Lens Technology 2019 semi-annual results: net profit loss expected to be 124-170 million yuan in the first half of the year

Lens Technology released its 2019 semi-annual performance forecast, with a net loss attributable to shareholders of the parent company of 124 million yuan to 170 million yuan, a year-on-year decrease of 127% to 137%.

Regarding the reasons for the performance change, Lens Technology stated that 1. In the first half of 2019, under the unfavorable background of complex and changing economic situations at home and abroad and frequent global trade frictions, the company operated steadily and adopted a positive market strategy, which led to a year-on-year increase in the company's revenue. On the one hand, the company has increased its innovation support and supply guarantee for domestic brand customers, and the sales of 3D glass products for front and rear covers of domestic and foreign brands of mid-to-high-end mobile phones have increased significantly; on the other hand, the company's products in related fields such as smart wearable devices and mid-to-high-end vehicle-mounted equipment have also achieved rapid growth. In the first half of the year, due to the turbulent development of the consumer electronics industry, the industry competition has intensified, and the overall scale of the industry has been under pressure, resulting in the company's production capacity and high delivery rate advantages not being fully utilized during the reporting period, labor costs, depreciation and financial expenses have increased, and the company's product gross profit margin has decreased year-on-year, resulting in a profit loss in the short term.

In addition, in the second half of 2019, new products of the company's major domestic and foreign customers will be released one after another, and the company's production capacity will be well met. The company will continue to improve the level of intelligent manufacturing, reduce costs, promote delivery, increase efficiency, consolidate the company's leading position in the industry, give full play to the advantages of production capacity and high delivery rate, increase market share, and strive to achieve better performance.

2. During the reporting period, the impact of non-recurring gains and losses on the current net profit was approximately RMB 196 million.

It is worth noting that on the day of the release of the semi-annual performance forecast, Lens Technology issued an announcement on the resignation of the deputy general manager and secretary of the board of directors. The board of directors of Lens Technology received a written resignation report submitted by Mr. Peng Mengwu, the company's deputy general manager and secretary of the board of directors, on July 12, 2019. Mr. Peng Mengwu resigned from the position of deputy general manager and secretary of the board of directors for personal reasons and will not hold other positions in the company.

Mr. Peng Mengwu has served as the company's deputy general manager and secretary of the board of directors since June 18, 2011, and his current term of office will end on June 30, 2020. Mr. Peng Mengwu currently holds 759,347 shares of the company. After leaving the company, he will continue to abide by the share lock-up commitment he made when the company's initial public offering of shares: "If he holds any position in the company or its directly or indirectly controlled subsidiaries, the shares he transfers each year shall not exceed 25% of the total number of shares he directly or indirectly holds in the company; within six months after leaving the company, he shall not transfer the company's shares he directly or indirectly holds. The number of shares of the company sold through listed transactions on the stock exchange within twelve months after declaring his resignation for six months shall not exceed 50% of the total number of shares of the company he directly or indirectly holds."