Zhonghuan’s H1 2021 Net Profit up 175% Year-on-Year

PVTIME – On August 8, Tianjin Zhonghuan Semiconductor Co., Ltd. (hereinafter referred to as “Zhonghuan”) released its financial report for the first half of 2021.

During the reporting period, Zhonghuan realized an operating income of 17,644,418,985.98 yuan, a year-on-year increase of 104.12%; net profit attributable to shareholders of listed companies was 1,479,983,324.26 yuan, a year-on-year increase of 174.92%; basic earnings per share were 0.4880 yuan/share.

Zhonghuan stated four main factors contributed to the company’s performance in the reporting period.

1. In its semiconductor photovoltaic business segment, the scaling improvement of the company’s 210mm products accelerated and the product structure transformation was smooth.

By the end of the reporting period, the company’s semiconductor photovoltaic material production capacity had increased by more than 55% to 70GW, and the production and sales scale had increased by 110% year-on-year. Through a series of technological advances, the silicon material consumption rate per unit product decreased by nearly 2% year-on-year in the first half of the year, the silicon wafer production rate increased significantly as well, and the gross profit margin per unit produced also improved significantly. In the face of the rapid rise in the price of polysilicon raw materials in the first half of the year, the company has better ensured the improvement of the company’s production and sales scale through securing long-term supply chain cooperation.

2. In its semiconductor materials business segment, the company’s capacity scale increased rapidly during the reporting period. The company’s production capacity scale increased rapidly, product structure was optimized and upgraded, and the production and sales scale increased by 65.8% year-on-year. Zhonghuan has also signed long-term strategic cooperation agreements with a number of chip manufacturers, laying a customer foundation for business development.

3. The development of the industrial 4.0 production mode improved the efficiency of the company’s operational processes. During the reporting period, the per capita labor productivity continued to increase while the product quality and consistency continued to improve. The consumption of raw materials and auxiliary materials was effectively improved, and the plant operation cost continued to decline.

4. In terms of internal governance, under the new system and mechanism, the company’s strategic direction is clear and the organizational team is full of vitality. All internal business work will strengthen the quality and efficiency of the business and comprehensively enhance its competitiveness. During the reporting period, the company’s decision-making process was optimized and made more efficient.

The report stated that it is expected that the company’s performance will continue to maintain strong growth this year and the company is confident in achieving the goal of doubling its performance.