AMEC released its annual performance report on April 27. The company is a platform-based chip design enterprise with MCU as the core, focusing on the R&D, design and sales of digital and analog chips, and strives to provide chip-level one-stop overall solutions for intelligent controllers.
AMEC has mastered the design capabilities of 8-bit and 32-bit MCUs, high-precision simulation, power drives, power devices, wireless radio frequency and underlying core algorithms. The products are put into production in 55nm to 180nm CMOS, 90nm to 350nm BCD, bipolar, SGTMOS and IGBT processes, and gradually move towards higher processes such as 40nm and 20nm, and are widely used in smart home appliances, consumer electronics, industrial control, medical health, automotive electronics and other fields.
The performance of the listing is a change of face
Figure: 2023 AMEC Annual Report
In 2023, AMEC will achieve operating income of 713 million yuan, an increase of 12.06% over the same period of the previous year. After experiencing a big decline in revenue in 2022, revenue will recover in 2023, with a slight year-on-year increase.
Net profit after deducting non-recurring gains and losses was -71.3523 million yuan, down 206.76% from the same period last year. The performance of Zhongwei Semiconductors changed its face when it was listed, and its non-net profit declined for three consecutive years. It is worth noting that in 2023, the company's non-net profit will turn from profit to loss. The operating income of AMEC has decreased sharply, and the profitability of its main business is insufficient.
The net profit of Zhongwei Semiconductor's net profit in 2023 will be -21.9485 million yuan, a decrease of 136.99% from the same period last year.
In order to destock, the decline in gross profit margin is prominent
The main reason for the decline in the net profit of AMEC is that the semiconductor industry as a whole is in a downward cycle in 2023, affected by factors such as structural easing of production capacity and digestion of early inventory, and the demand for some chips represented by consumer electronics products is showing a downward trend. Through active price policy and good service, the company has increased product shipments, effectively suppressed the rapid growth of inventory, and further expanded its market share.
From 2018 to 2023, the company's annual shipments will be about 300 million, 500 million, 800 million, 1 billion, 1.1 billion and 1.8 billion respectively.
At the same time, due to the significant reduction in product prices in 2023, especially the decline in gross profit margin in the field of consumer electronics, the overall profitability of AMEC will decline.
Figure: 2023 AMEC Annual Report
In the field of consumer electronics, the sales revenue in 2023 will be 311 million yuan, the cost will be 297 million yuan, and the gross profit margin will be 4.37%, and the gross profit margin of consumer electronics chips, as the main business of Zhongwei Semiconductor, will decline by 32.79% compared with the previous year. It is an important factor in the decline of comprehensive gross profit margin.
In the field of smart home appliances, the sales revenue was 299 million yuan, the cost was 212 million yuan, and the gross profit margin was 27.15%, down 16.49% from the previous year. In the field of industrial control, the sales revenue was 78.1559 million yuan, the cost was 60.5521 million yuan, and the gross profit margin was 22.52%, down 21.34% from the previous year. In the field of automotive electronics, the sales revenue was about 22.4559 million yuan, the cost was 13.727 million yuan, and the gross profit margin was 38.87%, down 0.75% from the previous year.
The comprehensive gross profit margin of AMEC in 2023 will decline by 23.88%, and the company can be said to have suffered huge losses in order to seize the market and destock. For the micro semiconductor, which is in the downturn of the industry, it is necessary to damage the company's financial health in the short term in order to destock and seize market share. Fortunately, after the fourth quarter of 2023, the industry has recovered, the market demand has gradually recovered, and the overall gross profit of AMEC has rebounded.
R&D investment accounted for 2.8%
In 2023, AMEC will invest 120 million yuan in R&D, a slight decrease of 2.80% over the same period last year, mainly due to the focus on R&D on MCU and the shrinking of R&D investment in power devices, and the completion of more than 20 updates and iterations of old products and the launch of nearly 10 new products, which have enriched the company's product line, improved the competitiveness of products, and provided strong support for the company's revenue target and long-term development in the new year. In 2024, the company will further increase R&D investment and continue to improve the competitiveness of technology and products.
Figure: 2023 AMEC Annual Report
Overall, overseas brands represented by Renesas, STMicroelectronics, and NXP have an absolute advantage. In recent years, Chinese enterprise MCU products have developed well in product performance, integration, stability, supporting development ecology and other aspects, and have strong competitiveness in the low-end market. In the future, the mainland's integrated circuit industry will still be in the stage of rapid catch-up development in the fields of localization, independent innovation, and "stuck neck", and there is huge room for development.