Beijing Junzheng expects its net profit in the first half of the year to be RMB 2.6111 million to RMB 14.0529 million

On July 15, Beijing Junzheng released its 2020 semi-annual performance forecast. According to the company's forecast, the company's net profit attributable to shareholders of listed companies during the reporting period was RMB 2.6111 million to RMB 14.0529 million, a year-on-year decrease of 92.94% to 61.98%. During the reporting period, the company's non-recurring gains and losses were approximately RMB 22 million, compared with RMB 24.5658 million in the same period last year.

Regarding the performance changes, Beijing Junzheng stated that during the reporting period, affected by the epidemic, the company's revenue from microprocessor chips and smart video chips generally declined slightly, among which the sales revenue of microprocessor chips decreased year-on-year, while the sales revenue of smart video chips continued to grow; at the same time, in May 2020, the company completed the acquisition of Beijing Sicheng, and since June 2020, the company has consolidated Beijing Sicheng, which has increased the company's overall operating income year-on-year compared with last year.

At the same time, due to the valuation increase of inventory, fixed assets and intangible assets generated by this acquisition, the amortization of new assets in June 2020 caused operating costs and operating expenses to increase year-on-year, resulting in a significant decline in the company's net profit.

In addition, in the first half of 2020, the COVID-19 pandemic broke out around the world. Under the influence of this global force majeure factor, Beijing Silicon Industries' markets in China and overseas were affected to varying degrees, especially in the automotive electronics market. The shutdown of customer factories and the decline in market demand led to a large number of order cancellations or postponements.

At present, the global COVID-19 pandemic is still relatively serious, especially in Europe and the United States. Since the European and American markets are important markets for Beijing Silicon Electronics in the field of automotive electronics, although some regions have begun to cautiously resume work, it is still uncertain to what extent Beijing Silicon Electronics' 2020 operating conditions will be affected by the epidemic. If the automotive electronics market cannot recover quickly, Beijing Silicon Electronics will face the risk of failing to fulfill its performance commitments.