NVC, Fozhao and Ruifeng mid-term reports are released, NVC’s net profit drops significantly

NVC Lighting’s mid-term net profit dropped sharply to 17.07 million yuan

NVC Lighting announced its results for the first half of the fiscal year ending in June. Revenue recorded 1.772 billion yuan, an increase of 4.1% year-on-year; gross profit was 381 million yuan, a slight decrease of 0.2%. Net profit fell 70.6% to 17.07 million yuan, with earnings per share of 0.55 cents. No interim dividend will be paid, but 1 Hong Kong cent was paid in the same period last year.

Overcapacity caused product prices to fall. Fo Zhao's mid-term net profit fell by 46%

Foshan Lighting disclosed its 2015 interim report on August 28. During the reporting period, the company achieved operating income of 1,524.3628 million yuan, a year-on-year decrease of 1.21%, a total profit of 124.4494 million yuan, a year-on-year decrease of 45.64%, and a net profit attributable to shareholders of listed companies of 100.2588 million yuan, a year-on-year decrease of 46.94%. Among them, domestic sales revenue was 1,061.981 million yuan, a year-on-year increase of 0.93%, and export sales revenue was 462.3818 million yuan, a year-on-year decrease of 5.79%.

During the reporting period, downward pressure on the domestic economy continued to increase, foreign economic recovery was slow, and the global economic environment became increasingly complex. As far as the lighting industry in which the company operates is concerned, although LEDs have developed rapidly, the product structure has overcapacity, market competition has become increasingly fierce, and product prices have continued to fall.

Increased revenue also increased Liruifeng Optoelectronics’ mid-term revenue by 460 million yuan

The LED backlight field is in a slump, and lighting LEDs are “quantity but priceless”. Faced with such a market situation, Ruifeng Optoelectronics' mid-term results were quite acceptable.

Ruifeng Optoelectronics disclosed its 2015 interim report on the evening of the 27th. In the first half of the year, the company achieved revenue of 463 million yuan, a year-on-year increase of 12.7%; net profit attributable to common shareholders of the listed company was 21.6578 million yuan, a slight year-on-year increase of 3.37%.

Lighting LEDs and medium- and large-sized backlight LEDs still occupy the bulk. Lighting LED achieved revenue of 309 million yuan, a year-on-year increase of 17.52%, but the gross profit margin was only 11.55%; medium and large-sized backlight LED achieved revenue of 135 million yuan, a year-on-year increase of 3.62%. Performance growth also includes display application LED, which achieved revenue of 133 million yuan, a year-on-year increase of 48.3%; automotive application LED achieved revenue of 4.8395 million yuan, a year-on-year increase of 164.79%.

The revenue of the small-size backlight business, which Ruifeng Optoelectronics has always wanted to expand, was only 329,400 yuan, a year-on-year decrease of 94.67%. However, this is exactly where Ruifeng Optoelectronics’ strategy lies. It has said that the small-size backlight business will be left to its joint-stock company Lingtao Optoelectronics.

In February 2014, Ruifeng Optoelectronics purchased a 15% stake in Lingtao Optoelectronics for 30 million yuan. Today, Lingtao Optoelectronics has not disappointed Ruifeng. It achieved a net profit of 12.9008 million yuan in the first half of the year. Ruifeng Optoelectronics confirmed an investment income of 1.9351 million yuan based on a shareholding ratio of 15%.

Based on its optimism about the future prospects of Lingtao Optoelectronics, on June 5 this year, Ruifeng Optoelectronics announced that it planned to purchase 85% of the equity of Lingtao Optoelectronics held by Wang Weiquan and Peng Xiaoling through the issuance of shares and payment of cash. The initially agreed transaction price was 200 million yuan.

Ruifeng Optoelectronics stated that the company's current main products are LED medium and large-sized backlights and LED lighting products. In terms of business development, it is expanding into medium and large-sized backlight LEDs, lighting LEDs, small-sized backlights, automotive electronics, lighting modules, smart homes, automotive lights and other business areas, driving the company to achieve leapfrog development in the next three years.