Source | Times Business School
Author | Chen Che
Edit | Sun Yiming
As the GEM attaches more importance to performance growth, Goertek Microelectronics Co., Ltd. (hereinafter referred to as "Goertek") has seen a decline in revenue and net profit in recent years, and the IPO journey has become more and more bumpy.
Goertek passed the meeting as early as October 19, 2022, and plans to land on the GEM. But the strange thing is that after more than a year and a half, Goertek has not yet submitted for registration.
From the perspective of performance growth, in 2022 and the first half of 2023, its operating income and net profit will decline year-on-year, with a compound growth rate of 6.79% in operating income from 2019 to 2022, and a compound growth rate of only 1.8% in net profit in the same period. The 2023 results have not yet been disclosed.
In addition, in the technology-intensive semiconductor industry, Goertek's products account for more than 8% of its revenue, and the chips in the raw materials are still more dependent on third-party procurement. At the same time, the shipment and proportion of its products equipped with self-developed chips began to decline in 2021, and the overall gross profit margin in recent years has been far lower than the average of comparable companies.
On April 29, Times Business School sent a letter to Goertek to inquire about the decline in performance, the decline in self-developed chip shipments, and the gross profit margin being lower than the average of comparable companies, but as of press time, the other party has not replied. On May 13, Times Business School called Goertek again to inquire, but no one answered the other party's phone.
He has 486 invention patents
According to the prospectus, Goertek's main business includes precision components business, intelligent acoustic machine business and intelligent hardware business. It has established a first-class packaging and testing production line in the industry. With the continuous expansion of business scale, Goertek has gradually become a global leader in the field of MEMS.
According to Yole's data, from 2018 to 2021, Goertek's MEMS product sales ranked 11th, 9th, 6th and 8th among global MEMS manufacturers, respectively, and it is the only Chinese company among the top 10 global MEMS manufacturers.
In 2020, Goertek's MEMS acoustic sensor market share was 32%, surpassing Knowles Corporation (Knowles) to rank first in the world for the first time.
According to the prospectus, as of the end of June 2022, Goertek has mastered 24 core technologies and obtained 1,732 authorized patents, including 486 invention patents.
Shipments of self-developed chip products plummeted
What is unexpected is that although 24 core technologies have been mastered, the chips of Goertek's core products are still mainly purchased and supplemented by self-development.
Goertek's main products are divided into MEMS acoustic sensors, other MEMS sensors, and microsystem modules, of which the revenue of MEMS products accounts for more than 8% in recent years, and the revenue will account for more than 9% in 2022.
According to the prospectus, the performance of MEMS products mainly depends on the chip. Therefore, it is very important for MEMS manufacturers to have independently developed chips.
However, products equipped with Goertek's self-developed chips have gradually been neglected in recent years.
According to the prospectus, from 2019 to the first half of 2022, the total shipments of MEMS products equipped with Goertek's self-developed chips were 238 million, 249 million, 192 million and 92 million respectively, of which there was a significant decline in shipments in 2021.
During the same period, the shipments of MEMS products equipped with self-developed chips accounted for 13.16%, 15.69%, 14.14% and 11.73% of Goertek's total MEMS product shipments, respectively, and the proportion also began to decline in 2021.
Although Goertek sold 100 million and 06 million self-developed chips to customers such as Shandong Xingang Electronic Technology Co., Ltd. in 2021 and the first half of 2022 respectively, in the prospectus, Goertek also admitted that the direct external sales of self-developed chips in the future may not be sustainable.
Due to the lower cost of self-developed chips, its gross profit margin is higher than that of products equipped with third-party chips. In the first half of 2023, the gross profit margin of Goertek's MEMS acoustic sensor products equipped with non-self-developed chips will be 20.19%. Among the MEMS acoustic sensors equipped with self-developed chips, the gross profit margin of high-end products can be as high as 76.34%, and the gross profit margin of mid-range products has also reached 30.99%.
Or because the main products are more dependent on third-party chips, Goertek's overall gross profit margin has been dragged down to a certain extent.
According to the prospectus, from 2020 to the first half of 2023, Goertek's gross profit margins were 29.69%, 22.85%, 22.38%, and 24.30%, respectively, and the average gross profit margins of comparable companies were 45.27%, 44.08%, 45.23%, and 47.10%, respectively. In each period, Goertek's gross profit margin was far lower than the average of comparable companies, and the gross profit margin in individual years was even less than half of the average of comparable companies.
Goertek was exposed by the parent company that its performance in 2023 was not up to standard
The product determines the market and also determines the performance. From the perspective of performance growth, Goertek's growth is worrying.
On April 30, the Shenzhen Stock Exchange officially issued 9 rules including the "Rules for the Review of Stock Issuance and Listing". It is mentioned that it is necessary to emphasize the growth requirements of the GEM, moderately increase the compound growth rate of operating income in the positioning evaluation criteria of the GEM from 20% to 25%, and support the growth of innovative and entrepreneurial enterprises with development potential to be listed on the GEM.
From the update of this rule, it can be seen that the GEM attaches more and more importance to the performance growth of enterprises.
According to the official website of the Shenzhen Stock Exchange, Goertek's latest version of the prospectus was released on October 12, 2022, combined with the performance data disclosed in the reply document (released on September 27, 2023) of the audit center's opinion implementation letter, from 2019 to 2022, Goertek's operating income was 2.566 billion yuan, 3.160 billion yuan, 3.348 billion yuan, and 3.125 billion yuan respectively, with a three-year compound growth rate of 6.79%; The net profit attributable to the parent company was 309 million yuan, 346 million yuan, 329 million yuan and 326 million yuan respectively, with a three-year compound growth rate of 1.8%.
According to the reply document to the implementation letter of the audit center, in the first half of 2023, Goertek's operating income will be 1.232 billion yuan, down 15.775 percent year-on-year, and the net profit attributable to the parent company will be 90 million yuan, down 38.39% year-on-year.
Chart 2: The description of Goertek's micro performance in the annual report of Goertek
Source: Goertek's 2023 financial report
Although Goertek has not yet announced its full-year 2023 results, according to its holding company Goertek (002241. SZ) released its 2023 financial report, which shows that "the 2023 annual performance of the factor company Goertek Micro did not meet the standard, and the third exercise period of its 2020 equity option incentive plan did not meet the exercise conditions, and Goertek Micro has cancelled the corresponding equity options." ”
It should be noted that on the evening of November 8, 2022, Goertek announced that it had recently received a notice from a major overseas customer to suspend the production of one of its intelligent acoustic products, and the affected amount is expected to be no more than 3.3 billion yuan, accounting for about 4.2% of the company's operating income in 2021.
On May 13, on the question of whether the above-mentioned intelligent acoustic product order affected the performance of Goertek, Times Business School called Goertek to inquire, but no one answered the other party's phone.
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