H&T's 2020 Semi-Annual Report Briefing

With revenue at 1.83 billion RMB, gross margin increased significantly

On the evening of August 27, H&T (002402.SZ) released its 2020 semi-annual report. In the first half of this year, H&T achieved revenue of 1.83 billion RMB, +5.10% yoy; net earnings attributable to the listed company without non-recurring item records 180 million RMB, +10.28% yoy. Revenue and earnings keep on the increasing trend.

Intelligent Controller segment profit increased by nearly 40%, gross margin increased significantly

Company stated that despite the turmoil in domestic and global economy and global epidemic break-out in the first half of year, the company achieved positive growth through actively promoting of manufacture resumption and ensuring stability of supply chain.

According to reports, H&T is mainly engaged in the R&D, production and sales of products such as intelligent controllers and microwave and millimeter wave radio frequency chips. After years of development, H&T has become the leader of the intelligent controller industry through its advantages in R&D, operation excellence and supply chain integration. In the first half of the year, the growth against the headwind once again demonstrated the strong leading strength of H&T. In the first half of this year, H&T's controller business segment (including NPE) achieved revenue of 1.75 billion RMB, +7.00% yoy; net profit attributable to shareholders of listed companies was 170 million RMB, an increase of 35.10% yoy. It is worth mentioning that the gross margin of H&T's controller business was 21.14%, an increase of 2.13pct over the same period last year.

In addition, H&T's automotive electronics business has also achieved rapid growth. In 2019, H&T established its automotive electronic intelligent controller subsidiary. In the first half of this year, H&T continued to develop in its automotive electronic intelligent controller business, establishing cooperative relationship with component suppliers such as Nidec. Products involve automobile radiators, coolant heaters, heating systems, engine power converters, engine fan controllers, door control motors, etc. The establishment of partnerships with major customers such as Nidec demonstrates that H&T’s R&D capabilities, manufacturing capabilities, product quality, logistics and comprehensive service capabilities have been further recognized by high-end customers around the world.