Hisense Video, Dongshan Precision, etc. announced results, with net profit increasing by up to 76 times

Recently, seven companies including Hisense Vision, Dongshan Precision, and Jingce Electronics announced their third-quarter results. Among them, Huati Technology’s third-quarter net profit increased by more than 76 times.

In the third quarter, Hisense Video achieved revenue of 14.351 billion yuan, a year-on-year increase of 16.71%; net profit attributable to the parent company was 591 million yuan, a year-on-year increase of 15.19%; revenue in the first three quarters was 39.226 billion yuan, a year-on-year increase of 20.65%; net profit attributable to the parent company was 1.628 billion yuan, a year-on-year increase of 47.08%.

+Hisense Video stated that during the reporting period, the company’s market share of Hisense TV retail sales in China increased by 3.8 percentage points year-on-year, exceeding 30%. During the reporting period and from the beginning of this year to the end of the reporting period, revenue, operating profit margin, efficiency, market share, and ROE all achieved simultaneous improvement, and operating capabilities maintained a steady growth trend.
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+In terms of products, Hisense Vision’s smart display terminal sales increased year-on-year in domestic and overseas markets. In the domestic market, Hisense’s 75+-inch and above smart display terminal sales increased by +49.5% year-on-year, and sales increased by 47.1% year-on-year. Sales of products with +65+ inches and above increased by +82.5% year-on-year, and sales volume increased by +58.8% year-on-year.
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+Looking at specific products, Hisense Vision ULED+X+ and ULED TV sales increased by 84% year-on-year, and sales increased by 59% year-on-year.
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+While maintaining growth in TV performance, Hisense is also accelerating the layout of the upstream LED supply chain. In August this year, Hisense Qianzhao Semiconductor Base project was signed in Jiangxi, and it is planned to use the existing factory buildings and land resources of the Nanchang base to produce LED products, achieving a monthly production capacity of 5 00,000 pieces (2-inch pieces), and is expected to be put into production before June 2024.

Dongshan Precision: Q3 revenue was 8.834 billion, LED device performance declined

Dongshan Precision’s business covers the fields of electronic circuits, optoelectronic displays and precision manufacturing. Its operating income mainly comes from the sales of electronic circuit products, LED display devices, touch panels, liquid crystal display modules and precision components.

In the third quarter, Dongshan Precision achieved revenue of 8.834 billion yuan, a year-on-year increase of 6.78%; net profit attributable to the parent company was 508 million yuan, a year-on-year decrease of 35.22%. Revenue in the first three quarters was 22.5 billion yuan, a year-on-year decrease of 1.39%; net profit attributable to the parent company was 1.333 billion yuan, a year-on-year decrease of 15.69%.

Currently, Dongshan Precision is focusing on the two core tracks of consumer electronics and new energy vehicles around the "two-wheel drive" strategy, and continues to increase investment in advantageous industries. During the reporting period, the net cash flow generated by Dongshan Precision’s investment activities increased by 125.89% year-on-year, including investments related to strategy implementation and the acquisition of Jingduan Display and Aranda.

In terms of LED display devices, its revenue has gradually declined. In the first half of this year, due to weak market demand and falling sales volume and price, Dongshan Precision's LED display device revenue share dropped from 7.78% in the same period in 2022 to 3.07%. Revenue and gross profit margin declined, and unit fixed costs increased significantly.

In order to improve the business situation of LED display devices, Dongshan Precision In May and June of this year, price adjustment letters were issued to increase the prices of indoor and outdoor display devices by a range of 10% to 15%.

It is also worth noting that in September, Dongshan Precision announced that it would terminate the sale of 60% of its wholly-owned subsidiary Yancheng Dongshan Precision to Nationstar Optoelectronics. This subsidiary is mainly engaged in LED display device business.

Jingce Electronics: Revenue in the display field fell 27.87% year-on-year

Jingce Electronics is mainly engaged in the R&D, production and sales of display, semiconductor and new energy testing systems. Its main products in the display field cover testing equipment for LCD, OLED, MiniLED, Micro OLED, Micro LED and other various display devices, including electrical testing and debugging system equipment, pre-process AOI equipment, etc.

In the third quarter, Jingce Electronics’ revenue was 434 million yuan, a year-on-year decrease of 39.24%; net profit turned from profit to loss. Revenue in the first three quarters was 1.545 billion yuan, a year-on-year decrease of 15.13%, and net profit turned from profit to loss. Jingce Electronics stated that the company's performance declined due to weak demand for terminal consumer electronics products and the display industry being at the bottom of the cycle. In the first three quarters, Jingce Electronic Display segment achieved sales revenue of 1,052.1383 million yuan, a year-on-year decrease of 27.87%. In addition, during the reporting period, R&D investment increased by 63.7396 million yuan year-on-year.

During the reporting period, Jingce Electronics increased investment in strategic research and development and optimized its product and customer structure. In the field of display testing, Jingcei Electronics has increased its efforts in research, development and market development of panel and front-end process equipment, intelligent and precision optical instruments, and new display products such as OLED, MiniLED, Micro OLED, Micro LED, etc., to further increase the expansion of overseas core customers.

In terms of orders, as of the performance disclosure date, the total amount of orders on hand for Jingce Electronics was approximately 3.207 billion yuan, of which Orders on hand in the display field are approximately 1.181 billion yuan, orders in the semiconductor field are approximately 1.489 billion yuan, and orders in the new energy field are approximately 538 million yuan.

Wanrun Technology: Turning losses into profits in the first three quarters

In the third quarter, Wanrun Technology achieved revenue of 1.269 billion yuan, a year-on-year increase of 90.46%; net profit attributable to the parent company was 73 million yuan, turning losses into profits year-on-year. Revenue in the first three quarters was 3.453 billion yuan, a year-on-year increase of 52.71%, and net profit attributable to the parent company was 66 million yuan, turning a loss into a profit year-on-year.

At the end of last year, Wanrun Technology formulated a development strategy for 2022-2025, which mentioned that it will vigorously develop a new generation of information technology main industries with LED and storage semiconductor electronics industries as the core.

In terms of LED business, during the reporting period, Wanrun Technology actively seized the market opportunities of economic recovery and deepened its LED component packaging and lighting business: digging into market segments such as fire and security, automotive electronics, smart home, and visual inspection; accelerating the development and delivery of rail transit lighting, advertising sign lighting, light strip lighting, and educational lighting businesses;

In the first half of the year, Wanrun Technology's LED light source devices, lighting and related products accounted for 15.21% of revenue. Among them, the revenue of LED light source devices was 151 million yuan, a year-on-year decrease of 14.39%, and the revenue of LED lighting products was 182 million yuan, a year-on-year increase of 9.04%.

Netac Intelligence: Revenue and profit declined in the first three quarters

In the third quarter, Netac Intelligent achieved revenue of 353 million yuan, a year-on-year increase of 2.21%; net profit attributable to the parent company was 15 million yuan, a year-on-year decrease of 12.32%. In the first three quarters, Netac Intelligent’s revenue was 1.005 billion yuan, a year-on-year decrease of 25.78%, and the net profit attributable to the parent company was 48 million yuan, a year-on-year decrease of 16.31%.

Netac Intelligent is mainly engaged in the electrical controller and finished product segments and the intelligent power supply and controller business, of which energy power supplies and controllers include new energy battery packs, BMS, plant lighting and other products.

In the first half of the year, due to factors such as the sluggish consumer electronics market, Netac's smart orders decreased during the reporting period, and its revenue scale and profitability declined. Benefiting from the impact of exchange rate changes, it has a positive effect on the company's net profit for the current period.

In terms of R&D, Netac Intelligent has strengthened its R&D innovation in products such as energy storage inverters, brushless motors and new consumer home appliances, and its R&D expenses have increased year-on-year.

Moso Power: Q3 net profit fell 37.67%

In the third quarter, Mosuo Power's revenue was 340 million yuan, a year-on-year decrease of 15.34%; the net profit attributable to the parent company was 19 million yuan, a year-on-year decrease of 37.67%. In the first three quarters, Mosuo Power's revenue was 1.021 billion yuan, a year-on-year decrease of 10.60%; the net profit attributable to the parent company was 60 million yuan, a year-on-year decrease of 10.50%.

Moso Power is deeply involved in the two major businesses of consumer electronics power supplies and LED power supplies. The LED power supply business is mainly focused on outdoor high-power driving power supplies. Its product application areas include road lighting drivers, industrial lighting drivers, rail transit and airport station lighting drivers, LED plant growth light drivers, etc.

In the first half of the year, the revenue of Moso Power was affected by the complex and severe domestic and international situations and many risk factors. The gross profit margin and revenue share of the LED business increased during the reporting period.

Huati Technology: Q3 net profit increased by more than 76 times

In the third quarter, Huati Technology achieved revenue of 182 million yuan, a year-on-year increase of 83.74%; net profit attributable to the parent company was 35 million yuan, a year-on-year increase of 7691.76%. In the first three quarters, the company achieved revenue of 499 million yuan, a year-on-year increase of 63.08%, and net profit attributable to the parent company was 58 million yuan, turning a loss into a profit year-on-year.

Huati Technology is a system solution provider whose main business is new scenes of smart cities and cultural lighting. The current main products include: smart street lighting products equipped with LED information release screens, high-definition cameras, emergency alarms, 5G base stations, WiFi, environmental monitoring and other equipment; various traditional lighting products used in roads, landscapes, and cultural fields.

Huati Technology said that the main reason for the performance growth was that the company actively expanded the market, developed new business, and delivered and accepted the products in the first three quarters, which drove the company's operating performance to increase during the reporting period compared with the same period last year.