① Guangqi Technology announced this evening that its wholly-owned subsidiary Guangqi Advanced has signed a 660 million sales contract for supermaterial aeronautical structural products. This contract amount accounts for nearly 60% of the company's main business revenue in 2022, which is close to the revenue level of H1's metamaterials business last year. ② After the complete divestment of the automobile business, the company's revenue from advanced metamaterial equipment products increased by more than 50% year-on-year last year, driving an increase in overall profit levels.
Finance Association, March 17 (Reporter Fu Jing) China's next-generation cutting-edge equipment supplier Guangqi Technology (002625.SZ) announced this evening that its wholly-owned subsidiary Shenzhen Guangqi Advanced Technology Co., Ltd. (hereinafter referred to as Guangqi Advanced) has signed a 660 million sales contract for supermaterial aeronautical structural products. This contract amount accounts for nearly 60% of the company's two main business revenue in 2022, which is close to the revenue level of H1's metamaterials business last year.
According to the announcement, Guangqi Advanced signed a “Procurement Business Contract” with a customer on March 15 and will provide the customer with metamaterial structural products. The contract amount is 660 million yuan including tax.
Regarding customer information, Guangqi Technology did not disclose too much in the announcement. It only stated that “the customer is not related to the company; after checking the National Enterprise Credit Information Publicity System, the customer is a valid limited liability company with excellent asset size and transaction reputation, and has good performance capabilities.”
Judging from the company's transactions with the customer in the last three years, the sales amounts in 2020-2022 were 87.268 million yuan, 420 million yuan, and 650 million yuan respectively, accounting for 13.71%, 48.91%, and 55.39% of the year's revenue, respectively, showing a trend of increasing year by year.
A Finance Association reporter noticed that the tax-inclusive amount of the 660 million yuan contract accounted for 56.55% of the company's 2022 audited main business revenue (including auto parts business) and 75.62% of the company's 2022 audited metamaterials business revenue; at the same time, it is close to the revenue level of H1 Guangqi Technology's metamaterials business last year. According to financial data, in the first half of last year, Guangqi Technology's metamaterials business achieved revenue of 685 million yuan, an increase of 91.53% over the previous year, nearly doubling; in the first half of last year, the metamaterials industry accounted for 81.25% of its revenue structure, and auto parts accounted for 17.82%.
In addition to this contract, Guangqi Advanced also recently signed mass production contracts for metamaterial products totaling 597.963 million yuan with relevant customers, and recently signed mass production contracts for metamaterial products totaling 720 million yuan with related customers.
Based on the company's statement, the signing and execution of this contract is expected to have a positive impact on the company's business performance in 2024.
According to information, Guangqi Technology is the only domestic enterprise that forms metamaterials and applies them on a large scale in the field of cutting-edge equipment. Related products have gradually been applied to China's core high-end equipment such as multi-type military aircraft, naval equipment, missiles, and anti-stealth radar systems. Relevant analysis shows that the penetration rate of metamaterial products in core cutting-edge equipment is gradually increasing, superimposed equipment upgrades are speeding up, and market demand is constantly increasing.
The above trends are also reflected in its operating performance. According to the 2023 performance forecast, the company's net profit last year is estimated to be 515 million yuan to 630 million yuan, up 36.74%-67.27% year on year. The main reason is that the company's revenue from advanced metamaterial equipment products increased by more than 50% year on year, accounting for 80% of total revenue, driving a significant increase in the overall profit level.
According to the reporter's investigation, Guangqi Technology was listed under Longsheng Co., Ltd., and was originally involved in the two major businesses of metamaterials and auto parts. As the operating performance of the auto parts business continued to be sluggish in 2020-2022, the cumulative loss amount exceeded 40 million yuan. In order to further focus on the main line of the metamaterials business, at the September 2022 results meeting, the company director revealed that the automobile business divestment plan is being carefully considered. In September of last year, the company announced that it had transferred 100% of its shares in Zhejiang Longsheng Auto Parts Technology Co., Ltd. to Yu Longsheng and Yu Minbei for RMB 600 million; it also stated on the investor interactive platform that it had divested the automobile business.