Per reporter: Wang Jing Per editor: Wen Duo
On the morning of March 23, Industrial Fulian (601138, SH) held a media exchange meeting for the 2021 annual performance report online, at which the company's chairman Li Junqi, CEO Zheng Hongmeng, chief technology officer Zhou Taiyu, chief financial officer and secretary of the board of directors Guo Junhong and other company management interpreted the 2021 financial report. At the meeting, the company's new business layout, supply chain challenges, shareholder dividends, spending 47.6 billion yuan to buy financial management and other hot issues of external concern were also answered one by one.
On the evening of March 22, Industrial Fulian disclosed the 2021 annual performance report, and the financial report showed that in 2021, Industrial Fulian achieved operating income of 439.557 billion yuan, an increase of 1.8% year-on-year; the net profit attributable to shareholders of listed companies was 20.01 billion yuan, an increase of 14.8% year-on-year, and the revenue and profit hit a record high.
As for the reasons for the growth of performance in 2021, Zheng Hongmeng believes that this is closely related to the prosperity of the global digital economy. According to IDC, from 2020 to 2025, the compound growth rate of China's ICT market will be 6.3%, and the ICT market size will reach 4.2 trillion yuan in 2025. "Whether globally or in China, the prosperity and development of the digital economy will create huge space and opportunities for the sustained and stable growth of the performance of Fulian Industry." Zheng Hongmeng said.
Looking forward to the future, Industrial Fulian said that the company will firmly seize opportunities in the fields of semiconductors, new energy vehicles, meta-universes and industrial Internet to create a second growth curve. Zheng Hongmeng introduced that Industrial Fulian is laid out from the needs of automobile lightweight, electricity saving and intelligence, focusing on the three areas of electronic drive electronic control parts, vehicle networking and intelligent vehicles, and industrial Internet empowerment. "Smart cockpits, automotive motors, high-voltage connectors and other products are all underway, with the goal of mass production in 2023."
Image source: Screenshot of the annual report
The three major business sectors have achieved growth, and the overall proportion of the industrial Internet is relatively small
In terms of business, the main business of Industrial Fulian covers communication and mobile network equipment, cloud computing, and industrial Internet. According to the financial report data, the three major business segments have achieved performance growth.
Among them, the sector that accounts for a relatively large proportion of the performance of Industrial Fulian is still mainly derived from the traditional business - communication and mobile network equipment business, which achieved revenue of 258.966 billion yuan in 2021, an increase of 1.95% year-on-year. In terms of product layout in this field, it mainly includes base station routers, 400G switches, base station RU, small base stations, mobile routers, home routers, 5G modules and Open-RAN solutions. Zheng Hongmeng revealed that the company's mobile routers have shipped more than 1 million sets, and Wi-Fi 6/6E related products have shipped 30 million sets.
On the basis of consolidating the existing main business, Industrial Fulian is also accelerating the development of the 5G+ ecosystem and expanding the value of 5G applications. The company said that the industrial Fulian vehicle networking products have covered 5G private network standard products, edge computing modules, shared base stations (Shared-RU), 5G OBU and vehicle networking modules.
Benefiting from the continuous growth of global demand for data centers and cloud services, The cloud computing sector of Industrial Fulian hit a new high, achieving revenue of 177.694 billion yuan, an increase of 1.36% year-on-year.
"The rapid iteration of new products and new technologies has become an important driving force for the rapid growth of the performance of the cloud computing sector." According to Fulian, "The company and customers jointly plan a new generation of products, including modular computing and storage units. At the same time, edge computing applications are beginning to take shape, terminal, edge, cloud collaboration forms are gradually popularized, and new applications such as automatic driving have risen, driving the growth of the company's edge data centers and automatic driving related products, and also promoting the shipment of AI GPU servers and other products. ”
In addition, as the vanguard of Foxconn Technology Group's transformation of "intelligent manufacturing + industrial Internet", the industrial Internet sector of Industrial Fulian is pinned on high hopes, and the business will achieve a year-on-year increase of 16.92% in 2021, which is the fastest growth rate among the three main businesses. Industry Fulian said: "At present, industrial Internet services have landed in more than 50 important customers. ”
However, the reporter noted that from the perspective of the volume of the company's industrial Internet business, its revenue of 1.685 billion yuan only accounts for 0.38% of the company's overall revenue, and there is still a long way to go to rely on the industrial Internet to successfully transform.
Responded to 10 billion dividends and purchased 47.6 billion yuan of wealth management products
In addition to the performance, Industrial Fulian also gave the largest cash dividend plan in the company's history, the company intends to distribute a cash dividend of 5 yuan (including tax) to all shareholders for every 10 shares, with a total dividend of nearly 10 billion yuan, almost double that of last year. In this regard, Guo Junhong explained that the company's monetary funds increased by 6% over the same period last year to 82.9 billion yuan, with abundant cash. "We want to continue to give back to our shareholders while maintaining good production operations and supply chain stocking."
At the same time, on the evening of the 22nd, The Industrial Fulian also announced that the board of directors agreed that the company and its subsidiaries should use the maximum amount of idle own funds of not more than 47.6 billion yuan, and the wealth management products and structured deposits issued by financial institutions such as investment banks and bank wealth management subsidiaries that meet the conditions of high security, good liquidity, short-term and medium-term (not more than one year) can be used on a rolling basis within the above quota.
As soon as the above news was released, it quickly fermented on the Internet, talking about the reasons for the large-scale purchase of wealth management products, Guo Junhong responded that the global economy is facing risks such as inflation and cyclical fluctuations in the economy, and the company's relevant financial arrangements are aimed at improving the use of funds and hedging macro risks.
In terms of macro market, the current global epidemic situation is repeated, enterprises are facing problems such as lack of core and lack of materials, and how to prevent uncertainty and risk has also become a key topic of concern to the outside world. "Scientific epidemic prevention has played an important role in the prevention and control of the epidemic in the industrial Fulian. The company has developed an online epidemic prevention and control system to unify the company's epidemic prevention and control work through big data. Zheng Hongmeng said.
For the supply chain problem, he said, "On the one hand, Industrial Fulian has experience and scale to deal with, on the other hand, the customer base of Industrial Fulian is the world's top brand, and the ability to control the supply chain is very high, so the overall impact is controllable." ”
Accelerate the layout of semiconductors, metacosms, and new energy vehicles to create the second growth pole
Although the "troika" of Industrial Fulian has achieved performance growth, the revenue contribution source of communications and mobile network equipment and cloud computing business has grown less. In addition to the electronic information manufacturing industry, in recent years, Industrial Fulian has begun to expand its industrial layout horizontally, and has created a second growth curve in the fields of semiconductors, new energy vehicles, and meta-universes.
In the field of semiconductors, Fulian said that it will focus on the layout of advanced packaging, testing, equipment and materials, EDA software, chip design and other fields.
The reporter noted that in recent years, Industrial Fulian has carried out a number of mergers and acquisitions and equity participation in the semiconductor field.
In April 2020, Industrial Fulian announced that its subsidiary invested in LingyunGuang Technology Co., Ltd., a manufacturing service provider of machine vision in the industrial field; in July of the same year, Industrial Fulian disclosed that it intends to acquire 39.9713 million shares of Dingjie Software (300378, SZ) held by Digital China Software (BVI) Limited through an agreement transfer.
Since 2021, Industrial Fulian and Lingyunguang have established Shenzhen Fulian Lingyunguang, invested in the Southeast Digital Transformation Fund in August to explore semiconductor-related development opportunities in the southeast region, and announced that they would invest 2.22 billion yuan in December to participate in the establishment of an industrial investment fund. Among the partners are state-owned assets from Dongguan and Zhuhai, Guangdong Province, as well as Zhilu Capital, which is known as the "semiconductor factory harvester".
In terms of the meta-universe, Zheng Hongmeng said that in the seven-tier value chain of the meta-universe, the company will continue to deepen the layout in terms of infrastructure, human-computer interaction, and decentralization. meantime. Industrial Fulian is also embarking on exploring the diversified application of the metacosm in the industrial field, and creating an industrial metacosm with the "lighthouse factory" construction scheme.
The reporter noted that in January this year, Huahan Technology, a subsidiary of Hon Hai Group, the parent company of Industrial Fulian, received a $40 million investment from Google, which marked that Google will join hands with Hon Hai to enter the meta-universe market.
For the latest progress of the meta-universe business, Zhou Taiyu revealed that the cloud computing business of Industrial Fulian has entered the cloud game and meta-universe market and won the world's largest cloud game customer. "The related products are different from traditional servers, but use customer-made calculators, and the latest generation of cloud game computing cabinets jointly developed with customers."
In terms of new energy vehicles that have attracted much attention, Zheng Hongmeng revealed that Industrial Fulian is laid out from the needs of lightweight, electricity-saving and intelligent vehicles, focusing on the three areas of electronic drive electronic control components, vehicle networking and intelligent vehicles, and industrial Internet empowerment.
Zheng Hongmeng further added: "The intelligent cockpit developed by the company in cooperation with the international solution provider Dachang strategically aims to be mass-produced in 2023; the automotive motors, high-voltage connectors and other products produced by the company's high-end precision manufacturing technology are expected to be mass-produced in 2023; in terms of AI computing units for new energy vehicles, the L3/L4 products currently designed and produced by Industrial Fulian have been mass-produced, and the L5 products have also entered the schedule." In addition, in 2021, Fulian has assisted new energy vehicle leading enterprises such as GAC Aean, CITIC Dicastal, Minshi Group, etc. to introduce industrial Internet platforms and digital transformation solutions.
Finally, Li Junqi said that "green development" will also become an important main line for the development of Industrial Fulian in the next few years. "In the future, the company will continue to increase the proportion of clean energy to 100%, and achieve 'carbon neutrality' through the deployment of distributed photovoltaics, energy storage, smart energy management systems, and large-scale ground-based photovoltaic power plants in the park." At present, the available roof area of the industrial Fulian Park exceeds 1 million square meters, and it is estimated that the installed capacity of distributed photovoltaics will exceed 60 MW, and the total installed capacity of clean energy will exceed 3,000 MW through various investment and development means in the future. ”
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