Mixed Results: Q3 Performance Summary of Sanan Optoelectronics, MLS, Debon Lighting, and Other Companies

Sanan Optoelectronics: Net profit in Q3 was approximately RMB 402 million, a Year-on-year (YoY) increase of 32.56%

Sanan Optoelectronics' Q3 report shows that the company achieved revenue of RMB 9.53 billion in the first three quarters of 2021, a Year-on-year (YoY) increase of 61.54%, mainly due to increased product sales during the reporting period; net profit attributable to shareholders was RMB 1.286 billion, a Year-on-year (YoY) increase of 37.04%, mainly due to significant growth in product sales and Revenue during the reporting period, which increased profits.

Of which, Q3 revenue was RMB 3.417 billion, up 46.49% Year-on-year (YoY), and net profit attributable to shareholders of the parent company was RMB 402 million, up 32.56% Year-on-year (YoY).

Sanan Optoelectronics stated that the production capacity of its subsidiaries—Hunan Sanan, Hubei Sanan, Quanzhou Sanan, and Sanan Integrated—is expanding, with part of the capacity gradually being released. As of the end of the reporting period, Sanan Integrated achieved sales revenue of RMB 1.669 billion. The LED chip business of Quanzhou Sanan was affected by the gradual release of production capacity and the pace of customized customer projects, resulting in a significant increase of RMB 329 million in year-end inventory compared to the beginning of the year to meet customers' rapid delivery needs. Hunan Sanan has commenced operations, and the combined loss of Hunan Sanan and Hubei Sanan amounted to RMB 48.3327 million.

ST Dehao: Net profit in the third quarter was approximately -51.82 million yuan, a Year-on-year (YoY) decrease of 387.89%

ST Dehao announced its Q3 performance, stating that the company's revenue for the first three quarters of 2021 was RMB 1.537 billion, a year-on-year (YoY) decrease of 0.85%; the net loss attributable to shareholders of the listed company was RMB 221 million, a year-on-year (YoY) decrease of 34.27%, mainly due to increased losses from controlled subsidiaries during the reporting period.

In the third quarter, the company achieved revenue of approximately RMB 561 million, a year-on-year decrease of 17.12%; net profit attributable to shareholders of the listed company was approximately -RMB 51.82 million, a year-on-year decrease of 387.89%.

The announcement shows that, after being reviewed and approved by the company's conferences on November 19, 2019, and December 3, respectively, the company will sell 100% equity of Zhongshan Wisda for RMB 246.8593 million (among which, the value of the included small home appliance business asset package is confirmed at RMB 81.8593 million, and the small home appliance business asset package remains under the control and operation of the listed company).

On December 31, 2020, the Company's wholly-owned subsidiary, Yangzhou Dehao, signed the "Dehao Company Asset Acquisition Agreement" with Yangzhou Jingjia. Yangzhou Dehao transferred to Yangzhou Jingjia all land use rights located in the South Park of Yangzhou High-tech Zone, as well as the buildings on the corresponding land, above-ground attachments, ancillary facilities, and other property rights, at a transfer price of RMB 135 million.

MLS Co., Ltd.: Net profit excluding non-recurring items reached RMB 269 million in Q3, a Year-on-year (YoY) increase of 9051.46%

In the first three quarters of 2021, MLS Co., Ltd. achieved revenue of RMB 13.454 billion, a Year-on-year (YoY) increase of 14.69%; the net profit attributable to shareholders of the listed company was RMB 937 million, a Year-on-year (YoY) increase of 35.91%.

In the third quarter, Revenue reached RMB 4.327 billion, a Year-on-year (YoY) decrease of 6.02%; Net profit attributable to shareholders of the Listed company was RMB 291 million, a Year-on-year (YoY) decrease of 36.69%. Notably, the company's Net profit attributable to shareholders of the Listed company after deducting non-recurring gains and losses for the single third quarter amounted to RMB 269 million, with a Year-on-year (YoY) growth rate as high as 9051.46%, setting a new historical record.

MLS Co., Ltd. is a global technology enterprise covering LED packaging, lighting brand business, LED application products, and innovative businesses, providing diversified product categories and brand services. The company's global operations are centered on the core strategic concepts of "brand strategy" and "intelligent manufacturing." Through years of external M&A and internal growth, the company has built a business system primarily consisting of brand and (sales) channel businesses, intelligent manufacturing business, and LED application products.

According to the introduction, currently, the channel business of LEDVANCE and MLS brands, as well as the LED packaging business, are the company's core businesses; emerging optical application products represented by Mini LED, horticultural lighting, and UVC deep ultraviolet applications, along with the air purification sector, are the main focus areas for the company's future development.

Hongli Zhihui: Net profit in the third quarter was RMB 75.4965 million, a Year-on-year (YoY) increase of 214.78%

In the first three quarters of 2021, Hongli Zhihui achieved revenue of RMB 3.061 billion, a year-on-year (YoY) increase of 45.28%, mainly due to the expansion of sales scale during this reporting period; the net profit attributable to shareholders of the listed company was RMB 216 million, a year-on-year (YoY) increase of 242.35%, mainly due to the growth in revenue scale and increased profits during this reporting period.

In the third quarter, revenue reached RMB 1.057 billion, a year-on-year (YoY) increase of 36.09%; net profit attributable to shareholders of the listed company was RMB 75.4965 million, a year-on-year (YoY) increase of 214.78%.

It is reported that on May 20, 2021, Hongli Zhihui announced the public listing and transfer of an 80% equity stake in its wholly-owned subsidiary, Jincai Hardware, at an assessed price of RMB 4.1403 million. As of the date of this report, the industrial and commercial registration changes for Jincai Hardware have been completed. The Company and the transferee, You Guo'e, hold 20% and 80% of the equity in Jincai Hardware, respectively. Jincai Hardware is no longer included in the scope of the Company's consolidated financial statements.

On September 2, 2021, the Company publicly listed for transfer via the Southwest United Property Rights Exchange the assets and creditor's rights related to the inductor business unit of its wholly-owned subsidiary, Guangdong Liangyou Technology Co., Ltd. (hereinafter referred to as "Liangyou Technology"), at a reserve price of RMB 32.7998 million.

In addition, Hongli Zhihui also announced plans to absorb and merge its wholly-owned subsidiary Guangzhou Hongzuo Investment Co., Ltd. (hereinafter referred to as "Hongzuo Investment"), and to increase the capital of its wholly-owned subsidiary Liangyou Technology by RMB 150 million.

Jufei Optoelectronics: Q3 net profit approximately RMB 69.34 million, down 21.36% Year-on-year (YoY)

Jufei Optoelectronics achieved revenue of RMB 1.728 billion in the first three quarters, a year-on-year (YoY) increase of 2.23%; net profit attributable to shareholders was RMB 194 million, a year-on-year (YoY) decrease of 16.19%.

In the third quarter, the company achieved revenue of approximately RMB 588 million, a year-on-year (YoY) decrease of 14.73%; net profit attributable to shareholders of the listed company was approximately RMB 69.34 million, a year-on-year (YoY) decrease of 21.36%.

Jufei Optoelectronics previously stated that the company's main products can be divided into backlight LED devices and lighting LED devices according to their applications. The company's automotive LED business continues to perform outstandingly, and new businesses such as Mini/Micro LED and invisible light are progressing smoothly. Mini LED products have gained market recognition and are being supplied in bulk to customers; the technical R&D reserves for Micro LED and cooperative development with key manufacturers are proceeding as planned.

OPPLE Lighting: Q3 net profit of RMB 182 million, down 29.92% Year-on-year (YoY)

In the first three quarters of 2021, OPPLE Lighting achieved revenue of RMB 6.158 billion, a Year-on-year (YoY) increase of 17.74%; net profit attributable to shareholders of the listed company was RMB 624 million, a Year-on-year (YoY) increase of 22.5%.

In the third quarter, Revenue reached RMB 2.195 billion, a Year-on-year (YoY) decrease of 1.14%; Net profit attributable to shareholders of the Listed company was RMB 182 million, a Year-on-year (YoY) decrease of 29.92%.

According to the analysis, the company is penetrating township markets, prioritizing new traffic channels, and possesses extensive experience in the commercial lighting sector. By channel: (1) Offline: The downturn in the real estate sector has put pressure on the lighting industry. In 2018, the company proposed shifting from a "passive retailer" to an "active merchant" model, and expanded community renovation services in 2019-2020. This year, the company focused on penetrating township markets; by the first half of the year, it had developed over 2,000 plumbing, electrical, and lighting supermarkets/zones (including bathroom and electrical products), leveraging its comprehensive product range to meet one-stop shopping needs, with expected per-store purchase volumes significantly higher than those of hardware outlets. (2) E-commerce: After price competition in 2018, OPPLE's online market share increased significantly. Currently, the company leverages its extreme cost-performance advantage while building a one-stop, multi-category smart hard-decoration ecosystem, resulting in rapid growth in online sales of smart products in the first three quarters. (3) Commercial Lighting: As a first-tier industry player with leading sales scale, the company has continued to expand large-scale benchmark projects this year, winning the Sinopec national centralized procurement project and completing lighting projects for over 300 schools. (4) Overseas: Focusing on deepening channels in key countries and continuously strengthening local operational capabilities. In key countries such as Saudi Arabia, the Philippines, Thailand, and Indonesia, the company continues to deepen channel construction. OPPLE's Smart lighting solutions have been popularized and promoted in multiple overseas countries, with the sales proportion of smart business exceeding double digits.

Tospo Lighting: Net profit of RMB 102 million in Q3, down 12.28% Year-on-year (YoY)

In the first three quarters of 2021, Tospo Lighting achieved main business revenue of RMB 3.707 billion, a Year-on-year (YoY) increase of 14.15%; net profit attributable to shareholders of the parent company was RMB 284 million, a Year-on-year (YoY) decrease of 1.63%.

In the third quarter of 2021, the company's quarterly revenue was RMB 1.245 billion, a year-on-year (YoY) increase of 7.03%; net profit attributable to shareholders was RMB 102 million, a year-on-year (YoY) decrease of 12.28%.

In addition, Tospo Lighting recently joined forces with Ruizhi Xin to jointly establish Zhejiang Tospo Intelligent Control Co., Ltd. (hereinafter referred to as "Tospo Intelligent Control"), further optimizing its automotive lighting industry layout. It is reported that the business scope of Tospo Intelligent Control includes the manufacturing and sales of intelligent in-vehicle devices, as well as the manufacturing of automotive parts and accessories. The establishment of this joint venture aligns with Tospo Lighting's vision for the intelligent development trend of its automotive lighting products, adding another important asset to the deep expansion of its automotive lighting business.

Songsheng Shares: Net profit in the third quarter was RMB 30.7754 million, a Year-on-year (YoY) increase of 39.69%

Songsheng's Q3 report shows that the company's revenue for the first three quarters reached RMB 816 million, a year-on-year (YoY) increase of 89.63%. This was mainly due to the sustained strong downstream demand in the LED lighting industry and the continued booming development of horticultural lighting, which led to rapid growth in business orders. The net profit attributable to shareholders of the listed company was RMB 103 million, a year-on-year (YoY) increase of 65.14%.

Among them, in the third quarter of 2021, the company achieved Revenue of RMB 262 million, a Year-on-year (YoY) increase of 62.26%. The Net profit attributable to shareholders of the Listed company was RMB 30.7754 million, a Year-on-year (YoY) increase of 39.69%.

Songsheng has established a product business system covering three major areas: "Horticultural lighting + Industrial lighting + Outdoor lighting". These three pillars are advancing in tandem, with horticultural lighting power supply products serving as the new momentum for the company's performance growth. In the future, we will continue to increase R&D investment to address industry pain points. By providing products that closely meet customer needs and solving industry challenges, we aim to support industry development while driving company growth. We will maintain this business focus and continuously consolidate our first-mover advantage in the field of horticultural lighting LED drivers.

Leyard: Net profit in Q3 was approximately RMB 236 million, a Year-on-year (YoY) increase of 160.08%

Leyard achieved revenue of RMB 5.834 billion in the first three quarters, a year-on-year increase of 30.03%; net profit attributable to shareholders was RMB 521 million, up 65.09% year-on-year, and net profit excluding non-recurring items increased by 82.19% year-on-year.

In the third quarter, revenue reached approximately RMB 2.233 billion, a year-on-year (YoY) increase of 40.74%; net profit attributable to shareholders of the listed company was approximately RMB 236 million, a year-on-year (YoY) increase of 160.08%.

Leyard stated that during the reporting period, as the LED industry's prosperity improved and concentration increased following industry consolidation, the company's orders have grown steadily and rapidly since May. New orders signed in 2021 have exceeded RMB 10 billion, approaching the annual order target.

截止 10 月 24 日，2021 年新签订单较上年同期增长 42%，较 2019 年同期增长 14%；其中国内智能显示订单较上年同期增长 68%，国际智能显示订单较上年同期增长 42%，国内渠道已经率先完成年度 18 亿元订单目标，NP 公司订单较上年同期增长 84%。

In addition, as the overseas epidemic situation gradually stabilized after May, net profit growth outpaced revenue growth, and the net profit margin increased quarter-on-quarter.

During the reporting period, the revenue share of the intelligent display segment remained consistently at 78%, and the revenue of all four business segments increased compared to the same period last year. During the reporting period, the gross profit margin decreased by 2.02 percentage points year-on-year, mainly due to a significant decline in the gross profit margins of the night-time economy and new cultural tourism formats segments.

Although raw material prices in the display industry rose significantly during the reporting period, the gross profit margin of the company's smart display business remained largely unaffected and stable. The Micro LED overseas market has started to take off, with rapid order growth; revenue confirmed during the reporting period exceeded RMB 200 million, and the annual target is expected to be achieved.

Ledman Optoelectronics: Net profit in Q3 was RMB 24.7052 million, a Year-on-year (YoY) increase of 589.77%

In the first three quarters of 2021, Ledman Optoelectronics achieved revenue of RMB 923 million, a year-on-year (YoY) increase of 40.59%; net profit attributable to shareholders of the listed company reached RMB 45.1035 million, a year-on-year (YoY) increase of 7137.19%.

In the third quarter, revenue reached RMB 356 million, a year-on-year (YoY) increase of 34.76%; net profit attributable to shareholders of the listed company was RMB 24.7052 million, a year-on-year (YoY) increase of 589.77%.

The main factors driving Ledman Optoelectronics' significant performance growth during the reporting period are as follows: First, the domestic Micro LED ultra-high-definition display business grew rapidly. In the first three quarters, the company's domestic business achieved total revenue of RMB 388 million, an 88% year-on-year increase. The company's Micro LED ultra-high-definition display business based on COB technology achieved total revenue of RMB 297 million, a 95% year-on-year increase, with domestic Micro LED revenue increasing by 102% year-on-year.

Second, export orders are strong, with overseas business revenue increasing year-on-year (YoY); third, the launch of a consumer Micro LED private giant-screen cinema, comprehensively laying out three major product tracks.

Absen: Net profit in Q3 was approximately -21 million yuan, a year-on-year (YoY) increase of 26.81%

In the first three quarters of 2021, Absen achieved revenue of RMB 1.402 billion, a year-on-year (YoY) increase of 30.91%, mainly due to the rapid recovery of international business and increased sales orders during the reporting period; net profit was a loss of RMB 59 million, a year-on-year (YoY) decrease of -1652.29%.

In the third quarter, the company achieved revenue of approximately RMB 558 million, a year-on-year (YoY) increase of 69.93%; net profit attributable to shareholders of the listed company was approximately -RMB 21 million, a year-on-year (YoY) increase of 26.81%.

Absen's core business is the R&D, production, and sales of LED full-color displays. It is reported that in the first half of the year, affected by the overseas pandemic, the company proactively adjusted its sales structure, prioritized resource investment in expanding the Chinese market, and increased its market share in China. The increased proportion of domestic revenue with lower gross profit margins led to a decline in the overall gross profit margin. The gross profit margin for January–June 2021 was 21.80%, a decrease of 9.60% compared to the same period last year.

Aoto Electronics: Net profit in the third quarter was approximately RMB 3.96 million, a Year-on-year (YoY) decrease of 67.2%

Aoto Electronics' total revenue for the first three quarters was RMB 583 million, a year-on-year (YoY) decrease of 7.03%; the net profit attributable to shareholders of the listed company was RMB 14.8294 million, a year-on-year (YoY) decrease of 36.64%.

In the third quarter, revenue reached RMB 202 million, a year-on-year decrease of 22.46%; net profit attributable to shareholders of the listed company was RMB 3.9602 million, a year-on-year decrease of 67.2%.

Regarding the year-on-year decline in net profit during the reporting period, AOTO Electronics attributes it mainly to a decrease in revenue and an increase in raw material procurement costs.

奥拓电子此前在投资者关系活动记录表中表示，面对海外市场新冠疫情反复和上游原材料大幅涨价的双重压力，公司继续加大市场及研发投入，海外市场呈现复苏迹象，影视拍摄市场订单实现历史新高，同时，公司业务重心转移，积极拓展国内市场，在大交通、教育及政企等细分市场均取得较好成绩，努力实现公司既定的恢复性增长目标。在竞争策略上，公司由只做高端市场的“小而美”向“大而强”转变，向中端市场持续渗透，积极探索对外合作，丰富公司智能视讯解决方案。2021 年上半年 LED 视频显示系统营业收入同比增长 59.95%。