Northland Huachuang reported a net profit of 537 million yuan in 2020, an increase of 73.75% year-on-year.

On April 11, Northern Huacheng released its preliminary report on 2020 performance and a forecast for its first-quarter performance this year.

The announcement stated that the company’s main products are electronic process equipment and electronic components. In 2020, thanks to proactive efforts in new product R&D and market expansion, innovative institutional mechanisms, and the implementation of employee equity incentives, the company promptly resumed production and operations while maintaining effective epidemic prevention and control measures for all employees. This enabled the company to ensure the timely production and delivery of customer orders. Throughout the year, both its electronic process equipment and electronic components businesses achieved significant year-on-year growth in revenue and profit.

Image source: Screenshot from Northern Huacheng’s announcement

According to the preliminary financial report, in 2020, Northern Huacheng achieved total operating revenue of 6.056 billion yuan, representing a year-on-year increase of 49.23%; net profit attributable to shareholders of the listed company reached 537 million yuan, up 73.75% from the previous year. The announcement pointed out that the primary reason for the increase in operating revenue compared to the same period last year was the rise in sales orders and production scale. The year-on-year growth in operating profit, total profit, net profit attributable to shareholders of the listed company, and basic earnings per share was mainly driven by effective control of costs and expenses amid revenue growth.

Image source: Screenshot from Northern Huacheng’s announcement

According to the earnings forecast for the first quarter of 2021, North Huachuang’s revenue for the first quarter is expected to be between RMB 1.313 billion and RMB 1.501 billion, representing a year-on-year increase of 40% to 60%. Net profit attributable to shareholders of the listed company is expected to range from RMB 67.5406 million to RMB 75.4865 million, reflecting a year-on-year growth of 155% to 185%. As for the reasons behind the projected performance growth, the announcement stated that, compared with the same period last year, the company’s sales revenue from electronic process equipment and electronic components both increased year-on-year, driving a substantial rise in net profit attributable to shareholders of the listed company.

Key words: