All 8 Huizhou-based A-share listed enterprises recently released their performance forecasts for the first half year of 2021. According to the reports, the net profit of shareholders for these 8 enterprises, all witnessed a significant increase, with the combined net profit of shareholders ranging between 7.831 billion yuan and 8.365 billion yuan.
This same figure for the first half of last year was 2.04 billion yuan; largely because of China’s success in handling the COVID-19 crisis, these 8 enterprises were able to achieve a significant rise in net profit. Their combined net profit is expected to exceed 8 billion yuan this year, an increase of 6 billion yuan YoY.
TCL Technology and Guangdong Champion Asia see a two-fold increase of net profit of shareholders.
TCL Technology and Guangdong Champion Asia both see a two-fold increase of net profit of shareholders. According to the report, TCL’s net profit of shareholders was about 6.5 billion yuan to 6.9 billion yuan, a year-on-year increase about 438% to 471%; while its business revenue for the first half of this year was about 73 billion yuan to 75 billion yuan, an increase of 149% to 156%。
According to TCL Technology, the impressive economic performance was largely due to the thriving of semiconductor display industry. In addition, TCL Technology’s business expansion in semiconductor photovoltaic sector proved to be successful. TCL’s many large-sized display products, including CSOT t1, t2, t6 and t7, were popularly accepted in the market. With the t10 being launched in the market in the second quarter of this year, the delivery of large-sized display products saw a rise of 24%.
Guangdong Champion Asia’s net profit of shareholders was about 113.8 million yuan to 120.6 million yuan, a year-on-year increase of 202.98% to 221.08%. According to Guangdong Champion Asia, it was largely due to its optimized product structure and increased earning level. For example, its PCB factory in Huizhou succeeded in turning losses into gains, and the Longnan Junya precision project (phase one) helped increase Guangdong Champion Asia’s production capacity and profitability level significantly.
Huizhou sees rapid growth in the new energy vehicle and smart driving sectors.
Among Huizhou’s 15 listed enterprises, two are within the automotive electronics sector, and another two within new energy battery sector; in other words, Huizhou is an undisputed forerunner of emerging industries.
DESAY SV and ADAYO are within the automotive electronics sector. In the first half of this year, DESAY SV’s projected net profit of shareholders is about 360 million yuan to 375 million yuan, up 56.81% to 63.35%; while ADAYO has a net profit of shareholders of 125 million yuan to 145 million yuan, up 141.23% to 179.83%.
According to DESAY SV, its three major production lines, namely intelligent cockpit, intelligent driving, and Internet connection service, grew rapidly this year, driving the significant rise for both business revenue and net profit of shareholders. The company’s IPU03 self-driving controller has been mass produced for xiaopeng cars. DESAY SV also has carried out strategic cooperation with Lixiang car regarding the mass production of IPU04, an Orin-based next generation self-driving controller.
According to ADAYO, it has received record high orders for its automotive electronic intelligent cockpit, such as digital instrument, central control, HUD and accurate die casting, resulting in the significant pay rise of the company’s sales personnel. As of now the company has secured many large orders of HUD for Great Wall Tank and other car types, and it is estimated that mass production will take place at the second half of this year or next year.
As for the new energy battery sector, Desay Battery’s net profit of shareholders is about 250 million yuan to 275 million yuan, up 43.87% to 58.26%. According to Desay Battery, in August 2020, Huizhou Battery and Huizhou Langwei became fully-owned subsidiaries of Desay Battery, helping boost the net profit of shareholders; in addition, Desay Battery’s medium lithium battery power management system and encapsulated integrated circuit also witnessed much increased sales in the first half of this year.
PCB is widely regarded as a key link of new energy vehicle upstream and downstream industrial chain. As a PCB leader in Huizhou, Victory Giant Technology succeeds in realizing the net profit of shareholders of 365 million yuan to 418 million yuan, up 40% to 60%. According to Victory Giant Technology, it is largely due to the effective strategic planning to optimize its customer structure and product mix, larger orders from overseas clients and new energy vehicle manufacturers, as well as the thriving development of the company’s other businesses, such as telecommunication, servers, automobile, and consumption.
Reported by: LIU Weiwei