Operation Analysis
Performance is stable and improving, and profitability is further improved. In the first three quarters, the company expanded downstream products and customers, promoted business structure adjustment and vigorously developed incremental business, achieving both revenue and profit growth. The gross profit margin in the first three quarters was 26.87%, YoY +2.29pct, and the net profit after non-deductions was YoY +39.36%. The net profit margin after non-deductions was 9.41%, YoY+1.94pct. The company's materials and equipment have been developed collaboratively, and technology has been upgraded rapidly. Equipment technology and process technology have been deeply integrated to improve yield rates, reduce production and manufacturing costs, and further enhance profitability. Moreover, the company's downstream customer structure is gradually tilting towards new energy, photovoltaics, and automotive electronics, and the proportion of applications in high-prosperity fields is gradually increasing.
At the material end, magnetic materials focus on new energy and automotive electronics, and sapphire materials are vigorously expanding production. The company's magnetic materials are deployed in many fields. Many automotive electronics products have passed vehicle regulatory certification. Applications in the automotive field are gradually increasing. It vigorously develops the metal soft magnetic business. 80% of the new products developed are used in the automotive and new energy fields. Applications in the photovoltaic field are growing rapidly. The photovoltaic micro-inverter business in the electronic manufacturing service segment is growing rapidly. Sapphire Materials Company has obvious core advantages. It uses C-directed crystal growth technology to mass-produce 400kg sapphire large crystal ingots. New applications of Mini and MicroLED have boosted the demand for sapphire. The piezoelectric crystal material company has maturely produced 6-inch surface acoustic crystals and blackened polished wafer products, and has developed 8-inch piezoelectric crystal materials. It has stable cooperation with customers such as Haoda Electronics and China Electronics 26th Institute, and the process of domestic substitution continues.
Equipment has fully benefited from the drive of new energy, photovoltaic equipment is growing rapidly, lithium battery equipment is expected to increase rapidly, and CCZ technology breakthrough is imminent. The company's photovoltaic back-end processing equipment has strong innovation capabilities, achieving three-in-one and multiple-in-one, reducing investment costs and improving production efficiency. Currently, the demand for orders is strong, and it has entered the large-volume delivery stage in the third and fourth quarters; the company has entered the field of lithium battery material sintering equipment, and bell furnaces and rollers produced by Hunan Xintianli Kiln sintering equipment has strong market competitiveness. At present, the company has formed in-depth cooperation with major downstream customers; the CCZ crystal growth technology developed by the company and its partners is progressing smoothly, continuously improving the crystal growth efficiency and optimizing performance indicators, and is accelerating the industrialization of the new generation CCZ crystal growth furnace with its partners.
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