.

During the survey, Ocean King stated that it was the first enterprise in China to introduce the concept of "work lights." Before the company introduced professional lighting to the industrial sector, most industrial enterprises lacked sufficient awareness of the importance of environmental lighting, and their approach to luminaire procurement and lighting environment construction remained at the basic level of "just providing illumination." In addition, the product system and solution system for special environment lighting possess certain technical and cognitive barriers. Most users require cultivation of awareness and demonstration of practical cases by sales personnel from professional enterprises. Therefore, industry focus requires a process of development.

With the trends of aging population and declining birth rates, labor costs are rising, and professional technical services are gaining importance. Many customers are outsourcing non-core businesses, shifting from purchasing luminaires to lighting services. From solutions to implementation and maintenance, these tasks are entrusted to professional lighting manufacturers. This will enable outstanding enterprises with product technology advantages and service capabilities to rapidly increase their market share. In summary, the company believes that the current industry development is timely, and it will seize this historic opportunity to grow stronger and larger.

It is worth noting that in recent years, driven by energy saving and consumption reduction, safe production, and intelligent manufacturing, industrial enterprises have continuously improved their understanding of professional lighting, with LED light sources continuing to penetrate the market. Recently, events such as dual control of energy consumption and the expansion of electricity price fluctuation ranges are expected to further enhance industrial enterprises' emphasis on energy saving and consumption reduction in lighting. As a leading enterprise in professional lighting, the company is expected to continue to benefit, with its growth potential likely to be continuously realized.

HC Semitek sees double growth in revenue and net profit in the first three quarters

On the evening of October 18, Huacan Optoelectronics released its third-quarter report. The company achieved revenue of RMB 2.391 billion in the first three quarters, a Year-on-year (YoY) increase of 31.99%; net profit was RMB 22.382 million, a Year-on-year (YoY) increase of 121.20%, achieving dual growth in revenue and net profit.

HC Semitek stated that this was mainly due to strong market demand during the reporting period, successful market expansion by the company, and an increase in product sales compared to the previous period.

Among them, the third-quarter report showed Revenue of RMB 797 million, a Year-on-year (YoY) increase of 7.25%; Net profit attributable to shareholders of the listed company was RMB 47.8098 million, a Year-on-year (YoY) increase of 748.06%, with steady improvement in core profitability.

It is worth mentioning that the company adheres to a development strategy with technological innovation as its core competitiveness, continuously invests a high proportion of resources in R&D, consolidates its technological leadership advantage, and focuses on the high-end market. During the reporting period, the company's R&D investment reached RMB 101 million, an increase of 29.72% compared to the same period last year. The high proportion of R&D investment further solidifies the company's leading position in industry technology. New terminal products were frequently launched in the third quarter, steadily expanding commercialization.

According to industry media reports, the Huawei V75Super Smart Screen launched in July and the Skyworth Mingli Screen Smart Mini LED TV Q72 launched in September both use HC Semitek as their Mini LED chip supplier. In addition, HC Semitek and BOE jointly developed active glass-based Mini LED technology, achieving a major breakthrough in the Mini LED technology field. As end products accelerate their market deployment and successfully secure a position in the high-end market, HC Semitek's growth potential is further expanding.

In the future, HC Semitek will continue to focus on the high-end LED market, enhance its technical capabilities, and strengthen close collaboration across the upstream and downstream of the industry. As the high-end market for Mini LED chips steadily expands and competitive advantages grow, backed by technological leadership and mass production strengths, and with comprehensive empowerment from its major shareholder, HC Semitek's performance and profitability are expected to further improve.