Changdian Technology's net profit in the first three quarters was 764 million yuan, turning losses into profits year-on-year

On October 30, Changdian Technology released its third quarter report for 2020. The company achieved revenue of 18.763 billion yuan in the first three quarters, a year-on-year increase of 15.85%; the net profit attributable to shareholders of the listed company was 764 million yuan, turning losses into profits year-on-year.

Changdian Technology said that in order to further improve the company's asset operation efficiency, the company optimized the packaging product purchase and sales business model during the reporting period. In the process of producing and selling products, it no longer bears inventory risks for the main raw materials of the products. According to the relevant judgment principles of the revenue standard, this part of the revenue was listed in accordance with the relevant provisions of the accounting standards in the reporting period using the net amount method, which reduced the operating income and operating costs in the reporting period by 2.781 billion yuan, and had no impact on the net profit of the reporting period. Assuming that the operating income and operating costs are listed in the gross amount method, the net amount of ...

2.781 billion yuan (which must be presented using the net method in accordance with accounting standards), then after restoration using the gross method, the revenue for the reporting period was 21.544 billion yuan, an increase of 33.02% over the same period last year.

At the same time, the company stated that the change in net profit was mainly due to revenue growth and increased gross profit margin; and the change in net cash flow from operating activities was also mainly due to year-on-year growth in turnover and increased sales collection.

It is worth noting that not long ago, Changdian Technology planned to raise a total amount of no more than 5 billion yuan (including 5 billion yuan). The net amount of funds raised after deducting issuance expenses will be invested in an annual production of 3.6 billion high-density integrated circuits and system-level packaging modules, an annual production of 10 billion high-density hybrid integrated circuits and module packaging for communications, and repayment of bank loans and short-term financing bonds.

Among them, the implementation of the project of annual production of 3.6 billion high-density integrated circuits and system-level packaging modules is located in the D3 plant in Jiangyin. Through the investment in the construction of high-end packaging production lines (such as LGA, BGA, SiP, etc.), the production capacity of high-end packaging technology is improved to meet the packaging and testing market demand in the 5G commercial era, and further increase the company's market share in the global packaging and testing industry. After the project is completed, it will form a production capacity of 3.6 billion DSmBGA, BGA, LGA, QFN and other products for high-density integrated circuits and module packaging for communications.

The annual production of 10 billion pieces of high-density hybrid integrated circuits and module packaging for communication will be implemented by the company's wholly-owned subsidiary Changdian Technology (Suqian) Co., Ltd. (hereinafter referred to as "Changdian Suqian"), and the project construction period is 5 years. Through the construction of Suqian Microelectronics Industrial Park, we will form scale advantages, take advantage of Changdian's brand advantages, promote the balanced and efficient development of the semiconductor industry in Jiangsu, and increase Changdian's market share in the global packaging and testing industry. After the completion of this project, it will form a production capacity of 10 billion pieces of DFN, QFN, FC, BGA and other products for high-density hybrid integrated circuits and module packaging for communication.

Changdian Technology stated that after the fundraising and investment projects of this issuance are put into production, the company's product structure will be optimized, the company's market position and core competitiveness will be further enhanced, thereby enhancing the company's overall profitability.