Securities code: Shenzhen Minde Electronics Technology Ltd(300656) securities abbreviation: Shenzhen Minde Electronics Technology Ltd(300656) Shenzhen Minde Electronics Technology Ltd(300656) investor relations activity record No.: 202203
□ specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
category
□ press conference □ Roadshow
□ site visit √ others (online meeting)
Boshi fund, Yinhua Fund, Tianhong fund, Huashang fund, CCB fund, Haifutong fund, Jiutai fund, BOC fund, Jiuyang investment, daimo Huaxin, Huatai Bairui, Huafu fund, Hony faraway fund, Huarong fund, Golden Eagle Fund, green fund, Palm Beach investment, China Post life insurance, Zheshang fund, Everbright asset management, Zhongrong fund, CITIC Prudential insurance Hengqin life insurance, Yimi fund, Dongfang alpha fund, Nanhua fund, Jinyuan shunanji participating unit name, nuofus investment, Shangjin investment, Xuanbu investment, juming investment, Minghe investment, Yuancheng investment, pan thick momentum investment, Nanjing Port Co.Ltd(002040) Bay asset management, Ruitian investment, Huaan Securities Co.Ltd(600909) , China Securities Co.Ltd(601066) asset management, CCB investment, Guicheng trust, Bohai bank China Securities Co.Ltd(601066) securities, Beijing Chengsheng investment, China Post securities, rose capital, Shanghai Qiyao investment, Huatai Securities, China Post finance, Beijing watermark investment, Evergrande life insurance, East Asia Qianhai securities, Zheshang Securities Co.Ltd(601878) , Changjiang Securities, Huachuang securities, Founder Securities Co.Ltd(601901)
17:30 ~ 18:30, March 31, 2022;
10:00 ~ 11:00 on April 1, 2022;
Time: 11:00 ~ 12:00, April 1, 2022;
April 1, 2022: 15:30 ~ 16:30;
15:00 ~ 16:00, April 2, 2022.
Place online meeting
Deputy general manager and Secretary of the board of directors of listed companies: Gao Jian, securities affairs representative: Chen guobing
Personnel name
1、 Introduction to the company and its performance in 2021
Shenzhen Minde Electronics Technology Ltd(300656) is a rare listed company in China that has layout in all key links of power semiconductor and has independent and controllable supply chain. At present, the company has entered the channel of rapid growth. At present, the company has completed the layout of power semiconductor design, raw material silicon wafer and wafer foundry, and is committed to building a smart IDM ecosystem, which has initially taken shape, and the investor relations activities have shown a certain strategic synergy.
In 2021, the company achieved a total revenue of 546 million yuan, a year-on-year increase of 35.48%, a net profit attributable to the parent company of 76.13 million yuan, a year-on-year increase of 47.54%, and a deduction of non net profit of 48.77 million yuan, a year-on-year increase of 241.63%. The company’s net operating cash flow was greatly improved, with a net inflow of 47.73 million yuan, an increase of 143.48% over the previous year; The weighted average return on net assets was 13.96%, an increase of 3.96 percentage points over the previous year. During the period, the company’s expenses were effectively controlled, and the sales expenses and management expenses were far lower than the growth of revenue. In terms of R & D expenses, due to the continuous increase of R & D efforts and the integration into the R & D expenses of Guangwei integration, the R & D expenses increased by 38.91% year-on-year. The company’s annual net profit margin was 14.18%, an increase of 1.2% over the previous year.
The operation of each business segment of the company in 2021 is summarized as follows:
1. Barcode identification business (parent company)
After a three-year adjustment period, the overall growth will resume in 2021, and the revenue of bar code recognition business will increase by more than 30%, of which the sales of two-dimensional code scanning recognition equipment account for about 90%; Gross profit margin remained at a good level, and net profit and net cash from operations also increased significantly. Last year, the overseas sales of bar code business accounted for about 50%, and the overseas sales increased by about 57% compared with 2020. Subsequently, with the continuous growth of sales of two-dimensional code scanning recognition equipment and overseas sales, the revenue, net profit and net cash of bar code recognition business are expected to maintain a growth trend. In addition, the company plans to launch a two-dimensional scanning engine with superior performance in the second quarter of this year, which will contribute to the growth of the company’s bar code business in 2022.
2. Electronic components distribution business (wholly owned subsidiary Taibo xunrui)
In 2021, the revenue was 265 million, with a year-on-year increase of 32%; The net profit was 17.27 million, a year-on-year increase of 72%; Net operating cash improved significantly from – 2.76 million in 2020 to – 2.76 million in 2020. The improvement of overall operation mainly benefits from two aspects: first, optimize the customer structure, improve the collection and payment mode and profit margin; Second, the sales scale of power and energy storage battery business has reached 70 million, more than four times that of 2020. The business has fast turnover and good profit margin.
Subsequently, Taibo xunrui will continue to maintain steady and sound development and continuously improve its net cash and profit level.
3. Power semiconductor design business (Guangwei integration, a holding subsidiary)
In 2021, the revenue was 70.43 million, with a year-on-year increase of 82%; The net profit was 10.78 million, a year-on-year increase of 649%; The annual gross profit margin is 29.23%; The annual sales volume of MOS field effect diode (MFER), the main product, was 93347 (6-inch wafer), with a year-on-year increase of 32%.
At present, two key projects of GMIC are under promotion: first, the separated gate low voltage field effect transistor (sgt-mosfet) developed in cooperation with Guangzhou Yuexin (12 inch wafer foundry) is in the stage of engineering batch verification. If the recent verification results are good, mass production will be started. This product is used in the energy storage market, and the supply exceeds the demand; Second, Guangwei integration has opened up a new 6-inch wafer foundry. At present, it has realized small batch production, and the output is expected to increase significantly from May to June this year.
The future growth logic of wide micro integration has three aspects: first, the continuous expansion of existing products; Second, on the basis of ensuring the existing wafer customers, gradually develop the finished product business and improve the profit margin; Third, develop new product lines.
4. Information of important participating enterprises
1) Zhejiang Guangxin Microelectronics (wafer foundry)
At present, the project is in a tense and orderly construction stage. The underground works have been completed and the construction of aboveground works is under way. It is expected that the main plant will be capped in the middle of this year, and the clean room decoration, electromechanical installation, equipment mobilization and other works will be carried out in the second half of this year; A whole line of equipment for an overseas wafer foundry has been successfully auctioned and will be delivered successively by the end of this year. If it goes well, the project will be put into operation in the first half of 2023, providing strategic support for the company’s power semiconductor business capacity expansion and new product development.
2) Jingrui Electronics (silicon wafer raw material)
In 2021, mass production only lasted for more than 4 months, with sales of about 50 million and net profit of 2.58 million. The production capacity of the latest new moon has reached 130000 pieces / month (6-inch or 8-inch silicon epitaxial), and the single day output value has exceeded 1 million yuan. We will strive to expand the production to 250000 pieces / month by the end of the year. The raw materials of the whole series of product lines of Guangwei integration have passed the verification. At present, it has become the main supplier of Guangwei integration silicon epitaxial wafer, showing the synergy effect of smart IDM ecosystem. In early February this year, it accepted the capital increase of venture capital institutions, and the valuation was nearly three times that of the company’s previous investment. 2、 Q & a session
Question 1: does the company have any new investment and M & A plans in the future?
A: in the letter to shareholders in the annual report of the company, we have disclosed the criteria for screening the subject matter of investment and M & A. as long as the companies or projects that meet the criteria are our potential investment targets. The smart IDM ecosystem that the company is committed to building has initially taken shape. At present, the layout of key links such as power semiconductor design, raw material silicon wafer and wafer foundry has been completed. In the past two years, the company’s main investment will focus on the construction and expansion of enterprises in the power semiconductor industry chain. In the future, if there are targets that meet our screening criteria, we will also consider making new investment, and use our own supply chain foundation to empower them, cultivate more excellent power semiconductor enterprises and expand the power semiconductor smart IDM ecosystem.
Question 2: how is the construction progress of wafer foundry wide core microelectronics project?
A: Wafer Foundry Enterprise Guangxin microelectronics is currently in the construction stage. Phase I plans to have a wafer foundry capacity of 100000 pieces / month on 6-inch silicon substrate. The strategic purpose of the company’s investment in new wafer foundry is to establish independent and controllable wafer foundry capacity, completely open the ceiling of capacity expansion of power semiconductor business, and accelerate the process of new product development. Led by Dr. Xie Gang, Guangxin microelectronics project has established a core team with rich experience in plant construction, operation and process development; It has successfully bid for the whole line of equipment of an overseas wafer foundry, and the price is very appropriate. Delivery will be completed before the end of this year. The civil engineering of Guangxin microelectronics project was officially started in January this year. The main plant was capped in the middle of this year. Clean room decoration, electromechanical installation, equipment mobilization and other projects will be carried out in the second half of this year. If it goes well, it will be put into operation in the first half of 2023. In the initial stage, the most mature MOS field effect diode (MFER) products will be connected, and the process platforms of medium and high-end products such as IGBT, super junction MOS and SiC will be built in succession.
Question 3: how is the progress of Jingrui Electronics Project of silicon wafer enterprise?
A: Jingrui electronics, a silicon wafer raw material enterprise, began mass production in August 2021. Last year, it achieved a total revenue of about 50 million yuan and a net profit of 2.58 million yuan. As a joint venture of the company, Jingrui Electronics will consolidate the net profit according to the shareholding ratio and the non consolidated revenue in the statements of listed companies according to the accounting standards for business enterprises. With the rapid growth of Jingrui electronics, it will also contribute more net profit to the company. Jingrui electronics started construction in October 2020, and has reached the output of 130000 pieces / month (6 or 8-inch silicon epitaxial wafer). Jingrui Electronics will continue to expand its production this year, and it is expected to achieve the production capacity of 250000 pieces / month by the end of the year. In early February this year, Jingrui electronics accepted the capital increase of venture capital institutions, and the capital increase valuation has been close to three times that of the company’s previous investment in Jingrui electronics. At the same time, Guangwei integration has completed the test and verification of a full series of product lines for Jingrui electronic silicon epitaxial wafers and purchased them in batches. At present, Jingrui electronics has become the main supplier of silicon epitaxial wafers for Guangwei integration, fully demonstrating the strategic synergy of smart IDM ecosystem.
Question 4: the company has made several large investments in the semiconductor field in recent years. The overall investment in the construction of semiconductor wafer foundry will also be relatively large. How does the company solve the capital problem?
A: in recent years, the company has made a series of investment and mergers and acquisitions in power semiconductor: first, it controls the wide and micro integration of power semiconductor design enterprises. At present, it has achieved positive net cash in business operation, and there is no need to add too much investment in the follow-up; Second, Jingrui electronics, a silicon wafer raw material enterprise with increased capital and shares, has increased a total of 120 million yuan twice. Jingrui electronics plans an independent IPO. At present, it is also meeting its capital needs through social financing, and its valuation has increased several times. The company will not make new investment in Jingrui electronics in the short term; Third, the invested wafer foundry Guangxin microelectronics is the key investment project of the company in the next few years. The construction investment of phase I is about 1.2 ~ 1.4 billion yuan, of which the company invested 210 million yuan through its own funds, and the investment of Lishui government fund is expected to be no more than 400 million yuan. In addition, the bank can provide 8 ~ 10-year long-term project loans, up to 80% of the fixed asset investment of the loanable project.
To sum up, the company has arranged the funds required for the project and made a full and reasonable overall planning. In addition, the company’s mature businesses such as bar code identification and power semiconductor design can continuously contribute to the company’s positive operating net cash.
Question 5: how to view the prosperity of power semiconductor industry in 2022?
A: at present, in the power semiconductor industry, there are different prosperity differences in products in different segments. For power semiconductor devices in the industrial and energy fields, with the promotion of the “double carbon” strategy, the demand for power semiconductor devices in photovoltaic, energy storage, new energy vehicles and other fields will continue to increase. At the same time, because the talents and equipment required for the expansion of power semiconductor production cannot increase rapidly in a short time and need strong support from capital and policies, the growth of supply side is limited in the short term; In addition, at present, about seven to eight of China’s medium and high-end power semiconductor devices have become occupied by foreign brands, and there is a huge market space for import substitution. However, for power semiconductor devices in the field of consumer electronics, the impact of consumer electronics cycle fluctuations is obvious. When the market is good, the price will rise greatly, but when the market is bad, the decline will also be serious. Therefore, the market prosperity still depends on the positioning of the company’s products. If it is oriented to import substitution, industry, new energy and other medium and high-end markets, the market prosperity in the next few years should still be OK.
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