On March 9, the initial application of Hangzhou Jing Jilin Sino-Microelectronics Co.Ltd(600360) Co., Ltd. (hereinafter referred to as Jinghua micro) science and Innovation Board was reviewed and approved by the municipal Party committee of Shanghai Stock Exchange science and innovation board.
Jinghua micro is mainly engaged in the research and development of high-performance analog and digital analog hybrid integrated circuits. Its main products include medical and health SOC chips, industrial control and instrument chips, intelligent perception SOC chips, etc.
It is worth mentioning that the operating revenue of Jinghua micro has continued to grow rapidly in recent years, but the growth of R & D investment is relatively slow, which also leads to the continuous decline of the proportion of R & D expenses. From January to June in 2018, 2019, 2020 and 2021, Jinghua micro R & D expenses accounted for 34.32%, 28.03%, 10.27% and 10.62% respectively.
However, the reporter of the daily economic news found that the R & D expenses of Jinghua micro increased rapidly in the second half of 2021. In 2021, the R & D expenses reached 313267 million yuan, a year-on-year increase of 54.52%, and the R & D investment ratio increased to 17.76%.
Relatively low R & D investment
Jinghua micro adopts fabless mode (no wafer factory). It is also mentioned in its prospectus that there are many companies in the integrated circuit design industry, and the market competition is gradually intensified. Internationally, the well-known high-performance analog and analog-to-digital conversion companies are adeno (ADI) and Texas Instruments (TI). However, the overall product types, quantities and application fields of the two companies are quite different from those of Jinghua micro, and they have strong capital, leading brand reputation and scale, so they are not highly comparable with Jinghua micro. More contrasting are Chipsea Technologies (Shenzhen) Corp.Ltd(688595) , Sg Micro Corp(300661) , 3Peak Incorporated(688536) , Fukang technology, shengqun, Songhan technology and rich crystal semiconductor. Among them, Chipsea Technologies (Shenzhen) Corp.Ltd(688595) , Sg Micro Corp(300661) , 3Peak Incorporated(688536) are also A-share listed companies.
From the perspective of revenue, the revenue of Chipsea Technologies (Shenzhen) Corp.Ltd(688595) , Sg Micro Corp(300661) , 3Peak Incorporated(688536) from January to June 2021 was 275 million yuan, 485 million yuan and 915 million yuan respectively, while that of Jinghua micro was 101 million yuan. There was a gap with the above three listed companies in terms of revenue. In terms of net profit from January to June 2021, Chipsea Technologies (Shenzhen) Corp.Ltd(688595) , Sg Micro Corp(300661) , 3Peak Incorporated(688536) were 474546 million yuan, 155 million yuan and 257 million yuan respectively. Jinghua micro net profit was 489165 million yuan, slightly higher than Chipsea Technologies (Shenzhen) Corp.Ltd(688595) . In addition, from January to June 2021, Chipsea Technologies (Shenzhen) Corp.Ltd(688595) , Sg Micro Corp(300661) , 3Peak Incorporated(688536) R & D investment accounted for 23.31%, 17.00% and 23.97% respectively. According to this calculation, the R & D expenses were about 64 million yuan, 82 million yuan and 62 million yuan respectively. The R & D expenses of Jinghua micro in the first half of last year were 107657 million yuan, accounting for 10.62%, lower than those of three comparable peer listed companies.
two business segments share reversal
Jinghua micro products mainly include medical and health SOC chips, industrial control and instrument chips, intelligent perception SOC chips, etc. from January to June 2021, the revenue of these three items were 715038 million yuan, 27.602 million yuan and 2.2365 million yuan respectively.
The impact of the epidemic on the performance of Jinghua micro is also reflected in the financial report. In 2020, the revenue of Jinghua micro medical electronic SOC chip was 128 million yuan, accounting for 74.45% of the revenue of medical and health SOC chip, and the revenue of intelligent health weighing instrument SOC chip was 438045 million yuan, accounting for 25.55%.
In the first half of 2021, the proportion of the two segments reversed. The revenue of medical electronic SOC chip was 208566 million yuan, accounting for 29.17%, while the proportion of intelligent health weighing instrument SOC chip rose to 70.83%.
The medical and health SOC chip is the largest business of Jinghua micro, and the intelligent health weighing instrument SOC chip has grown into its largest segment business. It can be seen that the SOC chip of intelligent health weighing instrument is of great importance to Jinghua micro. The SOC chip of intelligent health weighing instrument is mainly used in various weighing instrument products such as human body scale, kitchen scale, jewelry scale and intelligent fat scale. The business of Jinghua micro is mainly compared with Songhan technology and Chipsea Technologies (Shenzhen) Corp.Ltd(688595) technology.
According to the prospectus, compared with sn8f5918 series chips of Songhan technology and csu18m91 series chips of Chipsea Technologies (Shenzhen) Corp.Ltd(688595) the company’s sd93f112 series SOC chips are more integrated and can be applied to high-end fat scales. Specifically, Jinghua micro believes that its sn8f5918 chip core has higher cost performance, wider working voltage and larger storage capacity.
Why is the performance of SOC chip of intelligent health weighing instrument, the main product of Jinghua micro, higher than that of its peers when the R & D investment is relatively low? The reporter of “daily economic news” called Jinghua micro and sent an interview letter on the afternoon of March 30, but no reply has been received as of press time.
In fact, according to the reply of the first audit inquiry letter, the main products in the SOC chip of Jinghua micro intelligent health weighing instrument are sd80, and the proportion of the revenue of its sub categories from January to June in 202018, 2019, 2020 and 2021 is 0.01%, 4.00%, 20.76% and 35.64% respectively. For this chip, Jinghua micro believes that many performances are equivalent to Chipsea Technologies (Shenzhen) Corp.Ltd(688595) csu8rp1186 chip.
