With both sales volume and price rising, Jingrui Electric Materials' Q3 net profit increased by 30.54% year-on-year

On the evening of October 24, Jingrui Electric Materials issued an announcement stating that in the first three quarters of 2021, the company achieved operating income of 1.309 billion yuan, a year-on-year increase of 83.31%; net profit attributable to shareholders of listed companies was 165 million yuan, a year-on-year increase of 167.80%; basic earnings per share was 0.4860 yuan.

Among them, the company achieved operating income of 446 million yuan in the third quarter, a year-on-year increase of 56.23%; the net profit attributable to shareholders of the listed company was 49.9599 million yuan, a year-on-year increase of 30.54%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 39.1647 million yuan, a year-on-year increase of 146.19%; basic earnings per share was 0.1469 yuan.

Regarding the growth in revenue, Jingrui Electric Materials stated that it was mainly due to the strong market demand for the company's products in this period, resulting in an increase in both sales volume and price.

It is reported that benefiting from the accelerated domestic substitution process in my country's semiconductor materials industry and the rapid development of the new energy vehicle industry, Jingrui Electric Materials has fully grasped the opportunities for industry development, improved its industrial chain layout, and actively expanded the market. Jingrui Electric Materials' main products, such as semiconductor-grade photoresists and supporting materials, high-purity reagents, lithium battery materials, etc., have been in strong production and sales, with a significant year-on-year growth, and its overall profitability has been improved.

In addition, Jingrui Electric Materials' wholly-owned subsidiary Jingzhirui (Suzhou) Microelectronics Technology Co., Ltd. successfully subscribed for a total of 15.713 million shares of Morimatsu International Holdings Co., Ltd. (listed on the Main Board of the Hong Kong Stock Exchange on June 28, 2021, stock abbreviation: Morimatsu International, stock code: 02155) at a subscription price of HK$2.48 per share. The net profit impact caused by the change in its fair value was approximately RMB 65 million, which made a positive contribution to the profit in the reporting period.

At present, domestic substitution of semiconductors has become an industry consensus. Driven by the shortage of chips and the expansion of wafer fab capacity, the demand for upstream semiconductor manufacturing materials continues to rise. The compound annual growth rate of China's photoresist market from 2019 to 2022 is 15%, and the market size will exceed 11.7 billion yuan by 2022. As the leader of domestic photoresist, Jingrui Electric Materials is expected to fully grasp the opportunity of this round of Chinese-funded wafer fab construction, lay out its position in advance, and lock in the first-mover advantage.

Jingrui Electric Materials' i-line photoresist has been supplied to leading semiconductor companies such as SMIC and Hefei Changxin; KrF photoresist has completed pilot production and entered the customer testing stage, ready to be mass-produced at any time; the ArF photoresist research and development project has been launched in 2020, aiming to open up the process synthesis route of ArF photoresist resin through independent research and development, complete the construction of a pilot demonstration line for ArF photoresist resin, solve the "bottleneck" risk of upstream materials for high-end photoresists, and realize domestic substitution of semiconductor materials.

It is reported that Jingrui Electric Materials' ASML1900Gi lithography equipment is being actively debugged and is expected to be completed by the end of this year. In addition, Jingrui Electric Materials raised 310 million yuan through convertible bonds to accelerate the development of ArF photoresist, which is expected to make progress beyond expectations. With the further development of China's semiconductor manufacturing, the proportion of high-end photoresists represented by KrF and ArF will continue to increase. The successful expansion of Jingrui Electric Materials' high-end photoresists in the future is expected to continue to boost performance