Jintuo shares' net profit fell 90% in the first half of the year

Jintuo Co., Ltd. released its 2019 semi-annual report. The company achieved total operating revenue of 219.5327 million yuan, a decrease of 32.43% from the same period last year; and achieved net profit attributable to shareholders of listed companies of 5.0310 million yuan, a decrease of 90.29% from the same period last year.

Jintuo shares stated that in the first half of 2019, the international economic situation was complex and severe, Sino-US trade frictions were volatile, and there was pressure for a slowdown in demand from downstream customers in the electronic assembly industry. At the same time, the operating difficulties of many small and medium-sized enterprises in the industry in China increased. In order to survive, small businesses chose to reduce prices and seize the market, resulting in intensified market competition in the electronic assembly industry, which brought great pressure to the company's performance improvement of electronic assembly equipment.

At the same time, the demand in the downstream of the domestic optoelectronic market and the terminal electronic consumer market is being updated at a faster pace, the research and development cycle of new products for optoelectronic module-specific equipment is long, the manufacturing cost is high, and the acceptance cycle for new equipment is long, resulting in a decline in the company's performance in optoelectronic module-specific equipment during the reporting period.

Specifically, during the reporting period, Jintuo Co., Ltd. achieved sales revenue of RMB 163.7352 million for electronic welding equipment, down 24.12% from the same period last year; sales revenue of RMB 27.7925 million for intelligent machine vision inspection equipment, down 26.25% from the same period last year; sales revenue of RMB 18.5193 million for optoelectronic module special equipment, down 71.45% from the same period last year.

Regarding the main reasons for the decline in net profit, Jintuo shares stated that there are two points: (1) During the reporting period, the company's order amount increased compared with the same period of the previous year, but due to the long acceptance cycle of new products, it was not possible to confirm operating income during the reporting period because the new products were not accepted. As a result, the company's operating income during the reporting period decreased compared with the same period of the previous year, and the net profit attributable to shareholders of the listed company also decreased accordingly; (2) During the reporting period, the company's R&D investment increased compared with the same period of the previous year, and depreciation expenses for the fundraising project completed and accepted in December 2018 were added.