The net profit of Yonggui Electric Appliances in the first three quarters increased by 20.58% The revenue of the new energy vehicle sector increased by more than 70% year-on-year

On the evening of October 27, Yonggui Electric Appliance (300351) released the third quarter report of 2021, and the company achieved operating income of 769 million yuan in the first three quarters, an increase of 3.88% year-on-year; a net profit attributable to the mother of 0.90 billion yuan, an increase of 20.58% year-on-year; and a net profit of 0.77 billion yuan, an increase of 8.55% year-on-year.

Among them, the company achieved operating income of 302 million yuan in the third quarter of the single quarter, an increase of 22.49% year-on-year; achieved a net profit attributable to the mother of 0.33 billion yuan, an increase of 2.80%; deducted non-attributable net profit of 0.31 billion yuan, an increase of 17.41% year-on-year.

It is worth mentioning that Yonggui Electric Appliance sold its wholly-owned subsidiary Yiteng Electronics in May 2020, and after excluding the impact of Yiteng Electronics in the first three quarters, the company's operating income increased by 20.52% and the net profit attributable to the mother increased by 31.57%.

During the reporting period, the R&D expenses of Yonggui Electric Appliances were 67.3985 million yuan, which continued to maintain steady growth. According to the information of Tianyancha, as of the end of the second quarter of this year, Yonggui Electric Appliances and its subsidiaries had a total of 495 patents authorized, including 68 invention patents and 397 utility model patents.

The third quarterly report shows that the performance and development of Yonggui Electric Appliances are mainly driven by two aspects. On the one hand, the company continues to maintain a solid position in the industry, expands in depth in the field of rail transit, focuses on optimizing existing products, broadens the product line of rail transit, continues to meet the growing and changing product needs of customers, and promotes the steady increase in incremental business income of the rail transit sector. In the first three quarters of 2021, the company achieved a total revenue of 466 million yuan in the rail transit sector, compared with 432 million yuan in the same period last year, an increase of 7.85% over the same period last year.

On the other hand, the company actively develops the new energy vehicle connector plate business, focuses on the head customers, and helps the new energy vehicle plate business to grow rapidly. In the first three quarters of 2021, the company achieved a total revenue of 208 million yuan in the new energy vehicle sector, compared with 118 million yuan in the same period last year, an increase of 76.32% over the same period last year. At present, the company's new energy vehicle connector products include high-voltage connectors and wiring harness components, charging/swapping interfaces and wiring harnesses, AC/DC charging guns, etc., providing overall solutions for high-voltage and high-current interconnection systems for new energy electric vehicles.

Yonggui Electric Appliance said that since the beginning of this year, the company has seized the opportunity of high growth in new energy vehicle sales and focused on the related business of new energy vehicle connectors. As one of the main manufacturers of new energy vehicle connectors in China, the company has adjusted its customer structure, focused on head customers and improved product quality in recent years, and has entered the supply chain system of domestic first-line brands and joint venture brands such as Geely, Great Wall, BYD, BAIC, SAIC, FAW and Honda. In the future, the prosperity of the new energy automobile industry will continue to improve, which will provide important support for the steady and rapid growth of the company's future performance.

With the rapid development of the new energy automobile industry, automobile electrification will become an industrial trend. From January to August 2021, new energy vehicles continued the rapid growth trend, the cumulative sales reached 1.799 million units, the penetration rate rose to 10.87%, it is expected that under the background of carbon neutrality and policy support, China's new energy automobile industry will maintain a high degree of prosperity, driving the growth of the automotive connector industry.

According to Bishop & Associates statistics, it is estimated that by 2025, the global automotive connector market size will reach 19.452 billion US dollars, and the CAGR will reach 4.20% from 2019 to 2020; the size of China's automotive connector market will reach 4.468 billion US dollars, and the CAGR will reach 5.19% from 2019 to 2020.

In September 2021, the Science and Technology Department of Zhejiang Province organized experts to hold the construction acceptance meeting of "Zhejiang Yonggui New Energy Automobile Key Enterprise Research Institute" in Yonggui Electric Appliance, and the expert group unanimously agreed that the construction project passed the acceptance and affirmed the achievement of the indicators and phased construction results of the research institute.

According to reports, the research institute was established in 2017 with the approval of the Zhejiang Provincial Government, and the main direction of attack is the research of key technologies and integrated systems for the electrical connection of new energy vehicles. After four years of construction, the institute successfully achieved the expected goals. Next, the institute will continue to carry out work in basic technology research, forward-looking leading technology and product research and development, high-end talent introduction and talent training, research and development platform construction and social services.