The release of production capacity has led to a significant increase in revenue, and Xinsen Technology's Q1 net profit increased by 158.76%

On the evening of April 27, Xinsen Technology issued an announcement that the company's operating income in the first quarter of 2021 was 1.071 billion yuan, a year-on-year increase of 24.40%; the net profit attributable to shareholders of the listed company was 101 million yuan, a year-on-year increase of 158.76%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 109 million yuan, a year-on-year increase of 215.06%; basic earnings per share was 0.07 yuan/share.

According to Xinsen Technology, the main reasons for the changes in the company's performance compared with the same period last year are: 1. Market demand rebounded in the first quarter, coupled with the company's production capacity release, the revenue scale increased year-on-year; 2. The company's operating efficiency improved, the cost-to-expense ratio decreased, and profitability increased; 3. The impact of non-recurring gains and losses on the net profit attributable to shareholders of listed companies in the first quarter was approximately -8 million yuan.

Xinsen Technology previously stated on the interactive platform that the company's IC packaging substrate production capacity is currently saturated and orders are sufficient. Some chip design companies have indeed discussed capacity allocation with the company. In addition, the company's business in automotive PCBs accounts for a small proportion.

It is understood that Xinsen Technology's IC packaging substrate has an existing production capacity of 20,000 square meters/month, which was invested and constructed in two phases. In 2012, 10,000 square meters/month was put into production, and it was already in full production at the end of 2018. In 2018, the production capacity was expanded by 10,000 square meters/month. It was originally planned to be put into production in Q1 2020, but due to the impact of the epidemic on the installation progress, trial production did not start until June 2020. By the end of 2020, the capacity utilization rate reached about 90%, and the overall yield rate also increased to more than 96%. In 2021, except for the Spring Festival month, this year is basically in a state of full production.