On June 8, Zhongying Electronics Co., Ltd. released the “Record Form of Investor Relations Activities on June 4, 2021”. Mr. Pan Yide, the secretary of the board of directors, briefly introduced the company’s situation, product market and the company’s future development prospects to analysts. Then the questions were answered on the spot, the specific content is as follows:
1. The guest asked: Can the company maintain the growth rate of home appliances?
Pan Yide: The main control chip for home appliances adopts the E-flash process. Currently, 8-inch wafers are mainly used. The sales growth rate is limited by production capacity. The company’s new 32-bit chips for white goods will use the 12-inch wafer fab process. As the customer’s domestic replacement strategy is still progressing in an orderly manner, the company’s market share in the home appliance sector is expected to continue to increase gradually in the long run. The company will win in the stock market, and the chip has won a comprehensive competitive advantage in the market in terms of technological innovation, market position, product quality and cost performance.
2. The guest asked: What is the change of AMOLED gross profit?
Pan Yide: AMOLED Display driver chips have the market characteristics of a single product with a large volume and a low gross profit margin. The company’s short-term new production capacity is still unable to digest customer order demand, but it is expected to improve quarter by quarter. The cost of adding capacity is still rising. This year’s AMOLED gross profit has improved compared to last year, but it is still lower than the company’s average gross profit.
3. The guest asked: What are the company’s MCU product models?
Pan Yide: The company currently has nearly 100 MCU product models, and there is a single-digit increase every year. The application of traditional products continues to expand, and the penetration rate increases. The company’s MCU products are cost-effective, which is conducive to the further increase of import substitution of white goods, and the product life cycle is long.
4. The guest asked: Is the company’s chip universal?
Pan Yide: The company mainly focuses on market segments, develops industry-customized ASSP products, integrates peripheral discrete components, and reduces BOM costs; compared with emerging domestic competitors, the company’s products are in reliability, brand recognition, and supply capacity. etc. have certain advantages. While the company sells chips, it also provides development tools to customers.
5. The guest asked: What is the company’s IOT research and development situation?
Pan Yide: The company’s existing MCU+Bluetooth solution has been used in medical applications. The WiFi technology developed now is mainly based on low power consumption, high compatibility, high reliability and long transmission distance. The company’s existing 32-bit MCU is mainly used in the field of inverter air conditioners and Internet of Things applications. For smart homes, the company’s MCU chip will reserve ports to allow customers to realize the interconnection of home appliances through WiFi or Bluetooth. It is hoped that in the future, the customer’s MCU plus wireless transmission integration solution will be provided.
6. The guest asked: What is the situation of the lithium battery management chip?
Pan Yide: The company invested in the research and development of lithium battery management chips in 2007, and the technical barriers are high. The company’s sales of lithium battery management chips in the first quarter more than doubled year-on-year. The growth contribution of lithium battery management chips is mainly due to the good progress made in the domestic replacement of branded mobile phones and TWS earphones. The performance of the products has been recognized by customers. Further development on the road of domestic substitution; power lithium battery management chips are mostly used in electric bicycles, sweeping robots, power tools, etc.; lithium battery management chips for laptops have been produced in small quantities in large brand customers, and will be used in the horizontal market this year. promotion. The company’s lithium battery management chip products have gradually entered the pre-installation market from the post-installation market.
7. The guest asked: Does the company have any plans for personnel expansion?
Pan Yide: At present, the competition for talents is indeed very fierce, and the company’s personnel are also flowing. The company has plans to expand its R&D personnel. It is expected that the number of R&D personnel will continue to increase gradually in the future. The company adopts a combination of multiple incentives and retention measures and a profit center assessment method. For R&D personnel, there are bonuses for participating in the plan, patent bonuses, annual performance bonuses, and irregular restricted stock incentives…etc.
8. The guest asked: What is the situation of the company’s display driver chip?
Pan Yide: At present, the display driver chips are mainly tape-out in domestic fabs. Since a certain capacity guarantee has been obtained ahead of time, and the company’s AMOLED display driver chips are highly competitive, and the process yield of domestic screen factories has improved significantly, domestic display manufacturers have improved significantly. The expansion of the market size is expected to usher in more sales growth opportunities.
9. The guest asked: What is the research and development of the company’s automotive electronics?
Pan Yide: The company has continued to prepare related technologies for automotive electronics for a long time, and mainly develops the MCU part of body control. The company has accumulated chip-related technologies such as air conditioning control, inverter motor control, and lithium battery management. Each product line can also be extended to automotive electronics technology in the long run. .
10. The guest asked: What is the company’s inventory?
Pan Yide: The sales growth of the company’s home appliance chips is limited by production capacity. In the first quarter, the sales of home appliances and electrical products increased by 13% year-on-year. At present, there are very few finished products in stock, and most of the products are sold, mainly semi-finished products. The company and dealers basically have no inventory, and the end customers of the company’s home appliances may have some finished product inventory, but it is difficult for us to fully grasp it.