Sanhuan Group: Net profit in the first three quarters was 1.7 billion yuan, up 70% year-on-year

On October 26, Sanhuan Group disclosed its third quarter report for 2021. The company achieved operating income of 4.586 billion yuan in the first three quarters, a year-on-year increase of 66.93%, and realized net profit attributable to shareholders of listed companies of 1.707 billion yuan, a year-on-year increase of 70.33%. The cash flow generated by operating activities was 1.221 billion yuan, a year-on-year increase of 102.73%.

Among them, the company achieved operating income of 1.711 billion yuan in the third quarter, a year-on-year increase of 55.75%; net profit attributable to shareholders of the parent company was 628 million yuan, a year-on-year increase of 40.80%; non-net profit was 591 million yuan, a year-on-year increase of 41.49%; basic earnings per share was 0.35 yuan.

Not long ago, Sanhuan Group's 3.9 billion yuan private placement application was approved by the China Securities Regulatory Commission. In May this year, Sanhuan Group announced that it plans to raise no more than 7.5 billion yuan through private placement, which, after deducting the issuance costs, will be used for the expansion of high-capacity series multilayer ceramic capacitors, the expansion of new ceramic packaging bases for intelligent communication terminals, the expansion of new alumina ceramic substrates for electronic and power devices, and the construction of Shenzhen Sanhuan R&D base.

However, in August this year, Sanhuan Group stated that in order to meet the needs of the market and customers as soon as possible, the company has used self-raised funds to invest in the construction of a new production base in Deyang City, Sichuan Province, aiming to accelerate the expansion of ceramic substrates and ceramic packaging base production capacity and improve regional layout; at the same time, the company decided to adjust investment in new ceramic packaging base expansion technology transformation projects for intelligent communication terminals and new alumina ceramic substrate expansion projects for electronic and power devices.

After the adjustment, the company plans to raise 3.9 billion yuan for the expansion of the high-capacity series multilayer ceramic capacitors and the construction of the Shenzhen Sanhuan R&D base. This project will help further enhance the competitiveness of the company's existing main business and is in line with the company's strategic development goals.

It is understood that the expansion project of high-capacity series multilayer chip ceramic capacitors is planned to be implemented through its wholly-owned subsidiary Nanchong Sanhuan. The project implementation site is located in Nanchong City, Sichuan Province. The project plans to achieve an annual output of 300 billion MLCCs.

The Shenzhen Sanhuan R&D base construction project is planned to be implemented through its wholly-owned subsidiary Shenzhen Sanhuan. It plans to build a new R&D base in Shenzhen, focusing on enhancing the company's R&D capabilities in the fields of solid oxide fuel cell preparation technology and products, multi-layer chip ceramic capacitor preparation technology and products, etc., thereby further enhancing the competitiveness of the company's main business.