Intron Technology : records significant revenue and net profit growth in 2021 Interim ResultsRevenue from NEV Solutions surges 179%

Intron Technology records significant revenue and net profit growth in 2021 Interim Results
Revenue from NEV Solutions surges 179% 2021.08.26

(26 August 2021, Hong Kong) - Intron Technology Holdings Limited ('Intron Technology' or the 'Group'; HKEX: 1760), a fast-growing automotive electronics solutions provider in China, today announced its 2021 interim results for the six months ended 30 June 2021. The Group's performance was outstanding, with revenue surging by 53% to RMB 1,320.6 million with a stable gross profit margin at 19.2%. Net profit climbed 41% to RMB 63.4 million.

The effective control measures of COVID-19 contributed to the continual steady recovery of the Chinese economy, which facilitated the implementation of consumption policy measures and strongly supported the recovery of the automotive market. Although the shortage of semiconductors still exerted certain impact on the automotive market, the Group seized opportunities generated from the recovery of the automotive market and leveraged on its years of partnership with its business partners. Alongside its strong R&D capabilities and long-standing solid market position, the Group secured the supply of semiconductors required by its customers and achieved brilliant results for the period.

During the period under review, the Group recorded growth in all of its business segments with particularly satisfactory performance from its New Energy Vehicle ('NEV') Solutions business, reflecting the significant results of the Group's long-term pragmatic efforts in developing such business. The Group's key ultimate customers continued to comprise top ten renowned Chinese new energy passenger vehicles brands. To adapt to the changes in the NEV market in China, the Group expanded its client coverage by collaborating with the fast-growing new electric car start-up companies.

During the period, the revenue from the Group's NEV Solutions business rose significantly to RMB 383.9 million, representing a year-on-year increase of 179% as compared with RMB137.5 million of last year. The satisfactory growth was attributable to the continual development of the general NEV market. Moreover, the Group's market share was also improved as automotive makers adopted more solutions and product modules provided by the Group and some of the R&D projects gradually started mass production during the period.

The suspension of factory operations caused by the pandemic outbreak led to a prolonged global shortage of semiconductors during the period. However, the stability of the Group's semiconductor supply outperformed its industry peers primarily due to the Group's proactive management to secure the supply of semiconductors required by its customers under such difficult conditions, building upon its stable and reliable customer base plus its long-established close partnership with the semiconductor suppliers. As a result, the Group capitalized on the strong recovery of NEV business and further consolidated the business relationships with its new and existing customers alike.

The Group's automotive electronics business benefited from the growth in overall demand and incremental new applications during the period, coupled with the significant increase in the revenue from commercial vehicles and powertrain applications. During the period under review, the revenue from Body Control Solutions business reached RMB237.6 million, representing a year-on-year increase of 67%. This was mainly due to the increase in order volume driven by higher purchase from more automotive makers. The revenue from Safety Solutions business increased 30% to RMB253.3 million, which was mainly attributable to the mass production of the new ADAS domain controllers and the broader application of safety related products. The revenue from Powertrain Solutions business increased 21% year-on-year to RMB140.8 million, which was mainly due to the growing business driven by the development of the automotive electronic controller unit business.

During the period, the revenue from the Industrial Solutions business of the Group increased 22% year-on-year to RMB283.6 million. This was mainly attributable to the broad application of the online market, which led to the continual increase in demand for data centres and cloud computing facilities. This led to increase in demand for the Group's power management solutions which contributed to the increase in its industrial related revenue for the first half of the year.

Big data and cloud servers will be the future development trend in the long run. With the changes in lifestyle and habits of the general public, this segment will bring stable income for the Group and will complement the Group's automotive business in the technological aspect.

Mr. Davy Luk, Chairman, Co-CEO and Executive Director of Intron Technology, said, 'Following years of development in the NEV sector and ongoing expansion of our client base, the Group has performed exceptionally this year and laid a sound foundation for its business for the upcoming years. The Group will launch an open electronic control unit (Open-ECU) platform supporting segmented electric vehicles and automated driving platforms to its customers in the third quarter of 2021, further utilizing its technological platform for further business enhancement. The Group took the lead in the R&D of ADAS & AD solutions. Our solution portfolio have now covered all major areas and will be gradually put into mass production in the coming two years.'

R&D has always been the cornerstone of the Group's development. As at 30 June 2021, the Group had 607 full-time R&D-related professionals, representing 62% of its total employees. The Group also secured 152 patents and 129 software copyrights, an increase of 73 patents and 11 software copyrights, respectively compared to the same period last year. Intron Announces its 2021 Interim

In addition, the Group's new large-scale R&D Testing and Validation Centre in Shanghai has successfully obtained the Laboratory Accreditation from the China National Accreditation Service for Conformity Assessment (CNAS). The accreditation proves that the Group's R&D Testing and Validation Centre is in par with the national laboratory standards. Combined with the robust R&D capabilities of the Group, the centre will help the Group shorten its product development cycle, enhance product reliability, and facilitate the upgrading of its technologies and products.

Mr. Eddie Chan, Co-CEO and Executive Director of Intron Technology, said, 'Looking ahead, we expect that the shortage of semiconductor chip supply will continue. However, the Group is prudently optimistic on the general market supply condition. With the increasing popularity and adoption of electric and intelligent vehicles solutions, the Group expects the automotive market demand to continue to rebound. With stronger R&D capabilities, the Group is set to achieve sustainable growth and generate stable and satisfactory long-term returns for its shareholders.'

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About Intron Technology Holdings Limited (英恒科技控股有限公司)
Intron Technology Holdings Limited is a fast-growing automotive electronics solutions provider in China focuses on providing solutions targeting critical automotive electronic components applied in New Energy, Body Control, Safety and Powertrain systems. The Group utilises its research and development and engineering capabilities to provide solutions incorporating advanced semiconductor devices to help OEMs achieve industry leading performance.

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