Lens Technology's Q1 net profit increased by 37% year-on-year: its stock price plummeted by more than 9%

On the evening of April 27, Lens Technology disclosed its first quarter report of 2021, achieving operating income of 11.99 billion yuan, a year-on-year increase of 72.52%; achieving net profit attributable to shareholders of the listed company of 1.206 billion yuan, a year-on-year increase of 36.57%; achieving net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses of 1.064 billion yuan, a year-on-year increase of 48.91%; basic earnings per share of 0.242 yuan.

Affected by this, Lens Technology's stock price fell by more than 9% on the 28th, and as of midday closing, the decline still reached nearly 7%.

Lens Technology pointed out that the revenue growth was mainly due to the acquisition of LensWang Precision (Taizhou) Co., Ltd. and Lens Precision (Taizhou) Co., Ltd., as well as the increase in sales revenue to major customers. R&D expenses increased by 75.32% year-on-year, mainly due to the increase in the research and development of new products, new processes and new technologies in the fields of consumer electronics and automotive electronics in this period in accordance with the long-term development strategy layout and in line with customer needs.

In the first five-year plan after its listing, Lens Technology continued to make strategic investments in consumer electronics, automotive electronics, medical electronics and smart home appliances, and formed industry-leading core competitiveness in land reserves, factory parks, R&D innovation, process reserves, smart manufacturing, industrial Internet, talent training, supply chain management and supporting facilities. It continued to strategically deploy niche areas, and efficiently achieved vertical integration and continuously improved its industry status in niche markets such as smartphones, smart wearables, tablets, laptops, all-in-one computers, smart cockpits, smart medical electronic equipment, smart home appliances, etc.

As the first year of the second five-year plan after its listing, in the first quarter of 2021, Lens Technology's production and operation were stable and efficient, and the market demand for various core products, especially automotive electronics products, was strong, and the company's product production and delivery were smooth. During the reporting period, Lens Technology vigorously promoted precise research and development, lean production, and production line automation and intelligent upgrading and transformation in the fields of consumer electronics and automotive electronics, and continued to focus on promoting a number of internal management measures represented by the factory responsibility system. The overall production cost continued to be effectively controlled and the profit level continued to improve.

At the same time, Lens Technology has announced the "Phase I Intelligent Manufacturing of Smart Terminal Equipment" project (with an initial estimated investment of 3 billion yuan). After the project is fully completed and put into production, it is expected to achieve annual processing and assembly of 100 million smart phones, smart wearables, tablets, automotive electronics, smart home appliances, medical equipment, e-cigarettes and other smart terminal products. It will officially launch efforts to rapidly promote the smart terminal assembly business, accelerate the realization of the company's one-stop comprehensive service platform development strategy, enhance customer stickiness in the fields of consumer electronics, automotive electronics, medical electronics, smart home appliances, etc., and obtain more collaborative business opportunities.

In addition, Lens Technology's subsidiary Lens Precision (Taizhou) Co., Ltd. has been included in the consolidated financial statements of the listed company at the beginning of this reporting period and has contributed to the operating results in the first quarter of 2021. During the reporting period, under the guidance of the parent company and the strong support of customers, its new product development, new technology research and development, market development, management integration, team integration and other aspects have been efficiently and smoothly promoted. With the parent company's leading design and mass production capabilities in the field of production line automation software and hardware, as well as its strong production auxiliary supporting advantages, further transformation has improved its production capacity efficiency, and the production line and cost structure have been further optimized. The operating potential of Lens Technology's business in various metal fields will be gradually released.