Sun.King Electronics Announces 2020 Interim Results

Sun.King Electronics Announces 2020 Interim Results

Initial Results Were Achieved in Independent Production of IGBT

And Revenue Grew by 9.6%

Performance highlights:

(24 August 2020, Hong Kong)Sun.King Power Electronics Group Limited(“Sun.King Electronics” or the “Company”, together with its subsidiaries collectively known as the “Group”) (Stock Code: 580.HK) is pleased to announce the interim results for the six months ended 30 June 2020 (the”Period”).

During the Period, the Group recorded sales revenue of RMB688 million, upby 9.60% year-on-year. The Group’s net profit attributable to owners of the parent decreased by 19.30% year-on-year to RMB92 million.In order to give back to the shareholders for their long-term support, the Board of Directors resolved to pay an interim dividend of HK2 cents per ordinary share,maintaining the same level as the corresponding period last year.

Benefited from the implementation of multiple policies, a number of UHVDC transmission and flexible DC transmission projects achieved remarkable progress

During the Period, sales revenue from power transmission and distribution business and electrified railway transportation business increasedsubstantially, while sales revenue from industrial and other businesses decreased.

According to the breakdown by business segment, sales revenue from power transmission and distribution business totalled RMB445 million, up by 17.90% year-on-year, and the gross profit of this segment was 31.80%. During the Period, benefiting from the increased investment of the Chinese government and grid companies in the field of power transmission and transformation, and the gradual implementation of the Notice on Accelerating the Planning and Construction of a Batch of Key Projects for Power Transmission and Transformationof National Energy Administration and the Preliminary Working Plan for Ultra-high Voltage and Cross-Provincial Alternating Current (“AC”) and DC Projects of 500 kV and Above in 2020of State Grid Corporation of China, a number of UHVDC transmission and flexible DC transmission projects were proceeded in an orderly manner and achieved good progress.

In respect of electrified transportation sector, benefiting from good performance in high-power electric locomotivesand passenger vehicle sector such as Chinese standard electric multiple unit and CRH5 alpineelectric multiple unit, the Group’s revenue in this subsector increased by 57% as compared withthe same period in 2019, maintaining a good level.

Regarding industrial and others sector, the Company performed well in the electrical equipment subsector which was predominantly industrial electronic control, and its revenue increased by 37% as compared with the same period in 2019. In addition, the Company had stable performance in the new energy power generation subsector, and its revenue was basically the same as that in 2019.

Sales revenue breakdown by business segment

Adhering to the business philosophy of scientific and technological innovation, the Group places great emphasis on the R&D of new technologies

Since the start of the insulated gate bipolar transistor (“IGBT”) R&D and production project in 2019, the Company has completed a series of work including formulation of R&D team, exposition and design of the first product, establishment of a complete supply chain system, and construction of a proprietary IGBT production base. At present, the first 1200V/200A IGBT chip has entered the tape-out stage, and the first 1200V/600A ED-Type IGBT module using the above chip has also entered the stage of sample packaging and testing.

In addition, due to its excellent technical level and product quality, the Group’s solid-state AC switch products once again won the bid for the British smart grid technology demonstration project, and the Group’s solid-state DC switch has won orders for offshore wind power installation vessels from European customers. The flexible DC support capacitor had good performance in the development of prototypes of flexible DC transmission equipment by multiple customers and is expected to enter the project trial stage in the second half of the year.

Mr. Xiang Jie, Chairman of Sun.King Electronics, said, “2020 marks the first year of the official launch of the Group's IGBT business and the accelerated development of many emerging technologies. Not only the IGBT project, but also other innovative technology products of Sun.King have achieved excellent performance. The Group’s solid-state ACswitch products once again won the bid for the British smart grid technology demonstrationproject, the solid-state DC switch won orders for vessel area from European customers for the first time, and the flexible DC support capacitor had good performance in thedevelopment of prototypes of flexible DC transmission equipment by multiple customers, which isexpected to enter the project trial stage in the second half of the year. With the greatest determination and efforts, Sun.King will continue to vigorously promote the R&D and the construction of production linesof IGBT products, and accelerate the market expansion of IGBT, solid-state switch, impedance measurement and other innovative technologies, so as to realize the Group's goal of creating new drivers for corporate development and business growth as soon as possible.”