On January 17, the leading semiconductor stock Hangzhou Lion Electronics Co.Ltd(605358) (605358. SH) released the performance forecast for 2021. According to the preliminary calculation of the financial department, the company expects to realize the net profit attributable to the shareholders of the listed company in 2021, ranging from 590 million yuan to 640 million yuan, with a year-on-year increase of 192.14 to 216.90%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 547 million yuan to 597 million yuan, with a year-on-year increase of 264.20% to 297.49%.
Statistics show that the main products of Hangzhou Lion Electronics Co.Ltd(605358) include semiconductor silicon chips, semiconductor power devices and compound semiconductor RF chips. The downstream products are mainly used in communication, computer, automobile, consumer electronics, photovoltaic and other industries.
The company said that during the reporting period, benefiting from the national policy support, the acceleration of domestic substitution of semiconductors and the continuous increase of downstream demand driven by the rapid development of clean energy, new energy vehicles and intelligent economy, the company’s industry and market scene continued to improve, the market demand was strong, the company’s sales orders were full, the production capacity was continuously released, and the production and sales of main products increased significantly; At the same time, by optimizing the product structure, strengthening cost and expense control and timely increasing the product price, the company’s revenue increased significantly year-on-year and its profitability improved significantly.
In terms of production capacity, the company laid out earlier and completed the construction of new 6-inch, 8-inch and 12 inch silicon wafer production lines, and implemented the capacity and technical transformation of power device chip manufacturing production lines, which fully met the current hot market demand. All production lines of the company operated at full capacity, full sales orders, and the production and sales of main products increased significantly.
In addition, the company has made remarkable achievements in technical improvement, yield improvement and cost control and saving. Timely raising the product price to cover the changes of procurement cost also brings benefits to the performance improvement.
It is worth mentioning that in the first half of 2021, the semiconductor chip sector was hot, which once led Hangzhou Lion Electronics Co.Ltd(605358) to open the sharp rise mode. On July 30, 2021, the stock once hit 188.07 yuan / share, doubling the share price compared with about 80 yuan in May of that year.
However, with the lifting of the ban on the first batch of restricted shares after listing, the shares fell all the way below 110 yuan. On September 13, 2021, Hangzhou Lion Electronics Co.Ltd(605358) ushered in the lifting of the ban on 242 million shares. Based on the stock price at that time, the market value of the lifting of the ban was about 27.5 billion yuan, accounting for 60.46% of the total share capital.
On the same day, Hangzhou Lion Electronics Co.Ltd(605358) issued a reduction announcement, saying that four shareholders, including Ningbo Lishi, a shareholder holding more than 5%, Wu nengyun, a director, deputy general manager, chief financial officer and Secretary of the board of directors, Xian Chunlei, deputy general manager of the company, and Ren Dexiao, chairman of the board of supervisors, planned to reduce the total shares of the company by no more than 12.484 million shares, accounting for 3.12% of the total share capital.
According to the announcements on January 15 and January 17, at present, the reduction period of the above shareholders has exceeded half, and the three shareholders of Ningbo Lishi, Xian Chunlei and Ren Dexiao have not reduced their holdings for the time being. Wu nengyun, Secretary of the board of directors, reduced 358000 shares on October 28, 2021, with a reduction amount of 41.6497 million yuan. It is worth mentioning that, in addition to the above shareholders, the first batch of shareholders whose sales restrictions have been lifted have not announced the reduction plan for the time being.
On January 17, Hangzhou Lion Electronics Co.Ltd(605358) shares closed at 117.46 yuan / share, up 4.99%.
