Three-fee high-tech new three-board enterprise Quanhua Optoelectronics reported doubled

September 29, 2020

[Text|High-tech LED reporter Luo Shenghua] The lower entry barrier is allowing more and more LED companies to go public through the listing of the new three board, and the poor profitability of the new three board companies is also constantly exposed.

On the 15th of July, Wuhan Quanhua Optoelectronics Technology Co., Ltd. (830867), which was listed on the New Third Board, was confirmed in the first performance report after 20 days of listing.

On August 5, Quanhua Optoelectronics announced the “2014 Semi-annual Report”. The report shows that in the first half of this year, the company's operating income was 2,918,300 yuan, an increase of 97.32% over the same period last year. The net profit was 1,060,100 yuan, and the net profit fell by 110.43%.

The data shows that the gross profit margin of Quanhua Optoelectronics is 33.03%, which is not low in the LED lighting industry, even higher than the industry average. With a significant increase in revenue and an increase in gross profit margins, net profit is still so low that it has to be concerned.

From the analysis of the report data, the large loss of the net profit of the interim report is firstly the "three fees" surge including management fees, sales expenses and financial expenses. Secondly, the company's business is concentrated in Hubei Province, and the geographical characteristics are obvious. The longer construction period and settlement period of the project also increase the cost.

For the substantial whole of management fees and sales expenses, Quanhua Optoelectronics said that in order to further expand market share, the company has invested heavily in sales expenses and the company's R&D team.

According to the data, Quanhua Optoelectronics was established on January 25, 2010 and was restructured into a joint stock limited company on January 30 this year. During the reporting period, the company positioned its products in high-end industrial lighting, municipal lighting and intelligent traffic lighting, and gradually reduced orders for commercial lighting with lower added value.

The company's profit mainly comes from the product production premium and technical service fee. The profit source is stable, and the growth is guaranteed by the growth of high value-added products and the expansion of production scale.

"Lighting engineering projects, especially government projects, are basically getting orders from large listed companies or related companies. The share of SMEs is very small." The person in charge of the lighting company who asked not to be named told "High-tech LED" reporter, the project is heavily invested, the high cost in the early stage is high, and the collection time is long in the later period. In general, it does not make money.

This is not difficult to explain, the main reason for the cost of Quanhua Optoelectronics, the main lighting project, increased profits.

At the same time, from the semi-annual report released by Quanhua Optoelectronics, Quanhua Optoelectronics still has large inventory pressure. On December 31, 2013, Jinhua Broadcasting and Television's inventory was 678,378.77 yuan, and by June 30 this year, this data soared to 480,123.78 yuan, and the inventory increased by nearly 8 times in half a year. The increase in costs coupled with increased inventory pressures has also led to a decline in corporate net profit.

"This year, the market in the high-end industrial lighting and municipal lighting in the domestic market is very good. Most of the companies are making profits. In this favorable market, they can still lose money. It is really unimaginable." A person familiar with the LED market situation Gao Gong LED reporter said.

Through the report, it is not unrelated to the enterprise inventory problem and the sales channel of the enterprise is too narrow. It is understood that the company's product sales area in the early stage is mainly concentrated in Hubei, and the rest of the area is rarely involved, and the sales scope is limited to some areas.

In this case, Quanhua Optoelectronics explained that with the popularization of LED applications, the acceleration of urbanization and the promotion of energy conservation and environmental protection concepts, it is expected that the company will have a lot of opportunities in other regional markets in the next few years.

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