Benefiting from the rapid increase in demand for 5G communications, Shengyi Technology's net profit increased by 45.73% in 2019

On the evening of February 20, Shengyi Technology, a leading copper clad laminate manufacturer, released its 2019 performance report. The company achieved revenue of 13.241 billion yuan, a year-on-year increase of 10.52%; and achieved a net profit of 1.458 billion yuan, a year-on-year increase of 45.73%.

During the reporting period, Shengyi Technology closely focused on the development strategies and business objectives determined by the board of directors and carried out various tasks in an all-round manner to ensure the company's steady development and the realization of its annual business objectives.

Shengyi Technology stated that the company's operating profit, total profit, net profit attributable to shareholders of the listed company, net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses, and basic earnings per share increased by more than 30% over the same period last year. The main reasons are: (1) The company optimized the sales structure of copper clad laminate products in this period, which improved the profitability of the main business in this period; (2) The 5G communication market expanded rapidly in this period, and its subsidiary Shengyi Electronics Co., Ltd. seized the market opportunities in a timely manner, promoted technological improvement, continuous innovation and capacity optimization, and achieved a significant increase in operating income and profitability; (3) The sales volume of various types of copper clad laminate products of the company increased to varying degrees compared with the same period last year; (4) The company effectively controlled costs and expenses and continuously reduced unit manufacturing costs, which improved the profitability of the main business in this period; (5) The company's fair value change gains during the shareholding period in this period increased significantly compared with the same period last year; (6) The company's convertible corporate bonds were converted into shares in this period, which reduced interest expenses accordingly.

In addition, during the reporting period, the Company's owners' equity attributable to shareholders of listed companies at the end of the period increased by more than 30% compared with the beginning of the period, mainly due to: (1) the conversion of the Company's convertible corporate bonds during the period resulted in an increase in share capital and capital reserves; (2) the Company's profits during the period increased significantly and were greater than the dividends paid during the period; (3) the Company's associate Jiangsu Lianrui New Materials Co., Ltd. was listed on the Science and Technology Innovation Board during the period, and the Company calculated its share based on the latest shareholding ratio and increased its capital reserves accordingly.