IQOS Supplier Intretech Reports H1 Net Profit of About RMB 203 Million, Down 40.82% Year on Year

On the evening of August 18, Yingqu Technology released its semi-annual performance report, stating that in the first half of 2023, the operating income was approximately 1.844 billion yuan, a year-on-year decrease of 19.4%; the net profit attributable to shareholders of the listed company was approximately 203 million yuan, a year-on-year decrease of 40.82%; basic earnings per share were 0.26 yuan, a year-on-year decrease of 40.91%.
Previously, Ge Wu Consumer mentioned in a post titled "The Supply Chain 'Circle of Friends' of Philip Morris International" that Yingqu Technology was established in May 2011 and has 43 wholly-owned or controlled subsidiaries both domestically and abroad, and has established partnerships with companies such as Logitech, Nestle, PMI, WIK, Venture, 3Dconnexion, and Asetek.
In terms of cooperation with PMI, Yingqu Technology began supplying to IQOS OEM factory Venture in 2014, where Venture assembles its products with other accessories; later, Yingqu Technology's plastic parts began supplying another IQOS factory, Flex (Flextronics).
According to Yingqu Technology's responses to investor inquiries on July 18 and information disclosed during investor research in May this year, the e-cigarette business performed well in 2022; the company secured the complete machine project for e-cigarette clients in 2022, achieving vertical integration of the entire industry chain from development design to precision plastic components to core components to complete machine assembly, with mass production of the complete machine project expected in Q3 2023. Yingqu Technology clearly stated: "The e-cigarette complete machine expected to be mass-produced in the third quarter of this year belongs to the fourth generation of products."