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.