HC Semitek revenue was impressive for first half of 2016, according to the company’s latest financial statements.

The company’s revenue rose 41.16% to RMB 612.95 million (US $92.27 million), and its net profits for shareholders soared 323.02% to RMB 517 million, but  its net profit declined compared to first half of 2015 after removing nonrecurring profits.

The company announced volatile changes in its net profits compared to the same period in 2015 mostly caused by plummeting prices that exceeded product costs, which caused a decline in operating profits. However, after four consecutive quarters of LED chip price declines in 2015, the company’s prices climbed up slightly compared to last quarter. Product prices had slightly rebounded, and the company is taking advantage of the recovering market to actively expand in the market, and adjust its product strategy.

The company is downsizing, and implementing costdown measures to reduce expenditures to turn around its revenue in second quarter. The company’s wholly owned subsidiary Crystaland earnings were consolidated in its financial report starting from May 2016. Its financial results also rose last quarter because government subsidies were listed under profits or losses this year.

The company’s main revenue source is from LED EPI-wafer and LED chip sales, which climbed up 98.24% compared to the same period in 2015. The company’s improved investments and production capacity mostly stemmed from technology advancements and steadily scaling up investments to expand production capacity. The company’s product revenue grew steadily, and effectively countered negative impact from sliding retail prices. Additionally, the company has taken advantage of the rebounding market in second quarter to actively expand in the market, and to adjust its product strategy to boost its revenue.