2017 was the 10th anniversary of the establishment of Quanzhi. Under the sharp fall in revenue, the company entered the year 2018. It has not stopped falling. According to the first-quarter earnings forecast released by Quan Zhi, the company anticipates 2018 -In March, the net profit attributable to shareholders of listed companies was -150 million to -100 million, down -102.80% year-on-year to -35.20%, and the average net profit growth rate for the semiconductor and components industries was 29.27%.
Plate myth is no longer, All-in-one dilemma
Founded in 2007, Quan Zhi is a smart application processor SoC and intelligent analog chip design manufacturer. In the early days of its establishment, Quan Zhi relied on the MP4 market to harvest the first pot of gold, followed by Apple’s launch of the iPad tablet PC in 2010. The rapid development of the tablet market.
In the second half of 2011, the A10 single-core processor based on the ARM Cortex-A8 was launched for the domestic 'white card' tablet PCs. In 2012, the A13 processor was introduced along with the market, starting with the tablet market. As a result, chip shipments have begun to rise quickly.
According to the statistics, in 2011, the total revenue and net profit of Zhengzhi Technology were 260 million yuan and 58.91 million yuan respectively, and the growth rates were as high as 413 percent and 867% respectively. In 2012, the company's operating income was 1.34 billion yuan, and operating profit was as high as 607 million yuan, net profit of 571 million yuan. Driven by the big sales of A10 and A13 products, Quan Zhi from 2011 to 2012, the level of revenue increased by 4 times, once created flat panel market myth.
Thanks to the flat-panel market, Quan Zhi Technology also followed its IPO. After repeated twists and turns, the company successfully landed the A-share market in May 2015. However, since 2014, the rapid development of the flat-panel market has begun to decline. In 2015, the performance was particularly strong. The market sales fell by more than 50% in a single month. As of the third quarter of 2017, the flat-panel market has experienced sales decline for 12 consecutive quarters.
The company’s operating income reached RMB 1,209.6455 million in 2015, a decrease of 2.62% compared with the same period of last year, and the profit rose slightly; the 2016 profit growth rate flattened, with Q4’s net profit attributable to shareholders of listed companies at 10.5 million. Yuan, a year-on-year decrease of 64.9%; 2017 revenue decreased 4.08% year-on-year; net profit attributable to parent company was RMB 17,3340, down 88.35% year-on-year.
The plate myth is no longer, and the reliance on the whole book is hard to drive again. All the fans have also admitted that the main reason for the decline in revenue is due to the slowdown in downstream tablet processor chip market demand and sales decline.
Unfavorable transformation, flat panel is still the biggest performance support
Faced with the fact that the tablet market has entered a recession, Quanzhi began to make adjustments and transitions in 2015. Simultaneously in the set-top boxes, the smart imaging market has increased its investment. At present, all Zhiji set-top box H6 and binocular camera V5 have undergone two iterations. Among them, ISP iterates three generations, but the market performance is not strong.
Afterwards, in 2016, the VR market showed an explosive trend. The company also stepped up its efforts in the VR market and launched a VR9 virtual reality chip. However, now the domestic VR market is only a 'virtual fire' and the outbreak is still early. The volume is not high.
After the loss, the company's goal is to target the automotive electronics and smart home products represented by smart speakers. In its annual report, the company pointed out that with the intelligent upgrade of the automotive industry, the overall automotive market has grown steadily. The proportion of smart cockpit deployments has rapidly increased. The company relies on video technology, hardware and software integration advantages, integrates resources, and provides high-quality localization services to form a series of market cooperation in the field of rear-view mirrors; however, the automotive market competition Intensified, the requirements for product cost and safety continued to increase, and the follow-up strategy of Quanzhi fluctuates.
On the one hand, although the flat-panel market is going into recession, there is still a certain amount of room for inventory. All ambitions also want to make efforts in the smart flat-panel market to launch A63 high-end chip solutions; On the other hand, all ambitions also enter the MCU market, launch MCU XR871, hit the main Applied in new smart home appliances, smart toys, WiFi networking modules and cloud connectivity, etc., we must know that the MCU market cost has been severely priced.
The multi-pronged horizontal strategy did not play a good role, driving the revenue growth of the company's total revenue. Instead, it gradually lost the technical advantages of the original video codec and was overtaken by competitors. During this period, Zhi also reached a strategic cooperation with Qualcomm to obtain Qualcomm RF and baseband product line support and breakthroughs. Both parties have cooperated for more than 3 years but have not yet achieved results.
However, what is intriguing is that even if the revenue of all-campaign revenues fell sharply, the net profit loss in 2017 exceeded 170 million yuan, and the expansion of new product lines did not go smoothly. The performance of the first quarter of 2018 saw a declining trend, but it was at the second level. The performance of the market is contrary to this. Recently, the stock price has continued to rise. As of the previous trading day, the total number of shares of Chishi had closed at RMB 26.2 per share, up 4.93%.
According to informed sources, apart from the overall environment of the integrated circuit segment, Quanzhi’s stock price rose or related to the arrival of the original stock lifting period. On May 15th, the original shareholders of Quanzhi listed limited shares of 160 million shares, accounting for the total 49.14% of the share capital will usher in the tide of lifting the ban. As for the future trend, we may as well wait and see.