On April 1st, JASIC published its financial results for 2022, which showed a 1.38% year-over-year dip in the total operating revenue and a 12.04% decrease in the net profit attributed to shareholders. The overall financial performance was not up to expectation due to the further aggravated macroeconomic downturn. However, JASIC took several measures to mitigate the impact and maintained a relatively stable operation.

2022 Overall Financial Performance

JASIC total operating revenue reached RMB1.23 billion ($177.03 million*) in 2022, a 1.38% decline compared to last year.

Period	2020	2021	2022
Total operating revenue	1,020,262,386.15	1,249,347,145.27	1,232,096,018.40

Operating income declined significantly by 11.72% YoY to RMB200.13 million. Total profits substantially decreased by 12.65% YoY to RMB198.25 million. Net profit attributable to shareholders fell by 12.04% YoY to RMB176.34 million. Earnings per share declined by 12.20% to RMB0.36 compared to the prior-year period.

Period	2020	2021	2022
Operating income	192,372,599.64	226,695,124.83	200,133,493.68
Total profits	188,598,663.38	226,964,100.10	198,246,636.01
Net profit attributable to shareholders	162,547,422.34	200,473,971.95	176,341,147.69
Earnings per share	0.34	0.41	0.36

The decline in revenue was primarily due to the weak market demand and intensified competition within the industry. The decline in profit was caused by the increase in raw material price and sales promotion cost.

2022 Overseas Sales Performance

Export sales total revenue reached RMB610.51 million($87.72 million*), showing a 3.12% increase year over year. And the operating cost rose to RMB406.57 million, up 4.15% compared to 2021.

Period	2020	2021	2022
Operating revenue	465,978,549.93	592,055,711.56	610,506,776.58
Operating cost	288,236,143.43	390,388,299.45	406,574,686.03

The increase in revenue can be attributed to several factors, including timely adjusted sales strategies, new product launch and exhibitions, effective communication with key accounts, and some breakthrough in the sales of several regional markets.

Risks and Solutions

Here are some significant risks and related solutions for the company’s operations.

1. The risk of economic downturn
World trade has been impeded by negative factors such as the international economy slowdown, trade protectionism, inflation, geopolitical frictions and weakening global trade momentum. To manage the downsides of economic downturn, JASIC will optimize the distribution channel construction, conduct market research, strengthen product management and promotion, implement product diversification and invest in technological innovation, new product development and product upgrades to meet the changing market demands.

2.Accounts receivable risk
Due to economic downturn and weak market demands, some dealers are struggling with capital turnover, resulting in an increase in the balance of accounts receivable and the risk of bad debt loss. To avoid such risk, JASIC will improve the management of payments to ensure the safety of company assets.

3.Procurement cost fluctuation risk
Commodity prices are uncertain in the long term, affected by factors such as global economy recovery dynamics, geopolitical risks and currency policies at home and abroad. The uncertainty makes it hard to execute effective control of procurement cost. To face the challenges, JASIC has established a strategic material management task force to adjust material inventory in a timely manner and speed up the localized sourcing process of key components. JASIC has also established partnerships with suppliers and implemented supply chain diversification to minimize the cost fluctuation risk.

4.Foreign exchange risk
The fluctuations in RMB exchange rate will have an impact on the company’s gains and losses. To mitigate the risk, JASIC will keep a close eye on the foreign currency trend, maintain a reasonable holding of foreign currency assets and choose proper exchange hedging tools.

*exchange rate at the end of 2022: US$1 = CNY 6.96

Autumn is the season of harvest. And for JASIC’s export business, this is the season of a major comeback to the international trade show scene, along with some encouraging wins.

In the past October, JASIC has exhibited in the EuroBLECH 2022 in Hannover Germany and in the Tool Tech + Smart Welding Automation Fair in Seoul, Korea. Despite the current global downturn, JASIC’s participation in these 2 renowned trade shows has delivered positive results for the brand and its sales.

EuroBLECH 2022

With a booth of 78.75m2, JASIC had presented EVO20’s flagship models, together with JASIC’s 3-phase models and the emerging handheld fiber laser welding machine. The EVO20 range had played the leading role in the show, with its value proposition “New Standard of UX in Welding” being the main attraction to visitors.

During the show, locally-renown influencers such as Esther Ollick and Stjepan Budic had visited JASIC’s booth, catching up with JASIC staff and other visitors. Professional welder and online welding influencer Daniel Ossig had presided in JASIC booth’s test welding area as the chief demo welder, who demonstrated JASIC product’s professional-grade performance along with other welding influencers attracted by Daniel’s performance. People had been impressed by EVO20’s overall quality and performance, and its new UX(user experience) features had been drawing visitors.

JASIC also unveiled its fully-digital and cloud-powered EVOLVE200+, its union of high-end digital signal processor and cloud technology shows the next phase of JASIC welding technology’s development - embracing the digital future.

During the 4-day show from October 25th to 28th, JASIC had managed to change many visitors’ preconception of welding products that are Made-in-China with highly competitive features/quality and professional branding.

Tool Tech 2022

On the other side of the world, JASIC had also impressed Tool Tech 2022’s visitors in Seoul, Korea in collaboration with Withus CO., LTD. JASIC’s handheld fiber laser welding machines had been the center of attention for JASIC products during the 4-day exhibition from October 17th to 20th.

Visitors had been attracted by the high welding speed and low training requirement of the handheld fiber laser compared to conventional TIG/MIG welding. Withus had managed to secure numerous sample orders for the machines thanks to the competitive price/performance ratio and JASIC’s 3-year warranty.

Korea’s Tool Tech + Smart Welding Automation Fair is a biannual professional exhibition for industrial tool and welding technology hosted by Korea Tools Industry Cooperative(KOTIC). Its previous edition had 164 exhibitors from 17 countries worldwide.

Looking Onward

The COVID-19 pandemic had inevitably disrupted JASIC’s plan for international welding trade shows. However, the recent wins in EuroBLECH 2022 and Tool Tech 2022 give JASIC inspiration for its export business from present onward. JASIC is looking forward to exhibit in the undisputed No.1 show of the welding industry next year - the Schweissen & Schneiden 2023.

JASIC announced its third quarter 2022 financial report on Oct. 18th. Its total operating revenue amounted to RMB 266.05 million ($37.39 million*) while its net profit attributable to shareholders recorded RMB 53.09 million ($7.46 million).

2022 Q3 Financial Performance

JASIC total operating revenue reached RMB 266.05 million ($37.39 million) in the third quarter of 2022, a 15.85% decrease year-over-year.

Period	2020-Q3	2021-Q3	2022-Q3
Total operating revenue	315,515,714.73	316,166,142.60	266,049,864.45

Operating income dropped to RMB 57.78 million, a 15.45% decline compared with the same period last year. Total profits fell to RMB 57.77 million, down 15.81% from the previous year. Net profit attributable to shareholders decreased 13.69% compared with the prior-year period. Earnings per share declined by 15.38%.

Period	2020-Q3	2021-Q3	2022-Q3
Operating income	55,301,959.44	68,332,005.74	57,775,484.85
Total profits	55,305,267.47	68,613,306.60	57,768,426.93
Net profit attributable to shareholders	45,641,864.03	61,509,138.53	53,085,521.50
Earnings per share	0.09	0.13	0.11

*exchange rate at the end of Sept. 2022: US$1 = CNY 7.116

On August 20th, JASIC published its first half 2022 financial results with its total operating revenue dropped 10.06% compared to 2021 and the net profit attributable to shareholders decreased 26.92% compared to 2021.

First half 2022 Financial Performance

JASIC total operating revenue reached RMB603.83 million ($90.14 million*) in the first half of 2022, a 10.06% decline compared to the same period of last year.

Period	2020-H1	2021-H1	2022-H1
Total operating revenue	412,032,719.68	671,349,215.00	603,832,423.54

Operating income fallen to RMB106.33 million, slumped 25.04% year over year. Total profits dropped by 26.28% compared with the first half 2021. Net profit attributable to shareholders plunged to RMB90.70 million, a 26.26% drop over the previous year. Earnings per share plummeted to RMB0.19, falling 26.92% from the prior-year period.

The decrease in earnings per share was mainly due to the decline of operating income resulting from battered domestic demand following strict COVID control and the drop of gross profit rate caused by the increase in raw material price and sales promotion.

Period	2020-H1	2021-H1	2022-H1
Operating income	115,065,630.25	141,844,626.08	106,330,663.22
Total profits	110,381,602.86	141,932,117.20	104,639,426.95
Net profit attributable to shareholders	94,016,550.69	122,986,766.07	90,696,234.42
Earnings per share	0.2	0.26	0.19

Influenced by the sluggish macroeconomic environment, JASIC has suffered some pressure in the operation, but JAISC is still on track to achieve its strategic goals while taking measures to tackle the following main risks.

1. The risk of economic downturn
The resurgence of pandemic in China, intensified international geopolitical frictions, and the slow down of international economy have posed great challenges for the sales of the company. To manage the downsides of economic downturn, JASIC will optimize the channel construction, execute product diversification and invest in technology innovation to adapt the changing market demand.
2.Accounts receivable risk
Affected by economic downturn and weak market demand, some dealers have found difficulty in capital turnover which leads to the increase in the balance of accounts receivable and the risk of its bad debts. To avoid the risk, JASIC will improve the management of payments to ensure the safety of company assets.
3.Procurement cost fluctuation risk
Uncertain commodity price in the long term due to political, economic and pandemic factors has caused difficulties to the effective control of procurement cost. In order to meet the challenges, strategic material management task force is established to adjust material inventory timely and proceed key component localization. JASIC has also built partnership with suppliers and implement supply chain diversification to minimize the cost fluctuation risk.
4.Foreign exchange risk
The fluctuations in RMB exchange rate will have an impact on the company’s gains and losses. To mitigate the risk, JASIC will keep a close eye on the foreign currency trend, maintain a reasonable holding of foreign currency assets and choose proper exchange hedging tools.

On April 23rd, JASIC announced its 2022 first quarter business results. This quarter JASIC reached a 12.05% YoY growth rate in its total operating revenue while recorded a 14.52% YoY decrease in net profit attributable to shareholders.

First Quarter 2022 Financial Performance

JASIC total operating revenue amounted to RMB340.18 million ($53.57 million*) for the first quarter of 2022, up 12.05% compared to one year ago.

Period	2020-Q1	2021-Q1	2022-Q1
Total operating revenue	141,479,478.04	303,596,900.73	340,180,758.42

Operating income plunged to RMB57.24 million, decreased by 13.53% year over year. Total profits were RMB57.10 million, down 14.01% compared with the first quarter of 2021. Net profit attributable to shareholders was RMB48.44 million, drop 14.52% from the previous year. Earnings per share were RMB0.10, falling 16.67% from the last year.

The loss in profit is primarily attributable to the following factors:

• The uncertainties caused by recent COVID-19 lockdowns in key Chinese cities
• Macroeconomic headwinds aggravated by recent geopolitical crisis
• The decrease of government subsidies
• The corporate investment dividend is not yet credited to the company’s account
• The free cash flow loss caused by the recent weakening Chinese yuan against the US dollar

Period	2020-Q1	2021-Q1	2022-Q1
Operating income	38,243,379.20	66,195,368.52	57,240,379.80
Total profits	33,653,737.74	66,405,666.20	57,100,640.68
Net profit attributable to shareholders	28,702,752.11	56,669,853.04	48,442,140.30
Earnings per share	0.06	0.12	0.10

*exchange rate at the end of March 2022: US$1 = CNY6.3500

JASIC announced its 2021 financial report on April 23rd, 2022. This year JASIC reached a 22.45% YoY growth rate in total operating revenue and a 23.33% YoY growth rate in net profit attributable to shareholders despite facing uncertainties brought about by geopolitical tension and volatile global trade environment.

Overall Financial Performance of 2021

JASIC total operating revenue reached USD 193.64 million* in 2021, a 22.45% increase compared to the same period of last year.

Period	2019	2020	2021
Total operating revenue	$149,652,379.82	$158,131,181.98	$193,637,189.29

JASIC has seen a significant recovery in 2021. Operating income grew by 17.84% YoY, bouncing back from a 21.72% contraction in 2020. Total profits climbed 20.34% from a year earlier, rebounding from a 23.34% decline in 2020. And net profit attributable to shareholders rose by 23.33% compared to last year, recovering from a 21.73% drop in 2020. Earnings per share increased by 20.59% YoY, returning back from a 20.93% decrease in 2020.

Period	2019	2020	2021
Operating income	$38,091,056.12	$29,815,963.99	$35,135,636.21
Total profits	$38,129,623.79	$29,231,038.96	$35,177,324.88
Net profit attributable to shareholders	$32,186,874.48	$25,193,338.86	$31,071,601.36
Earnings per share	$0.07	$0.05	$0.06

Export Sales Performance

JASIC gained a significant increase in the operating revenue with a reasonable loss in profit in export sales. The operating revenue of export sales in 2021 totaled to USD 91.76 million, a 27.06% YoY growth rate. The operating cost was USD 60. 51million, a 35.44% YoY growth rate.

JASIC made every effort to face the challenges of an increasingly volatile global trade environment:

• JASIC monitored major markets closely and prudently worked out comprehensive solutions considering factors including overseas orders, global shipping and international trade settlement to mitigate risks of JASIC’s export business.
  
• JASIC implemented its diversification strategy and allocated more resources to markets with stable socio-economic environment to offset potential losses in volatile markets.
• JASIC closely followed the performance of RMB exchange rate, and maintained a reasonable holding of foreign currency assets and selected suitable foreign exchange hedging tools in face of the current volatility in the forex market.

JASIC went lengths to control the rise of purchase cost caused by the volatile international environment:

• Strategic material management task force was established to study and observe the trend of key component price, adjust inventory in time and localize sourcing of key components.
• JASIC built strategic partnerships with suppliers to ensure the stable supply of raw materials and execute supply chain diversification strategy systematically to minimize the impact of global supply-chain disruption.

Period	2019	2020	2021
Operating revenue	$67,176,314.08	$72,222,341.90	$91,763,129.50
Operating cost	$41,247,283.23	$44,673,921.80	$60,506,556.02

2022 has underscored JASIC’s ability to rapidly adapt to changing environments.
Looking into the future, JASIC will keep strengthening its core competencies while developing new businesses internationally:
For sales

• Proceed with product diversification strategy to further the agenda of business diversification. Welding consumables and accessories businesses will play a crucial part in the diversification strategy.
• Optimize distribution management and formulate proactive and agile sales strategies considering different markets.
• Increase customers loyalty and depth of partnership by supporting key markets and optimizing customers training and service.
• Strengthen the buildup of sales force and its competencies.
  

For marketing

• Hold new product launch events and subsequent road shows for different market segments at home and abroad with the new industrial-grade products playing a vital role.
• Digital marketing, offline promotion activities and brand outlet building will be taken to increase brand awareness, attract new customers, and improve overall brand image.

For RDI center

• Continuously invest in new product development and technology innovation while keeping an eye on the progress of key projects and ensuring timely project delivery.
• Establish effective incentives to encourage technical employees to create technology innovations and apply for intellectual property.

For supply chain center

• Identify and manage commodity price risks, make reasonable inventory and improve material full kits rate.
• Localize and diversify the sourcing of materials and control purchase cost to ensure the punctuality and effectiveness of procurement.
• Implement lean production, transform production processes and embrace production digitalization to improve production efficiency.
  

*CNY to USD exchange rate used is 6.452

A New Era

On March 31st, 2022, JASIC released its latest EVO20 range in a hybrid event held simultaneously in Frankfurt and Shenzhen. Both locations have physical venues for the event, and online live stream of the event was broadcasted on JASIC’s official Facebook, LinkedIn, Instagram and WeChat. The new product launch marks a new era in the company’s internationalization in which the JASIC brand and its new product offering are front and center.

Being the first Chinese welding company to launch new product in an international hybrid event, JASIC has incorporated the concept of “New Standard of UX in Welding” into the new EVO20 range. This new standard comprises of solid welding performance, redefined industrial design and human-machine interface, plus high standard in reliability & sustainability.

Center of the Conversation

The new product range currently comprised of 14 basic single-phase models, and 3-phase models are also projected for future release. The all new rugged and robust appearance with the new control panel designs looks nothing like any of JASIC’s previous models, and with innovative features in welding performance and human-machine interaction these new machines have surely aroused interest amongst offline visitors of the event as well as online live stream viewers.

Meaning of EVO20

The new releases have “evolved“ significantly compared to all previous JASIC models, and thus “EVO” is in their name. As for the number 20, it not only signifies a new beginning (2.0 vs 1.0) for JASIC but also announces the company’s ambition to set new standard of UX for professional-grade welding machines in the 2020s.

Beyond Frankfurt and Shenzhen

Major distributors and industry influencers from all over Europe attended the Frankfurt event, with their Chinese counterparts gathered in JASIC’s corporate showroom and joined Frankfurt via online video stream. Mr. Pan LEI the president of JASIC and Anssi Rantasalo the vice president of JASIC have given a passionate presentation to a global audience in Shenzhen and Frankfurt respectively. From Shenzhen to Frankfurt, JASIC has begun to renew its story for the global welding market. And it will surely continue to write the new JASIC story beyond Europe.

JASIC announced its 2021 Q3 financial report on October, 26th. This quarter JASIC has reached a 0.21% YoY growth rate in total operating revenue and a 34.76% YoY growth rate in net profit attributable to shareholders. Global supply chain disruption and international shipping crisis are the major headwinds that have affected JASIC’s international business. However, JASIC’s lead in China’s professional welding machine market has offset the negative factors in the current international trade environment.

Third Quarter 2021 Financial Performance

JASIC total operating revenue was USD 49.30 million* in the third quarter of 2021, up 0.21% compared to 2020.

Period	2019-Q3	2020-Q3	2021-Q3
Total operating revenue	$33,847,992.78	$49,196,325.62	$49,297,742.63

Operating income reached USD 10.65 million, a 23.56% year-on-year growth. Total profits amounted to USD 10.70 million, increasing 24.06% compared with the same period last year. Net profit attributable to shareholders was USD 9.59 million, rising 34.76% compared with last year. Earnings per share were USD 0.02, a 44.44% increase from 2020.

Period	2019-Q3	2020-Q3	2021-Q3
Operating income	$12,132,163.47	$8,622,877.01	$10,654,567.90
Total profits	$12,141,307.39	$8,623,392.81	$10,698,429.32
Net profit attributable to shareholders	$10,315,009.86	$7,116,640.79	$9,590,722.32
Earnings per share	$0.02	$0.01	$0.02

The gross profit margin was 29.42%, a 1.63 % decline month on month and a 4.37% decline year on year. The net profit margin was 19.41%, a 1.15% month on month and a 4.37% year on year.

This third quarter has been somewhat challenging for most manufacturing sectors worldwide. In the case of JASIC, the continuous price hike in global commodity, the international shipping crisis, and China’s recent power crunch affecting many of its suppliers have been weighting down JASIC’s 2021Q3 financial performance. The successful launch of the JET20 products in the domestic market is an indispensable hedge against the volatile international market. Despite the current difficulties, JASIC is confident in keeping its lead in the domestic market while boldly seizing new opportunities in the international market with new strategies.

*CNY to USD exchange rate used is 6.4134

JASIC announced its first half year financial results on July 31st, 2021. The company’s financial performance so far has proven its abilities to weather a highly volatile business environment, as the COVID-19 pandemic and supply chain disruption have greatly affected manufacturing sectors worldwide. JASIC has not only maintained its stability in operation in the current global economy, but also achieved better-than-expected financial performance by implementing proper marketing strategies.

Overall Financial Performance of First Half 2021

JASIC’s financial performance is well demonstrated by following financial indicators.
JASIC total operating revenue reached USD 103.73 million in the first half 2021, increasing 62.94% compared to the previous year.

Period	2019-H1	2020-H1	2021-H1
Total operating revenue	$73,162,374.12	$63,665,861.07	$103,734,542.94

Operating income was USD 21.92 million, a 23.27% increase compared with 2020. Total profits were USD 21.93 million, up 28.58% compared with the same period last year. Net profit attributable to shareholders was USD 19 million, a 30.81% year-on-year growth. Earnings per share were USD 0.04, a 30.00% increase from the last year.

Period	2019-H1	2020-H1	2021-H1
Operating income	$19,658,435.19	$17,779,540.51	$21,917,337.69
Total profits	$19,676,596.23	$17,055,780.90	$21,930,856.52
Net profit attributable to shareholders	$16,366,168.27	$14,527,110.03	$19,003,486.83
Earnings per share	$0.03	$0.03	$0.04

There are two main reasons accounting for the financial performance.
a, Domestic sales have been well boosted by successful new product launch.
b, Overseas sales have kept its momentum due to increased customer demand and effective strategies to mitigate the effect of supply chain disruption and surging international shipping cost.

Although JASIC’s financial outcomes have been encouraging in 2021H1, it will have to deal with the following challenges in the mid and long term.
a. Supply chain disruption and violent fluctuation of international shipping fees increase JASIC’s operating costs.
b. The RMB’s long-term appreciation which puts more pressure on export sales.
c. Falling interest rate which results in reduced financial investment gains.
d. Uncertainties from the spread of COVID-19 Delta and Lambda variants, geopolitical risks and international trade frictions.

Note: CNY to USD exchange rate used is 6.4718.

On April 17th, JASIC announced its first quarter 2021 financial report, delivering outstanding results that exceed expectations.

First Quarter 2021 Financial Performance

JASIC has demonstrated remarkable resilience regarding the total operating revenue. It reported total operating revenue of USD 47.30 million for the first quarter of 2021, up 114.59% compared to USD 22.04 million one year ago.

Period	2019-Q1	2020-Q1	2021-Q1
Total operating revenue	$31,496,276.82	$22,043,825.75	$47,303,236.27

Other key indicators of JASIC’s financial performance have also been considerably improved. Operating income rose to USD 10.31 million, a 73.09% growth year-over-year. Meanwhile, total profits were USD 10.35 million, up 97.32% compared with the first quarter of 2020. Net profit attributable to shareholders was USD 8.83 million, increasing 97.44% from the previous year. Earnings per share were USD 0.02, doubled the last year.

Period	2019-Q1	2020-Q1	2021-Q1
Operating income	$5,523,924.75	$5,958,676.12	$10,313,857.45
Total profits	$5,529,515.43	$5,243,567.06	$10,346,623.80
Net profit attributable to shareholders	$4,609,531.00	$4,472,157.20	$8,829,693.06
Earnings per share	$0.01	$0.01	$0.02

Although JASIC has achieved better-than-expected results in the first quarter of 2021, its exposure to the major risks in the current global economy cannot be overlooked.
Current major risks are as follows:
a. Negative impact of COVID-19 pandemic on overseas sales
b. Volatile commodity prices have impacted the purchase price and lead time of raw material, leading to product manufacture and delivery difficulties.
c. Exchange gains and financial investment gains have been affected by fluctuating exchange rates and interest rates.
Confronting these challenges, JASIC has taken proper measures to mitigate risks and maintain steady progress in achieving its strategic business objectives.

JASIC published its 2020 financial report on March 20th, 2021. Facing unprecedented uncertainty posed by the COVID-19 pandemic, the company has remained steady in revenue growth with controllable loss in profit.

2020 Performance

JASIC showed a steady growth in the total operating revenue. It reported total operating revenue of USD 158.76 million of 2020, a 5.67% increase, as compared to USD 150.25 million in 2019.

Period	2018	2019	2020
Total operating revenue	$139,003,314.40	$150,246,192.26	$158,758,637.85

However, some key indicators of the corporate financial performance were significantly affected by the tough economic environment. Operating income dipped to USD 29.93 million, a 21.72%% decrease compared to the previous year. Meanwhile total profits were USD 29.35 million, down 23.34% compared to 2019. Net profit attributable to shareholders was USD 25.29 million, dropping 21.73% from the previous year. Earnings per share were USD 0.05, a 20.93% decline year over year.

Period	2018	2019	2020
Operating income	$34,525,169.22	$38,242,199.34	$29,934,272.10
Total profits	$34,578,495.29	$38,280,920.05	$29,347,026.12
Net profit attributable to shareholders	$29,686,827.98	$32,314,590.23	$25,293,304.65
Earnings per share	$0.06	$0.07	$0.05

Export Sales Performance: Exceeds Expectations

The company represented the continued growth of operating revenue with relatively stable gross margin in export sales. Facing the economic risks including uncertain macro-economic environment, volatile commodity prices, exchange rate fluctuation and current issues in global shipping, JASIC managed to mitigate the negative effects with proper methods and received exceptional export sales result. The export operating revenue reached USD 72.51 million, a 7.51% year-on-year increase. Besides, JASIC successfully maintained fairly stable gross margin despite of the volatility in raw material prices. The gross margin was 38.14%, down 0.46% compared to last year.
All of these cannot be achieved without the well-coordinated strategy, and its agile execution based on in-depth and timely analysis of different territories.

Period	2018	2019	2020
Operating revenue	$66,105,735.09	$67,442,866.01	$72,508,916.20
Gross margin	37.82%	38.60%	38.14%

With obstacles affecting JASIC’s financial performance, the company has still remained stable in the operation with exceptional export sales performance. And as the economic uncertainty continues, JASIC has adopted appropriate strategies to control its downsides and quickly adapted to the economic changes. Besides, the company has made some adjustments to provide better services to customers. It will ensure the stable growth of its welding machine business while boosting the sales of welding consumables and accessories.

JASIC published its financial report of the third quarter of 2020 on October 21st. While the impact of COVID-19 pandemic persists, JASIC has demonstrated strong adaptability in the third quarter of 2020 with relatively stable financial performance.

Third Quarter Performance

JASIC reported total operating revenue of USD 48.39 million for its third quarter of 2020, a 45.34% increase, as compared to USD 33.29 million in the prior year period.

Period	2018-Q3	2019-Q3	2020-Q3
Total operating revenue	$32,926,846.76	$33,294,077.84	$48,391,238.59

Operating income reached USD 8.48 million, a 28.93% decrease year over year. Meanwhile total profits were USD 8.48 million, down 28.97% compared to the same period of last year. Net profit attributable to shareholders was USD 7 million, declining 31.01% from the previous year. Earnings per share were USD 0.01, a 35.71% drop year over year.

Period	2018-Q3	2019-Q3	2020-Q3
Operating income	$9,903,403.85	$11,933,623.29	$8,481,765.53
Total profits	$9,911,633.32	$11,942,617.57	$8,482,272.89
Net profit attributable to shareholders	$8,362,915.46	$10,146,207.00	$7,000,178.53
Earnings per share	0.02	0.02	0.01

Though the COVID-19 pandemic has significantly affected JASIC’s profitability, the company has managed to limit the influence with proper responses. And it has confidence in maintaining good momentum of growth and preparing for new challenges ahead.

New Showroom Goes Live

After almost one year of preparation and construction, JASIC’s new corporate showroom covering an area of 100 square meters has become operational on September 12nd, 2020. The showroom delivers an immersive presentation of JASIC, with four sections showcasing different aspects of the company. Held in celebration of JASIC’s 15th anniversary, the opening of the new showroom marks the maturation of JASIC as a renowned welding equipment manufacturer.

Corporate Culture Section

Corporate History Section

Product Display Section

The opening tour to JASIC's new Showroom

A Brief Video Tour of the New Showroom

Looking Back

From a small factory with merely 150 staffs back in 2005, JASIC has grown to become an international business exporting to more than 80 countries and regions, with a $139 million annual turnover* and over 1000 staffs worldwide. During these 15 years, JASIC sets itself apart from the competition with its dedication to be an indispensable contributor to the world’s welding industry.

The story started with JASIC’s founder Mr. Pan Lei, who has dedicated himself to the welding industry since 1992. Unsatisfied with the status quo of China’s welding industry, he made a determination to set up a business to produce advanced inverter welding machines in 2005. And with that idea, JASIC was born.

Mr. Pan Lei

Although JASIC ran in the red in its first year, the situation soon turned around as a result of a series of opportunities and the ability to seize them. In 2008, the company has reached its first defining moment: JASIC products were chosen for the construction of Beijing Bird’s Nest Stadium for the Olympic Games.

JASIC welding machines were used in the construction of Beijing Bird’s Nest

Small but ambitious, JASIC has rejected the takeover bid from Lincoln Electric, the world leader in welding equipment. This determination to be independent has paid off: the company has achieved a CAGR of 29.97%* from 2006 to 2019, expanded its operation to 8 countries, and has become the parent of 5 fully-owned subsidiaries.

Global sales network

Embrace the Future

JASIC fully embraces the new development of welding industry, such as digital transformation, Internet of Things(IoT) and robotics. The company will roll out a full-digital, cloud empowered inverter welding machine in the second half of 2020. An advance full-digital welding machine range is set to be launched in 2021.

As for the further future, JASIC has set its eyes on IoT empowered industrial welding automation solution. The 15th anniversary of JASIC coincides with the most economically challenging year in the past three decades, but the company has managed to maintain its growth momentum. Always looking forward, JASIC is well on its path to become a world-class welding solution provider.

“Future of Welding”, the last section of JASIC’s new corporate showroom

JASIC has published its financial reports of the first quarter and the first half year of 2020 respectively on April 25th and July 29th, 2020. This has been a challenging year due to COVID-19 and uncertainty in international trade and geopolitics. However, JASIC has maintained relatively stable operation during hard times.

First Quarter Performance

JASIC reported total operating revenue of USD 20.43 million for its first quarter of 2020, a decrease of 30.01% from the same period last year.

Period	2018-Q1	2019-Q1	2020-Q1
Total operating revenue	$25,354,878.67	$29,196,697.42	$20,434,380.67

Operating income has reached USD 5.52 million, a 7.87% year-on-year increase, while total profits are USD 4.86 million, down 5.17% compared to the previous year. Net profit attributable to shareholders is USD 4.14 million, slightly decreasing 2.98% from a year earlier, while earnings per share of USD 0.06 has remained steady in the first quarter compared to a year earlier.

Period	2018-Q1	2019-Q1	2020-Q1
Operating income	$4,074,225.63	$5,120,616.65	$5,523,626.32
Total profits	$4,083,201.80	$5,125,799.14	$4,860,728.20
Net profit attributable to shareholders	$3,325,296.35	$4,272,983.83	$4,145,639.86
Earnings per share (in CNY)	0.05	0.06	0.06

First Half-year Performance

In its first half-year report, JASIC posted total operating revenue of USD 59.51 million, a decrease of 12.98% from the same period last year.

Period	2018-H1	2019-H1	2020-H1
Total operating revenue	$65,162,728.41	$68,388,158.30	$59,511,340.87

Operating income is USD 16.61 million, a 9.56% year-on-year decline. Meanwhile, total profits are USD 15.94 million, down 13.32% compared to the previous year. Net profit attributable to shareholders is USD 13.57 million, falling 11.24% from a year earlier. Earnings per share is USD 0.20, dropping 4.76% compared to the previous year.

Period	2018-H1	2019-H1	2020-H1
Operating income	$14,822,451.93	$18,375,622.63	$16,619,335.35
Total profits	$14,860,797.53	$18,392,598.57	$15,942,804.73
Net profit attributable to shareholders	$12,471,108.60	$15,298,192.82	$13,579,142.45
Earnings per share (in CNY)	0.17	0.21	0.20

As an indispensable part of JASIC’s business, export sales have reported operating revenue of USD 25.84 million in the first half year of 2020, a 10.34% year-on-year decline. Operating costs is USD 15.59 million, falling 12.39% from a year earlier, while gross margin has reached 39.64%，up 1.41% compared to the previous year.

Period	2018-H1	2019-H1	2020-H1
Operating income	$28,067,661.73	$28,820,731.98	$25,841,109.21
Operating costs	$17,413,575.59	$17,802,290.53	$15,596,981.50
Gross margin	37.96%	38.23%	39.64%

The second half of 2020 is still full of uncertainties, but we will keep committing ourselves to product upgrade according to our company’s strategy. JASIC export department remains confident in maintaining its current momentum and preparing for the challenges in 2021.

JASIC remains in a strong position in China market

Undaunted by the adversity

2020 is going to be a very difficult year for many companies worldwide, as the global economy has been hard hit by the COVID-19 pandemic and incremental uncertainty posed by the trade war. However, JASIC remains in a strong position in China market because of its dominant brand influence and highly loyal customer base. Since China's reopening, JASIC’s products have been playing an active role in major construction and industrial projects throughout the country.

See how the "JASIC Orange" has lighten up job sites across China:

JASIC’s presence on the front line

In Henan province, JASIC MIG welders have enjoyed a good reputation for its high efficiency and excellent welding performance.

In Jiangsu province, JASIC NZ-1250 SAW welder has stood out with its high welding quality, high efficiency, and wide adaptability for various job conditions.

In Shandong province, JASIC NBM-350 pulse MIG welder has been the go-to model for welding in various local industries thanks to its reduced spatter and excellent weld formation.

In Hunan province, JASIC plasma cutters have been seen in local construction machinery and automobile manufacturing sectors. Their superior cutting performance makes them indispensable to these sectors' daily operation.

Looking into the future

As a welding machine manufacturer, JASIC is fully aware that its success lies in the economic well-being of China as well as that of the world. We are thrilled to witness JASIC’s presence in China economy's reopening. At the same time, we look forward to seeing the recovery of the world's economy, and we hope to play a bigger role in it than we did before.

A Letter from Mexico, Photos from Greece and An E-mail from Southeast Asia

This month, JASIC has received three special feedbacks from its overseas partners. The first one is a thank-you letter from Mexican partners written in both Chinese and Spanish, expressing their gratitude for the face masks delivered by JASIC. The second one is photos from Greek partners posing with masks on, giving a joyful vibe to their workplace. What's more, a thank-you E-mail from a Southeast Asian partner has confirmed the receipt of face masks.

A Thank-You Letter from Mexican Partner

Let the joy be contagious, not the virus.

A Thank-You E-mail From A Southeast Asian Partner

“The Peach and The White Jade”

As COVID-19 has become a pandemic, many countries have experienced serious shortage of face masks and other PPE items. Given the situation, JASIC has delivered 71,600 face masks to 96 overseas partners impacted by COVID-19 so far.

To quote a line from the "Book of Songs", “You throw a peach to me, I give you a white jade for friendship.” Since the Coronavirus outbreak, our overseas partners have supported us during the initial lockdown phase in China. Such friendship will always be remembered and cherished by us. And now it is our turn to roll up our sleeves and offer concrete aid to our friends undergoing hardship. To us, there is no greater reward than knowing our efforts have actually reached and helped our partners, as the knowledge elevates our morale and keeps us going.

On 16th March, 2019, the company released its Annual Report of 2018. During the reported period, the company achieved a total gross revenue of 893.30 million yuan, rising by 10.76% compared with last year; Operating profit amounted to 221.88 million yuan, rising by 33.88% compared with last year; total profit amounted to 222.22 million yuan, rising by 33.80% compared with last year; net profit attributable to shareholders amounted to 190.78 million yuan, rising by 32.70% compared with last year; earnings per share was is 0.38 yuan, rising by 31.03% compared with last year.

Recently, Guangdong Science and Technology Department released officially the "Notice of Guangdong Science and Technology Department on the Accreditation of 2017 Guangdong Engineering Technology Research Center" (Guangdong Science and Technology Research Institute [2017] No. 1649), announcing that JASIC had received the recognition of "Guangdong Welding Equipment Engineering Technology Research and Development Center".

The construction of provincial engineering technology research center aims to implement the spirit of Guangdong science and technology innovation conference thoroughly, promote the establishment of research and development institutions in enterprises above-designated scale, enhance the technological innovation capabilities of enterprises, universities and research institutes, accelerate the transformation of scientific and technological achievements, and provide support for the construction of national science and technology industry innovation center.

Recently, after multilevel evaluations by the Leading Small Group for High and New-Tech Enterprise Recognition Management, JASIC once again has been rated as National High and New-Tech Enterprise relying on its advanced core technology and high-end, innovative R&D capabilities.
Since the first recognition in 2009, this is the 4th consecutive High and New-Tech Enterprise certificate that JASIC has received, which fully demonstrates JASIC’s industry-leading strength in independent intellectual property rights, technological research and development, organizational and managerial standards, transformation of scientific and technological achievements, etc.
As a National High and New-Tech Enterprise, JASIC has incessantly been oriented by technological innovation with large amounts of R&D funds being invested every year to improve its independent innovation capability. The re-certification of High and New-Tech Enterprise will motivate JASIC further to step up the independent innovation capability to bolster its core competitiveness.

On November 3, the 16th China Welding Bridge (JASIC Shenzhen) Industry Development Forum hosted by China Welding Association was held in Shenzhen, a beautiful coastal city. More than 100 experts, scholars, technical backbone personnel and business leaders attended the forum.

Leaders like Mr. Zhang Delin (former Chairman of China Welding Association), Mr. Song Tianhu (Chief Supervisor of China Mechanical Engineering Society), Mr. Li Liansheng (Vice President and Secretary General of China Welding Association), and Mr. Lu Zhenyang ( Vice President of China Welding Association) attended the conference. Along with many other industry experts, Mr. Song Tianhu and Mr. Lu Zhenyang presented their technical reports on the theme of “Developing High-end Products and Promoting Technological Innovation”, and conducted in-depth exchanges and discussions with delegates.

In his report, Mr. Luo said that quality has become one of the most resounding notes in current development of China under the new normal of current economy. Since the 18th National Congress of the Communist Party of China, Chinese enterprises have been accelerating the "three transformations"--- the transformation from “Made in China” to “Created in China”, from high-speed growth to high-quality growth and from Chinese products to Chinese brands.
Product quality is the lifeline of JASIC. In order to enable it, JASIC has invested a large sum of money in the construction of world-leading comprehensive laboratory for welding and cutting equipment, which is equipped with industry-leading R&D and testing equipment and awarded witness test lab accreditations by international authoritative organizations such as TUV, CSA, etc., which have laid a solid foundation for the quality of JASIC’s products.

JASIC has always been focusing on technological innovation since its inception with a number of R&D centers established around the world. Large investment in technology research and development is guaranteed by committing more than 5% of total revenue each year to R&D fields.

The report also introduces the development trend of welding and cutting technology and the R&D achievements of JASIC. It indicates that a significant development direction lies in the control technology of inverter welder enabling realization of high-quality, delicate control on welding process which is based on the deep understanding of welding arc physics and droplet transfer and integrated with refined digital control technology; One of the development trends of inverter welder control technology is to achieve better welding performance by the application of digital control technology from the perspective of entire welding system; The another trend is the close combination of the control systems of inverter welder with internet, implicating that applications based on big data are becoming more widespread.

In terms of R&D achievements, JASIC has maintained a domestic leading level in the field of welding and cutting technology. The technical achievements in fields of AC/DC square wave argon arc main circuit and main circuit realization for wide voltage welding power source have reached the international advanced levels, and applied for the international patent protection. Meanwhile, JASIC plays an exemplary role for the whole industry in realizing transformation from “scale and quantity” to “efficiency and quality” in the aspects of discrete IGBT large-scale application, robot-specific power source, and welder series equipped with digital control system.
On the second day of the conference, the Industry experts and leaders who attended the 16th China Welding Bridge (JASIC Shenzhen) Industry Development Forum were invited by Mr. Pan Lei (Chairman and President of JASIC), Mr. Luo Weihong (Senior Vice President of JASIC) and Mr. Su Lei (Domestic Marketing Director of JASIC) to visit JASIC Industrial Park in Pingshan, Shenzhen.
Accompanied by the company's leaders, the delegates visited cultural exhibition hall, product exhibition hall, staff home and production workshop of JASIC.
This visit facilitated a better understanding of JASIC’s corporate culture, development history, present situation, employee life, intelligent production, etc. for the delegates who shared their inputs, commended highly the efforts made by JASIC in the development of welding and cutting business as well as on employee caring, and hoped that JASIC could expand and grow further by virtue of its incessant technological innovation and quality orientation.

http://www.china-weldnet.com/cwahjcylt18.htm

China Welding Association Document

China Welding Industry Forum 2019 – High Efficiency Welding Technology and Application

NotificationNo. 1

To Relevant Units,

TheChina Welding Industry Forum 2019- “High Efficiency Welding Technology AndApplication” will be held from June 22 to 24, 2019 in Shanghai. This forum is hostedby China Welding Association (CWA), instructed by Chinese MechanicalEngineering Society (CMES), co-organized by American Welding Society (AWS),Singapore Welding Society (SWS), CMES welding branch, and Electric WelderBranch of China Electrical Equipment Industrial Association, organized by WeldingEquipment Branch of CWA, and supported by Shanghai Kumao Robot Welding Co., Ltd.and Shenzhen Megmeet Welding Co., Ltd. Promotional media includes Welding, Electric Welding Machine, MetalProcesings, Welding Technique, CHINA WELDING, Robot Technique and Application,and Welding Digest of Machinery Manufacturing.

ChinaWelding Industry Forum has been held successfully for 13 sessions with 14meetings since 2006. It has been promoting the development of welding industryin the form of forums for 13 consecutive years. By integrating new developmenttrend, the Forum this year will invite famous welding experts at home and abroadto present their thematic reports on High Efficiency Welding Technology and Applicationin the form of invited talk. The forum pays attention to the maturity oftechnology and aims to guide the industry to utilize reasonably and promotehigh efficiency welding technology. Learn latest news about the Forum, pleasevisit the official website of CWA (http://www.cwa.com.cn),entering into the "China Welding Industry Forum" section.

Contactus

OrganizingCommittee of China Welding Industry Forum of CWA

LEEBo

Phone:0451-8634 0850-1008 Mobile: 187-2461-1763  Email: cwalibo@126.com

SONGJinling

Phone:010-6394-3751       Mobile: 132-6121-1870Email:zghisb@vip.163.com

China WeldingAssociation

(Stamped)

Nov.12, 2018

On 3rd November, the grand award ceremony for “Celebration of 20th Anniversary of China Weldnet——A Glance of Welding Corporation” is held in Shenzhen. More than 130 members attend this meeting, including China Welding Association vice chairman and secretary general Li Liansheng, China Welding Association vice chairman Lu zhenyang、Feng Meijuan、Liu Zhen、Wang Chunsheng、Wang Lujun、Chen Qingyang, Xie Weixin and etc..
As time went by, “China Weldnet” has gone through a journey of 20 years. Over the years, “China Weldnet” witnessed and has participated in the progress of building internetwork for Chinese Welding Industry.
In Jul. 1998, China Welding Association built “China Weldnet”. In Jul. 2008, China Weldnet’s daily page visitors exceeded twenty thousand, daily click over two hundred thousand, which set China Weldnet rank first among all the other websites of welding industry. In 2018, its thematic sections have reached 32 at the moment; membership enrollment exceeded thirty thousand, and the search volume of its database ranks first in welding industry.
From 2000, “China Weldnet” started to launch E-journal for free. It would be issued twice per month and would release fifty thousand each time. Until now, China Weldnet has released 412 issues, and its accumulative circulation exceeded 14 billion. This journal always has the widest coverage and biggest circulation among welding industry.
In October 2012, “China Welding Equipmentnet” was launched, which is a branch of Information website. Now it has 22 professional sections.
In October 2017, “China Welding Association Welding Products Certification and Recognition System” is built in the cooperation with “CAMMM” of China Academy of Machinery Science & Technology. For a year, this system whose certificated products reach more than 3000 pieces has been registered and used by 60 corporations. This system provides a platform for corporations to check the reliability of products and to supervise its quality, which helps to solve the problem of warranty of welding products quality in network market.
In order to promote the development of manufactural network, China Welding Association endowed “Weldingnet” as the applied platform of Information website. This act aims at improving service online through digital, network and intelligence work.
For celebrating 20th anniversary of the establishment of China Weldnet and expressing gratitude for all supportive corporations, in June 2018 China Welding Association launch a series of activities to show all these supportive corporations in welding industry.
23 corporations and 38 individuals sign up for participating in this activity, and a group of experts from China Welding Association assess the submitted documents. The assessment on corporations is taken from these dimensions: an overview of corporation, its culture, its success, its blueprint, its support and contribution to website and individual’s contribution. After the assessment, fifteen corporations are awarded with “the outstanding demeanor” prize, and fifteen individuals are awarded with “the advanced information work” prize. The award information will be presented on “China Weldnet” for a week, then the list of prize-winners will be confirmed if nobody is against this decision.
During the assessment, the awarded corporations fully show their capacity, market-driving force and influence. From the establishment of website to date, these corporation always stand behind and have confidence on “China Weldnet”; they make a great contribution for the success of “China Weldnet”.
Here is fifteen corporations awarded with the “outstanding demeanor” prize:

The corporations for giving outstanding contribution for the 20th anniversary of the establishment of “China Weldnet” (listed in a random order)

“The presentation for the corporations with the “outstanding demeanor”

Shenzhen Jasic Technology CO.,LTD

Tianjin Golden Bridge Welding Material Group Co., Ltd

Atlantic China Welding Consumables, INC.

Tianjin Bridge Welding Materials Group Co., Ltd

Harbin Welding Institute Limited Company

Tangshan Kaiyuan Electric Group Co., Ltd

Shenzhen Riland Industry Co., Ltd

Kunshan Jingqun Welding Materials Technology Co., Ltd

Shenzhen Hua YiLong Electric Co., Ltd

Zhuhai Funisi Welding Technology Co., Ltd

Xionggu Electrical Co., Ltd

Abicor Binzel(Guangzhou) Welding Equipment Co., Ltd

Changzhou Huaqiang Welding & Cutting Equipment Co., LTD

ESAB Welding & Cutting Equipment (Shanghai) Management Co., Ltd

ESAB Welding & Cutting Equipment (Shanghai) Management Co., Ltd

The corporations are awarded by vice president and general secretary Li Liansheng and vice president Chen Qingyang

The corporations are awarded by vice president Liu Zhen and Xie Weixin

For “the advanced information work” prize, fifteen individuals are awarded for their excellent work of communicator in their corporation. They can describe corporations’ requirement for the application of website in time, describe corporations’ status quo, and share the information of products’ supply and demand. Their contribution plays a key role for “China Weldnet” to explore corporations’ need, to grasp this industry’s direction in time, to adjust website’s operational strategy so as to follow the developing direction of welding industry. The sustainable development of “China Weldnet” relies greatly on their contribution.
These honorable individuals are: Pan Huiyong、Zhu Tian、Zhang Xiaobai、 Ma hensheng、Han Bin、Lei Pei、Tong Tianwang、Chen Wubin、Liu Qifang、Zhang Min、Juergen、 Weisshaar、Long Yilin、Meng Yunlin、Yang Xiuyong, Sun Jinggang.

They are awarded by vice general secretary Wang Linshu and Zhang Huawei.

They are awarded by vice general secretary Piao Dongguang and Wu Jiupeng.

After its development for 20 years, “China Weldnet” already has a large-scale of targeted information-spread group and a professional data group on weld including more than 300 thousand pieces of messages. Besides, “China Weldnet” has three branches: “China Welding Equipmentnet”, “China Welding Association Welding Products Certification and Recognition System”, and “Weldingnet”. Thanks to these branched websites, “China Weldnet” makes an improvement in providing service on welding equipment application, products’ certification and welding materials. If you use search engine like Baidu or Sogou, “China Weldnet” ranks first and can be described as the most influential integrated service platform in welding industry.
The success of “China Weldnet” depends on all the assistance and support from members and colleagues. Thanks all the attention and support given to us, “China Weldnet” wish to make progress in bring much more contribution in leading the development of welding industry websites.

On 9th March 2019, a grand opening ceremony of “training base (San He) of China Welding Association Robot Welding” has been held at San He Vocational and Technical Education Center. These representatives attend this opening ceremony: general secretary of CWA Li Liansheng, vice president and director of education and training department of CWA Lu Zhenyang, general secretary of education and training of CWA Chen Shujun, secretary of CWA Li Bo, vice president of Education and Sports Bureau of San He Meng Xianfu, executive vice president of San He Vocational and Technical Education Center Gao Lianqi, vice president of San He Vocational and Technical Education Center Hou Fuhui and Li Ruixiang, bureau director Yuan Chenchen, director of automation specialty Wang Jianlin, leader of Robot welding specialty Yang Meng and Professor of Beijing Institute of Petrochemical Technology Wang Zhonghui.

The opening ceremony was presided by headmaster Gao Lianqi. At the beginning of the ceremony, headmaster Gao gave a warmly welcome for all representatives; then he introduced the school’s education principle, developing goal and its equipments. He also expressed gratitude for China Welding Association, who always has confidence on them. As headmaster Gao said, CWA chose San He Vocational and Educational Center as its base, which provides opportunity to the following training work for the school. He promised of keeping the innovative spirit during the training work for Robot welding.

General secretary of China Welding Association Li Liansheng congratulated the establishment of “Training Base (San He) of China Welding Association Robot Welding”. He brought status quo of the establishment of CWA training bases around the country, and he gave a speech on the successful result of the training session and the emphasis for organizing following training work. Secretary Li said, “training Base (San He) of China Welding Association Robot Welding is built under a cautious consideration and inspection of China Welding Association. It is the second robot training base established in Beijing-Tianjin-Hebei region. We wish that this base will make a great contribution on talent-training by the aid of all the support and by taking advantage of the influence of base. ”

Wang Jianlin, the director of automation specialty of San He Vocational and Technical Education center, made a detailed briefing on the status quo of the base. After briefing, staff of CWA made a field visit on the training and examination sites.