Baofeng Q2 net profit jumps 108 percent

Baofeng Group Co, which offers online video, smart TV and VR devices, said on Tuesday it had posted a net profit growth of 108 percent in the second quarter, thanks to booming sales of TVs and an increased number of paid users.

The Shenzhen-listed company has developed TVs with Artificial Intelligence features, which is expected to bring in more revenue and business opportunities in the second half.

Baofeng’s Q2 net profit hit 32.2 million yuan (US$4.7 million), returning the company to the black after a negative second quarter, it said in a statement to the Shenzhen stock exchange.

AI technology, as well as detailed user data, will help improve the user experience and boost sales, becoming the major drivers of growth, company chairman Feng Xin said.

In the first half, Baofeng sold 350,000 smart TVs, up 97 percent year-on-year, compared with a slight decrease industry-wide. It also sold 3.5 million VR devices in the period, making it one of the top VR device vendors in China.