Intron Technology Announces 2020 Interim Results - Traditional Vehicle Business Achieves Growth Amidst Adversity, Revenue from Industrial Business Surges by 183%, Strengthens R&D Cooperation with Customers, Lays Solid Foundation for Future Business

2020.08.27


(27 August 2020, Hong Kong) – Intron Technology Holdings Limited (“Intron Technology” or the “Group”; HKEX: 1760), a fast-growing automotive electronics solutions provider in China, has announced its interim results for the six months ended 30 June 2020 (“1H 2020” or the “period under review”). In the first half of 2020, the outbreak of COVID-19 had an adverse and material impact on the global economy, creating a challenging business environment. Fortunately, with the Group’s leading technology, years of experience and leading position in the automotive industry, the Group was able to record overall positive growth for its traditional vehicle business despite a declining market performance.

In the first half of 2020, Intron Technology’s revenue amounted to RMB864.4million (1H 2019: RMB1,091.5 million). Gross profit margin remained stable at 19.9% (1H 2019: 21.6%). Net profit amounted to RMB44.9 million (1H 2019: RMB62.8 million). During the period, the Group recorded a better-than-market growth for the traditional vehicle business, together with the satisfactory growth in the industrial business, has partially offset the decline in the NEV segment.

The Group has regarded R&D as the cornerstone of its business development. During the period under review, the Group continued to strengthen its R&D capabilities with its R&D expenses amounted to RMB57.8 million. As a percentage of revenue, R&D expenses were 6.7%. Construction of the Intron Technology Research and Development Testing and Validation Centre located in Shanghai was completed and put into operation in stages. Its primary usage is an integrated testing and validation centre for the Group. Sharing the facilities with customers and partners will create stronger business collaborations with our customers and partners. This will also speed up technological advancement of the industry, and to transfer and implement related technological achievements, all to the benefit of stronger ties with our customers and partners. In addition, this Shanghai R&D Centre has built-in technology training facilities. In collaboration with leading intelligent vehicle software suppliers, the Group provides customers with professional software trainings utilising the training facilities there. The training centre highlights the strength of advanced technology of the Group, which enables the Group to raise loyalty of its customers and consolidate its position as their R&D partner in the long run.

Mr. Davy Luk, Chairman, Co-CEO and Executive Director of Intron Technology, said, “Despite the adverse impact of COVID-19 on the global economy, the automobile industry in China, particularly NEV market, remained weak in the first half of this year. However, the Group’s traditional vehicle business segments still recorded growth amidst such a sluggish market, reflecting wide recognition of our technology and market leadership. Moreover, in order to further adopt its principle of “staying close to customers with multi-location R&D facilities”, the Group has set up an R&D facility in Jinan in the period, which mainly provides technical supports to the industrial business customers. Furthermore, the Group’s first operational base in Europe has also commenced operations in Munich, Germany in June 2020. The German office aims to facilitate in-depth technology exchanges and strengthen cooperation between the Group and world-leading R&D organisations and automotive electronics enterprises in Europe.”

Revenue from the NEV Solutions of the Group was RMB137.5 million for the first half of the year, representing a year-on-year decrease of 76% compared with the corresponding period last year. This was in line with the poor market performance of the domestic brand OEMs who are the Group’s main customers in the NEV segment. The Group achieved a better-than-market growth in traditional vehicle business segments despite the weak performance of the automotive market in the PRC in the first half of 2020. The segmental revenue of Safety and Powertrain Solutions increased significantly by 34% and 21% year-on-year respectively, while the Body Control segmental revenue reported a slight decrease of 1%. In addition, market investments in cloud servers and data centres increased considerably as the COVID-19 epidemic changes people’s daily lives and work habits towards increasing online activities and demand for more data storage and cloud services. The revenue of the Group’s industrial solutions amounted to RMB232.5 million, representing a year-on-year surge of 183%. In technological aspect, the Group’s smart power management solutions will complement its business in automotive related business as automotive industry gradually expands with demand for online and data support merging demands for the Group’s applications of solutions. The Group is confident that with its combination of leading and comprehensive technology and solutions, the Group is capable to capture the enormous growth opportunities in the industrial and automotive business.

Mr. Chan Cheung Ngai, Co-CEO and Executive Director of Intron Technology, said, “In recent years, we have invested considerable resources in the R&D of ADAS products. We expect to gradually commence mass production of these products in the coming years. As a pioneer, the Group leverages its first mover advantage to continue to deliver better-than-market growth. For instance, the Group’s automated driving domain controller products used for automated valet parking has been adopted by BAIC BJEV, which is expected to commence mass production from 2022. Looking ahead on the background of market recovery from COVID-19, with the increasing trend of automation, electrification and intelligent development in the NEV segment and ADAS technology, the Group is confident to leverage its extensive industry experience, leading core technologies and solid relationships with its customers, to achieve a long-term sustainable business and provide satisfactory returns to the 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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