Intron Technology Announces 2020 Annual Results - Conventional Automotive Electronics Business Continues To Grow And Outperforms The Market


(29 March 2021, 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 annual results for the year ended 31 December 2020 (the “Year”). In addition to the slowdown in the automotive industry resulting from the COVID-19 epidemic, the global semiconductor market experienced shortage of supply in the second half of 2020, being another unfavourable factor to the automotive industry. In spite of the market challenges, the Group seized opportunities on the market recovery and improved business results in the second half of 2020. During the Year, the Group’s automotive electronics business continued to grow, with an overall better-than-market performance. 

For the year ended 31 December 2020, the Group’s revenue amounted to RMB1,993.2 million (2019: RMB2,309.3 million). Leveraging its leading technology coupled with over twenty years of experience and leading position in the industry, the Group recorded year-on-year growth of the Body Control, Safety and Powertrain solutions business of the automotive electronics sector despite market slowdown. During the Year, R&D expenses amounted to RMB133.6 million, accounting for 6.7% of revenue (2019: 6.6%). Net profit amounted to RMB94.8 million, with net profit margin at 4.8% (2019: 5.0%). 

The Group continued to maintain a satisfactory and healthy liquidity position. As at 31 December 2020, cash and cash equivalents amounted to RMB388.3 million. The Board has resolved to recommend the payment of a final dividend of 3.2 HK cents per share for the year ended 31 December 2020.

R&D has always been an important part of the Group’s business model. As at 31 December 2020, the Group had secured 116 patents and 129 software copyrights, representing increase of 50 patents and 27 software copyrights, respectively. The Group had 569 full-time R&D-related professionals, making up 62% of its total employees. The Group’s new R&D Testing and Validation Centre in Shanghai has already started its operation. The Centre will strengthen the Group’s delivery capabilities and facilitate customers’ mass production in addition to testing functions. This will further solidify the implementation of the Group’s strategy and deepen its ability to support its customers and market penetration.

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 office with R&D facility equipped in Jinan, which mainly provides technical supports to the industrial business customers. During the Year, the Group started its operations in Munich, Germany, which aims to facilitate in-depth technology exchanges and strengthen cooperation between the Group and world-leading R&D organizations and automotive electronics enterprises in Europe.

Mr. Davy Luk, Chairman, Co-CEO and Executive Director of Intron Technology, said, “Despite an overall slower PRC’s automotive market in 2020, we had successfully captured the opportunities brought by the increased adoption of semiconductors electrical and electronic products and also an increase of total number of domestic commercial vehicles for the Year. The Group’s automotive electronics business continued to outperform the market and recorded satisfactory growth. In terms of New Energy Vehicle Solutions, the Group expanded its new customer base and already launched business cooperation with a number of fast-growing electric car start-ups. The Group seizes different opportunities in the market in a timely manner and promote sustainable development by virtue of our leading technology capabilities and market position.”

Revenue of Body Control Solutions business for the Year reached RMB421.9 million, representing an increase of 33% year-on-year. The growth in segment revenue was mainly due to continual and increase adoption of semiconductors electrical and electronic products and also an increase of total number of domestic commercial vehicles for the year. As for Safety and Powertrain Solutions business, segment revenue amounted to RMB490.5 million and RMB244.0 million respectively, representing year-on-year increase of 31% and 6% respectively. The revenue growth in Safety Solutions business was driven by the compulsory installation of Tire-pressure Monitoring System in new vehicles in the PRC starting from 2020. Furthermore, the segment growth was also improved with the increased market share of the Group, as well as the mass production of a new domain control units project in the area of Advanced Driver-assistance System (“ADAS”). Regarding the Powertrain segment, the business was benefitted from the growth in total number of commercial vehicles, driving increasing demand for local developed electronic control system and the increase in market share of low power smart actuator.

As for the New Energy Vehicle Solutions, due to the lower sales volume of major domestic brand customers and a shortage of semiconductors, revenue was amounted to RMB467.2 million (2019: RMB 1,011.8 million). However, with the market recovery in the second half of the Year, segment performance showed improvement compared with that of the first half of the Year. In addition, the Group has secured two fuel cell related control units product projects from China’s leading OEMs in the fourth quarter of 2020, and the mass production is expected to begin in 2022. Moreover, the Group will establish a new business unit on fuel cell control products in 2021, focusing on the provision of relevant solutions and services.

Mr. Eddie Chan, Co-CEO and Executive Director of Intron Technology, said, “the ‘Development Plan of New Energy Vehicle Industry (2021-2035) (《新能源汽車產業發展規劃 (2021-2035)》)’ issued by the State Council of the PRC is closely related to NEV and ADAS areas in which the Group places emphasis on R&D in recent years. We are fully confident towards the long-term development of relevant markets. The industrial business will also be benefitted from the continuous rise in the market demand for cloud servers and data centres.

The Group believes that with the intelligent development of automotive vehicles, increasing popularity of ADAS and the rising market demand in data centres and cloud servers driven by technological development, there will be considerable development opportunities in every business area of the Group. With years of industry experience, leading position in the industry and continuous substantial investment in R&D to strengthen its technological advantages, the Group is confident to achieve long-term sustainable growth and generate satisfactory returns for the shareholders of the Company.”

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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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