The supply volume to major mobile phone customers at home and abroad increased, and Zhongshi Technology's net profit increased by 53.1% in 2020

On February 26, Zhongshi Technology disclosed its 2020 annual performance report. In 2020, it achieved a total operating income of 1.148 billion yuan, a year-on-year increase of 47.97%; and achieved a net profit attributable to shareholders of listed companies of 188 million yuan, a year-on-year increase of 53.10%.

Zhongshi Technology said that its net profit attributable to shareholders of the parent company increased compared with the same period last year, mainly benefiting from the business expansion of new projects and new products in the fields of laptops, tablets and other consumer electronics for major foreign customers, and the continued increase in supply to major domestic and foreign mobile phone customers. Its operating income increased by 47.97%. At the same time, in the face of increasingly fierce domestic and foreign market competition, Zhongshi Technology has maintained relatively stable product profitability through continuous optimization of production processes and supply chains, resulting in a steady improvement in operating performance.

In addition, the investment in R&D of new products and new projects of Zhongshi Technology increased, and the investment in R&D of domestically produced alternative products of major communication customers increased. At the same time, the company further expanded the investment in iterative R&D of existing products and the introduction of high-end R&D talents, and the company's R&D expense rate increased compared with the same period last year. At the same time, benefiting from the continuous improvement of management efficiency, the overall expense rate of sales, management and research of the company decreased during the reporting period.

In terms of finance, at the end of the reporting period, its total assets amounted to RMB 1.983 billion, an increase of 91.19% from the beginning of the period; the total equity attributable to shareholders of the listed company was RMB 1.692 billion, an increase of 116.60% from the beginning of the period; the net asset per share attributable to shareholders of the listed company was RMB 6.02, an increase of 94.19% from the beginning of the period. The significant changes in total assets and net assets were mainly due to the 816,709,545.27 yuan raised from the non-public issuance of shares during this period.