Jianghuaiwei: Net profit in 2021 was 56.5077 million yuan, down 2.9% year-on-year

On the evening of March 14, Jianghuaiwei released its 2021 annual report. The company achieved operating income of 792 million yuan, a year-on-year increase of 40.50%; net profit attributable to shareholders of the listed company was 56.5077 million yuan, a year-on-year decrease of 2.90%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 53.1745 million yuan, a year-on-year increase of 7.82%; basic earnings per share was 0.2883 yuan/share.

Jiang Huawei said that wet electronic chemicals, as a supporting industry for the electronics industry, are closely integrated with downstream major application industries such as semiconductors, flat panel displays, and solar cells. In 2021, the domestic chip shortage became more serious. As the production capacity of downstream semiconductor chips and their packaging customers continued to increase, the company's sales revenue achieved significant growth. The company focuses on market development, seizes opportunities for downstream industrial development, actively adjusts its product structure, and continues to increase the proportion of wet electronic chemicals used in semiconductor and flat panel display industries with higher product added value, thereby increasing sales.

During the reporting period, the company's ultra-clean high-purity reagent products achieved revenue of 492,726,718.70 yuan, an increase of 61.47% over the same period last year, and a gross profit margin of 22.75%, a decrease of 0.6 percentage points year-on-year. The increase in revenue was mainly due to the increase in the company's semiconductor business. During the reporting period, ultra-clean high-purity reagents were successfully introduced to many 12-inch semiconductors, and sales to 8-12-inch semiconductor customers reached 78.6877 million yuan. With the increase in the operating rate of downstream customers, the company's sales revenue and profitability have further increased.

In terms of photoresist business, Jianghuaiwei said that the company's photoresist supporting reagent business achieved revenue of 278,616,152.16 yuan, up 14.92% year-on-year, and a gross profit margin of 22.48%, down 7.34 percentage points year-on-year. During the reporting period, the company's customer structure was significantly adjusted, and the proportion of semiconductor and panel customers further increased. The sales scale of the company's advantageous product, positive photoresist stripping liquid, among panel customers has further increased; in the semiconductor field, the company's usage among high-end semiconductor customers such as Silan Jike and Changdian Advanced has also gradually increased. The company's research and development of semiconductor stripping cleaning agents, various functional etching solutions and other products have also passed a large number of tests by multiple customers and have been successfully sold, indicating that the company's market share in the field of functional materials for semiconductors has increased.

During the reporting period, the company's sales scale achieved good growth. In 2022, with the commissioning of the Zhenjiang base, the company will extend the successful experience of G2 to G4 products to G5-grade products, truly realize the localization of high-end wet electronic chemicals in the industry, and solve the "bottleneck" problem in this field; the Sichuan base's 60,000 tons/year mixed project has been certified and officially put into production at the end of 2021. The company will quickly radiate flat panel customers in Sichuan and Chongqing through this base, achieve a rapid increase in production and sales, and provide guarantees for the company's future high-quality and rapid development.

It is reported that the company's main business is the research and development, production and sales of wet electronic chemicals such as ultra-clean high-purity reagents and photoresist supporting reagents. Wet electronic chemicals are various electronic chemical materials used in the wet process of microelectronics and optoelectronics. Its core elements are ultra-clean, high-purity and functionality, so it has relatively strict requirements on raw materials, purification methods, formulation processes, containers, production equipment, environmental control, testing and transportation equipment, etc.

The wet electronic chemicals produced by the company are mainly suitable for the cleaning, photolithography, development, etching, film removal, doping and other manufacturing processes of the micro-processing of electronic components such as flat panel displays, semiconductors and LEDs, photovoltaic solar energy, lithium batteries, opto-magnetic, etc. The company's wet electronic chemicals are divided into purified products and mixed products according to product ingredients. The main production processes are purification process, formulation process, precision filtration and sub-packaging process. The key technical process is basically a physical reaction process under precise control, and rarely involves chemical reaction processes. There is no high pollution and high energy consumption in the company's production process.

Looking ahead to 2022, Jiang Huawei pointed out that the company will deepen its presence in the field of wet electronic chemicals, focus on the research and development, production and sales of high-purity wet electronic chemicals, enter the field of electronic chemicals in a step-by-step and hierarchical manner, and strive to become an internationally competitive electronic chemical company, providing high-end supporting electronic chemical materials for the domestic electronics industry. The company will take technology as the guide, combine independent research and development, joint research and development with customers, and "production, learning, research and application" to continuously achieve product upgrades; relying on services, adhering to the concepts of "providing value to customers" and "growing together with customers", and gradually enhancing comprehensive supporting service capabilities. Eventually become a leader in international electronic chemical research and development and a high-end supporting service provider.

Jianghuawei pointed out that the 80,000-ton annual high-purity wet electronic chemicals project is a high-starting point, large-scale, automated wet electronic chemicals production base planned by the company based on more than ten years of product accumulation, process improvement and technological breakthroughs. During the reporting period, the second phase of the project with an annual output of 35,000 tons was put into production and is operating well; in order to adapt to the development direction of the downstream market and meet the needs of the downstream, the company will complete the first phase of the Jianghuawei (Zhenjiang) project and the Sichuan Jianghuawei project this year.

After the project is completed, the company will become a world-class and domestically leading wet electronic chemical production base, applying the industry-leading large-scale production purification technology, large-scale production automated precision mixing technology, large-scale production detection and analysis technology, and adopting international-level production equipment, and continue to lead the country in production and sales scale and product technology level.

In addition, the company will continue to expand the cooperation with market players and domestic and foreign counterparts in the upstream and downstream of the industry chain, and try to innovate its business model. For high-end products in the industry, due to the high entry threshold, downstream customers will not easily change suppliers. The company can gradually enter the market by OEM for international leading companies.

The company will also continue to strengthen its market promotion efforts and establish Jianghuaiwei's brand image as a leading domestic wet electronic chemical company. It will continue to strengthen the market promotion of the company's products through product launch meetings, sample testing, cooperative research and development, etc., and continuously consolidate its leading position in China while enabling the company to have the strength to compete with leading foreign-funded companies.

Through 20 years of experience accumulation, the company has mastered the core purification technology, precision mixing technology, precision detection and analysis technology, product packaging technology, etc. in the wet electronic chemicals industry; through the construction of the first phase of the 80,000-ton project, the 16,000-ton technical transformation project and the 80,000-ton project phase II, the company has also broken through the limitations of equipment conditions for high-end product production and has the industry-leading large-scale production technology; customer recognition and market promotion in the high-end field have become important issues that Jianghuaiwei urgently needs to solve. Through innovative business models and market promotion methods, the company will achieve greater development on the basis of the existing platform.