The first half 2022 sees Ledman overseas business hit a record high in revenue and net profit to parent company

Ledman (300162.SZ) disclosed its semi-annual report for 2022 on August 29, indicating operating revenue of 616 million yuan during January and June, up 8.55% year on year; 27.45-million-yuan net profit attributable to shareholders of the listed company, up 34.56% from a year earlier, revenue and net profit attributable to its parent reached record highs for the same period since the company went public; net cash flow from operating activities hitting 39.11 million yuan, up 230.76% year on year, showing that the profit of the company in the reporting period has a good cash flow support, and reflecting a higher profit quality.

A huge increase in revenue from overseas market

Amid the repeated COVID-19 outbreak and never-slackening national epidemic response, Ledman overseas business became the main engine of growth in the first half of the year, with operating revenue reaching 449 million yuan, up 40.61% over the same period last year. The revenue of international display business reached 253 million yuan, up 53.64% year on year, the actual revenue of international lighting business hitting 195 million yuan, up 26% year on year.

The growth of overseas business is partly due to the growing overseas demand for LED display products in the post-epidemic era. Customs statistics show that China's exports of LED displays in the first half of 2022 reached $705 million, up 32.27% from the same period last year. GGII holds that as the epidemic becomes a normal, exporting countries see their economic and cultural activities become normal, which stimulates the activity of downstream consumer markets. Also, the appreciation of the US dollar stimulates exports.

Apart from growing overseas market demand, Ledman’s effort to constantly optimize its overseas market promotion strategy and develop new customers in key regions also contributed to significant increase in sales on North America and South America regional markets. With comprehensively improved quality and efficiency and steady increase in gross profit margin and per capita output value, comes enhanced profitability in overseas markets.

Quicker penetration of small and micro-spaced products

In the first half of 2022, Ledman saw its domestic business bring an operating revenue of 167 million yuan. Facing the adverse impact of epidemic on its business, Ledman responds actively, combining talent training with channel expanding, increasing coverage of key industries and regions and online and scaling up online and offline promotion, focusing on track layout, and building a three-dimensional closed-loop ecology of special use, commercial use and household use.

In terms of dedicated display, with the growing demand for small and micro-spaced LEDs and rising permeability, Ledman witnesses its COB products with spacing below P1.2 rise as proportion, with great breakthroughs made in public inspection law, higher education, maritime, petrochemical, venues, and water conservancy.

As for giant screen, Ledman’s rolling out the world's first 8K 163-inch super Micro LED home screen product based on COB technology marks the completion of its 110 "/138" /163 "family screen series product matrix. On that basis, Ledman increases marketing input to improve the image of Ledman family giant screen as a high-end household brand. Flagship experience center, standard experience center and sales experience zone are launched to promote experiential marketing, paving the way for the company's family screen products to quickly take the market.

In the first half of this year, Ledman enriched LEDMAN intelligent conference interactive large screen product line, broadening downstream application scenarios and increasing the added value of products. Ledman Conference AIO Machine has passed TUV’s low blue light certification. Equipped with smart education, smart conference, exhibition and exhibition of three application scenario solutions, it can meet the business needs of customers for scenarios of different prices and application.