Fenghua Hi-Tech expressed that, thanks to the favorable market conditions of passive components, the gradual release of the company's early stage investment results, and the strengthening of corporate governance, the company's main product, MLCC, has a market demand for chip resistors that exceeds demand. Product sales have increased significantly. With further expansion of scale, industrial technology has steadily improved, and product structure and customer structure have been further optimized. The company's net profit attributable to owners of the parent company in 2017 increased over the same period of the previous year.
Fenghua Hi-Tech Co., Ltd. is a leader in passive components such as domestic MLCCs. Driven by the shortage of goods from MLCC, Fenghua Hi-Tech released an announcement in October last year that it will invest nearly RMB 300 million in MLCCs, and expand production only with stacked inductors. Change the project, and clearly stated that the company's main products, MLCC and inductors, are still unable to meet the market order demand due to their current delivery and delivery speed.
It is understood that Fenghua Hi-Tech's MLCC has experienced three rounds of price increase since the second half of last year, with an overall increase of 25% to 30%. The price of some products has exceeded 10 times, and the company's MLCC orders have been scheduled for the third quarter of 2018. The company also proposed to initially complete the industrial upgrading during the “Thirteenth Five-Year Plan” period, achieving a double-billion target of '10 billion in total assets and 10 billion in annual sales'.