Changdian Technology: Strong Order Demand Drives a 249% Increase in First-Half Net Profit.

On July 1, Changdian Technology released a preliminary announcement of its 2021 first-half performance, forecasting an increase in earnings.

According to the announcement, based on preliminary calculations by the company’s finance department, the company is expected to achieve a net profit attributable to shareholders of the listed company of approximately RMB 1.28 billion for the first half of 2021, an increase of roughly RMB 914 million compared to the same period last year, representing a year-on-year growth rate of about 249%. The net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, is expected to be approximately RMB 910 million, an increase of roughly RMB 614 million compared to the same period last year.

The announcement pointed out that there are two main reasons for the projected increase in this period's performance:

(1) Impact of Core Business Operations: The company’s revenue increased significantly year-on-year, driven by robust order demand from both international and domestic customers. Factories worldwide have continued to strengthen cost and operational expense controls, actively adjusted product structures, and consistently enhanced profitability. Under the leadership of the Board of Directors, the company’s management team has continuously reinforced lean management practices, optimized the financial structure, and stepped up efforts to attract mid-to-high-end talent, thereby building an internationally-oriented management team. Management continues to strengthen synergies among the group’s various companies, enhance technological innovation capabilities, and expand production capacity deployment, enabling the company to provide first-class products and services to both domestic and international customers and laying a solid foundation for the company’s long-term sustainable development.

(2) Impact of the sale of equity interest in the associated company SJ SEMICONDUCTOR CORPORATION. During the reporting period, the company sold all of the equity interest in SJ SEMICONDUCTOR CORPORATION held by its wholly-owned subsidiary, Changdian International (Hong Kong) Trading & Investment Co., Ltd., to an independent third party, resulting in an impact of RMB 286 million on the current period’s investment income and losses.

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