Securities code: 688337 securities abbreviation: record of investor relations activities of Puyuan Jingdian Technology Co., Ltd
No.: 2022002
√ specific object research □ analyst meeting
Investor relations event □ media interview □ performance briefing
Event category □ press conference □ Roadshow
□ site visit
□ others (please specify other activities in words)
April 13, 2022
10: 00-11:00 Huaxia Fund Ma Weien, Wang Jiawei, Tang Mingzhen, Chen Yue, Zhang Jingsong, Li Huawen, LV Jiawei, sun Yijia, Dong Yangyang, Lian Xiao, Zhang Qianyang, Peng Haiwei, AI Bonnie, Gao Xiang, Liu Wencheng, Shi Fukai, Ji Xinxing, Luo Shaowu, sun Yijun, Ma Shenghua, he Jiaqi
11: 00-12:00 Dongfanghong asset management Zhang Zihao, Wang Dan
13: 00-14:00 Hua’an fund Huachao
Name of participants: Cui Yu, Hou Wu, Liu Lili and Wang Jiachen of Wells Fargo fund from 14:00 to 15:00
And personnel name: 15:00-16:00: Wang Shaocheng, Yu Chang and Liu Peng of BOCOM Schroder fund
16: 00-17:00 China Merchants Fund Liu Li, Huang run, Peng Wu, Dai Fuhong
April 14, 2022
10: 00-11:00 ten thousand funds Chen Feida and Wu Yudi
13: 30-14:30 Xinhua assets Geng Jinwen, Li Dongzheng, Huang Binghan, Huang Yanbo, Lin Jianzhen
15: 00-16:00 Taiping assets Xu Jianhua, Xu Chunbo, Shao Jun
16: 00-17:00 Ping An fund Zhai Sen, Zhang Yinxian, he Jie, Huang Wei
Time: 10:00-17:00, April 13, 2022
10:00-17:00, April 14, 2022
Place online meeting
Wang Yue, chairman and general manager of the listed company
Name: Wang Ning, Secretary of the board of directors and financial director
Cheng Jianchuan, vice president of global marketing
1、 Self developed chip related Q & A
Q: Please introduce the background and situation of the company’s self-developed chip development team?
A: At present, the company’s chip team has more than 20 people, and the chip R & D team has been arranged in Beijing R & D headquarters, Suzhou R & D center and Shanghai R & D center. There are great differences in the design and development of analog integrated circuits and digital integrated circuits. In the electronic measuring instrument industry, the personnel engaged in analog chip design of head company usually have professional engineering practice experience and long-term development background. The number is not necessarily large, but they often have pure and dedicated geek characteristics to design and polish PCB on silicon wafer. The “phoenix” digital oscilloscope dedicated chipset of Puyuan Jingdian mainly includes three core investor relations functions: analog signal pickup, analog signal conditioning and analog to digital signal conversion.
The company’s self-developed chip strategy began to be laid out in 2006. In the early stage, it tried the modes of project cooperation between schools and enterprises, the introduction of overseas returnees and external collaborative development, but in the end, it achieved a breakthrough from 0 to 1 through its own talent training, exploration and development and “grinding a sword in ten years”, and accumulated valuable replicable successful experience. In this process, we have accumulated technical leading talents, talent development echelon and sufficient engineering practice experience, which has laid a sufficient talent and technology reserve for the high-end and diversified strategy of chips in the future, with sustainable development.
Most of the company’s R & D talents, including the self-developed chip development team, are trained through campus recruitment and their own system. They may not all have the background of top famous universities, but many of them are enthusiasts who love electronic design, winners or participants of the National College Students’ electronic design competition. In the future, the company will further expand its chip team, focusing on campus recruitment and supplemented by social recruitment, so as to realize long-term talent accumulation to support the development needs of the company.
Q: Can you talk about the course of the company’s self-developed chip in combination with the founder’s personal experience? A: Chairman Wang Yue has the family background of senior intellectuals and both parents are researchers of the Chinese Academy of Sciences. His father was admitted to the solid state physics major of Peking University in the 1950s, and he was the first batch of scholars to visit the United States after the reform and development. Wang Yue grew up in the compound of the Institute of semiconductors of the Chinese Academy of Sciences. She was influenced by semiconductor technology, came into contact with a lot of scientific knowledge and scientific research environment, and became a radio and aircraft model lover. Wang Yue chose the major of Electronic Engineering in the University. After graduation, he founded RIGOL studio and Puyuan Jingdian company, and began to deeply cultivate the electronic measuring instrument industry, turning his interest into a career.
The initial plan to make chips was in 2006. Now many companies in the industry had not even been established at that time. In fact, there were some twists and turns in making chips before. At that time, because the company did not have the ability to research chips by itself, Wang Yue sought cooperation between well-known Chinese universities and scientific research institutions, and also tried to hire overseas returnees from Silicon Valley, but none of them succeeded. Finally, Wang Yue decided to establish self-developed chip capability and develop chip team through his own talent training and engineering practice, and gained valuable successful experience.
The company’s self-developed chipset is composed of three chips, namely: oscilloscope analog front-end chip, oscilloscope signal processing chip and oscilloscope broadband differential probe amplifier chip.
From 2013 to 2014, the company completed the special signal processing chip for oscilloscope, the special broadband differential probe amplifier chip for oscilloscope, and the special front-end chip for oscilloscope simulation in 2017. Since only three chips have been developed, can we have the real product basis of digital oscilloscope. Therefore, the company officially released this “phoenix” chipset in 2017. After that, the company launched four medium and high-end digital oscilloscope products equipped with “phoenix” chipset in about three years, and upgraded the ultravision II / III technology platform. In particular, the company officially released the high-end flagship product ds70000 series with self-developed chip technology at the end of 2020, which makes the domestic digital oscilloscope enter the gate of 4GHz bandwidth for the first time. In 2021, the bandwidth of ds70000 series will be increased to 5GHz through further performance optimization and improvement. Generally speaking, the road of self-developed chip is long and arduous, but the return is also rich. At present, the company’s high-end digital oscilloscopes are equipped with self-developed chips, and the sales of related products increased by more than 190% year-on-year in 2021. It has made a great contribution to the growth of revenue and profit. Through self-developed chips, the company has realized independent and controllable domestic substitution ability and entered the first camp of the global electronic measuring instrument industry. In the future, the company will replicate the successful logic of digital oscilloscope chip development, solve the core technology and “neck sticking” problems in more diversified high-end products through the iterative innovation of mature chip R & D talents, and realize leapfrog development. 2、 Q & a related to the company’s operation Q: what is the revenue share of high-end digital oscilloscope products in 2021? A: The sales of products equipped with self-developed chips in digital oscilloscopes account for about 55% of the total sales of oscilloscopes. The sales of high-end products (taking digital oscilloscopes as an example, the bandwidth of 2GHz and above is defined as high-end digital oscilloscopes) increased by more than 190% year-on-year in 2021. There is a huge price gap between low-end and high-end digital oscilloscopes, ranging from more than 1000 yuan to more than 10 million yuan per set. At present, the proportion of high-end products of the company has increased rapidly, which has also driven the overall revenue growth of the company to 36.63% in 2021. Q: Is there any improvement in the core shortage problem? A: At present, the company is mainly affected by the lack of core by the old process chips, which prolongs the delivery time of the company’s economic products to a certain extent. At present, this phenomenon is alleviating. The company’s medium and high-end digital oscilloscope products mainly use self-developed chips, and the inventory of self-developed chips is sufficient. At the same time, it actively carries out the strategic reserve of purchased chips. Therefore, the medium and high-end oscilloscope products are not affected by the shortage of chips in the market. In the first quarter, the company’s revenue continued to grow rapidly, mainly driven by the strong sales of high-end products, which also reflects the strategic advantage of the company’s self-developed chips.
Q: According to public information, the company’s sales amount in Amazon is small, but the sales amount of dingyang technology in the same industry in Amazon is large. What is the reason? A: We think there are three reasons. One is the difference in product structure between the two sides, the other is the difference in Amazon’s operation ideas between the two sides, and the third is that our company’s layout in Amazon in North America is late.
First, the difference in product structure between the two sides has also been mentioned before. Taking the sales amount of high-end digital oscilloscopes in 2020 disclosed by both sides as an example, the sales amount of high-end digital oscilloscopes (referring to bandwidth ≥ 2GHz) claimed by the company is 30.479 million yuan, while the sales amount of high-end digital oscilloscopes (referring to bandwidth ≥ 1GHz) claimed by dingyang technology is 8.9409 million yuan. It can be seen that when the index standard of our company is significantly higher than that of dingyang technology, The sales amount is still more than 3.4 times, so the sales proportion and amount of our company’s high-end products are much higher than that of dingyang technology. According to common sense, we can understand that generally high-value high-end electronic measuring instruments are not suitable for sale on e-commerce platforms, because high-end instruments often involve more complex tests and applications, and have high professional requirements for function development, system programming and technical support. Customers generally prefer to purchase directly through the original factory or channels with technical ability. Therefore, as a multinational e-commerce platform, Amazon’s products suitable for sale are mainly economic products with relatively low average price.
Second, the two sides have different e-commerce operation modes. The cooperation mode with Amazon platform in the market is usually divided into two ways: (1) sell to Amazon platform, and then sell externally by Amazon platform. The company’s customers are Amazon platform; (2) Direct external sales through Amazon platform, and the company’s customers are buyers on the platform. The cooperation mode between the company and Amazon is the second, that is, it adopts the official self operated store mode of independent operation, and the company connects customers directly. The first mode of cooperation between dingyang technology and Amazon is buyout sales, which is directly sold to Amazon, and the property right is transferred and sold by Amazon independently, which is similar to the distribution mode. So Amazon is its largest customer and distributor.
We believe that the construction of brand and channel is equally important. The company has fully considered the advantages and disadvantages of mode 2. Through independent operation, professional e-commerce can be cultivated
Operation talents, closer to end users and independent formulation of marketing and price strategies. Although the increase in sales compared with mode I is limited in the short term, because Amazon can not buy out a large number of warehouses and quickly distribute goods on the global platform, it will be of great benefit to the long-term healthy growth of the sales of the whole e-commerce mode.
Third, the start-up time of Amazon sales is different between the two sides. Puyuan Jingdian officially launched Amazon sales in 2020, later than dingyang technology. However, through the above self operated official self operated store model, the company has achieved very outstanding sales results and directly obtained the accumulation of a large number of customers, which further illustrates the feasibility of this Amazon operation strategy. The company achieved 3.48 million yuan of Amazon platform sales in 2020, while the relevant sales in 2021 have reached 21.27 million yuan, a year-on-year increase of more than 510%. In 2022, the company will further realize the rapid growth of Amazon e-commerce platform revenue through the global localization of e-commerce marketing talent layout. To sum up, Puyuan Jingdian has a comprehensive and long-term layout in the global e-commerce strategy, and has remarkable sales performance in China’s jd.com and tmall e-commerce platforms, which also fully reflects the comprehensive advantageous position of “RIGOL” brand and products.
List of accessories (if any)
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Date: April 13, 2022
