Han's Laser released its semi-annual financial report, and its main businesses generally declined

Han's Laser released its 2019 semi-annual report. The report shows that in the first half of the year, Han's Laser achieved revenue of 4.734 billion yuan, a year-on-year decrease of 7.3%; net profit of 379 million yuan, a year-on-year decrease of 62.74%; R&D investment of 399 million yuan, a year-on-year decrease of 0.98%, accounting for 8.42% of total revenue; gross profit margin of 33.49%, a year-on-year decrease of 5.97 percentage points; total assets of 18.176 billion yuan, a decrease of 4.06% from the end of 2018.

Main business situation: generally declining, panels and new energy maintain growth

Regarding the performance changes, Han's Laser stated: Due to the cyclical decline in consumer electronics business, revenue in the first half of 2019 was approximately 876 million yuan, a year-on-year decrease of approximately 17.67%.

Other low-power laser businesses except consumer electronics business increased by about 7.80% year-on-year. Among them, the display panel industry achieved revenue of about 316 million yuan, an increase of about 7.50% year-on-year, and the delivery of equipment to some major customers was concentrated in the second half of the year; the new energy battery equipment industry achieved revenue of about 710 million yuan, an increase of about 125.23% year-on-year, and the expansion of major customers progressed smoothly, but due to fierce competition, the gross profit margin was low.

The high-power laser business achieved revenue of 1.13 billion yuan, a year-on-year decrease of 5.43%. Due to intensified market competition, its gross profit margin fell by 4.29 percentage points compared with the same period last year.

PCB equipment achieved revenue of 422 million yuan, a year-on-year decrease of 37.55%. Some customers were affected by the Sino-US trade friction and asked the company to delay delivery, resulting in a significant year-on-year decline in PCB business.

Sales area situation: Jianghu area has declined severely

The South China region achieved revenue of 2.2 billion yuan, a year-on-year increase of 21.2%, accounting for 46.49% of the total revenue; while the revenue of the Jianghu region declined more seriously, down 41.53% from the first half of 2018, and the revenue of 665 million yuan accounted for only 14.05% of the total revenue, lower than the 703 million yuan (14.84%) of the North region. The overseas region's revenue increased slightly, exceeding 500 million in the first half of this year, a year-on-year increase of 5.94%, accounting for 10.63% of the total revenue.

Major project progress and committed investment projects

The European R&D and Operation Center project, which has attracted media attention before, has been completed by 75%, with an investment of 135 million yuan in the first half of this year and a total investment of 806 million yuan so far. Han's Laser said that the European R&D and Operation Center is expected to be completed by the end of 2020, with a total project budget of 1.057 billion yuan, accounting for 5.58% of the company's total assets in the most recent year. The construction of the project will not have a significant impact on the company's financial status and operating results, and will not affect the independence of the company's business and operations.

The completion rate of the Han's Global Intelligent Manufacturing Base project is 60%, with an investment of 277 million yuan in the first half of this year and a total investment of 816 million yuan so far. Han's Laser said that the construction progress was behind schedule due to the influence of the rainy season and high temperature.

The high-power laser cutting and welding system and robot automation equipment industrialization project, which was committed to invest 147,800 yuan of raised funds, has invested 41.14%, with an investment of 21,700 yuan in the first half of the year and a cumulative investment of 60,800 yuan. The brittle material and panel display equipment industrialization project, which was committed to invest 79,800 yuan, has invested 27.82%, with an investment of 7,600 yuan in the first half of the year and a cumulative investment of 22,200 yuan. Han's Laser said that due to the influence of the rainy season and high temperature on the construction project, the construction progress was behind the original plan.

Third quarter forecast: expected net profit of 580 million to 746 million yuan

It is estimated that the net profit attributable to shareholders of the listed company from January to September 2019 will decrease by 65.00%-55.00% compared with the same period of the previous year, and the net profit fluctuation range is 580 million yuan to 746 million yuan. Among them, the net profit attributable to shareholders of the listed company in the third quarter of 2019 is expected to decrease by 42.64%-68.60% compared with the same period of the previous year.