Auckson Opto recently announced its revenue for first half of 2016, which revealed its revenue and gross margin all declined.

A summary of its earnings as follow:

• The company’s revenue for first half of 2016 was down 7.73% Year-on-Year to RMB 722.72 million.
• Net profits declined 27.49% to reach RMB 110.39 million, posted the company.
• The company’s net profits attributable to shareholders plummeted 32.64% to RMB 89 million.

During the reporting period the company’s metal logistics business continued to grow, but its revenue was impacted by declining LED chip business. The company’s revenue and profitability dropped significantly, but was still higher than industry average.

The company posted during first half of 2016 its LED production line operations were high, but due to the industry’s dire situation in first quarter, it impacted revenue and profits for first half of 2016. Consolidated revenues from its optoelectronic subsidiary contributed RMB 149.42 million to its revenue during the reporting period, amounting to 18.90% of its net profits. Following restructures during second quarter, the company’s LED business and client structure improved, and it was able to expand production capacity, improve both revenue and gross margin on a quarterly basis. The company projected its LED business would improve in second half of 2016.