1, the net profit of Wuzhu Technology
In the case of steadily increasing revenue, the net profit performance of Wuzhu Technology is lackluster. The prospectus shows that in 2017, 2018, 2019 and 2020 from January to September, the net profit of five plants science and technology was 23,371,800 yuan, 88,048,000 yuan, 88,579,800 yuan and 56,829,500 yuan; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 32,283,400 yuan, 97,098,200 yuan, 92.035 million yuan and 40.2634 million yuan. In the case of a small difference in revenue size, the net profit of Wuzhu Technology is a big difference, which may be related to its gross profit margin. The prospectus shows that in 2017, 2018, 2019 and 2020 from January to September, Wuzhu Technology's gross profit margin was 20.01%, 22.79%, 24.67% and 19.55% respectively.
2, one of the main products of the multilayer board gross profit margin also continued to be lower than the average level of the industry
Prospectus shows that in 2017, 2018, 2019 and 2020 January-September, five plants technology multilayer board products gross profit margin were 14.59% 17.63%, 19.02% and 17.6%, while the average level of the same industry is 22.94%, 24.73%, 25.31% and 20.21%. In this regard, five plants technology explained that, on the one hand, at the end of the 4G construction and Huawei, ZTE and other customers in the field of communications business to the old models of products, technology is more mature, resulting in lower product pricing and gross margins. On the other hand, the company continues to invest in high-precision production and auxiliary equipment to improve the production capacity and automated production level of high multilayer boards, but due to the high multilayer boards have a market cultivation period, and the high multilayer boards require a certain amount of time for the accumulation of experience and technological precipitation in order to maintain a higher level of yields, which led to a lower level of gross profit margins in 2017 and 2018; in 2019, the customers in the field of communications with Huawei, ZTE and other customers in the field of communications The deep cooperation of high multilayer boards makes the gross margin of high multilayer boards rise.
3, five plants technology to multilayer boards
"January-September 2020, multilayer board product structure remains stable, unit price, unit cost slightly increased, but by the Chinese New Year holiday and the new crown epidemic and other factors, the overall start rate is insufficient, resulting in a gross profit margin compared to 2019 decreased by 1.42%. However, it should be noted that, from the current revenue contribution, five plants technology multilayer board is still dominated by ordinary multilayer boards, high multilayer boards accounted for a tiny proportion, and in 2018 so far, high multilayer board revenue did not have significant growth, which seems to be somewhat different from the above explanation. At the same time, the current domestic PCB market competition is more intense, due to the main to Huawei, ZTE, Transfar and other communications including infrastructure, cell phone field terminal customers, its products have the characteristics of large batch, customer bargaining power is relatively strong, usually will select a number of PCB companies for price comparison.