The net profit of China report is expected to exceed 470 million. This enterprise withdraws from the market of power battery products.

At noon on July 14, Zhenhua Science and Technology (000733) issued a performance forecast for the first half of 2021. It is estimated that the net profit belonging to shareholders of listed companies in the first half of this year will be 471 million yuan to 518 million yuan, an increase of 100% Mu 120% over the same period last year. Net profit after deducting non-recurring profits and losses is 449 million yuan to 496 million yuan, an increase of 132.97% 157.42% over the same period last year; earnings per share are 0.915 yuan to 1.007 yuan.

The announcement shows that during the reporting period, the customer demand for high reliable products downstream of the new electronic components plate enterprises increased, and the sales of high value-added products increased compared with the same period last year.

In addition, during the reporting period, the company fully deducted the credit impairment loss on the net amount of other receivables and entrusted loans held by Shenzhen Communications, with an amount of 109 million yuan; in order to speed up the divestiture of the social functions of state-owned enterprises and solve the problems left over by history, an one-time provision of 233 million yuan for non-overall planning expenses.

The data show that Zhenhua Technology's main business includes new electronic components and modern service industries, among which new electronic components mainly include chip resistance and capacitance inductance, semiconductor discrete devices, mechanical and electrical components, thick film hybrid integrated circuits, high voltage vacuum interrupters, circuit breakers and special batteries, etc., which are widely used in domestic aviation, aerospace, electronics, weapons, shipbuilding and nuclear industry and other key fields.

It is worth noting that on July 8, Zhenhua Technology said in response to questions from investors that the expansion project of the lithium-ion power battery production line was an additional investment project for the company in 2014, which had already been completed and put into production. Due to the influence of the subsidy policy for new energy vehicles and market changes, the company has withdrawn from the lithium-ion power battery market in 2019, and its Zhenhua New Energy has completed the transformation of its lithium-ion battery products. At present, the main application fields of lithium-ion battery products are consumer battery market and special industries, and the main customers of consumer batteries are Anke, DJI and other high-quality customers.