Jufei Opto announced its total revenue soared 57.32% Year-on-Year to reach RMB 654.96 million (US $98.62 million) in first half of 2016, but its gross margin declined during the period.

According to the company statement, the increased revenues were the result from growing sales volumes, and consolidated revenue from its Hong Kong subsidiary. Still, its net profits were hurt by plummeting LED product gross margins.

LED lighting products gross margin reached 9.4% in first half of 2016. The company posted revenues from LED lighting products reached RMB 74.12 million, but operation costs reached RMB 67.14 million.

The company’s net profits declined 12.56% annually to RMB 59.41 million, but its net cash flow from operations inched up 0.34% to RMB 57.75 million.

According to the company’s financial statement, its LED backlight product revenue continued to grow steadily, and further solidified its leading market position. With market competition intensifying in the smartphone market, smartphone module supply chain has shifted to domestic markets. As a leading LED backlight manufacturer, the company has continued to innovate its technology, management, and improve its overall market competitiveness to acquire a leading position in China’s LED backlight industry, and further expand its global market share.

The international market provides further room for growth, and Jufei Opto is building on top of its large domestic market share to provide new innovative solutions to improve its services and sales to large international clients.

The lighting business development has been within the reporting period, and its revenue soared. LED lighting products acquired positive feedback from clients, and is being widely exported to U.S. and Europe. In the high end lighting market, Jufei Opto has developed a good brand image. The company is expanding its client base to acquire strategic big clients to achieve real breakthroughs, and establish a good partnership, client recognition, and improve client satisfaction.

Fine pitch LED display has realized mass production and sales, market growth has escalated. The company is adamant about establishing an image as a high end brand in the Chinese display market. It is providing clients with professional small pitch display solution that can be applied in indoor displays, conference rooms, schools, movie theaters and other applications. The small pitch displays will become the company’s new strategic business, and product reliability, and low failure rates has being highly recognized by clients on the market. Many clients in the industry have started to use these products in large volumes, and it is expected to become a new driver for generating profits.