China's chip packaging and testing leader Changdian Technology released its first-quarter financial report last night, with gratifying results, revenue of 6.8 billion, a year-on-year increase of nearly 17%, net profit attributable to the parent company of 135 million, a year-on-year increase of 23%, and a non-net profit of 108 million, a year-on-year increase of 91%.
In general, the performance of the first quarter reflects the performance of Changdian Technology in the recovery of the decline, 2022 is its peak year, revenue growth of nearly 11% to 33.7 billion, a record high, net profit also reached 3.2 billion, a record high, 2023 revenue fell by 12%, net profit fell by 54%, in this context, Changdian Technology's performance in the first quarter rebound is rare and valuable.
Changdian Technology's performance declined the most in the first quarter of last year, with revenue falling by nearly 28%, the contraction narrowed in the second and third quarters, and resumed growth in the fourth quarter, with a year-on-year increase of 2.75% and a year-on-year increase of 16.75% in the first quarter of this year.
Last month, the top two shareholders of Changdian Technology and China Resources signed an equity transfer agreement to transfer their respective shares to China Resources subsidiaries, with a share transfer price of 29 yuan per share, a total of 403 million shares, and a total transaction of 11.7 billion yuan.
1. In the 20 years since it was listed, its revenue has increased by 32 times
Changdian Technology was founded in 1998, listed in 2003, from its inception to listing less than five years, which is modern capital can do, 20 years ago to achieve only one reason, that is, when he was established, it was not a blank slate, but restructured, there is a foundation, the real business history is much greater than the time when the company's name was registered in the Industrial and Commercial Bureau.
In June 2003, it was listed on the Shanghai Stock Exchange, successfully raising nearly 400 million yuan, the issue price at that time was 7.19 yuan per share, and the market value of the issue was 1.3 billion yuan. Net profit also reached 43.71 million yuan, down nearly 10%.
In the following 10 years, Changdian Technology's business development was very smooth, and in the first ten-year value period - 2013, its revenue increased to 5.1 billion, an increase of nearly 5 times in 10 years, but the net profit was only 11.12 million, which was a sharp decline from the beginning of the listing. By 2023, revenue will increase to 29.7 billion, and net profit will also increase to 1.47 billion, in the past 10 years, revenue and net profit will increase by 5 times and 130 times respectively, and compared with the year of listing, revenue and net profit will increase by more than 32 times.
From a long-term point of view, Changdian Technology's performance is really good, it is a friend of time, and the market value has also risen from 1.3 billion at the beginning of the listing to 43.6 billion, an increase of 32 times, which is completely consistent with the performance increase, is this a coincidence or the result of the operation of the program written by the hand of God?
The fastest growth in its performance was in the four years from 2014 to 2017, with an increase of 26%, 68%, 77% and 25% respectively, and its revenue increased from 5.1 billion in 2013 to 23.9 billion in 2017, officially entering the 20 billion club, and four years later into the 30 billion club.
At the beginning of its listing, Changdian Technology's main business not only includes the packaging and testing of integrated circuits, but also the production and sales of separators, and now it is focusing on the packaging and testing of chips, and has become the first in Chinese mainland and the third in the world as a packaging and testing enterprise giant, and the development history of Changdian Technology is also a development history of China's semiconductor industry.
2. It took 10 years to change from a collective enterprise to a small shareholder holding 5.33% of the shares
Changdian Technology, formerly known as Jiangyin Changjiang Electronics Industry Co., Ltd., was restructured from Jiangyin Changjiang Electronics Industry Co., Ltd., a collective enterprise in Jiangyin City, and was registered in November 1998, jointly funded by Jiangyin Changjiang Electronics Industry Co., Ltd., Xiamen Yonghong Electronics Co., Ltd., Ningbo Kangqiang Electronics Co., Ltd., and Lianyungang Huawei Electronics Collective Co., Ltd.
Jiangyin Changjiang Electronic Industry Co., Ltd., formerly known as Jiangyin Transistor Factory, was established in 1972 specializing in the production of semiconductor devices of the original Jiangyin County County collective enterprise, in May 1992 renamed Jiangyin Changjiang Electronic Industrial Company, in January 1993 as Jiangyin City's internal employee shareholding pilot enterprises, internal employee shareholding pilot, in July 1993, reorganized into Jiangyin Changjiang Electronic Industry Corporation, registered capital of 13 million, of which public assets of 10 million, staff contribution of 3 million.
In 1995, the establishment of a trade union, by the Jiangyin Changjiang Electronics Industry Corporation trade union as a legal person association instead of employees to hold shares, to October 1996, its shareholding structure is as follows, the trade union holds 30.3% of the shares, the original collective shareholding 69.7%.
In order to reactivate the reform and opening up, Deng Xiaoping toured the south in 1992, and China's first "Company Law" was promulgated in December 1993, and it was officially implemented in July 1994, so you will see why the restructuring of collective enterprises began in 1992 and was completed and perfected during the period from 93 to 950,000.
In May 1997, Jiangyin Changjiang Electronics Industrial Company was evaluated, and its net assets were 54.04 million yuan, of which collective assets were 45.555 million yuan, accounting for 84.3%, and employees enjoyed net assets of 8.485 million yuan, accounting for 15.7%.
In 1998, Changdian Technology was established, Jiangyin Changjiang Electronics Industrial Co., Ltd. was funded by operating net assets, and jointly established Jiangsu Changdian Technology Co., Ltd. (Changdian Technology) with Xiamen Yonghong, Ningbo Kangqiang, Lianyungang Huawei and trade unions.
After experiencing several rounds of equity changes, as of the end of 2003 after the listing, the shareholding structure of Changdian Technology is as follows, Jiangyin Changjiang Electronic Industrial Co., Ltd., which represents the collective, only holds 9,745,600 shares of Changdian Technology, and the shareholding ratio is only 5.33%, and the registered capital of Changdian Technology is 183 million yuan.
From a collective enterprise to the last small shareholder holding 5.33% of the shares, it took 10 years, that period of restructuring history is very interesting, from the current point of view, many things are incredible, maybe we can't understand the difficulties of the year.
3. From a private enterprise to a state-owned enterprise, it took 20 years
The actual controller of the company is Wang Xinchao, he was the general manager and party secretary of Jiangyin Changjiang Electronic Industry Co., Ltd., and later the chairman and actual controller of Changdian Technology, in the long development process of Changdian Technology, most of the initial shareholders have withdrawn, Jiangsu Xinchao Innovation Investment Group Co., Ltd. controlled by Wang Xinchao has been the major shareholder, holding 23.94% of the shares of Changdian Technology at the beginning of the listing, and reduced its holdings to 16.21% in 2007 Due to the completion of the reduction of other founding shareholders, Jiangsu Xinchao Innovation Investment Group Co., Ltd., controlled by Wang Xinchao, has been in the position of major shareholder with 16% of the shares, and Wang Xinchao has also been the actual controller.
The situation occurred in 2013, began to have institutions entered, especially after the 2015 stock market crash, the National Social Security Fund entered on a large scale, as of the end of 2015, the National Social Security Fund through three products held a total of 5.43%, in addition to Central Huijin also holds 3.03% of the shares, at this time the "national team" has more than 8% of the shares.
The turning point occurred in 2017, when Dangdian Technology purchased shares from the National Integrated Circuit Industry Investment Fund Co., Ltd. and Xindian Semiconductor (Shanghai) Co., Ltd., Suzhou Changdian Xinke Investment Co., Ltd. and Suzhou Changdian Xinpeng Investment Co., Ltd., making Changdian Technology 100% controlling the two companies.
After this transaction, Xindian Semiconductor (Shanghai) Co., Ltd. became the majority shareholder of JCET with a stake of 14.28%, Wang Xinchao's Jiangsu Xinchao Innovation Investment Group Co., Ltd. was diluted to 13.99%, becoming the second largest shareholder, and the State Integrated Circuit Industry Investment Fund Co., Ltd. held 9.54% of the shares, becoming the third largest shareholder.
The shareholding ratio of these three shareholders is relatively close, and they all have the right to nominate 2 non-independent directors, which leads to the equalization of voting rights on the board of directors, so Changdian Technology has also become a listed company without actual controller, which is a major change, from private control to no actual controller, which itself marks that some kind of change will come, in 2018, the United States began to frantically suppress China's chip industry, it is difficult to say that the country has no prediction and preparation.
In 2018, through private placement, Changdian Technology raised 3.6 billion yuan, the shareholding ratio of the National Integrated Circuit Industry Investment Fund Co., Ltd. rose to 19%, becoming the largest shareholder, and the core semiconductor (Shanghai) Co., Ltd. still held 14.28% of the shares, which was the second largest shareholder, and Jiangsu Xinchao Innovation Investment Group Co., Ltd. reduced its shareholding to 10.4% due to reduction and passive dilution, and reduced its shareholding to 2.99% in 2019 In 2020, Wang Xinchao will completely reduce his holdings and withdraw, and Wang Xinchao will become the history of Changdian Technology.
In March this year, China Resources plans to acquire Changdian Technology through an agreement to transfer shares, and the National Integrated Circuit Industry Investment Fund and Xindian Semiconductor will transfer their holdings to a subsidiary of China Resources Hong Kong, and after the acquisition is completed, China Resources will hold 22.53% of the shares of Changdian Technology, becoming the only major shareholder, and Changdian Technology will also become a subsidiary of China Resources and officially become a state-owned enterprise.
From a collective enterprise to a private enterprise, Changdian Technology took 10 years, from a private company to a state-owned enterprise, it took 20 years, the current industrial pattern is completely different from 20 years ago and 30 years ago, China is the world's largest chip consumer, but also one of the largest producers, the United States and many allies to block China's semiconductor industry, this is the power of the national alliance to suppress, no longer a single enterprise individual competition.
By the way, one more piece of information, Chipline Semiconductor (Shanghai) Co., Ltd. is a subsidiary of SMIC.