According to insiders, Guokewei will continue to lose money in the second quarter of this year. Even if profits decline, Guoke Micro will be very popular in the secondary market. According to statistics, Guoke Micro's share price has soared after listing, and it has experienced 112 days. After the soaring increase, the rate of increase reached 58%. In addition, after less than two months after the Spring Festival this year, the share price of Guoke Micro, which continued to lose money, has risen more than two times. Do you not know which stories are being promoted?
Relying on Fujitsu for new technology, performance fluctuations and powerlessness
On March 13, 2012, Guoke Microelectronics and Fujitsu of Japan established a joint venture company, Hunan Guofutong Semiconductor Co., Ltd., headquartered in the state-level Changsha Economic and Technological Development Zone, owned by Guoke Micro, with its own independent brand.
Guoke Micro has made breakthroughs in the conversion of satellites to DVB-S technology and began to use force in the domestic DVB-S market. At the same time, the domestic DVB-S market is also facing technology at the same time. Product innovation, the original digital set-top box began to turn into a high-definition set-top box, 'village-pass' has also begun to upgrade to 'hukou household'.
Driven by the new changes in the entire DVB-S market in China, Guoke Micro began to show its leading position in the domestic set-top box DVB-S market, but revenue profit was not stable. The data show that in 2014, 2015, 2016 business Income increased by 112.94%, 103.00%, and 33.22% respectively over the previous year. Net profit increased by 467.53%, 8.21%, and 33.07% respectively over the previous year.
It can be seen that Guo Kewei’s revenue in 2014, 2015 and 2016 has not increased year by year, but it has fluctuated greatly. In fact, this is because Guoke Micro cannot resist and avoid it. Because DVB-S market has strict market access. 3. The mechanism was then uniformly tendered by the then SARFT, but the bidding time was not fixed.
If the then SARFT did not bid for a specific area in the first half of the year, the main business of Guoke Micro would be difficult to carry out, and it would be difficult to see performance in the first half of the year. At the same time, for the DVB-S chip makers, winning the market requires more downstream products. The recognition of qualified customers can be seen. It can be seen that Guoke Micro DVB-S business is greatly affected by the policy and the external market competition is also fierce. At that time, the domestic DVB industry has been highly marketized and facing fierce market competition. Micro will face competition from Shanghai Qiqi, Hangzhou Guoxin and other competitors, and the growth potential of the main business is limited.
Guoke Micro also stated that due to the impact of policy expectations and the intensified market competition, revenue from sales of radio and television series chips declined in 2016 compared with the same period last year.
Fortunately, at the time of the rapid development of the domestic DVB-S market, after receiving the support of Japan’s Fujitsu, Guoke Microelectronics introduced a new generation of live satellite high-definition chips GK6202S, which has achieved a certain degree of success. After obtaining technical support Guoke Micro, quickly removed Japanese Fujitsu.
The joint venture established by Guoke Microelectronics and Fujitsu Ltd. of Japan, Fortis Semiconductor, was officially cancelled on November 3, 2015. Its team and business were merged into Guoke Micro. Subsequently, on July 12, 2017, two IPO countries were prepared. Kewei successfully landed on GEM after experiencing some twists and turns.
Breakthroughs in storage chips, high-level shock executives have resigned
Guo Kewei, which successfully landed on the A-share market, raised 237 million yuan in funds. However, in 2015 before the IPO, Guokewei received a 400 million yuan investment from the national fund, which is intended to promote the research, development, and application of memory chips. In addition to the funds raised for the listing, Guoke Microelectronics needed such a huge amount of money for two years, and it was difficult to rule out the possibility of making money.
Guo Kewei once stated that as a chip design company that has actually injected capital into the national fund, Guoke Micro has shouldered the national mission and mission of realizing storage localization. In June 2016, Guoke Micro established GOKE US Research Laboratory in the United States. The storage chip business has 66.67% shares of China Microsystems. The main business of GOKE US Research Laboratory is the development of advanced technologies for software and storage systems.
However, the financial status of GOKE US Research Laboratory is not good. The data show that in 2016 the company's total assets were 2.256 million yuan, net assets were -4.8464 million yuan, and net profit was -475.64 million yuan.
According to Guoke Micro's latest financial report, the growth potential of its main business is limited, and the breakthrough in the memory chip business with a localized mission is not smooth. Guoke Wei stated that due to 2017 global solid-state flash memory particles are out of stock As a result, the sales of solid-state storage controller chip products that the company matched with it were lower than expected, and they were also not optimistic about the revenue of Guoke Micro's 2017 revenue.
Coincidentally, Guo Kewei also had an unusual incident this year. It was high-level shocks. In January this year, Guoke Micro announced that company directors Fu Jun and He Guangping resigned for personal reasons. Fu Jun resigned as a director and Nomination Committee member of the Board of Directors, He Guangping resigned as a director.
Among them, Fu Jun also resigned from the post of General Manager and was replaced by Chen Ruozhong, the former senior executive of Ames Semiconductor. He was the general manager of Guoke Micro. Fu Jun is a veteran of the semiconductor industry. He used to work for Huawei and other companies in January 2014. Joined Guokewei and successively served as the company's general manager and director. Fu Jun served as the national ministry and achieved rapid development. He also promoted Guoke Micro's successful listing, holding 3,631,275 shares of the company.
Insiders said that Fu Jun and He Guangping did not rule out leaving the company. To a certain extent, after the company is listed, it is necessary to optimize the management structure.
On April 24, Guo Liwei, Director and Deputy General Manager Jiang Li also resigned. At the same time, he resigned as a member of the Remuneration and Appraisal Committee of the Board of Directors and he no longer held any position in Guoke Micro. Even Guo Jing Microsystems Secretary Gong Jing also successively Resignation. In the face of high-level turmoil, including directors, general managers, deputy general managers, and secretaries of directors, etc. have gone out in succession, the degree of blood transfusion affects the listed companies.
In addition, the author also found that at the same time when the executives left the company, Guokewei still paid for the sales of VP with high salaries, and gave an annual salary of between 1 million yuan and 1.2 million yuan. Guoke Micro's salary for sales VP was given in domestic IC design. The company is rare. After all, the CEO of a domestic IC design company does not have more than one million annual salary.
Super 70% profits rely on subsidies, and will continue to lose money in the second quarter of this year
On April 24th, Guoke Micro's 2017 earnings report, the company achieved revenue of RMB 412 million from January to December 2017, a year-on-year decrease of 15.8%; net profit attributable to shareholders of listed companies was RMB 52,584,800, an increase of 3.01% year-on-year. Revenue declined, profit increased slightly. In the first half of 2017, Guoke Micro achieved revenue of 122 million yuan; net profit attributable to shareholders of listed companies was -255.477 million yuan.
In fact, Guoke Micro's profit increased slightly by 3.01% in 2017. In fact, a large part of it was relied on government subsidies. In 2017, Guoke Microelectronics obtained a total of 37,902,200 yuan of people from various tax rebates and government subsidy projects, accounting for the entire year's net. 72% of profits. If there is no tax refund and government subsidies, Guoke Micro's 2017 net profit is only 14.3706 million yuan, a year-on-year net profit loss exceeding 70%.
The author found through investigation that relying on subsidies for tax rebates has become the norm for the growth of China National Microfinance. From the perspective of Guojiawei’s VAT refunds for 2014, 2015 and 2016, they were RMB 467,500, RMB 7,928,100, and RMB 6,703,000 respectively. Yuan, which accounted for 1.22%, 18.65% and 11.65% of the total profit for the year.
In 2014, 2015, and 2016, Guoke Micro's income tax concessions were: 4.834 million yuan, 7.9858 million yuan, and 6.5272 million yuan, accounting for 11.40%, 18.79%, and 11.34% of the total profit for the year.
It can be seen that in the past few years, a large part of Guo Kewei's profit support is also from the government's tax rebate subsidies.
With such a large tax rebate subsidy, after the listing, Guoke Wei, the first semi-annual report, suffered a sharp decline in its revenue, and its profits continued to suffer losses. Guoke Micro's stock price after listing could have been soaring. It has experienced an increase after 112 days of skyrocketing. 548%; In addition, after the Spring Festival this year, less than two months, the profit of Guoke Micro Stocks continued to increase more than 2 times, I believe that behind the promotion of Guoke Micro's share price is no lack of hype.
Even more surprising is that the growth potential of the original main business of Microelectronics Co., Ltd. is limited, and it is difficult for the emerging business to break through in the short term. At the same time, Guoke Micro will also vigorously expand new business and set up branches. On April 24, Guoke Micro announced that the company A wholly-owned subsidiary will be established in Changzhou, Jiangsu Province, and will establish 'Jiangsu Guoke Microelectronics Co., Ltd.' with a registered capital of 100 million yuan. Guoke Micro will invest with its own funds, which will account for 100% of Jiangsu Guoke Micro-equity.
It is reported that Jiangsu Guoke Micro will establish a series of chip R&D companies in the Wujin National Hi-tech Zone in Changzhou, focusing on the development of memory chips, driver chips, trusted computing, state secret security, multimedia chips, Internet of Things, communications, artificial intelligence and other chip design services. And these chip R&D can't be completed in a short period of time, and the funds invested are still very challenging for the current National Micro.
Perhaps, setting up a subsidiary in Jiangsu Province is Guokewei’s maximization of tax rebate subsidies for the government following Hunan Province. In a highly marketized chip market, relying on subsidy rebates is obviously not a long-term solution. It is listed on the A-share market. Among the IC design companies, companies such as Guoke Micro, whose profits are heavily dependent on tax rebates, are also uncommon.
Relying on government subsidies in this way means that Guoke Micro's actual performance is not good, and its operations are also subject to bottlenecks. According to the latest announcement of Guoke Micro's performance announcement, the company expects the net profit attributable to shareholders of listed companies from January to March of 2018 will be -38.00 million to - 330 million, a year-on-year change of -41.14% to -22.57%.
According to insiders, Guoke Micro will continue to lose money in the second quarter. Since the main business of Guoke Micro still comes from the DVB-S market, this market has a clear seasonal factor, and its product broadcast television series chips are subject to the State News Publishing Radio. The Directorate General promotes the impact of direct satellite conversion from standard definition standards to high-definition standards. Downstream customers are waiting for specific details to be issued, which will have a direct impact on Guoke Micro's revenue.
In addition, although Guokewei has entered the IPC chip market, it cannot compete with HiSilicon, Anba, etc. in the high-end market. The gross margin in the low-end market is relatively low, and it needs to face competition from many domestic manufacturers. Further aggravate. At the same time, the National Micro Memory chip market is still a lot of investment, it is difficult to start a substantial profit in the short term. The future development situation will not be optimistic.