MORE than 60 percent of Shenzhen-listed companies that specialize in electronics manufacturing have thus far reported strong growth in net profits, despite challenges from global chip shortages and raw material price hikes, the 21st Century Business Herald reported Sunday, citing their performance estimates.

Among the 135 Shenzhen-listed electronics manufacturers that have released their financial performance forecasts for 2021, 71 achieved profit growth and 13 turned losses into profits, accounting for more than 60 percent of the total, the newspaper cited financial data provider Wind Data Service as saying.

Among them, 35 have released their annual financial reports for 2021, with their total revenue increasing by 55.17 percent from a year ago to 894.4 billion yuan (US$130 billion), and their combined net profits reaching 98.16 billion yuan, up 117.42 percent from a year ago.

The news report mentioned Huatian Technology Electronics Co. for example. This leading integrated circuit packaging and testing firm in China saw its revenue rise by 44.42 percent from a year ago to 12.11 billion yuan and its net profits surge 99.36 percent from a year earlier to 1.4 billion yuan last year.

Chang Wenying, deputy general manager and board secretary of Huatian, attributed the company’s profit growth to a strong global demand as well as its ability to innovate and expand its production scale.

Facing rising raw material prices, the company found its own way for reducing costs: technology upgrading, Chang said.

Wuhan Raycus Fiber Laser Technologies Co.’s performance was also attention-grabbing, with its net profits growing by more than 60 percent from a year ago to 474 million yuan last year.

Lu Kunzhong, the company’s board secretary, said the company has become capable of mass-producing the core materials it need by itself, enabling it to control costs effectively.

Both company managers are optimistic about the prospects of the electronics sector and expect their firms to maintain the growth momentum this year through fundraisings on the capital market.

“Integrated circuits are important to the development of artificial intelligence, which is an unstoppable trend. So the foundation sectors like the one we are in will be promising,” said Chang. “We hope to raise funds on the capital markets in order to produce more advanced products.” (Liu Minxia)