Jiwei Network news, on April 18, Qiangrui Technology announced the 2021 annual report, in 2021, the company achieved operating income of 422 million yuan, an increase of 0.55% year-on-year; net profit attributable to shareholders of listed companies of 55.1704 million yuan, down 14.18% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 50.6756 million yuan, down 12.60% year-on-year; basic earnings per share of 0.9690 yuan.
In terms of the year-on-year decline in performance, Qiangrui Technology pointed out that with the continuous fermentation of the adverse effects of the 5G chip supply cut, Huawei's procurement demand for the company in 2021 has decreased significantly, and the company's revenue from Huawei in 2021 has decreased by about 143.5 million yuan compared with 2020. "Nevertheless, the company's incremental revenue from customers such as Honor and Luxshare Precision has better compensated for the revenue gap caused by the reduction in Huawei's procurement demand."
In 2021, the total revenue of Qiangrui Technology from Huawei and Honor decreased by about 43.53 million yuan compared with 2020, and the revenue from Luxun Precision increased by about 53.8 million yuan compared with 2020. These factors have made the company's operating income in 2021 basically the same as that in 2020, and achieved a slight increase.
Specifically, the main factors affecting its net profit include: the decline in terminal shipments of important customers. The United States has adopted a series of sanctions against Huawei's smartphone business, the core customer of Qiangrui Technology, including restricting Huawei's smartphones from using Android systems and some application software, restricting companies or manufacturers using relevant using relevant patented technologies from providing chips foundry services for Huawei or selling 5G chips to Huawei.
In addition, Huawei sold its Honor smartphone and other businesses to Shenzhen Zhixin New Information Technology Co., Ltd. Although the company continues to obtain orders for fixtures, equipment products and other products required for honor smartphones and other businesses, due to the divestiture of honor, its research and development process and rebranding process are still in progress, and the sales of honor smartphones and other products did not achieve significant growth during the reporting period, resulting in the company's orders from honor being less than expected.
On the other hand, although Huawei's procurement demand has decreased significantly, the company's revenue from customers such as Foxconn, Luxun Precision, and Honor has better made up for the gap caused by Huawei's order reduction. Nevertheless, in order to expand the business orders of important customers such as Luxshare Precision and Glory, the company's quotation level has been reduced, and some of the large and large equipment products delivered by the company to Luxun Precision are the company's newly entered equipment fields, and the company's cost control ability in the production of such products needs to be further improved; in addition, with the significant reduction of Huawei orders, the production scale efficiency and production efficiency of the company's related workshops have been reduced in the case of less than expected order saturation of other customers. These factors led to a decline in the company's overall sales gross margin during the reporting period, which in turn directly led to a decline in net profit.
In addition, in order to reduce the adverse impact of the significant reduction in Huawei's orders, the company increased its efforts to develop new customers during the reporting period. In order to open up the market, the company's sales expenses increased by about 16.80% over the previous year, because the investment in research and development expenses increased due to new customer proofing, an increase of about 27.63% over the previous year. The increase in expenses during the reporting period led to a certain degree of adverse impact on the company's net profit.
It is reported that since its inception, Qiangrui Technology has been focusing on the research and development, design, production and sales of tooling and testing fixtures and equipment for mobile terminal electronic products such as mobile phones. At this stage, the company's products are mainly fixtures, after years of accumulation and development, the company has become one of the main enterprises in the field of domestic smart phone assembly and testing fixtures, has won the recognition of the market and customers, has a certain degree of popularity in the industry, and Huawei, Glory, Foxconn, Luxshare Precision, Millet, OPPO, Vivo and other world-renowned manufacturers to maintain a long-term stable supply relationship, of which Apple's main high-end models, Huawei smartphones to high-end models, and Millet, OPPO and Vivo are mainly low-end models, and the proportion of high-end models is relatively low.
In addition, the fixtures and equipment products supplied by the company to Huawei can continue to meet the needs of customers in terms of product quality, product quality continues to meet customer needs, the order delivery cycle continues to shorten, coupled with the continuous improvement of continuous service capabilities, making the company's order share in Huawei's similar products in recent years at a high level and ranking high in assessment.
(Proofreading/Xiao wei)