While Dahua's overall revenue was up more than 12% in Q3 2020, a significant improvement from the first half of 2020, the company's operating profit is down.
I see where this confusion comes from. Reuters reports Dahua's net profit attributable to shareholders as operating income/profit, however, the number Reuters uses includes Dahua's recent, one-time divestiture of Huatu Microchip which inflates Dahua's "profits" significantly.
As I mentioned in the report, Dahua made 941 million RMB from the complete sale of its microchip subsidiary, which was reported in Q3's financial results. In China, companies report one-time divestment incomes in their top-line profit. In the US, companies don't. What's important and telling of Dahua's sales performance is their net profit after deducting non-recurring gains and losses because it takes out the large, one time sums of money that a company may receive from selling part of its business. Reuters does not report this number (446 million RMB) anywhere.
English sources like Reuters and Bloomberg often have trouble translating Chinese financial concepts into an appropriate, completely synonymous English counterpart (for example, the net profit minus non-recurring gains and losses concept), so it's safest to look at the China company's official financial report, which is what IPVM defaults to as accurate. You can find an English version of Dahua's report here. Alternatively, one can look up and follow companies on the Shenzhen stock exchange as they issue reports and announcements after making an account here.
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Undisclosed Manufacturer #1
According to Reuters, Operating Profit increased from 583 million CNY to 1,469 million CNY in Q3 2020.
002236.SZ - ZHEJIANG DAHUA TECHNOLOGY CO., LTD. Financials | Reuters
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