Strong demand for basic products leads to BDStar's net profit in the first half of the year increasing by more than 56% year-on-year

On July 10, BDStar released its semi-annual performance forecast, stating that the company expects to achieve a net profit attributable to shareholders of listed companies of 100 million yuan to 120 million yuan in the first half of 2021, a year-on-year increase of 55.7% to 86.8%. The profit in the same period last year was 64 million yuan.

Its net profit after deducting non-recurring gains and losses was 80 million yuan to 100 million yuan, a year-on-year increase of 85.3% to 131.6%. The profit in the same period last year was 43 million yuan.

As for the main reason for the substantial growth of the company's net profit attributable to the parent company and net profit excluding non-recurring items, BDStar said that it was mainly due to the strong demand for basic products from industry users, consumer and other application markets, and the company's basic business segment revenue and net profit increased significantly. At the same time, benefiting from the growth in demand in the passenger car market, the company's smart cockpit business significantly narrowed its losses year-on-year.

In terms of key projects, BDStar's new generation of 22nm high-precision RF baseband anti-interference integrated chips have been successfully mass-produced, and its high-precision timing products and standard precision positioning chips have been recognized by strategic customers. With strong demand for the Internet of Things and wearable consumer products, the number of orders this year is expected to increase significantly. The company plans to increase investment based on the existing foundation and vigorously develop consumer business. In addition, the company has increased its organizational construction and investment in the supply chain, and has achieved remarkable results in ensuring supply.

It is understood that after years of planning, BDStar has achieved parallel development of four business segments: basic products, national defense equipment, intelligent vehicle networking, and industry applications and operation services. The basic product business mainly includes navigation chips, modules, board series, navigation and positioning antennas and communication products, microwave components and assembly product series, and A-GNSS assisted navigation and positioning services, which are mainly used in satellite navigation, drones, autonomous driving, surveying and mapping, communication base stations, the Internet of Things, wireless communications and other fields.

From the perspective of product positioning, BDStar's basic products are mainly located in the upstream of the navigation industry and belong to the most core link of the navigation industry. As for the industry as a whole, BDStar is currently in a leading position in the fields of GNSS chips, boards, antennas, microwave ceramic dielectric components, etc.