On April 15, Shenzhen Gongjin Electronics Co.Ltd(603118) issued the annual report for 2021. In 2021, the company achieved an operating revenue of 10.808 billion yuan, a year-on-year increase of 22.24%; The net profit attributable to the shareholders of the listed company was 396 million yuan, a year-on-year increase of 14.08%. In the face of challenges such as the sharp rise in the price of chips and passive components, the intensification of material shortage, the impact of the epidemic and the obstruction of order delivery, Shenzhen Gongjin Electronics Co.Ltd(603118) still handed over a brilliant report card. The annual sales exceeded 10 billion yuan, the net profit increased steadily and the leading position was further consolidated.
Shenzhen Gongjin Electronics Co.Ltd(603118) said that in 2021, the company innovated to overcome difficulties, continued to promote infrastructure construction, increased investment in the construction of information system and the development of automation equipment, gradually improved the company’s operation efficiency, promoted talent training and employee incentive, and increased investment in new business R & D. In 2021, the company’s business situation will be stable and good, its key businesses will move forward steadily, and its innovation ability will continue to be enhanced, so as to achieve a good start of “manufacturing together 2025” with high-quality development.
breaking into 10 billion scale and continuously strengthening communication terminal business
In 2021, the whole industry will accelerate the construction of “double Gigabit”, driving the demand for communication terminal equipment to continue to rise Shenzhen Gongjin Electronics Co.Ltd(603118) seizing the opportunities at home and abroad has opened a new growth channel, and the production and sales of major communication terminal products have increased. According to the data of the annual report, the revenue of Shenzhen Gongjin Electronics Co.Ltd(603118) communication terminal business increased by 20.86% to 10.352 billion yuan in 2021. Relying on the supply guarantee ability of raw materials and product delivery ability, the market share of the company was further improved and the leading position in the industry was continuously consolidated.
At present, the communication industry is in the rapid construction period of 10G PON ports. By the end of 2021, 7.86 million 10g PON ports have been built in China, which has the ability to cover 300 million families. From the global market, according to the report of delloro group, the total revenue of the global broadband access equipment market increased to US $16.3 billion in 2021, with a year-on-year increase of 12%, of which the expenditure on PON equipment increased by 32%. In 2021 Shenzhen Gongjin Electronics Co.Ltd(603118) the optical access terminal series products dominated by PON terminals achieved a revenue of 3.446 billion yuan, a year-on-year increase of 29.43%, and the product sales volume was 22.95 million units, a year-on-year increase of 22.61%.
With the upgrade of gigabit network, WiFi 6 router with high rate will be widely used. It is reported that Shenzhen Gongjin Electronics Co.Ltd(603118) earlier laid out the WiFi 6 market. In 2021, the company’s series of wireless and mobile terminal products based on enterprise network and Wi-Fi equipment achieved a revenue of 3.095 billion yuan, a year-on-year increase of 32.70%, and the product sales volume was 19.45 million units, a year-on-year increase of 6.20%.
Among other subdivided products, Shenzhen Gongjin Electronics Co.Ltd(603118) dsl terminal series products achieved a revenue of 2.527 billion yuan in 2021, a slight decrease compared with the same period, mainly due to the decline in market order demand and the decrease in production and sales volume; Other broadband communication terminal series products achieved a revenue of 1.284 billion yuan, a year-on-year increase of 42.85%, and the product sales volume was 5.18 million units, a year-on-year increase of 25.52%.
In order to further expand the layout of the main business market and improve the profitability and competitiveness of the communication market, Shenzhen Gongjin Electronics Co.Ltd(603118) signed a project cooperation agreement with the Management Committee of Haining high tech Industrial Park and Xinhua three Technology Co., Ltd. in 2021. The company invested 200 million yuan to settle in the “Xinhua three Information Industrial Park” of Haining high tech Industrial Park for the implementation of the project of “annual output of network communication products and server IT products”.
increase investment in mobile communication R & D and lay a foundation for rapid development
As the demand for base station and module business picks up and the order volume increases in 2021, Shenzhen Gongjin Electronics Co.Ltd(603118) mobile communication business revenue has increased significantly. In 2021, the company’s mobile communication business revenue increased by 44.36% year-on-year to 222 million yuan, and the sales volume of mobile communication products reached 333700 units, a year-on-year increase of 789.74%.
With the continuous expansion of the construction scale of 5g base stations, the demand for small base stations in 5g network is becoming more and more urgent. According to the prediction of delloro group, the global small base station market will reach US $25 billion in the next five years. With the continuous deepening of 5g business process and the continuous enrichment of 5g application scenarios, it drives the ecological prosperity and development of global 5g industry.
As the first company in the industry to complete the research and development of 5g integrated base stations, Shenzhen Gongjin Electronics Co.Ltd(603118) 5g products have gradually improved their competitiveness in the communication industry, and 5g small base stations have obtained commercial contracts in the field of transportation. In 2021, the company’s 5g small base station successfully obtained the approval for network access trial of telecommunication equipment issued by the Ministry of industry and information technology. At present, the company is making full efforts to make relevant test preparations for centralized procurement of operators.
It is reported that Shenzhen Gongjin Electronics Co.Ltd(603118) base station company continued to expand its business in 2021, with a total bid winning amount of more than 33 million yuan and a revenue scale of 80 million yuan, which laid a good foundation for the rapid development of 5g business of the company.
In addition to the overall acceleration of 5g base station construction, China’s 5g private network construction is also continuing. In July 2021, the Ministry of industry and information technology, together with the nine departments, issued the 5g application “sailing” action plan (20212023), which set clear goals for the construction of 5g private network. By the end of 2023, more than 3000 5g virtual networks will be built for industrial enterprises using 5g public network.
It is understood that Shandong Wenyuan, a wholly-owned subsidiary of Shenzhen Gongjin Electronics Co.Ltd(603118) . According to the annual report, Shandong Wenyuan continued to develop 5g series products in the public security industry in 2021, took the lead in completing the research and development of relevant 5g public security equipment in the industry, and has delivered them to public security customers in batches. In 2021, Shandong Wenyuan vigorously developed partners and established a nationwide sales network, realizing an operating revenue of 160 million yuan and a net profit of 622767 million yuan.
It is worth noting that Shenzhen Gongjin Electronics Co.Ltd(603118) through independent research and development, develops the mobile communication business in the mode of independent brand combined with OEM sales. The gross profit margin of the mobile communication business is as high as 58.08%, which effectively reduces the business risk, drives the improvement of profitability and further casts the competitive strength of the company.
layout sensor sealing and testing new business and cultivate new growth points
While developing communication terminal business and mobile communication business, Shenzhen Gongjin Electronics Co.Ltd(603118) also actively explores the development of new business and opens up new profit growth points. In the context of short supply in the chip market and strong global demand for semiconductor packaging and testing, Shenzhen Gongjin Electronics Co.Ltd(603118) entered the sensor packaging and testing business for the first time, realizing rapid layout.
In 2021 Shenzhen Gongjin Electronics Co.Ltd(603118) invested in Shanghai microelectronics, committed to promoting the expansion of the company’s business to the fields of advanced sensor packaging, testing and application. At the same time, the company signed a strategic cooperation agreement with the national intelligent sensor innovation center to deepen cooperation in the fields of advanced sensor material manufacturing, packaging and testing, and accelerate the innovation and industrialization of cutting-edge technologies of sensors and the Internet of things.
In order to further strengthen the layout of the sensor industry, in January 2022, the Shenzhen Gongjin Electronics Co.Ltd(603118) holding subsidiary Shanghai microelectronics set up a wholly-owned subsidiary Suzhou microelectronics as a production base for developing the sensor business, forming an industrial chain structure integrating R & D, production and sales with Shanghai microelectronics, so as to improve the economic benefits and comprehensive strength of the company.
Shenzhen Gongjin Electronics Co.Ltd(603118) said that in 2022, the company will accelerate the project construction of sealing and testing business, realize the wafer level and FT level testing of sensors, cover the categories of mechanics, optics, acoustics, RF, biology and microfluidic, use high technology to lead high-quality development and form a new profit growth point of the company.
With regard to the development plan for 2022, Shenzhen Gongjin Electronics Co.Ltd(603118) said that the company would closely focus on the long-term development goals, focus on the three directions of real business, growth business and seed business, explore new areas of R & D and manufacturing of automotive electronic core products, strengthen intelligent manufacturing, expand new business, and fully implement the 2025 plan of manufacturing together. In terms of real business, Shenzhen Gongjin Electronics Co.Ltd(603118) said that it would continue to accumulate and expand advantageous fields and improve profitability; In terms of growth business, the company will quickly complete the verification and iteration of business model, break through the key scale and pursue the growth optimization at a certain profit margin level; In terms of seed business, based on insight into market trends and consumer needs, the company will pay attention to the speed of business trial and error and growth, maintain the principle of openness, and complete the feasibility verification of products and solutions as soon as possible.
Shenzhen Gongjin Electronics Co.Ltd(603118) hopes to form international leading core technology, product development and delivery capabilities and gradually accumulate brand advantages through continuous innovation and breakthroughs in the field of information and communication. In the future, under the guidance of mission and vision, the company will strive to become an excellent enterprise in the field of information and communication, with independent technology, independent brand, high-quality products and solutions, integrating research, production, marketing and service, and trusted by customers.
