/ Aswentong/August 26, 2022 Guangzhou -- New Asia Processing Co., LTD. 's semi-annual report for 2022, disclosed on the evening of August 25, showed that the company's revenue from January to June this year was 861 million yuan, down 25.2% year-on-year; Net profit attributable to shareholders of listed companies reached 23.08 million yuan, down 25.89% year-on-year. The main reason for the change in results was that the company's business was adversely affected by multiple factors, including the COVID-19 pandemic, shrinking domestic and international economic demand, and weak market demand in the consumer electronics industry.
Despite the decline in absolute terms, the company's gross margin, net margin and other relative indicators of corporate profitability improved significantly in the first half of this year. One of the main products of the company, electronic glue still maintains a high gross profit rate of more than 30%.
In the first half of this year, New Asia Process in the business of a series of deepening layout, for the company's subsequent development to lay a better foundation. On the one hand, the company continues to deepen its efforts in the field of consumer electronics. On the basis of further deepening the good cooperation with strategic customers such as Huawei, Honor and Guangbao, etc., the company has also become a qualified supplier of BOE electronic glue products, which has been in batch supply. The cooperation is conducive to further optimizing the company's product and customer structure. On the other hand, New Asia Process is also actively expanding into new energy vehicles, photovoltaic power stations, energy storage battery systems, Mini LED and other fields. It has passed the customer certification of Yiwei Lithium Energy, Desai Electronics and other enterprises, and gradually supplies in batch, which will help the company to penetrate into the new energy supply chain and help the company to open the emerging business market.
Not only that, Xinya process also strengthened the research and development of electronic adhesive series products, focusing on the customer application side of thermal conductivity, protection, bonding, pot-sealing solutions, to promote the domestic replacement of series products in emerging fields. By the end of the report, the company has a total of 70 patents and related Copyrights, including 25 invention patents, which continuously guarantees the sustainable development ability of the company's business. The technological advantages brought by a large amount of research and development investment also help the company to further expand the customer base in the emerging fields, shaping the self-owned brand of SLD electronic adhesive products in the domestic market advantage.
Analysis believes that the most important factor affecting the performance of New Asia Process in the first half of the year is the company's downstream consumer electronics market demand decline. However, after a period of downturn, China's mobile phone sales in June this year for the first time to turn positive, began to recover gradually, and the third quarter is the traditional peak season of consumer electronics, Apple factory recruitment has started, iPhone14 and other new mobile phone stock is expected to improve market expectations, the fundamentals of the consumer electronics industry is expected to continue to improve.
According to relevant industry reports, under the influence of the resumption of work and production and the policy of promoting consumption, domestic consumption demand is gradually returning to normal. It is expected to show a clear improvement in the second half of the year, such as big customers' new machine pulling, new product release, etc., combined with the stabilization of upstream raw material prices, the trend of RMB exchange rate conducive to export enterprises, and the favorable tariff policy. It will help improve the performance of enterprises related to the consumer electronics industry chain, and the capacity utilization rate may gradually recover.
As an upstream enterprise in the consumer electronics industry, New Asia Process is expected to benefit from the recovery of the consumer electronics industry in its subsequent performance. Meanwhile, new energy vehicles, photovoltaic power stations, energy storage battery systems, Mini LED and other new markets that the company is developing are also expected to become new growth points of the company.
