Ennostar, during its first-quarter press conference today, outlined its recent financial and operational strides, highlighting a return to growth despite the traditional off-season. CFO Chang Bo Yi celebrated the company’s rebound, fueled by rising automotive orders and a surge in Mini LED sales, marking the first revenue growth in this period.
Chairman Peng Shuang-Lang discussed strategic shifts within the company, including the consolidation of operations and a sharper focus on optoelectronics. Notably, Ennostar divested a batch of microelectronic equipment for 435 million yuan and reacquired a 39% stake in Jingcheng Semiconductor for 450 million yuan, streamlining its portfolio and reinforcing its core competencies.
The financials from the first quarter reflect these adjustments. Ennostar reported a modest quarterly revenue increase to 5.583 billion yuan, up 18.1% year-over-year. The operating gross profit margin improved significantly to 12.2%, with the net profit margin improving, though still negative at -9.3%. These figures represent a considerable mitigation of losses compared to the previous quarter.
Despite ongoing losses, Peng remains optimistic about the company’s future, citing a planned cash dividend of 0.9 yuan from last year’s capital reserves as a gesture of gratitude towards shareholders for their enduring support. He anticipates a stronger performance in the upcoming quarters, driven by steady growth in the TV backlight, automotive, and specialty lighting sectors.
Looking ahead, Ennostar is strategically positioning itself for robust growth in its LED sales into the third quarter, timed with the peak season for consumer products. Additionally, the company is preparing for the potential introduction of Micro LED technology in automotive applications within the next two to three years, anticipating significant revenue contributions from this innovation.
With improved production capacity utilization and proactive inventory management, Ennostar is gearing up to meet the increased demand anticipated in the second quarter, setting the stage for sustained growth and technological advancement in the optoelectronics sector.
