Longhua Technology's net profit in the first three quarters was 173 million yuan, up 28.83% year-on-year

On October 22, Longhua Technology released its third quarter report, saying that the company achieved operating income of 464 million yuan in the third quarter, a year-on-year decrease of 1.76%; net profit attributable to shareholders of listed companies was 64.1839 million yuan, a year-on-year increase of 25.47%. In the first three quarters, Longhua Technology achieved operating income of 1.246 billion yuan, a year-on-year decrease of 3.79%; net profit attributable to shareholders of listed companies was 173 million yuan, a year-on-year increase of 28.83%.

It is understood that Sifeng Electronics, a subsidiary of Longhua Technology, is a high-tech enterprise specializing in the research, development, production and sales of high-purity sputtering targets for TFT-LCD/AMOLED and semiconductor IC manufacturing - high-purity molybdenum/copper/titanium and other products. It is a domestic enterprise that can completely replace imports and mass-produce and supply high-end targets. Its main product, molybdenum targets, have been widely used in sputtering coating production lines in flat panel display industries such as TFT-LCD and AMOLED. Its main domestic customers include industry leaders BOE, Tianma Microelectronics, TCL Huaxing and many other companies. At the same time, the company's vigorously developed non-target business such as INVAR alloys, tungsten-molybdenum products, and tungsten-molybdenum wire products has developed rapidly, bringing new growth points for the next step of development. 

Another subsidiary, Jinglian Optoelectronics, is a high-tech enterprise specializing in the research and development, production and sales of indium tin oxide (ITO) targets. Through independent innovation, it has achieved a technological breakthrough in domestic ITO targets for high-end display panels in the TFT-LCD industry. Its products have been recognized by customers and have begun to be supplied in batches. Jinglian Optoelectronics' ITO target products have passed the test and certification of multiple TFT production lines of customers such as BOE, TCL Huaxing, Tianma Microelectronics and Truly Semiconductor. With the increase in test and certification at different user ends and the rapid increase in Jinglian Optoelectronics' own production capacity, the shipment volume of ITO targets will also grow rapidly in the future.

Longhua Technology stated that in the field of target materials and ultra-high temperature special functional materials, affected by the new crown pneumonia epidemic, the Western suppression of China's high-end manufacturing industry and other events, domestic display panels, semiconductors and other industries have begun to strategically reconsider procurement and supply channels. The company's target material business has accelerated the process of replacing imports, especially wide-width molybdenum targets and high-generation ITO targets as new growth points. The market share has increased significantly and has maintained rapid development overall.