Juchen Shares (688123. SH) released its 2021 annual report on the evening of April 29, achieving operating income of 544 million yuan in 2021, an increase of 10.17% year-on-year; net profit attributable to the mother of 108 million yuan, down 33.57% year-on-year; and deducting non-net profit of 85.1773 million yuan, an increase of 41.62% year-on-year.
The first financial economics flipped through the annual report and found that the net profit attributable to the mother in 2021 fell year-on-year but the reason for the increase in non-net profit was mainly that the investment income such as trading financial assets held by it in 2021 decreased by more than 70 million yuan year-on-year.
By product, non-volatile memory chips (EEPROM) are the main products contributing to the revenue of Juchen shares. In 2021, Juchen's main product lines such as EEPROM, voice coil motor driver chip, and smart card chip achieved sales revenue of 424.677 million, 51.9614 million and 65.0038 million yuan respectively, an increase of 3.90%, 9.57% and 82.26% year-on-year, accounting for 78.06%, 9.55% and 11.95% of the operating income in the same period, and the gross profit margin was 39.85%, 18.00% and 48.36% respectively.
With its high reliability, millions of erasures, low cost and many other advantages, EEPROM has long met the stable data storage needs of traditional applications such as consumer electronics, computers and peripherals, industrial control, white goods, and communications. According to CCID Consulting data, by 2023, the demand for EEPROM in the field of smartphone cameras will reach 5.525 billion; the demand for EEPROM in the field of automotive electronics will reach 2.387 billion; and the demand for EEPROM in the field of LCD panels will reach 968 million.
In this way, the automotive market will relay consumer electronics to become the second largest demand market for EEPROM.
In terms of automotive electronics, some of the A1 grade EEPROM products of Juchen Co., Ltd. have successfully passed the AEC-Q100 reliability standard certification of third-party authoritative institutions at the end of the fourth quarter of 2021, and currently have a full range of automotive grade EEPROM products of A2 grade and A3 grade and A1 grade automotive grade EEPROM products with mainstream capacity, but there is still a lot of room for expansion in the field of high-grade automotive EEPROM.
At present, Juchen automotive EEPROM products have been widely used in on-board cameras, liquid crystal displays, entertainment systems and other peripheral components, and gradually extended to BMS battery management system, intelligent cockpit, MDC and other core components, end customers include SAIC, FAW, BAIC, GAC, Geely, Changan, BYD, Great Wall, Chery, Weilai, Ideal, Xiaopeng and Tesla, Volkswagen, Renault, Toyota, Nissan, Hyundai, Kia and many other mainstream automobile manufacturers at home and abroad.
Juchen shares in 2021 R & D investment has increased, according to Tonglian data Datayes! In 2019, 2020 and 2021, the company's R&D expenses were 57.7077 million, 51.9653 million yuan and 74.2994 million yuan, accounting for 11.24%, 10.52% and 13.66% of the current operating income, respectively. The company's research and development expenses in 2021 increased by 22.3341 million yuan compared with 2020, accounting for 3.14 percentage points of operating income.
Juchen shares also disclosed the first quarter of 2022, in the first quarter, The operating income of Juchen shares increased by 50.75% year-on-year, the net profit attributable to the mother increased by 246.90%, and the non-net profit increased by 356.78%.
According to the first quarterly report, the company's net profit increased significantly due to the comprehensive impact of the company's sales of products used in high value-added markets such as DDR5 memory modules, automotive electronics and industrial control, especially SPD EEPROM products, and the adjustment of the price system of some of the company's products.
It is worth noting that in 2021, Juchen Co., Ltd. successfully achieved mass production of some new EEPROM products applied to DDR5 memory modules, automotive electronics, industrial control and other fields.
Everbright Securities said that the suppliers of DDR5 SPD EEPROM are currently only Montage Technology & Juchen Shares and Renesas (IDT), and it is expected that the annual shipment volume of DDR5 SPD EEPROM jointly developed by Juchen Anders and Montage Technology will be 46 million, 105 million, 168 million and 210 million from 2022 to 2025.