Changdian Technology: Net profit reached 1.23 billion yuan in 2020, a year-on-year increase of 1287.27%

On the evening of January 22, Changdian Technology released its 2020 performance forecast: the net profit attributable to shareholders of the listed company for the year was about 123 million yuan, an increase of about 1,287.27% year-on-year. In addition, after deducting non-recurring gains and losses, the company is expected to achieve a net profit attributable to shareholders of the listed company of about 920 million yuan in 2020; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in the same period last year was -792.8449 million yuan.

Regarding the growth of performance, it is stated that: during the reporting period, the company actively seized market opportunities and increased its expansion efforts. The demand for orders from key international and domestic customers was strong, and the company's revenue increased significantly year-on-year; the company's factories continued to increase cost control and operating expense control, adjusted product structure, and promoted profitability; the company's management, under the leadership of the board of directors, continued to strengthen management, improve financial structure, actively promote organizational structure changes, introduce talents, and further strengthen the synergy, technical capabilities and production capacity layout among the companies under the group, better matching market and customer needs, and effectively improving the company's overall profitability. In addition, the net profit attributable to shareholders of listed companies in the same period last year was relatively small.

According to Soochow Securities, Changdian Technology is a global leading semiconductor microsystem integration and packaging and testing service provider, with business covering all high/mid/low-end product categories. It can provide customers with full-process technical solutions from design simulation to mid- and back-end packaging and testing and system-level packaging and testing. It has become the largest packaging and testing company in China and the third largest in the world.

In the first three quarters of 2020, Changdian Technology closely tracked customer and market demands, provided high-end customized packaging and testing solutions and mass production support, and received strong demand for orders from key customers at home and abroad. At the same time, each production area continued to increase cost control and operating expense control, adjusted product structure, and promoted the company's performance to achieve rapid growth and significantly improve profitability.

Soochow Securities also stated that Changdian Technology's packaging and testing capacity is distributed in multiple locations, with significant scale advantages. At the same time, the various production areas complement each other, each with its own technical characteristics and competitive advantages. The company has mastered a number of core technologies in major packaging fields and can provide a full range of one-stop packaging technology services including through-hole insertion, surface mounting, area array packaging and high-density packaging, completely covering the low, medium and high-end packaging and testing fields.

At the same time, Changdian Technology focuses on key application areas and has industry-leading advanced packaging technology in important fields such as 5G communications, high-performance computing, consumer, automotive and industrial. It has a solid technological moat and outstanding production scale advantages, and its market share has remained the leader in the local packaging and testing market. The company continues to optimize corporate governance, actively promotes production line resource integration, lean production, long-term cooperation with key customers, and advanced packaging and testing research and development, and has broad prospects for collaborative development with SMIC in the future. It is expected to give full play to the leading advantages of local packaging and testing and benefit from the continued growth of the packaging and testing market.