On January 18th, Op Lighting released its 2016 performance report. In 2016, its total operating income reached RMB 547,663,600, an increase of 22.55% over the same period of the previous year; operating profit was RMB 564,485,900, an increase of 35.47% over the same period of the previous year; total profit was RMB 60,485,100. Yuan, an increase of 18.94 over the same period of the previous year. On January 18th, Op Lighting released its 2016 annual performance report. In 2016, its total operating income reached RMB 547,663,600, an increase of 22.55% over the same period of the previous year; operating profit was RMB 564,485,900, compared with the same period of the previous year. The increase was 35.47%; the total profit was 604,851,100 yuan, an increase of 18.94% over the same period of the previous year; the net profit attributable to the shareholders of the listed company was 506,879,700 yuan, an increase of 16.25% over the same period of the previous year. In the fierce competition in the LED market, the main reason for Opto Lighting's ability to maintain revenue growth is that the company continues to optimize its product structure and sales channel structure, so that the company's total operating revenue has maintained a good momentum of sustained growth, especially e-commerce platform revenue. Continued rapid growth, while strengthening cost control, through various measures to reduce costs and increase efficiency, and increase product gross margin. At present, China's general lighting consumer market is in a period of high growth, and China has become the world's largest production base for LED lighting products. From 2015 to 2017, it will continue to maintain a growth rate of more than 30%. It is expected that the market size will reach 748.5 billion yuan in 2017. Outstanding operational capability and obvious competitive advantage After years of unremitting efforts, Op Lighting has become a well-known lighting brand in China and has shown an upward trend in sales. In 2016, the total operating income of Op Lighting was approximately 5.477 billion yuan, a year-on-year increase of 22.55%; the net profit was 507 million yuan, an increase of 16.25%. This is mainly due to the continuous growth of product sales, while the continuous introduction of new products, production optimization and scale to bring down the cost of products, resulting in an increase in gross profit margin. It can be seen that Oupu Lighting's net profit growth and outstanding profitability. Nowadays, the scale of the lighting industry has undergone major changes. The trend of the industrial pattern of the larger Evergrande has become more and more obvious. Opto Lighting has formed a competitive advantage by continuously optimizing its product structure and large-scale manufacturing. Op Lighting believes that due to various factors such as the upgrading of domestic consumer demand, the replacement of LED technology, and the rise of e-commerce, the lighting industry is undergoing profound changes, gradually shifting from a market where many companies are dispersed to a competitive market. The competitive factors are transformed from traditional brand + channels to product + brand + channel + management. To this end, Op Lighting has accelerated the transition to LED lighting, while domestic marketing channels have sank to third- and fourth-tier cities and villages, and are committed to improving the ability of online and offline consumers; in addition, in Europe, Brazil, India, South Africa and other places to open subsidiaries to increase investment in overseas business. Optoelectronics develops rapidly Since the development of e-commerce by Op Lighting, the active exploration and continuous adherence have brought the company's outstanding performance in the e-commerce channel. In 2016, the sales of double 11 e-commerce was 204.6 million yuan, and it has been the first in the lighting decoration industry for four consecutive years. In 2016, the double 12, Op lighting on the basis of double 11 outstanding results, won the day's e-commerce sales of 77.89 million Yuan, causing widespread concern in the industry. It is understood that since the Optoelectronics 2016 double 11, e-commerce sales products have achieved a comprehensive upgrade of intelligent control, from the past single product control upgrade to smart system, the product realizes a variety of control methods such as mobile phone, APP, remote control, wall opening, etc. Provide consumers with more convenient and diverse choices. Qi Xiaoming, chief technology officer of Opt, has repeatedly expressed the concept of intelligent lighting and people-oriented in public. He emphasized that the development of intelligent products should start from the user's thinking and upgrade the intelligent system from single product control to create greater value. According to the "Op listing offer letter of intent", from 2013 to 2015, the sales revenue of Opal's e-commerce customers accounted for 25.63% of total operating income. Ou Pu Lighting's e-commerce sales exceeded 1.5 billion yuan this year. Ou Pu Lighting's total revenue in 2016 accounted for more than 27%. It shows that the layout of Op Lighting E-commerce is better. As the Internet wave continues to penetrate all walks of life, Op Lighting has actively opened up new sales channels, cooperated with leading e-commerce distribution companies in the industry, and opened online direct flagship stores in Tmall and Jingdong, and allowed to be certified by the company. The dealers open the store to sell the Op Art products and accept the company management. Through the product differentiation management, online sales supervision and after-sales service system, the company not only strengthens the Opal while ensuring that there is no price conflict and avoids counterfeit and shoddy products. The market promotion and layout of the products, at the same time, make the construction of the overall channel of Ou Pu more three-dimensional, effectively enhancing the channel sales efficiency. In the future, Op Lighting will continue to promote business upgrades, continue to strengthen R&D investment and technical strength, further enhance brand advantages, and strengthen the company's investment channel by strengthening investment and construction of commercial, e-commerce and overseas channels while strengthening and deepening the advantages of the company's distribution channels. Channel penetration capability and three-dimensional coverage continue to lead the development of industry and market, and create a leading enterprise in lighting. Promote domestic business and deepen the internationalization strategy. Opto promotes the development strategy of both home and business, starting from home lighting, providing solutions for the needs of different space scenes of consumers of different ages. In order to meet the requirements of different home decoration styles of consumers, the stylized design of the products, so that the lamps no longer meet the needs of only lighting, but a part of personalized home. While standing on the ground, Opp also extends the sub-categories of kitchen and bathroom ceilings and art switches to provide a one-stop whole-house solution. With the changes in mass consumption habits in the past two years, in order to create a better consumer experience, Oupu has also accelerated the sales network and accelerated the transformation of its dealers and continuously improved customer service capabilities. At the same time, in order to improve the user experience, Opt has launched a home-to-home service brand to provide diverse home lighting and customized services for more families. In the commercial sector, Opto's ETO, manufacturing, design and service capabilities make Ops a leading provider of one-stop differentiated solutions from customization to installation in the industry, and already in commercial real estate, department stores and office buildings. Many segments have considerable influence. While deepening the family business and strategy, Op Lighting continues to go out and build an international brand image. Since deepening the internationalization strategy in 2004, Op has made many solid footprints on the road of international brand image construction--winning the Asian Famous Brand Award, shining in New York Times Square on the mother's birthday, and in March 2016, Op Lighting is the only international pavilion at the International Lighting Fair in Frankfurt, becoming the only Chinese brand to stand shoulder to shoulder with the international top lighting companies, demonstrating the strong influence of Opp as a Chinese national enterprise that has successfully gone out. Leveraging the capital market to achieve leapfrog development As an industry-leading integrated lighting company, Op Lighting continues to develop green lighting products with high application value, high-tech content, environmental protection and energy saving. Since its establishment, the company has gradually improved its research and development system, expanded its production capacity, and established a nationwide three-dimensional marketing network with reasonable layout, controllability and efficient operation. It has been established in the national markets of provinces, municipalities, prefectures, cities, cities and leagues. Achieve more comprehensive coverage. While developing the local market, the company has actively expanded its overseas business and has established a good brand image in emerging markets such as the Middle East, South Asia and South Africa. At present, Op Lighting has more than 6,000 franchise stores and 41,000 sales terminals worldwide. Overseas channel construction has established sales organizations in Europe, the Middle East, South Africa, India, Thailand and other regions, and established a local service operation system for emerging markets. In overseas markets, OP products are exported to more than 50 countries and regions around the world. From the perspective of regional development, Europe, North America and Asia Pacific are the main markets for Op Lighting. From the perspective of regional growth, Asia, especially China, will become the fastest growing market with rapid economic restructuring and rapid consumption levels. At the same time, in the face of increasing product quality appeal and brand awareness in the international and domestic lighting markets, Op Lighting will continue to strengthen R&D investment and technical strength, further enhance product value mining and brand advantages, and optimize the diversified layout and output of sales channels. While stabilizing and deepening the advantages of the company's distribution channels, it will enhance the channel penetration and three-dimensional coverage of the company by strengthening the investment and construction of commercial, e-commerce and overseas channels. The listing of Op Lighting will help the company to market its operations, better enhance the company's value, further consolidate and enhance the company's industry position, and play a very important role in enhancing the company's brand image, enhancing its core competitiveness and enhancing its comprehensive strength. As an important force in the field of green environmental protection, Op Lighting will seize the golden opportunity of the development of the industry and leverage the capital market to achieve leapfrog development. Summary: As the LED industry continues to reshuffle, the industry's scale advantage and brand advantage will become increasingly obvious in the future, and the industry concentration will increase rapidly, which will provide a broad space for growth for leading companies such as Op Lighting. As the leader of the domestic lighting industry, Op Lighting will increase the overall level and strength of the industry after the listing, leading the brighter future of the Chinese lighting industry.

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