Jiwei Network News (Text/Chen Wei) On April 25, Suzhou Centec Communications Co., Ltd. (hereinafter referred to as "Centec Communications") replied to inquiries from the Shanghai Stock Exchange on "whether the reason for the decline in the unit price of the oem procurement unit of the latest year and phase of chip mass production is consistent with the market price change".
1. The reason for the decline in the unit price of the company's chip mass production and OEM procurement in the latest year and phase
During the reporting period, the unit price of the company's chip mass production foundry is as follows:
Among them, the foundry unit prices in the past two years were 478.40 yuan / piece and 338.56 yuan / piece, down 10.19% and 29.23% respectively from the previous month, and the specific analysis is as follows:
(1) Changes in product structure
During the reporting period, the proportion of the company's procurement quantity of various series of products changed as follows:
According to the above table, the procurement structure of the company's main exchange chips during the reporting period has undergone major changes, which has a certain impact on the unit price of chip procurement. In 2019, the company launched the Tsing Ma series products with low purchase unit price, because the switching capacity and maximum port rate of the series of products can cover the market demand for operator network and enterprise network aggregation and access, and have rich network characteristics for different application scenarios, and have high cost performance, so it has been quickly recognized by the market. Since 2020, affected by the Tsing Ma series, the company's cost-effective product procurement volume accounted for a rapid increase in the proportion of the company's total procurement volume, in 2019, 2020 and 2021, the company's cost-effective product procurement volume accounted for 41.46%, 65.61% and 80.11%, respectively, in 2020 and 2021, the company's purchase price of less than 300 yuan of high-cost product procurement proportion compared with 2019, the change in the structure of purchased products, As a result, the company's unit price of mass production OEM procurement in the past two years has declined.
(2) The purchase unit price of some series of products has decreased
Under the mass production FOUNDRY model, the company and the mass production service provider usually agree on the purchase price of each model of chip before the start of the foundry project of each model of chip, and the above purchase price is usually a stepwise quotation, and the purchase price decreases with the increase of the purchase quantity. In January 2021, with the rapid increase in the purchase quantity of the Golden Gate series of the company's main products of high-performance products (purchase price higher than 800 yuan), the company re-agreed on the purchase price with the mass production service provider of the series of products, and the newly executed purchase price was 14.14% lower than the original price, and the decline in the purchase unit price of the series of products also led to a decline in the company's chip purchase unit price in 2021.
2. Whether the change in the unit price of the company's chip mass production OEM procurement is consistent with the market price change
During the reporting period, the decline in the purchase unit price of the company's chip mass production OEM was mainly caused by changes in the company's product structure, and had nothing to do with the market price change of the mass production OEM. Generally speaking, for the price of different models of products, the company and the mass production service provider will be based on the price of each production link, the purchase scale of the product and other factors to determine through consultation. Usually the company and the mass production foundry will negotiate to determine the corresponding purchase price within a certain period of time, although affected by the increase in the scale of procurement, the market supply and demand environment and other factors, the company and the mass production service provider will renegotiate the purchase price, but there will be a small amount of lag in the price change.
The purchase unit price agreed between the company and the mass production service provider is usually denominated in US dollars, so exchange rate fluctuations have an impact on the purchase unit price of the company's single model of product. After excluding the impact of exchange rates on the purchase price, the purchase prices of the company's various models of products remained relatively stable during the reporting period, and only some products of the Golden Gate series re-agreed to lower prices with mass production service providers due to the increase in procurement volume, and the above changes are in line with industry practice.
(Proofreading/Andy)