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Increase in revenue without increasing profits, Huazheng New Material Q1 net profit fell by 51.35% year-on-year

Increase in revenue without increasing profits, Huazheng New Material Q1 net profit fell by 51.35% year-on-year

Jiwei Network News (Wen/Chen Wei) On April 18, Huazheng New Material released the first quarter report of 2022, saying that the company achieved operating income of 837 million yuan in the first quarter, an increase of 8.76% year-on-year; net profit attributable to shareholders of listed companies was 30.823 million yuan, down 51.35% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 24.9735 million yuan, down 59.24% year-on-year.

Increase in revenue without increasing profits, Huazheng New Material Q1 net profit fell by 51.35% year-on-year

It is reported that Huazheng New Material is mainly engaged in the design, development, production and sales of copper clad laminates (including semi-cured sheets), composite materials (including functional composite materials and composite materials for transportation and logistics) and aluminum plastic film for lithium battery soft packs, which are widely used in 5G communications, data exchange, new energy vehicles, smart home appliances, medical equipment, rail transit, green logistics and other fields.

In terms of high-frequency materials, Huazheng New Material focuses on the development of two series of products, PTFE and hydrocarbon. The company has a number of sub-segments of the product batch put on the market, and has occupied a large market share. In terms of antenna materials applied to 5G base stations, it is possible to cover the full-band material requirements from 4G to 5G communications. In terms of high-frequency electronic materials for power amplifiers, the company has developed a series of products from medium power to high power and super power in 2021, which meet the needs of different large-scale terminal communication customers, so that the full range of products are covered, and the product technology level is in the international leading position.

In terms of automotive electronic materials, with the increasing demand for overall safety, comfort and entertainment of automobiles, electronic, informatization, networking and intelligence have become the development direction of automotive technology; at the same time, the rapid development of new energy vehicles, safe driving assistance and driverless technology has enabled more high-end electronic communication technology to be applied in automobiles, and the proportion of automotive electronic systems in the cost of the vehicle has been continuously improved. Huazheng New Material expands the existing formula application field, through process adjustment and optimization, the company's thick copper, CAF-resistant copper clad laminate and other materials have achieved great results in the field of automotive electronics, and lead-free and halogen-free materials for automotive electronics have been recognized by PCBs and end customers.

In terms of aluminum-plastic film materials for lithium battery soft packs, Huazheng New Materials has developed aluminum plastic film products for soft pack lithium-ion batteries, including 3C class and energy storage power products. Among them, class 3C products have excellent electrolyte resistance, depth of impact, water vapor barrier and other properties compared with similar products in the market, as well as excellent processing performance and cost performance. Energy storage power products have excellent long-term durability and consistency. In 2021, the company will build an application laboratory with downstream customers to carry out experiments and research on batteries, batteries and their durability; conduct in-depth joint research with many well-known domestic scientific research institutes; carry out cooperative development of raw materials with upstream suppliers, and some national high-end products have passed the certification of many well-known downstream customers and achieved mass production.

In addition, Huazheng New Material said that the copper clad laminate industry promotes the moderate rapid growth of production capacity, and the company will promote the first phase of the Zhuhai base project with an annual output of 24 million pieces of high-grade copper clad laminate as expected. The company will make full use of the regional advantages of the headquarters, further build and improve the platform function of the headquarters management, promote the completion of the aluminum-plastic film expansion project with an annual output of 36 million square meters of lithium battery soft packs, comprehensively enhance the industry competitiveness of aluminum-plastic film products, and create a new growth point for the company to build a platform-based new material enterprise.

(Proofreading/Andy)

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