On March 21, Rockchip Electronics Co.Ltd(603893) ( Rockchip Electronics Co.Ltd(603893) , SH; closing price of 99.11 yuan yesterday) released the annual report of 2021. In 2021, Rockchip Electronics Co.Ltd(603893) achieved an operating revenue of about 2.7 billion yuan, with a year-on-year increase of 45.9%; The net profit attributable to the shareholders of the listed company was about 600 million yuan, a year-on-year increase of 88.07%.
The reporter of the daily economic news noted that the gross profit margin of Rockchip Electronics Co.Ltd(603893) in 2021 was about 40%, down 0.5 percentage points from the same period of last year.
“Due to the tight supply chain and strong demand, the semiconductor design industry has the conditions for a substantial price increase, but the company has considered the price increase. Because the company is a platform company with a large number of end customers, the company and its customers maintain a coexistence and win-win ecological relationship for a long time. The price increase of the company is only to offset the rise of upstream costs, maintain a balanced gross profit margin of about 40%, and do not raise prices too much to earn short-term profits.” Rockchip Electronics Co.Ltd(603893) indicates.
The overall gross profit rate of the company decreased slightly
Rockchip Electronics Co.Ltd(603893) said that the main theme of the company in 2021 was the shortage of chip supply.
In 2021, the sales volume of Rockchip Electronics Co.Ltd(603893) integrated circuits was about 173 million, with a year-on-year increase of 34.3%. Integrated circuits contributed an operating revenue of about 2.67 billion yuan, a year-on-year increase of 47.51%.
In other words, in 2021, Rockchip Electronics Co.Ltd(603893) of the integrated circuit products realized the expansion of sales volume and the simultaneous increase of sales price. From the perspective of gross profit margin, in 2021, the gross profit margin of integrated circuit products was 39.74%, a decrease of 0.4 percentage points compared with the previous year. This also means that Rockchip Electronics Co.Ltd(603893) ‘s price increase rate of integrated circuit products does not match its cost increase rate.
“The company’s performance in 2021 increased significantly, but the structural shortage of the annual supply chain greatly limited the growth of the company’s revenue, and the annual supply of some main products only met less than half of the demand. The rapid growth of demand is limited by supply. A major supplier of the company only provided about 70% of the average capacity supply in 2018, 2019 and 2020 in 2021, which delayed the growth of the company in the reporting period.” Rockchip Electronics Co.Ltd(603893) scale.
As for whether to transfer the price pressure to the downstream, Rockchip Electronics Co.Ltd(603893) said that the company maintains a coexistence and win-win ecological relationship with its customers for a long time and does not raise prices too much to earn short-term profits. The operation in 2021 is carried out under the main theme of shortage. The operation and management activities such as product sales and R & D follow the principle of “cherishing materials, sparing efforts, going with the times and striving for the upper reaches”.
In terms of expenses, in 2021, Rockchip Electronics Co.Ltd(603893) the year-on-year growth of sales expenses, management expenses and financial expenses was lower than that of its operating revenue, and only the growth of R & D expenses was higher than that of operating revenue.
In 2021, Rockchip Electronics Co.Ltd(603893) the financial expense was -272077 million yuan, a year-on-year decrease of 407.64% Rockchip Electronics Co.Ltd(603893) said: “it is mainly due to the increase in interest income and exchange gains and losses, with higher exchange losses in the same period last year.”
Meanwhile, Rockchip Electronics Co.Ltd(603893) ‘s R & D expenses maintained a rapid growth rate. In 2021, the R & D expenses were about 560 million yuan, a year-on-year increase of 49.03%, and the R & D expense rate was 20.63% Rockchip Electronics Co.Ltd(603893) said that the main reason is that the company attaches great importance to R & D and maintains high R & D investment, which ensures that the company can develop products with leading performance and in line with market demand.
great contribution to profit and loss from changes in fair value
The reporter of the daily economic news noted that from the perspective of marginal contribution to net profit, Rockchip Electronics Co.Ltd(603893) ‘s fair value change profit and loss in 2021 made a large contribution.
In 2021, Rockchip Electronics Co.Ltd(603893) fair value change income was about 95 million yuan, with a year-on-year increase of about 92 million yuan. In 2021, the operating profit of Rockchip Electronics Co.Ltd(603893) increased by about 288 million yuan year-on-year, and the increase of income from changes in fair value accounted for about 32% of the increase of operating profit.
In 2021, Rockchip Electronics Co.Ltd(603893) the net profit excluding non recurring profit and loss attributable to the shareholders of the listed company increased by about 63.91% year-on-year, about 24 percentage points lower than the growth rate of its net profit attributable to the parent company. Among them, the gains and losses from changes in fair value account for a large amount of Rockchip Electronics Co.Ltd(603893) non recurring gains and losses. In 2021, the impact of financial assets measured at fair value and whose changes are included in the current profit and loss on Rockchip Electronics Co.Ltd(603893) the profit is about 97 million yuan.
The reporter noted that the profit and loss on the change of fair value of Rockchip Electronics Co.Ltd(603893) mainly comes from its two equity investments. Among them, the fair value changes of two equity investments of Hangzhou Dixin Technology Co., Ltd. (hereinafter referred to as “Hangzhou Dixin”) and Changzhou Chengxin Semiconductor Co., Ltd. (hereinafter referred to as “Changzhou Chengxin”) in 2021 were about 22.31 million yuan and 72.37 million yuan respectively. For the fair value of these two equity investments, Rockchip Electronics Co.Ltd(603893) said that it was determined with reference to the valuation when introducing external investors and the equity ratio of the company recently.
In 2021, Rockchip Electronics Co.Ltd(603893) subsidiary Shanghai hanmai Electronic Technology Co., Ltd. and Changzhou Qianlang industrial investment partnership (limited partnership) jointly increased the capital of Changzhou Chengxin. At the end of the period, Shanghai hanmai Electronic Technology Co., Ltd. held 3.6% of the equity of Changzhou Chengxin.
According to qixinbao, in April 2019, Rockchip Electronics Co.Ltd(603893) made an angel round investment in Hangzhou geocore, and added a round investment in Hangzhou geocore in February 2021. Up to now, Rockchip Electronics Co.Ltd(603893) holds about 8.08% of the equity of Hangzhou Dixin.
