With sufficient orders for major products, Sanhuan Group's revenue in the first half of the year increased by 21.06% year-on-year

On the evening of August 27, Sanhuan Group released its 2020 semi-annual announcement. During the reporting period, the company achieved operating income of RMB 1,649,230,000, an increase of 21.06% over the same period last year; operating profit of RMB 659,909,700, an increase of 19.38% over the same period last year; and net profit attributable to the owners of the parent company of RMB 556,100,300, an increase of 18.60% over the same period last year.

Sanhuan Group said that the revenue growth was due to the improvement of the aforementioned epidemic prevention and control situation and the positive industry trend, and the company's product sales increased accordingly. Sanhuan Group's operating costs were 856.4817 million yuan, an increase of 29.71% over the same period last year. The main reason was that as the operating income increased, the operating costs increased accordingly.

During the reporting period, Sanhuan Group focused on the electronic ceramics industry, adhered to customer demand-oriented, and deeply explored the potential demand of the industry. As the epidemic is gradually brought under control, the world gradually resumes work and production. At the same time, benefiting from 5G and domestic substitution, the demand in the electronics industry has gradually recovered, and downstream manufacturers have entered the inventory replenishment period. The company's main product orders are sufficient, and the business trends are positive. The sales growth rate of Sanhuan Group's related products has increased significantly.

In addition, in terms of semiconductor components, benefiting from factors such as global industrial transfer and domestic policies, the layout of the semiconductor industry chain has become increasingly perfect, and the upstream and downstream have gradually been opened up. Sanhuan Group's ceramic packaging base products continue to maintain strong competitive advantages with the advantages of quality and service, and further expand the market scope; in terms of electronic components and materials, with the continuous penetration of 5G and the acceleration of domestic substitution of upstream electronic components, the domestic epidemic prevention and control situation has gradually improved, the pace of domestic manufacturers' resumption of work and production has accelerated, and the industry's prosperity has continued to pick up. The market demand for the company's multi-layer ceramic capacitors and ceramic substrates has gradually recovered; in terms of communication components, the formal commercial deployment of domestic 5G and the promotion of new infrastructure have improved the prosperity and market demand of the optical communication industry. Operators and data centers have increased their investment and upgrades in optical fiber networks. The market advantage of the company's communication components has continued to expand and continue to maintain steady growth.

In addition, Sanhuan Group plans to issue shares to specific objects, and the funds raised will be invested in the "Technology Transformation Project for Expansion of High-Quality Multilayer Ceramic Capacitors for 5G Communications" and the "Ceramic Splitting Knife Industrialization Project for Semiconductor Chip Packaging", further enhancing the company's own scientific research and technological level, operational service capabilities, and enriching product lines. At the same time, it will help break the monopoly of foreign markets and contribute to the development of related domestic industries.