Recently, Yunzhong Technology released its semi-annual report for 2024 on the official website of the Shanghai Stock Exchange and designated information disclosure media. According to the report, in the first half of 2024, Yunzhong Technology achieved operating income of 298.9502 million yuan, an increase of 23.47% compared with the same period of the previous year. The net profit attributable to the parent company's owners was -27.5492 million yuan, a decrease of 21.2578 million yuan compared with the same period of the previous year, narrowing by 43.55% year-on-year. The operating conditions continued to improve.

According to data from the China Academy of Information and Communications Technology (CAICT), from January to June 2024, the domestic market's mobile phone shipments reached 147 million units, representing a year-on-year growth of 13.2%. Among them, 5G mobile phones accounted for 124 million units, up 21.5% year-on-year, making up 84.4% of the total mobile phone shipments during the same period. In June 2024, 26 new mobile phone models were launched in China, representing a year-on-year growth of 18.2%. Among them, 11 were 5G mobile phones, up 57.1% year-on-year, accounting for 42.3% of the total number of new mobile phone models launched during the same period. Benefiting from the recovery of domestic demand for smart phone terminals and the growth of downstream customer orders, the company achieved operating income of 298.9502 million yuan in the first half of 2024, an increase of 23.47% compared with the same period of the previous year. The company's main business generally shows a positive trend. The company will continue to focus on promoting the usage of CMI's third and fourth generation products in high-end flagship models, especially the market application of periscope and variable aperture models, in order to further enhance its market competitiveness and profitability.

Based on focusing on its core business in consumer electronics, during the reporting period, the company actively expanded into the automotive electronics market, concentrating on chassis by-wire braking systems. Its main products include ABS, ESC, ONEBOX, etc. The company will successively promote customer certification in the automotive field, introduce the mainstream domestic supplier system, expand the sales scale of automotive electronic components among first-tier suppliers in the automotive field, and gradually stabilize its market share in the automotive electronics field.

In the field of electronic ceramics, the company mainly focuses on two major business areas: MLCC and DPC. The project implementation is in line with expectations. 2024 marks the first year of the company's MLCC product sales. The products include a series of sizes such as 0201 and 0402, covering market applications in multiple fields including consumer electronics, automotive electronics, communications, and other industries. During the reporting period, the company continuously accelerated the research and development and market layout of key products such as high-capacity and small-sized MLCCS. As a major consumer of ceramic capacitors globally and one of the world's leading production bases for consumer electronics, China's MLCC market is in a stage of steady expansion. In the long run, the upgrading of terminal products, new energy vehicles, intelligent manufacturing and other industries will drive the rapid growth of the electronic component market, and the industry demand for MLCC in China will continue to increase. As a medium and long-term strategic development area of the company, the MLCC business has currently established a complete process flow and a comprehensive quality management system. During the reporting period, the process and technical level of MLCC-related products have been continuously improved, and the product research and development process has been steadily advanced. During the reporting period, the company's MLCC team actively promoted the IATF16949 automotive industry quality management system certification and plans to obtain the relevant certification qualifications by the end of 2024, laying a solid foundation for the expansion of the company's MLCC business. In the DPC business, the company independently developed prefabricated gold-tin ceramic heat sink products, including prefabricated gold-tin aluminum nitride, silicon carbide and other products. These products feature high heat resistance, high insulation, high thermal conductivity and other characteristics, and are widely used in high-power lasers, laser cutting, laser welding and other fields. According to data from GIR(GlobalInfoResearch), the global revenue of ceramic substrates was approximately 1.163 billion US dollars in 2023 and is expected to reach 3.59 billion US dollars by 2030, with a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030. Among them, DPC's global revenue in 2023 was approximately 259 million US dollars and is expected to reach 347 million US dollars by 2030. In the future, with the upgrading of the high-end manufacturing industry, the scale of the company's DPC business will continue to grow, creating new profit growth points for the company.

In addition, during the reporting period, the company's management attached great importance to the long-term sustainable development of the business, continuously optimized resource allocation, focused on the development of key businesses, and actively promoted project financing, thereby effectively improving the company's financial structure. During the reporting period, the company reduced its investment in the semiconductor lead frame business and obtained profits through external equity financing, thereby enhancing the company's profitability. In the future, the company will continue to improve and enhance its corporate governance level, actively promote technological innovation, enhance operational efficiency, adopt diverse financing methods, and drive the company's stable and healthy development.

Link to "Suzhou Yunzhong Electronic Technology Co., LTD. 2024 Semi-annual Report" :

https://static.sse.com.cn/disclosure/listedinfo/announcement/c/new/2024-08-28/688260_20240828_U3J9.pdf