Tangshi Lighting’s revenue in August increased by 83.16% year-on-year, and the performance in the second half of the year is conservatively viewed

LED manufacturer Tangshi Lighting’s revenue in August this year was 119 million yuan (NT$, the same below), an annual increase of 83.16% and a monthly increase of 34.21%; in the first eight months, its revenue was 775 million yuan, an annual increase of 63.02%. In July, the company suffered from delivery delays caused by customer shipping schedules and project delays, so payment collection was deferred to August, resulting in a higher monthly revenue growth rate in August.

Looking forward to the second half of the year, if the revenue in the third quarter can be the same as the second quarter, and because there is a Chinese New Year holiday in the first quarter, there is a high chance that the revenue in the fourth quarter will be higher than the first quarter. Overall, the second half of the year will be better than the first half of the year, but the company still takes a conservative attitude towards the prosperity.

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Tangshi Lighting takes a conservative view of the industry boom, so it will be more cautious in selecting customers, choosing customers with better corporate health, and will not accept high-risk orders for the sake of momentum. The shipping arrangements after customers place orders in the second half of the year are highly uncertain, and there may be another delay in payment collection in July, so continued observation is required.

In response to the U.S. Federal Reserve's possible interest rate cut in September, Tangshi Lighting may be affected by interest rates and exchange rates. However, because the market is relatively fragmented, and customers are mostly in the European and American markets, and local customers mostly use RMB, the impact of the interest rate cut will not be obvious.