Four companies including Silan Micro released their semi-annual reports, and one company’s net profit increased by more than 4 times.

Recently, Silan Micro, Konka Group, Haoyang Co., Ltd., and Sanxiong Aurora released their first-half results. Among them, Silan Micro and Haoyang Co., Ltd. both increased their profits, Sanxiong Aurora's profits both declined, and Konka Group increased profits but did not increase revenue.

Silan Micro: LED product revenue was 364 million yuan, a year-on-year increase of 23.75%

In the first half of 2022, Silan Micro achieved revenue of 4.185 billion yuan, a year-on-year increase of 26.49%; net profit attributable to the parent company was 599 million yuan, a year-on-year increase of 39.12%.

Silan Micro's main business is electronic components and electronic parts. Its main products include integrated circuits, semiconductor discrete devices, and LED products. The company is a comprehensive semiconductor product company with the IDM model (integrated design and manufacturing) as its main development form.

During the reporting period, the revenue of Silan Micro's three major product categories all achieved growth. Among them, the revenue of light-emitting diode products was 364 million yuan, a year-on-year increase of 23.75%; the gross profit margin was 16.25%, a year-on-year increase of 6.98 percentage points.

Silan Micro said that due to the impact of the epidemic and the slowdown in downstream demand, the domestic LED chip market demand is relatively weak, and the capacity utilization rate of its subsidiary Silan Minxin's LED chip production line has declined to a certain extent. At the same time, the decline in LED chip prices has led to an increase in inventory impairment losses, resulting in Silan Minxin's operating losses.

Despite the unfavorable market situation, Silan Mingxin is working hard to increase the market share of LED color screen chips, while accelerating the development of high-brightness LED lighting chip products, and accelerating its entry into mid-to-high-end chip markets such as automotive lighting and landscape lighting.

As for Silan Micro’s joint-stock company Silan Ming Gallium, the output of LED chips in the first half of the year was lower than expected. However, the company has gradually increased its chip output by strengthening the docking of market demand, improving product performance, and stabilizing the mass production of new products. At present, Silan Mining Gallium has built a monthly production capacity of 72,000 4-inch LED chips. In the future, it will accelerate the expansion of its products in mid-to-high-end application fields such as small-pitch displays, MiniLED displays, and automotive LEDs.

On the other hand, in the first half of the year, due to the increase in demand for mid-to-high-end LED color displays in foreign markets, Silan Micro's subsidiary Meikale Optoelectronics' revenue increased by 37.48% year-on-year. Among them, Meikale's small spacing products, "4-in-1" products, and "1515" series products grew rapidly.

Under the effective control of product quality and cost, the company's product gross profit margin has been significantly improved. Silan Micro expects that Mekal's revenue will continue to grow rapidly in the future.

Konka Group: Net profit more than doubled, accelerating MLED industrialization work

By adhering to the development strategy of "technology + industry + park", Konka focuses on the three leading industries of "new consumer electronics + semiconductor + new energy technology" and the two supporting industries of "park + investment" to promote the company's centralized, steady and high-quality development. In the first half of the year, Konka's revenue was 16.895 billion yuan, a year-on-year decrease of 22.53%, and the net profit attributable to the parent company was 173 million yuan, a year-on-year increase of 102.25%.

Konka’s main businesses include consumer electronics, industry and trade, semiconductors and environmental protection, among which the semiconductor business is deployed in storage, optoelectronics and other fields.

In terms of semiconductor business, Konka said that the company is currently actively promoting industrialization work. The optoelectronics field is currently mainly conducting research and development of Micro LED related products, focusing on technologies such as Micro LED chip miniaturization and mass transfer. At present, the company has built a Micro LED full-process mass production line, and Micro LED chips have begun to enter the mass production stage.

In terms of Mini LED, Konka will accelerate the industrialization of Mini backlight, Mini direct display, and Mini chip. Currently, Mini LED chip has mass production capabilities. It is worth noting that in April this year, Konka launched the MiniLED backlight TV APHAEA A6 Pro with a refresh rate of up to 120Hz and a minimum price of 9,999 yuan.

Haoyang Shares: Market demand for overseas performing arts equipment has recovered, and net profit has increased by more than 4 times

The main business of Haoyang Co., Ltd. includes stage entertainment lighting equipment, architectural lighting equipment, trusses and other products. As overseas policies restricting large-scale gatherings were further relaxed in the first half of the year, the performing arts activities and performing arts lighting equipment markets further recovered, driving Haoyang's performance in the first half of the year to significantly improve.

During the reporting period, Haoyang Co., Ltd. achieved revenue of 571 million yuan, a year-on-year increase of 201.56%; net profit attributable to the parent company was 175 million yuan, a year-on-year increase of 414.81%; net cash flow was 110 million yuan, a year-on-year increase of 438.15%.

Haoyang Shares achieved revenue of 533 million yuan in overseas markets, a year-on-year increase of 256.50%; its gross profit margin reached 51.66%, a year-on-year increase of 4.47%.

It is worth noting that as the market demand for performing arts equipment gradually recovers, Haoyang Co., Ltd. has accelerated the construction progress of related investment projects. At present, the first phase of the second-phase expansion project of the performing arts lighting equipment production base has been capped. At the same time, in order to cope with the demand for production capacity during the market recovery process, Haoyang Co., Ltd. rapidly increased the company's production capacity during the reporting period by adding new leased venues and optimizing and adjusting the company's internal production lines and warehouses.

Sanxiong Aurora: revenue of 1.101 billion yuan, down 1.32% year-on-year

Sanxiong Aurora’s main business includes semiconductor lighting products and lighting control products, and has strong brand and market advantages in professional lighting fields such as commercial lighting and industrial lighting.

Affected by multiple factors such as the epidemic, supply chain issues, and the downturn in the real estate boom, the lighting industry has been greatly affected. During the reporting period, Sanxiong Aurora’s revenue was 1.101 billion yuan, a year-on-year decrease of 1.32%; the net profit attributable to the parent company was 65 million yuan, a year-on-year decrease of 9.30%.

In terms of revenue, specifically, Sanxiong Aurora's e-commerce, overseas, and hardware business revenue grew rapidly year-on-year; in the home lighting sector, the revenue of industrial lighting, public space, hotel lighting and other project departments in the commercial lighting sector continued to grow year-on-year, while the revenue of project departments such as municipal transportation, smart emergency, electrician, and real estate in the commercial lighting sector declined year-on-year.

During the reporting period, Sanxiong Aurora continued to improve and optimize its channels and dealer system in accordance with the "1+N" model, develop dealers with corresponding advantages and capabilities, and supplement and improve the company's channel system. In the first half of the year, the company built 114 new terminals in the commercial segment, 138 new terminals in the home furnishing segment, 21 new comprehensive terminals, and more than 1,000 new hardware channel terminals.