2022H1 expects to achieve a net profit of 15.5 million yuan to 18.5 million yuan, with an increase of 46.06% to 74.33%. On July 14, the company issued a pre-increase announcement on 2022H1. It is estimated that 2022H1 will achieve a net profit of 15.5 million yuan to 18.5 million yuan, an increase of 46.06% to 74.33% over the same period last year. The net profit of non-return is 11 million yuan to 1300 yuan, an increase of 17.82% 39.24% over the same period last year. In a single quarter, 2022Q2 realized a net profit of 8.57 million yuan to 11.57 million yuan, an increase of 63.86%, 121.22%, and 23.67%, 66.96% over the same period last year. The main reasons for the growth are: 1) the company seized the growth opportunity in the field of new energy such as scenery storage, and the power fuse products ushered in the release period; 2) the company accelerated the automation process and accelerated the release of production capacity. Strategic layout of the industrial chain integration and implementation; 3) the disposal of the company's real estate in Baoan, Shenzhen, is expected to make a non-recurrent profit and loss of 4.5 million yuan-5.5 million yuan. Under the continued disturbance of the epidemic in the second quarter, the company's performance forecast for the first half of 2022 is in line with our expectations, and we expect the company to accelerate growth in the second half of the year as the marginal relief of the epidemic overlaps the downstream scenery reserve and the EV boom.

Power fuse products are widely used in landscape storage, actively layout intelligent incentive fuses to cut into the field of EV power fuses, the company already has mature products and production lines for large-scale production, and focuses on speeding up targeted product development and sales in the field of landscape storage, so as to achieve steady growth in revenue of power fuse products and accessories. According to the company, as of February 2022, Orders in the company's power sector increased nearly seven times year-on-year. In the field of new energy vehicles, the company has passed the BSI IATF16949 vehicle quality management system certification and is actively promoting cooperation with the leading domestic new energy vehicle manufacturers.

In terms of intelligent fuses and incentive fuses, the company is currently discussing cooperation with some companies with relevant advanced technology, and is expected to promote intelligent and high-end layout through business binding. We are optimistic about the incremental application of fuses in the field of scenery storage and new energy vehicles. As a 30-year veteran in the field of fuses, the company is expected to continue to make breakthroughs under the guidance of new management and strategy.

Fuse business is fully in the fast lane, warp GPU and ADAS chips are expected to benefit science and technology in the future, deep ploughing circuit safety protection for 30 years, a rich product line of fuses, complete certification, high customer recognition. At the same time, the company develops endogenously and externally, actively arranges emerging industries to promote business upgrading, and successively invests in chip design enterprises and sets up private investment funds. We are optimistic that the company will enter the fast lane of development in an all-round way. In addition, the company intends to introduce the holding subsidiary Hefei qu Speed into the academician team, and bind the core backbone through equity incentives, and its GPU and ADAS chips are expected in the future, which is expected to advance to the chip design enterprises and further enhance the company's valuation. We will not consider the warp speed in Hefei for the time being, and maintain the company's 2022-2024 homing net profit forecast of RMB 0.50, 0.91 and 123 million, an increase of 107.8%, 81.6% and 35.0% over the same period last year.

Risk hints: the price of raw materials has risen sharply, the epidemic continues to exceed expectations, the development of new customers is not as expected, the macroeconomic downturn, the progress of foreign investment and future returns are still uncertain, and the performance forecast is the preliminary calculation results of the company. the specific financial data shall prevail in the interim report disclosed by the company.