JASIC announced its 2021 financial report on April 23rd, 2022. This year JASIC reached a 22.45% YoY growth rate in total operating revenue and a 23.33% YoY growth rate in net profit attributable to shareholders despite facing uncertainties brought about by geopolitical tension and volatile global trade environment.

Overall Financial Performance of 2021

JASIC total operating revenue reached USD 193.64 million* in 2021, a 22.45% increase compared to the same period of last year.

Period	2019	2020	2021
Total operating revenue	$149,652,379.82	$158,131,181.98	$193,637,189.29

JASIC has seen a significant recovery in 2021. Operating income grew by 17.84% YoY, bouncing back from a 21.72% contraction in 2020. Total profits climbed 20.34% from a year earlier, rebounding from a 23.34% decline in 2020. And net profit attributable to shareholders rose by 23.33% compared to last year, recovering from a 21.73% drop in 2020. Earnings per share increased by 20.59% YoY, returning back from a 20.93% decrease in 2020.

Period	2019	2020	2021
Operating income	$38,091,056.12	$29,815,963.99	$35,135,636.21
Total profits	$38,129,623.79	$29,231,038.96	$35,177,324.88
Net profit attributable to shareholders	$32,186,874.48	$25,193,338.86	$31,071,601.36
Earnings per share	$0.07	$0.05	$0.06

Export Sales Performance

JASIC gained a significant increase in the operating revenue with a reasonable loss in profit in export sales. The operating revenue of export sales in 2021 totaled to USD 91.76 million, a 27.06% YoY growth rate. The operating cost was USD 60. 51million, a 35.44% YoY growth rate.

JASIC made every effort to face the challenges of an increasingly volatile global trade environment:

• JASIC monitored major markets closely and prudently worked out comprehensive solutions considering factors including overseas orders, global shipping and international trade settlement to mitigate risks of JASIC’s export business.
  
• JASIC implemented its diversification strategy and allocated more resources to markets with stable socio-economic environment to offset potential losses in volatile markets.
• JASIC closely followed the performance of RMB exchange rate, and maintained a reasonable holding of foreign currency assets and selected suitable foreign exchange hedging tools in face of the current volatility in the forex market.

JASIC went lengths to control the rise of purchase cost caused by the volatile international environment:

• Strategic material management task force was established to study and observe the trend of key component price, adjust inventory in time and localize sourcing of key components.
• JASIC built strategic partnerships with suppliers to ensure the stable supply of raw materials and execute supply chain diversification strategy systematically to minimize the impact of global supply-chain disruption.

Period	2019	2020	2021
Operating revenue	$67,176,314.08	$72,222,341.90	$91,763,129.50
Operating cost	$41,247,283.23	$44,673,921.80	$60,506,556.02

2022 has underscored JASIC’s ability to rapidly adapt to changing environments.
Looking into the future, JASIC will keep strengthening its core competencies while developing new businesses internationally:
For sales

• Proceed with product diversification strategy to further the agenda of business diversification. Welding consumables and accessories businesses will play a crucial part in the diversification strategy.
• Optimize distribution management and formulate proactive and agile sales strategies considering different markets.
• Increase customers loyalty and depth of partnership by supporting key markets and optimizing customers training and service.
• Strengthen the buildup of sales force and its competencies.
  

For marketing

• Hold new product launch events and subsequent road shows for different market segments at home and abroad with the new industrial-grade products playing a vital role.
• Digital marketing, offline promotion activities and brand outlet building will be taken to increase brand awareness, attract new customers, and improve overall brand image.

For RDI center

• Continuously invest in new product development and technology innovation while keeping an eye on the progress of key projects and ensuring timely project delivery.
• Establish effective incentives to encourage technical employees to create technology innovations and apply for intellectual property.

For supply chain center

• Identify and manage commodity price risks, make reasonable inventory and improve material full kits rate.
• Localize and diversify the sourcing of materials and control purchase cost to ensure the punctuality and effectiveness of procurement.
• Implement lean production, transform production processes and embrace production digitalization to improve production efficiency.
  

*CNY to USD exchange rate used is 6.452