Silan Micro: High performance LED growth exceeds expectations

Silan Micro released an interim report. During the reporting period, the company achieved operating income of RMB 700.6 million, an increase of 98.45% over the same period of last year; realized operating profit of RMB 133.52 million, an increase of 840.16% over the same period of last year; realized total profit of RMB 137.71 million compared with last year. In the same period, the net profit increased by 499.79%; the net profit reached RMB 111.04 million, an increase of 641.84% over the same period of last year; the net profit attributable to shareholders of the parent company was RMB 11.948 million, an increase of 602.48% over the same period of last year; the earnings per share was RMB 0.30, an increase of 650%.

Comments:

The company's performance in the first half of the year has been greatly improved due to the substantial growth of its main business brought about by the global industry recovery. The sales of integrated circuits, discrete device chips and LED device chips have maintained a growth trend. Among them, the main operating income of integrated circuits increased by 74.12%, the number of discrete chips increased by 85.34%, and the LED chips increased by 191.94%.

The company's comprehensive gross profit margin increased significantly year-on-year, and the comprehensive gross profit margin increased from 23.17% in the same period last year to 34.77% this year. Among them, the gross profit of integrated circuits increased by 6.23%, mainly due to the increase in shipments and the increase in the profit margin of the subsidiary's integrated chip capacity, and the cost reduction; the gross profit of the discrete unit increased by 13.17%, mainly due to the integrated chip capacity of Silan. The utilization rate increased and the cost of the device chip decreased. The gross profit of the LED chip increased by 13.82%, mainly due to the increase in the production capacity of the subsidiary Silan Mingxin and the cost reduction.

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