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Yangtze Business Daily News● Changjiang Business Daily reporter Zhang Lu

Benefiting from the growing demand for health equipment, Innovent Biologics (000795.SZ)'s net profit in the first half of this year exceeded expectations.

Recently, Yingluohua released its 2024 semi-annual report. In the first half of the year, the company achieved revenue of 1.938 billion yuan, a year-on-year increase of 3.57%; and achieved a net profit of 146 million yuan, a significant year-on-year increase of 158.16%, which has significantly exceeded the net profit of 86.71 million yuan in the whole of last year.

Regarding the reasons for the performance growth, Yingluohua stated that during the reporting period, the company increased its market development efforts in the health equipment business, and achieved significant performance growth. In addition, the company actively promoted lean management and effectively implemented cost reduction and efficiency improvement.

The reporter of Yangtze Business Daily noticed that Innova has been deeply involved in the electromechanical and magnetic materials sectors for a long time, and some of its products have been used in the field of industrial robots. The company continues to increase its investment in research and development, with a cumulative investment of 671 million yuan in the past three and a half years. The company is accelerating infrastructure construction, production line upgrades, and process equipment iterations to lay the foundation for subsequent business expansion.

At present, the company has entered the harvest period of R&D. The financial report shows that in the first half of 2024, Yingluohua added 9 international patents and 38 domestic patents, including 12 invention patents; a total of 23 wheelchairs and mobility scooters have been registered and certified.

The three major sectors worked together to increase net profit by 158.16%

Recently, Innova disclosed its 2024 semi-annual report. In the first half of 2024, the company achieved revenue of 1.938 billion yuan, a year-on-year increase of 3.57%; net profit of 146 million yuan, a year-on-year increase of 158.16%, and its net profit scale exceeded last year's full-year net profit of 86.71 million yuan; non-net profit of 136 million yuan, a year-on-year increase of 318.84%.

Financial data shows that in the first quarter of this year, Innova achieved a net profit of 67.7694 million yuan, a year-on-year increase of 74.84%, and a non-net profit of 62.89 million yuan. Based on this calculation, the company's net profit in the second quarter was about 78 million yuan, an increase of 341.09% over the same period last year; and achieved a non-net profit of 72.11 million yuan, a year-on-year increase of 3266.74%.

According to the first half financial report of Innolux, despite the challenge of low-level fluctuations in rare earth raw material prices, the company achieved a year-on-year sales growth of more than 10% in magnetic materials by optimizing management structure and integrating resources. NdFeB achieved revenue of 1.081 billion yuan, accounting for 55.78% of total revenue. The company continued to consolidate its market share in traditional segments such as acoustics, smart home appliances, consumer electronics, and energy-saving elevators. At the same time, it has also achieved remarkable results in the development of new energy fields such as new energy vehicles and wind power generation.

In the first half of this year, the company achieved revenue of 489 million yuan in the motor and electronic control field, a year-on-year increase of 26.22%; the health equipment segment achieved revenue of 274 million yuan, a year-on-year increase of 31.15%.

Obtained 12 invention patents in the first half of the year

According to public information, Innova was founded in 1997. The company focuses on the development strategy of "excelling in electromechanical, strengthening magnetic materials, and optimizing downstream applications" to achieve the simultaneous development of three major business segments: NdFeB permanent magnet materials, motor intelligent control, and health equipment. In 2023, the company's three major business segments will account for approximately 57.79%, 21.39% and 14.1% of revenue respectively.

In terms of performance, the company's revenue scale has steadily increased from 2018 to 2022. In 2021 and 2022, benefiting from the increase in the average price of rare earth magnetic materials and the booming downstream demand, the company's revenue increased by 44.55% and 25.85% year-on-year respectively, and its net profit increased by 32.62% and 90.91% year-on-year respectively.

In 2023, the price of upstream raw materials affected the product price and gross profit margin of Innuohua Magnetic Materials, resulting in a decline in the company's net profit. The company achieved revenue of 3.849 billion yuan, a year-on-year decrease of 18.67%, and net profit of 86.71 million yuan, a year-on-year decrease of 66.46%.

However, it is worth mentioning that as a giant in my country's rare earth permanent magnet materials, Yingluohua has direct or indirect cooperative relationships with mainstream domestic new energy vehicle brands. The company conforms to the development trend of carbon neutrality + electric drive + intelligence, and increases its layout in new energy vehicles, wind power generation, energy-saving motors and other hot tracks.

According to Frost & Sullivan's forecast, with the rapid increase in the global penetration rate of new energy vehicles, it is expected that the proportion of new energy vehicle applications will reach 29.1% by 2025, becoming the largest application area of ​​high-performance NdFeB permanent magnet materials in the world.

At present, Innova is accelerating infrastructure construction, production line upgrades, process equipment iterations, etc., to further increase production capacity reserves and lay the foundation for subsequent business expansion. The financial report shows that from 2021 to 2023 and the first half of 2024, Innova's R&D investment was 173 million yuan, 223 million yuan, 183 million yuan and 92 million yuan respectively, a total of 671 million yuan in three and a half years.

According to the financial report for the first half of 2024, Innova has added 9 international patents and 38 domestic patents, including 12 invention patents; a total of 23 wheelchairs and mobility scooters have been registered and certified.