Tongda Group’s profit doubles to $62.2m in H1 2021

Its revenue rose 28.2% to $5.1b.

Tongda Group Holdings Limited recorded a 101.8% increase in net profit in the first half of 2021 to $62.2m from $30.8m in the same period last year, according to its financial statement.

Tongda said its revenue rose 28.2% to $5.1b first six months of 2021 from $3.99b in the first half of 2020. 

This is “mainly because the group’s previous enhanced capacity timely met the growth in shipments of major customers during the period,” it said in a press release. The gross profit increased 26.7% to $769.5m in the first half of 2021 from $607.2m in the same period last year.

Of the total revenue, 71.9% were from handset casings and high-precision components, 6.3% were smart electrical appliances casings, 11.5% were from household and sports goods, and 10.3% were from network communications facilities and others. 

“In response to the dynamic market environment, the group was still able to achieve growth in both revenue and profit by leveraging its leading technologies and comprehensive customer portfolio,” Tongda Group Chairman and CEO Wang Ya Nan said. 

“To facilitate business development, enhance production efficiency, and meet the requirements of customers’ products, the group continued to be prudent in investing in [the research and development] of technologies during the period, while the up-front investment might be more concentrated, this may lead to the exploration of new business with higher growth potential and better prospect for development to realize its assets value,” he added.

Tongda said handset casings and high-precision components will continue to be its major business, whilst its proportion of 3D and uni-body Glastic casing with high technological entry barriers will further enhance.

The group also said that it will actively compete for orders of metal middle frames with higher unit prices and it is currently conducting research and development for various products for major customers of the tri-proof and high-precision components business as the second half of the year is the traditional peak season for the handset industry.

“In the future, the group will be market-oriented and adhere to providing customers with diversified leading practical processing technologies and solutions basing on innovative technologies and craftsmanship. At the same time, the group will explore different emerging industries and new products, new materials as well as new areas, so as to enhance its consolidated competitive edge,” Wang said.