As the annual report season ended at the end of April, A-share listed companies have held performance briefings and investor relations activities since May to respond to topics of concern to investors. In the field of electronic component distribution, according to incomplete statistics, 6 listed distributors have held related activities in May. The following is a summary of some of the exchanges.
01 About the plan for 2024
Listed distributors gave detailed answers to investors' concerns about short-term and long-term development plans.
In the short term, in 2024, Haoshanghao emphasized that the company's management and all employees will focus on the company's development strategy, seize market opportunities to achieve endogenous growth, and actively explore the extension of industry integration. The company will focus on the following aspects:
(i) vigorously develop the market and improve the company's performance;
(ii) explore industry chain mergers and acquisitions to achieve extension growth;
(iii) strengthen the technical team management model and R&D innovation;
(iv) strengthen internal control management.
China Power Port pointed out that in 2024, the company will take "compliance and risk control, cost reduction and efficiency improvement, and value leadership" as the general business policy, and focus on the following aspects: (1) strengthen compliance construction and effectively prevent and control risks;
(2) focus on the main business of distribution and expand the industry's leading advantage;
(3) improve the storage and transportation system and improve the efficiency of the supply chain;
(4) accelerate digital transformation, strengthen, optimize and expand;
(5) develop application innovation and cultivate new momentum;
(6) optimize the organizational structure and strengthen the construction of the talent team.
In the long run, China Electronics Port will continue to promote the "big platform + fine professional" as a new distribution development route, and strive to build an application innovation and modern supply chain comprehensive service platform with electronic components as the core, promote the maturity of application innovation, connect the upstream and downstream of the industry, accelerate the development of new quality productivity, and provide advanced manufacturing with higher value component application innovation and modern supply chain comprehensive service solutions.
Shannon Xinchuang said that the company currently adheres to the two-wing strategy of semiconductor distribution and semiconductor R&D and production. In the future, it will continue to consolidate the existing distribution business, deeply explore customer needs, enrich the distribution product line, and enhance product service capabilities; in the semiconductor product business segment, increase R&D investment, keep up with the cutting-edge technology of the industry, and improve the localization level of storage products.
Runxin Technology shared the company's business plan for the next five years: 1. Plan to actively invest in AI digital robot assistants and AI edge computing fields; 2. Continue to increase the proportion of special processes and traditional process products such as sensor chips, low-power wireless chips, and storage chips in the company's business.
Yingtang Zhikong mentioned that the distribution business provides a stable cash flow, profit and customer resources for the company's development, and is the basis for the company's transformation to upstream semiconductor R&D and manufacturing. Currently, the company's distribution business accounts for 90% of its total revenue, and the semiconductor business accounts for nearly 10%. In the next 3-5 years, we hope to improve the revenue structure of the two businesses and continue to increase the revenue share of the semiconductor business while maintaining the current scale of the distribution business.
02 About the growth points in 2024
At present, the inventory liquidation of the electronic components industry has gradually come to an end. The demand in the consumer electronics market, which accounts for the largest proportion of semiconductor application fields, has a certain recovery trend. The prices of various electronic components have generally stabilized, and the industry's prosperity has shown signs of a slow recovery. Shenzhen Huaqiang looks forward to the whole year of 2024. Driven by factors such as the accelerated implementation of artificial intelligence technology and related applications, the gradual return of industry inventory to a healthy level, and the bottoming out of the consumer electronics market, the prosperity of the electronic components industry is expected to pick up.
So, in which application directions will the business growth points of listed distributors be in 2024?
China Power Port said that it will output comprehensive service solutions around key areas such as computing industry, artificial intelligence, network communications, and automotive electronics.
Shannon Xinchuang believes that the storage industry is an important sub-sector of the semiconductor industry. With the vigorous development of cloud computing and AI industries, the importance of the storage industry has become more prominent. The storage industry began to adjust in 2022, and it did not stabilize and recover until the second half of 2023. It is currently in an upward cycle.
Yingtang Intelligent Control stated that in 2024, the company's transformation into the semiconductor research and development and manufacturing fields will enter an important stage. MEMS micro-vibration mirrors and automotive display driver chips are expected to start mass sales this year, providing a new growth point for the company's performance.
03 About Talent
As we all know, the chip industry is a technology-intensive, rapidly updated and highly competitive field. Currently, listed distributors are generally involved in chip self-developed projects and the development of semiconductor business. Introducing professionals in the chip industry is crucial to the long-term development of distributors.
Yingtang Intelligent Control believes that attracting and retaining key technical talents is a new issue for distributors.
(1) The company is expanding its R&D team according to business development needs and introducing senior management talents in the semiconductor industry with a global vision.
(2) In terms of employee training and development, the company has a sound employee salary and welfare system and will implement equity incentive plans based on the company's operating conditions and secondary market conditions.
(3) The company attaches importance to employee capacity building and career development. It empowers employees through the company's internal online learning platform "Yingtang Academy". Department heads assign learning tasks to department members every quarter. Through online learning, clocking in, testing and other links, employees' work skills and professional qualities have been greatly improved.
(4) In addition, the company regularly organizes knowledge sharing sessions and invites upstream and downstream partners to the company offline to explain products, market and industry conditions to broaden employees' knowledge.
In 2024, China Power Port will continue to optimize its organizational structure and strengthen talent team building. In line with the needs of business development, we will optimize the organizational structure, match human resource investment from the "optimal" point of view, and strengthen the management and control of organizational efficiency; strictly control the introduction of talents from multiple dimensions, continuously improve the quality of personnel, and build a high-performance team; strengthen compliance, system, culture and other training, organize knowledge and ability tests, deepen the application of results, train talents with positions, and strengthen internal personnel mobility.
Shannon Xinchuang emphasized that the company will continue to introduce talents and build a professional team. The company will continue to attach importance to the construction of the talent team and take relevant measures to motivate and stabilize the management team and core personnel, train and cultivate talents through internal training mechanisms, and continue to attract high-quality personnel to join, laying a talent foundation for its own sustainable development.
04 How to deal with market volatility
Given the volatility of the global semiconductor market, how do listed distributors evaluate and respond to future market uncertainties?
Shenzhen Huaqiang believes that the company is a leading domestic authorized distributor of electronic components and has strong comprehensive competitive advantages. Regardless of how the industry's prosperity fluctuates, the company will continue to build on its comprehensive competitive advantages, promote industry mergers and acquisitions, accelerate resource accumulation, and increase market share.
In response to fluctuations in the semiconductor market, China Electric Port attaches importance to distinguishing the development trends and stages of different downstream application fields, so as to formulate different response policies. For example, at this stage, the company attaches great importance to resource investment in the field of artificial intelligence, fully grasps the industry opportunities of the rapid development of artificial intelligence; continues to pay attention to the development trends of new energy, automotive electronics and other fields, and strengthens its own capabilities; maintains the business scale in the consumer electronics field and ensures the scale of revenue.
Runxin Technology said that in response to the downward cycle of the semiconductor industry, the company plans to add research and development and industrial investment in sensor feature processes, low-power wireless chips and other fields, and expects to resume business growth in 2024.
05 Layout of AI field
Since 2024, the global market has cheered for the prospects of artificial intelligence. So, what are the layouts of listed distributors in the field of artificial intelligence?
For the GPU chips and storage chips required for artificial intelligence, Haoshanghao said that it will continue to actively seek supplier resources that are beneficial to the company's future development.
And Runxin Technology has made new progress in the fields of AIoT and AI robots.
(1) In the field of AIoT, the company plans to increase product lines such as sensor chips, discrete devices, and storage chips, increase wafer foundry distribution and analog-to-digital mixed chip design business, integrate the production capacity of wafer foundries with special processes in mainland China and Taiwan, and provide a series of services including EDA comprehensive tools, wafer CP testing, sensor packaging and testing, and chip customization design to ensure the local supply of wireless chips, signal conditioning chips and MEMS sensors in advantageous fields.
(2) The target market of the company's AI Chatbot digital chatbot is the elderly care service industry. The company plans to cooperate with major suppliers to use low-power AI chips to implement machine learning and human perception functions, and expand AI voice interaction and digital chatbot functions in the smart living room scenario. The product provides personalized emotional communication and reminder services for the elderly by upgrading the audio and video set-top box/smart speaker. It has currently found target customers in overseas markets and reached cooperation intentions with several domestic nursing homes. It plans to train and commercially use 10,000 AI Chatbot robots within two years.
06 Other topics
In addition, individual listed distributors also responded to topics such as digital transformation, industrial chain supply chain, and overseas expansion.
CLP Port shared that the work of digital transformation and application innovation can further improve the company's operational management efficiency, significantly enhance its information management capabilities, and improve the efficiency and quality of the company's customer services. At the same time, the company will build an industrial big data platform to achieve full penetration of electronic industry chain information and full sharing of industry data. The company's digital strategic layout will be realized and market influence will be enhanced. The efficient intelligent information system will lay the foundation for the company's sustainable and stable development. Solid foundation.
Runxin Technology said that based on customer needs, the company has expanded its business in Hong Kong, Taiwan, Singapore, and Southeast Asia, and is seeking business expansion in the European and American markets.
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