Luxshare Precision’s Q1 net profit of 1.8 billion yuan increased by 33.63% year-on-year, and net profit in 2021 was 7.071 billion yuan

IT House reported on April 27 that Luxshare Precision announced that in the first quarter of 2022, it will achieve a net profit of 1.803 billion yuan, a year-on-year increase of 33.63%; in 2021, it will achieve a net profit of 7.071 billion yuan, a year-on-year decrease of 2.14%.

In the first quarter, the company achieved operating income of 41.6 billion yuan, a year-on-year increase of 97.91%; net profit of 1.803 billion yuan, a year-on-year increase of 33.63%; basic earnings per share of 0.25 yuan.

IT Home learned that the announcement stated that during the reporting period, the company invested in and controlled Likai Precision Technology (Yancheng) Co., Ltd. (hereinafter referred to as “Likai Precision”).

Since 2021, in response to the large demand for mobile phone precision display structure module products by customers in the next few years, the business scale of Likai Precision has shown rapid growth during the reporting period. However, due to the large initial investment in mobile phone precision display structure module products, In addition, the proportion of materials in the cost structure of this product is relatively high, which greatly affects the overall product profit margin of Lixun Precision, and also has a certain impact on the profit margin of Lixun Precision’s consolidated statements.

In addition, after experiencing the accelerated demand for acoustic wearable products by the market and consumers, in 2021, the company’s acoustic wearable product shipments will undergo a significant correction, which will cause a larger year-on-year operating income and net profit of the company’s business. Staged impact, it is expected to stabilize in 2022 as a whole. In this business, the company will continue to play the role of an important partner of core customers, and promote business development in a steady and high-quality manner.