JASIC Reports First Half 2021 Financial Result

    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.

    Total operating revenue

    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.

    Operating income
    Total profits
    Net profit attributable to shareholders
    Earnings per share

    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.