Yake Technology: Net profit attributable to shareholders for the first quarter of 2021 may exceed 120 million yuan.

According to a report on April 14, Jiangsu Yak Technology Co., Ltd. recently disclosed its earnings forecast for the first quarter of 2021. The company expects its net profit attributable to shareholders in the first quarter to range from RMB 120 million to RMB 135 million, representing an increase of 3.33% to 16.24% compared to the same period last year. In the first quarter of the previous year, Yak Technology’s net profit attributable to shareholders was RMB 116 million.

Yake Technology stated that the anticipated improvement in first-quarter performance is primarily attributable to the following reasons:

1. In the field of electronic materials, we have added new business lines including display color photoresists, TFT-PR positive photoresists, and developer solutions—complementary reagents—thus expanding our product range and driving continued growth in sales volume.

2. In the area of electronic specialty gases, the subsidiary Chengdu Comet Special Gases Co., Ltd. saw year-on-year growth in its sales of electronic specialty gases. In the first quarter of 2021, the company had fully recovered from the impact of the COVID-19 pandemic. Moreover, with the large-scale construction of ultra-high-voltage transmission projects domestically and the expanding demand for electronic specialty gases used in semiconductors, sales of fluorine-containing electronic specialty gases increased significantly in the first quarter.

3. In terms of encapsulation materials, sales of spherical silicon micropowder by our subsidiary, Zhejiang Huafei Electronic Base Materials Co., Ltd., increased year-on-year. As the integrated circuit industry continues to expand in scale, demand for spherical silicon micropowder used in encapsulation materials has grown accordingly. As a result, Huafei Electronic achieved strong business performance in the first quarter of this year from its spherical silicon micropowder products.

4. As the production lines of China’s leading chip manufacturers are gradually being built, sales of semiconductor material delivery equipment (LDS) by our holding subsidiary, Jiangsu Yakufu Rui Semiconductor Technology Co., Ltd., have increased year-on-year.

5. Sales of LNG thermal insulation composite materials increased significantly year-on-year. In the first quarter of 2020, demand for thermal insulation composite panels from large downstream shipyards was relatively low due to the impact of the COVID-19 pandemic. To make up for last year’s schedule delays, large shipyards and onshore storage tank construction accelerated in 2021. As a result, LNG thermal insulation composite materials are expected to see a substantial year-on-year increase throughout 2021.

The company disclosed its preliminary results for the first quarter of 2021, reporting that Yak Technology is expected to achieve a net profit attributable to shareholders of between RMB 120 million and RMB 135 million in the first quarter, representing an increase of 3.33% to 16.24% compared to the same period last year. In the first quarter of the previous year, Yak Technology’s net profit attributable to shareholders was RMB 116 million.
Yake Technology stated that the anticipated improvement in first-quarter performance is primarily attributable to the following reasons:

1. In the field of electronic materials, we have added new business lines including display color photoresists, TFT-PR positive photoresists, and developer solutions—complementary reagents—thus expanding our product range and driving continued growth in sales volume.

2. In the area of electronic specialty gases, the subsidiary Chengdu Comet Special Gases Co., Ltd. saw year-on-year growth in its sales of electronic specialty gases. In the first quarter of 2021, the company had fully recovered from the impact of the COVID-19 pandemic. Moreover, with the large-scale construction of ultra-high-voltage transmission projects domestically and the expanding demand for electronic specialty gases used in semiconductors, sales of fluorine-containing electronic specialty gases increased significantly in the first quarter.

3. In terms of encapsulation materials, sales of spherical silicon micropowder by our subsidiary, Zhejiang Huafei Electronic Base Materials Co., Ltd., increased year-on-year. As the integrated circuit industry continues to expand in scale, demand for spherical silicon micropowder used in encapsulation materials has grown accordingly. As a result, Huafei Electronic achieved strong business performance in the first quarter of this year from its spherical silicon micropowder products.

4. As the production lines of China’s leading chip manufacturers are gradually being built, sales of semiconductor material delivery equipment (LDS) by our holding subsidiary, Jiangsu Yakufu Rui Semiconductor Technology Co., Ltd., have increased year-on-year.

5. Sales of LNG thermal insulation composite materials increased significantly year-on-year. In the first quarter of 2020, demand for thermal insulation composite panels from large downstream shipyards was relatively low due to the impact of the COVID-19 pandemic. To make up for last year’s schedule delays, large shipyards and onshore storage tank construction accelerated in 2021. As a result, LNG thermal insulation composite materials are expected to see a substantial year-on-year increase throughout 2021.