Spending RMB 500 Million? Jinjia Group Seeks Breakthrough Through New Materials Diversification

On October 15, news emerged that Jinjia Group seems to be looking for breakthroughs not only in the heated tobacco sector but also in the new materials field. Jinjia Group announced plans to invest 500 million RMB to establish a wholly-owned subsidiary, Jinjia Xinyuan, which will primarily focus on the research, investment, and management of high-value-added semiconductor materials and functional films in the electronic materials sector. Currently, Jinjia Xinyuan has completed its business registration. According to the announcement, Jinjia Group issued two announcements: one regarding the investment of 500 million RMB to establish Shenzhen Jinjia Xinyuan Technology Group Co., Ltd. (tentative name, subject to business registration), referred to as "Jinjia Xinyuan," as a platform for developing electronic materials business. The other announcement pertains to a collaboration with another party. According to the announcement, Jinjia Xinyuan plans to sign a strategic cooperation agreement with Shenzhen Houlang Laboratory Technology Co., Ltd. (hereinafter referred to as "Houlang Laboratory"), focusing on strategic cooperation around high-power magnetron sputtering equipment for polymer/metal composite material products.

Data shows that Jinjia Group's performance remains sluggish as it enters 2023. In the first half of the year, the company's revenue was approximately 2.033 billion RMB, a year-on-year decrease of 23.09%; net profit was about 280 million RMB, a year-on-year decrease of 44.02%. Revenue from the heated tobacco business increased by 81.77% year-on-year.