8 LED-related companies announced performance forecasts for the first half of 2025
Recently, about 8 LED-related companies have released performance forecasts for the first half of 2025. Among them, Azure Lithium Core and Sichuan Changhong achieved net profit growth; Caihong Co., Ltd.'s net profit declined; Haoersai and TPV Technology's net profits turned from profit to loss; Dehao Runda, Baoming Technology, and Huaying Technology's net profit losses decreased year-on-year.
Azure Lithium Core
Azure Lithium Core is mainly engaged in the three major businesses of lithium batteries, LED chips and metal logistics and distribution. The LED business is mainly engaged in the R&D and manufacturing of LED products, with a complete industrial chain from sapphire substrate cutting and polishing, PSS, epitaxial wafers, LED chips, and CSP special packaging.
In the first half of 2025, Weilan Lithium Core is expected to achieve a net profit attributable to the owners of the parent company of 300 million to 360 million yuan, a year-on-year increase of 79.29%-115.15%; the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses is 318 million to 378 million yuan, an increase of 156.05%-204.36%.
During the reporting period, the performance growth of Weilan Lithium Core was mainly due to the continued increase in lithium battery shipments, and the significant increase in the contribution of the superimposed LED chip business. The company optimized its production capacity layout, strengthened the proportion of high value-added products, and significantly improved its gross profit margin. Weilan Lixin said that despite the intensifying competition in the LED industry, the company has achieved a profitable breakthrough through technology iteration and cost control.
Sichuan Changhong
Sichuan Changhong's main business is the production and sales of televisions, refrigerators, air conditioners, compressors, audio-visual products, batteries, mobile phones and other products, the sales of IT products, and real estate development and other production and operation activities.
Sichuan Changhong's net profit attributable to owners of the parent company in the first half of 2025 is expected to be 439 million to 571 million yuan, an increase of approximately 56.53% to 103.59% compared with the same period last year; net profit attributable to owners of the parent company after deducting non-recurring gains and losses is expected to be 138 million to 182 million yuan, a year-on-year decrease of approximately 2.17% to 25.82%.
Sichuan Changhong stated that the net profit after deducting non-recurring gains and losses attributable to the owners of the parent company is expected to decline compared with the same period last year, mainly because the company's real estate business is subject to the cyclical characteristics of revenue recognition and the continued downward trend of the real estate market. The industry generally "exchanges price for volume", project selling prices have been reduced, and gross profit margins have narrowed, resulting in a year-on-year decline in profits.
In addition, in the home appliance business, affected by factors such as conflicts in overseas regions, changes in tariff policies, and intensified industry involution, the gross profit margin of some products in the company's domestic business has declined.
Rainbow Shares
The main business of Caihong Co., Ltd. is the research and development, production and sales of substrate glass and display panels. Among them, the main products of substrate glass cover TFT-LCD and Mini LED display technology applications.
During the reporting period, Rainbow Shares is expected to achieve a net profit attributable to the owners of the parent company of 410 million yuan to 480 million yuan, a year-on-year decrease of 47.59% to 55.23% compared with the same period last year.
The company expects to achieve a net profit of 360 million yuan to 430 million yuan attributable to the owners of the parent company after deducting non-recurring gains and losses, a year-on-year decrease of 48.25% to 56.68%.
As for the main reasons for the decline in performance, Caihong shares explained: First, the price of TV panel products fell compared with the same period last year, resulting in a decline in panel business gross profit; second, due to market factors, the production and sales of G6 substrate glass dropped significantly; third, during the reporting period, due to external investors increasing capital in the holding subsidiary, the financial expenses related to the accrual of financial liabilities increased.
It is worth noting that in June this year, BOE obtained the right to transfer 30% of the equity of Xianyang Rainbow Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Rainbow Optoelectronics"), a subsidiary of Rainbow Holdings, with a quotation of 4.849 billion yuan.
Caihong Co., Ltd. hopes to optimize the business structure by selling part of the equity of Caihong Optoelectronics, seize the development opportunities of the new display industry, and focus more resources on the substrate glass business with greater growth potential.
Haoersai
Haoersai is mainly engaged in lighting engineering business. In recent years, the company has actively explored new development areas and formed a new development strategy of "three intelligences and one network" and "two-wheel drive" of Haonenghui New Energy, led by the overall strategic layout of "Smart+".
Haoersai predicts that in the first half of 2025, the net profit attributable to shareholders of listed companies will turn from profit to loss. The main reason for the decline in performance is the sharp decline in lighting engineering orders caused by the contraction of infrastructure and real estate investment, coupled with the double squeeze of intensified industry price wars and rising raw material prices. In addition, delays in customer repayments resulted in increased asset impairment provisions, further eroding profits. The company is accelerating the collection of accounts receivable, but the prospects for demand recovery are unclear, and investors need to be wary of cash flow risks.
TPV Technology
TPV Technology is deeply involved in the display industry. Its products cover computers, e-sports, large-screen commercial, etc., and serves terminal and commercial customers.
TPV Technology predicts that in the first half of 2025, the company's net profit attributable to shareholders of listed companies will turn from profit to loss; it is expected that net profit after deducting non-recurring gains and losses will continue to suffer year-on-year losses.
TPV Technology stated that during the reporting period, competition in the global display industry intensified and end product selling prices continued to decline, while the cost of core raw materials such as panels remained relatively stable, resulting in pressure on the comprehensive gross profit margin.
At the same time, in order to increase market development efforts, the company increased marketing investment to deepen brand recognition; optimized overseas marketing channels and dynamically allocated global production capacity layout to cope with the uncertainty of economic and trade policies and increase costs and expenses. Also affected by global exchange rate fluctuations, the company suffered a loss in the first half of the year.
Dehao Runda
Dehao Runda estimates that in the first half of the year, the net profit attributable to shareholders of listed companies will decrease by 70.17%-55.26% year-on-year.
Dehao Runda said that the company focuses on the export of mid-to-high-end coffee machines. Although revenue fell by 16.5%, the improvement in operating efficiency helped reduce losses in the main business by 50%-60%. However, the closed LED chip and LED display business assets still need to accrue depreciation of 9 million to 12 million yuan, becoming the main reason for losses.
On the other hand, it is worth noting that in May this year, Anhui Ruituo, a subsidiary of Dehao Runda Holdings, planned to invest in an automotive LED packaging project in Bengbu. The total project investment is 50 million yuan, and the first phase investment is approximately 30 million yuan.
Baoming Technology
Baoming Technology is mainly engaged in the research and development, design, production and sales of LED backlights and deep processing of the main processes of capacitive touch screens.
Baoming Technology predicts that in the first half of the year, the net profit attributable to shareholders of listed companies will decrease by 67.7%-74.14% year-on-year, and the net profit after deducting non-recurring gains and losses will decrease by 75.85%-81.42% year-on-year.
Baoming Technology said that the gross profit margin of the company's main business has improved significantly, but the new depreciation expenses after the first phase of the Ganzhou composite copper foil project was consolidated became the main reason for the loss. The company is accelerating the mass production verification of new technologies and is expected to further dilute costs if orders increase in the second half of the year.
Huaying Technology
The small and medium-sized display module products produced by Huaying Technology are mainly used in vehicle displays, industrial control screens, tablet computers, POS machines, smart phones and other fields.
Huaying Technology predicts that in the first half of the year, the net profit attributable to shareholders of listed companies will decrease by 13.81%-17.36% year-on-year, and the net profit after deducting non-recurring gains and losses will decrease by 14.30%-17.80% year-on-year.
Huaying Technology said that during the reporting period, the company increased gross profit through production line integration, material cost reduction and other measures. However, overcapacity in the panel industry has led to continued low prices, and shrinking revenue scale has restricted the space for profit repair. Management admitted that the competitive landscape will be difficult to improve in the short term, and will focus on niche markets such as automotive and industrial control in the future.
ANNA