Fenghua Hi-Tech: Net profit in 2021 is 9.3-1 billion yuan, a year-on-year increase of more than 159%

Jiwei.com reported that on the evening of January 26, Fenghua Hi-Tech released its performance forecast, predicting a net profit of 930 million to 1 billion yuan in 2021, a year-on-year increase of 159.26% to 178.78%. During the reporting period, benefiting from the strong market demand for electronic components, the gradual release of the company's previous investment results, and the strengthening of management and control, the company's main product production and sales increased significantly year-on-year, and the company's main product operating income and profitability continued to grow year-on-year.

According to it, during the reporting period, the company realized an increase in non-recurring gains and losses year-on-year, mainly including: First, the former wholly-owned subsidiaries Naidian Soft Technology Electronics (Zhuhai) Co., Ltd. and Fenghua Research Institute (Guangzhou) Co., Ltd. were no longer included in the company's consolidated financial statements after the implementation of capital increase and share expansion, and part of the investment income was recognized; second, the company completed the acquisition and storage of land and ancillary buildings in Dawang High-tech Zone, Zhaoqing City, and recognized the relevant disposal income; third, the estimated liabilities involving investor litigation claims decreased significantly year-on-year.

According to Fenghua Hi-Tech, in recent years, the company has continued to increase its R&D investment, coordinated and mobilized innovative resources, and relied on the National Key Laboratory of Key Materials and Processes for New Electronic Components to accelerate the construction of a reliability testing and analysis center and a high-end pilot platform, focusing on the main business technology and quality improvement, and conducting in-depth research on core technologies such as high performance, miniaturization, high frequency, and integration of resistors, capacitors, and sensors, forming high-end new products with high capacitance, high frequency, high current, and high reliability. The proportion of R&D investment in operating income has increased from 3.87% in 2018 to more than 5%. In the future, the company will continue to increase its R&D investment to provide strong support for the company's high-end product breakthroughs.

In addition, it was also introduced that the company is currently facing a critical stage of transformation and development. In order to further strengthen marketing management, the company has accelerated the implementation of marketing system reform. The core of marketing reform is "four concentrations - centralized pricing, centralized sales, centralized supporting, and centralized cost control". Actively promote technical marketing, strengthen team building, and coordinate marketing strategies to further achieve the goals of high-quality and efficient customer service, enhance market competitiveness, and seize market share. Through marketing system reform, further improve the responsiveness and aggressiveness of the company's marketing team. Through competitive recruitment and rotation, strengthen the construction of the talent team, enhance the combat effectiveness and youth level of the marketing team, and provide a complete performance appraisal system and incentive policies. Further improve FAE team building, continuously optimize product structure, customer structure and market layout, continue to increase in-depth cooperation with terminal strategic customers, and increase the proportion of terminal customers.

In terms of products, chip resistors are the company's largest single product, and its production and sales volume rank among the top in the world. In the 37 years since its establishment, Fenghua Hi-Tech has fully implemented the innovation-driven development strategy, actively benchmarked against the industry's top companies, and continuously strengthened its technology research and development, innovation and service systems. A series of chip resistor innovation projects have made new progress: alloy resistors, thin film resistors, automotive resistors, anti-sulfurization resistors and other high value-added products have been successfully developed and mass-produced, further expanding the market for chip resistors. Fenghua Hi-Tech's chip resistor team has won numerous national, provincial and municipal science and technology progress awards, and has obtained a number of authorized patents, with 21 authorized patents in the past three years alone. Recently, the company's chip resistor products were selected as the sixth batch of national manufacturing single champion products.