(Yicai Global) Aug. 30 -- According to performance data smartphone manufacturer Coolpad [SEHK:02369] released yesterday for the first half of 2016, it achieved a turnover of HKD5.277 billion, a yearly decrease of 39.9 percent, losing USD258 million (HKD2.053 billion) compared with its net profit of HKD2.837 billion over the same period the previous year.
Coolpad attributed the profit decline to business unit reshuffling and intensifying competition in mainland China. The deficit recorded is mainly due to the sales of interests from the company's joint venture.
As of the end of June, sales revenue from its 4G smartphone was HKD5.06 billion, an annual decline of 36.9 percent, even as sales revenue from its 3G smartphone was HKD102 million, a yearly decline of 83 percent. Sales revenue from its wireless application service was about HKD81.9 million, an annual decline of 41.4 percent, in a sign that corresponds with its overall declining tendency.
Coolpad, one of the main smartphone manufacturers in China, had tried in vain to complete an all-around transformation prior to LeTV's investment. On Aug. 5, LeTV's founder, Jia Yueting, became chairman of Coolpad's board of directors, signaling that Coolpad had been completely acquired by LeTV and the company was to open a new chapter. Nevertheless, some insiders believe that it is too late for Coolpad to split the "cake" of smartphones, and thus outperforming other players in the short run may prove problematic.