'Dynamic' Hua Hong Semiconductor's net profit in the first half of the year increased by 25.5%;

1. Capacity utilization rate is close to 100%! Huahong Semiconductor's net profit in the first half of the year increased by 25.5%; 2. Fenghua Hi-Tech was investigated by the China Securities Regulatory Commission; 3. IPO cycle was shortened, and asset income was considerable! Broadcom integration was suspended; 4.8 inches The production line has not yet reached production, and the net profit of Silan Micro has increased by 13% in the first half of the year; 5. Dongshan Precision acquired the PCB manufacturing assets, and the equity delivery procedures have been completed; 6. The power battery business has not progressed smoothly, and the GCL integration adjustment strategy plan;

1. Capacity utilization rate is close to 100%! Huahong Semiconductor's net profit in the first half of the year increased by 25.5%;

Set micro-network news (text / Lee), August 7, Hua Hong Semiconductor announced that in the first half of 2018, the company's sales revenue of 440 million US dollars, an increase of 15.4%; parent company attributable profit of 85.888 million US dollars , a year-on-year increase of 25.5%; earnings per share of 0.08 US dollars, no dividends.

Sales revenue hit another record high, up 15.4% year-on-year, mainly due to the rising average selling price and strong demand for MCU, super-junction, smart card chip, IGBT and other power management products.

Gross profit margin increased by 1.4 percentage points from 31.5% to 32.9%. Monthly production capacity increased from 159,000 to 172,000.

The cost of sales was $295.3 million, an increase of 13.1% year-on-year, mainly due to the increase in wafer sales and the increase in depreciation costs.

Gross profit was US$144.6 million, up 20.4% year-on-year, mainly due to higher average selling price, higher wafer sales volume and capacity utilization.

Huahong Semiconductor said that due to strong market demand, the utilization rate is still close to 100%. The company will continue to expand production capacity and optimize product structure. Due to strong demand in the mainland market and a series of industrial policies, China's regional customers account for the company's sales. The revenue share continues to grow. Huahong Wuxi started construction in March 2018. The R&D technology of the 300mm wafer fabrication plant was initiated by a professional R&D team.

Looking ahead, the company will continue to implement a successful corporate strategy for differentiated technologies. As the capacity of 200mm and 300mm wafers increases, the company will be able to provide customers with better service. (Proofreading / Ermu)

2. Fenghua Hi-Tech was investigated by the China Securities Regulatory Commission;

On the evening of August 7, Fenghua Hi-Tech announced that the company received the “Notice of Investigation” from the China Securities Regulatory Commission on August 7 (Yuezheng Survey Tongzi No. 180161). Fenghua Hi-Tech was suspected of information disclosure violation. According to the relevant laws and regulations of the Securities Law of the People's Republic of China, the China Securities Regulatory Commission decided to investigate the company.

Fenghua Hi-Tech Announced that during the investigation, the company will actively cooperate with the investigation work of the China Securities Regulatory Commission and fulfill its information disclosure obligations in strict accordance with regulatory requirements.

Recently, Fenghua Hi-Tech also received a decision from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission to issue a warning letter to the company and the company's current or current six-member directors. The warning letter indicates that Fenghua Hi-Tech has a major accounting error that caused the company to return to 2016. The profit was reduced by 52,795,500 yuan.

The event will be traced back to 2015. In December 2015, Fenghua Hi-Tech will be responsible for Guangzhou Xinde Electronics Co., Ltd. (hereinafter referred to as Xinde Electronics) and Guangzhou Tianhe High-tech Industrial Development Zone Huali Technology Development Co., Ltd. (hereinafter referred to as Huali Technology). A total of 8.504 million yuan of receivables was transferred to a third-party company, and the transfer price was 6,803,200 yuan.

In January 2016, Fenghua Hi-Tech transferred the original price of the receivables of Guangdong Xinyu Financial Information Technology Co., Ltd. (hereinafter referred to as Xinyu Finance) and Guangzhou Yali Electronics Co., Ltd. (hereinafter referred to as Yali Electronics) to a third-party company. Fenghua Hi-Tech said that it received the above two creditor's rights transfer payments in March 2016. In December 2017, Fenghua Technology decided to repurchase the above-mentioned 54.686 million yuan of claims and paid the transfer payment in February 2018. The above-mentioned transfer of creditor's rights did not take place in substance, and the creditor's rights at the time of transfer were already expected to be recovered on schedule.

Fenghua Hi-Tech held a president's office meeting on March 1, 2016 to study and determine the disposal plan for the total of 63.19 million yuan of receivables from the four companies involved in the above accounting error adjustment. Thereafter, Fenghua Hi-Tech was again on December 12, 2016. And held a meeting on December 26, 2017 to study and determine the follow-up treatment plan for the above matters. However, the relevant matters involved in the above three meetings have not been submitted to the board of directors for review and disclosure in accordance with relevant regulations.

After retrospective restatement, Fenghua Hi-Tech's net profit attributable to the parent company in 2016 was changed from 138.906 million yuan before adjustment to 86.116 million yuan after adjustment.

The Guangdong Regulatory Authority pointed out that Feng Huagao was the chairman of the board of directors, Xing Jianchao, the current president Wang Jinquan, and the then chief financial officer Liao Yongzhong should bear the main responsibility for the above-mentioned major accounting errors; the current director Li Zezhong, Xing Jianchao, the current president Wang Jinquan, Dong Secretary Chen Xuyun shall bear the primary responsibility for failing to perform the deliberation process and information disclosure of the board of directors; the current chairman of the board of directors Wang Guangjun, the president Wang Jinquan and the director of the board of directors Chen Xuyun shall bear the primary responsibility for the postponement of the disclosure, and the Guangdong Regulatory Authority shall issue a warning letter to the above six persons.

It is reported that Liao Yongzhong, former financial director of Fenghua Hi-Tech, submitted his resignation in July 2017 and left the company. Former director Xing Jianchao resigned in February this year for personal reasons.

3. The IPO cycle is shortened, and the asset returns are considerable! Broadcom integration will suspend voting;

Set micro-network news (text / Lee), August 7th, the China Securities Regulatory Commission and the audit committee ushered in three companies to attend the meeting, respectively, Zhejiang Xinnong Chemical Co., Ltd., Broadcom Integrated Circuit (Shanghai) Co., Ltd. (hereinafter referred to as 'Broadcom Integration'), Wuhan Best Communication Group Co., Ltd. Among them, two companies have succeeded, and only one semiconductor design company, Shanghai Broadcom IPO, has suspended the voting.

The SFC did not disclose specific details on the reasons for the suspension of voting on Broadcom's integrated IPO.

Generally speaking, the IPO initial application was suspended, and the audit committee received the report information, found that there are still problems to be investigated and verified and affected the clear judgment, or the audit committee did not review the feedback because some feedbacks were needed, and the sponsors and Company supplementary information for explanation.

'Because each company's situation is different, whether to issue a suspended vote should be analyzed on a case-by-case basis. In general, the audit committee has not reviewed the feedback because of some feedback, and the sponsor and the company's supplementary information are needed for explanation. Express.

Less than one year, the period from the declaration to the last meeting is shortened

The author found that Broadcom integrated IPO pre-disclosure on October 13, 2017, and arranged IPO pre-disclosure updates only after 7 months, and official IPO will be held three months later. In addition to unicorns, general enterprises IPOs often take a year to complete this process, and Broadcom integration takes only 320 days from filing to filing.

According to statistics from WIND, enterprises that met on the IPO in 2018 will experience an average of 495 days (about one year and five months), and the average length of time on the GEM will be 554 days (one year and six months). The chip design company Jingfeng Mingyuan, which will be rejected on the IPO, is obviously faster than other IPO companies in the queue length, but this does not mean that the SFC's strict review standards are loose. At a time when US trade friction is tense, there will be news that the China Securities Regulatory Commission will accelerate the IPO process of semiconductor companies. Even the rumored chip companies’ IPOs will be reported immediately, enjoying the IPO fast track with unicorn companies to support domestic chip companies. The financing has grown rapidly, but it has been denied. Today, the SFC is still interested in supporting semiconductor companies' IPOs, but it is appropriate to speed up care, rather than open up fast-track channels.

Technical product upgrade, raising funds of 671 million yuan

According to the prospectus disclosed by Broadcom on the website of the China Securities Regulatory Commission, the company plans to issue 34,678,400 shares on the Shanghai Stock Exchange, accounting for 25% of the total issued share capital, and the total share capital after the issuance is 139 million shares. The sponsor institution is CITIC Securities.

The data shows that Broadcom Integration was established on December 1, 2004. The registered address of the company is Room 101, Building 41, No. 1387, Zhangdong Road, Shanghai Free Trade Zone. Broadcom is an integrated circuit design company providing wireless communication RF chips and solutions. Designed for high-integration, high-performance semiconductor products based on world-leading RF-CMOS transceiver design technology and innovative digital signal processing systems, with sales and technical support divisions in Shenzhen and Hong Kong.

Since its inception, Broadcom has successfully launched the world's first 5.8-GHz cordless phone integrated transceiver chip, the most integrated 2.4-GHz cordless phone transceiver chip, and the lowest power 5.8-GHz universal wireless FSK transceiver chip. The world's first 5.8-GHz integrated transceiver chip to meet the national standards for highway non-stop charging in China and several other series of integrated circuit products with broad application prospects.

According to the disclosure, Broadcom's integration plan will raise about 671 million yuan through this IPO, and invest in standard protocol wireless interconnection product technology upgrade project, national standard ETC product technology upgrade project, satellite positioning product research and development and industrialization project, smart home entrance product development and product. Chemical project and R&D center construction project.

High R&D investment, employee compensation is five times higher than average

According to the prospectus, in 2015-2017, Broadcom's integrated operating income was 444 million yuan, 524 million yuan and 565 million yuan respectively, and the net profit for the same period was 93.443 million yuan, 104.21 million yuan and 87.427 million yuan. The performance is relatively stable, and the net profit is much higher than the invisible red line of the annual profit of the GEM IPO enterprise of 50 million yuan.

It is worth mentioning that Broadcom's integrated R&D expenses are 53.285 million yuan, 64.848 million yuan and 690.9998 million yuan, accounting for 76.04%, 72.79% and 82.05% respectively.

In terms of patents, as of December 31, 2017, Broadcom has integrated 26 and 39 patents in China and the United States, and 70 integrated circuit layout designs. The overall strength is leading in China's wireless RF chip design industry. Level. Broadcom has a total of 127 employees, but as many as 103 are R&D personnel. It is a research enterprise focusing on chip design and development.

According to the disclosure, the average salary of Broadcom's integrated employees in 2016 was 425,800 yuan, which is more than five times the average salary of Shanghai employees of 78,000 yuan, and far higher than the national average of 57,400 yuan, which is even higher than that of some financial enterprises. Level. This is also more than 10% higher than the company's own average salary of 380,400 yuan in 2015. This is not unrelated to the higher average salary level of the integrated circuit industry.

Broadcom said: 'In the future, we will continue to adhere to the principle of comprehensive compensation management, and based on the demand for talents, with reference to the market average, the company's salary level and other factors, the staff compensation system and salary levels are dynamically adjusted. Considering inflation, The general increase in the cost of social employment, it is expected that the overall salary level of employees will gradually increase in the future.

Although the per capita salary is higher, such high labor costs also bring high returns to Broadcom's integrated investors. From 2015 to 2017, Broadcom's integrated weighted return on equity reached 40.1%, 30.44% and 32.83%. The 4.8-inch production line has not yet reached production, and Silan's net profit for the first half of the year has increased by 13% year-on-year;

Set micro-network news (text / Lee), August 7th, Silan Micro released the first half of 2018 results announcement, the company's total operating income was 1,437.09 million yuan, an increase of 10.70% over the same period of 2017; the company's operating profit was 61.65 million yuan , a decrease of 32.63% over the same period of 2017; the company's total profit was 62 million yuan, a decrease of 31.84% over the same period of 2017; the company's net profit attributable to shareholders of the parent company was 95.31 million yuan, an increase of 12.90% over the same period of 2017.

Silan Micro said that the company's subsidiary company Shilan Group's 8-inch chip production line has not yet reached production during the reporting period, and the fixed cost is relatively high. There is still a certain amount of loss is the main reason for the company's operating profit and total profit reduction.

LED lighting driver circuit

In the first half of 2018, Silan's operating revenue decreased by 2.5% compared with the same period of last year. Silan Micro said that the main reason for the decline in IC operating revenue was: Due to the fluctuation of LED downstream market, Silan micro LED lighting driver circuit Shipments have declined. In response, the company has accelerated the adjustment of its product mix, and it is expected that shipments of LED lighting driver circuits will resume growth in the third quarter.

MEMS sensor products

In the first half of the year, Silan Micro accelerated the pace of MEMS sensor products expansion in the mobile phone market. At present, many mobile phone users have used the company's MEMS sensor products. It is expected that the shipment of MEMS sensor products will increase significantly in the second half of the year. In the first half of the year, the company's IPM power The shipments of module products continue to grow rapidly, covering the major white power machine manufacturers in China.

Discrete device products

In the first half of 2018, the operating revenue of Silan's discrete device products increased by 26.67% compared with the same period of last year. Among discrete device products, MOS tube, Schottky tube, Zener tube, IGBT, PMI module, fast recovery tube and other products increased. Fast. The increase in revenue from discrete device products was mainly due to the rapid growth of the company's 8-inch chip production line.

Silan's integrated chip production in the first half of the year reached 1.151 million

In the first half of 2018, Silan Microelectronics Shilan Integrated Company continued to maintain a high production load and increased the production capacity of the chip production line to 220,000 pieces/month by tapping potential. In the first half of the year, Silan integrated a total of 1.151 million chips. Film, an increase of 3.9% over the same period of last year; at the same time, the product structure was further optimized, and the gross profit margin of chip manufacturing was significantly improved.

In the first half of the year, Silan’s chip production reached 102,400.

In the first half of 2018, Silan Microelectronics Co., Ltd. further accelerated the production schedule of the 8-inch chip production line. There are already high-voltage integrated circuits, high-voltage MOS transistors, low-voltage MOS transistors, Schottky tubes, IGBTs and other products. Production.

Silan Micro said that in the first half of 2018, Silan Group has achieved the goal of producing 20,000 chips per month, with a total output of 102,400 chips, which has played a positive role in driving the growth of the company's revenue. In the second half, Silan Group will further increase investment in production lines and improve chip production capacity. It is expected that by the end of this year, Silan Group will achieve the goal of producing 30,000-30,000 chips per month.

Chengdu Silan's packaging capacity improved faster

In the first half of 2018, the output of the Shilan Microelectronics Chengdu Shilan Company's epitaxial workshop and module workshop maintained a rapid growth. The power module packaging capability of the module workshop has been increased to 3 million / month, and the packaging capability of MEMS products has been Upgraded to 12 million/month. In the second half of the year, Silan Micro will further expand the packaging capabilities of power modules and MEMS products.

LED products

In the first half of 2018, the operating income of Silan's micro-LED products increased by 1.52% compared with the same period of last year. The main reason for the slowdown in revenue growth is the fluctuation of demand in the downstream LED market. In this regard, Silan Micro will stabilize the market share of color-screen chips. At the same time, accelerate the development of high-bright white light chips and accelerate the entry into the high-end LED lighting market.

Planning and honor

In the first half of 2018, Silan Micro has begun to plan to build a packaging plant for automotive-grade power modules in Hangzhou. It plans to invest 200 million yuan to build a fully-automated packaging line for automotive-grade power modules to accelerate the pace of development of the new energy vehicle market.

In the first half of 2018, Silan Micro has steadily promoted the construction of Xiamen's production base. Xiamen Silan Mingjiao has completed the design and project bidding for the compound semiconductor device production line project, and is expected to start construction in the third quarter. Xiamen Shilanji The company is working hard to carry out the design of the first 12-inch featured process chip production line project, and is expected to start construction before the end of this year.

In the first half of 2018, Silan Micro's 'high-speed low-power 600V multi-chip high-voltage module' project won the first prize of Zhejiang Science and Technology Progress Award.

Silan Micro said that for a long time, Silan Microelectronics adhered to the road of 'design and manufacturing integration', which strongly supported the research and development of featured processes and products, formed a close interaction between characteristic process technology and product development, and devices, integrated circuits. Coordinated development with module products. With the further progress of the construction of the 8 吋 chip production line project, and the start of construction of the compound semiconductor device production line project and the 12 吋 chip characteristic process chip production line project, the overall revenue of Silan Microelectronics will continue to be accelerated. Grow. (Proofreading / Ermu) 5. Dongshan Precision acquired the PCB manufacturing assets, and the equity delivery procedures have been completed;

Set micro-network news (text / Lee), March 26, 2018, Suzhou Dongshan Precision Manufacturing Co., Ltd. (hereinafter referred to as 'company') wholly-owned subsidiary Multi-Fineline Electronix, Inc. and NASDAQ listed company Flex Ltd. (hereinafter referred to as 'FLEX') signed the Share Purchase Agreement, and the company intends to acquire FLEX's PCB manufacturing business related entities in cash, collectively known as Multek.

On July 26, 2018, in view of the fulfillment of the delivery conditions, the parties to the transaction completed the delivery process of the acquisition in accordance with the terms of the Share Purchase Agreement. On the settlement date, the Multek domestic entities directly owned by FLEX, including Chaoyi Technology (including Zhuhai) Co., Ltd., Zhuhai Doumen Chaoyi Electronics Co., Ltd., Zhuhai Doumen Chaoyi Industrial Co., Ltd. and Deli Technology (Zhuhai) Co., Ltd., revised the company’s articles of association and the register of shareholders and their capital contribution, and 1. The application materials for the change of industrial and commercial registration, etc. were submitted to the Zhuhai Administration for Industry and Commerce.

Recently, Chaoyi Technology (Zhuhai) Co., Ltd., Zhuhai Doumen Chaoyi Electronics Co., Ltd., Zhuhai Doumen Chaoyi Industrial Co., Ltd. and Deli Technology (Zhuhai) Co., Ltd. have completed the registration of industrial and commercial changes, and obtained the Zhuhai Administration for Industry and Commerce. The business license issued, the follow-up procedures related to the equity delivery have all been completed. (Proofreading / Ermu)

6. The progress of the power battery business is not smooth, and the GCL integration adjustment strategy plan;

Set micro-network news (text / Lee), August 7th, GCL integration announcement, due to the progress of the power battery business did not meet the company's expectations, did not form a substantial contribution to the company's performance, and consider the current economic environment, industry development status With the company's future strategic layout and other factors, the company decided to integrate and focus its existing advantageous resources. Under the premise of consolidating the first main business, it adjusted the strategic planning of the second main business and actively explored the feasibility of semiconductor projects.

On February 25, 2017, the board of directors of GCL Integrated reviewed and approved the “Proposal on Building a Strategic Plan for the Collaborative Development of Dual Main Businesses”: 'The company intends to combine the national policy, industry development trend and its own operation, and develop dual main business synergies. Develop strategic planning, lay out the power battery business on the basis of consolidating the photovoltaic business, and build and cultivate the company's new profit growth point.

Power battery business is not progressing smoothly

Since the above-mentioned plan was issued, the company has been actively promoting related work, continuing research, comparison, analysis, review and decision-making on power batteries, including dynamic research and analysis of industry development status and potential competitors, and discussing with industry experts and scholars. Future technical routes, flexible cooperation with manufacturers with leading technology and channel advantages, etc., cautiously cut into the power battery industry. Cooperation includes but not limited to: power battery cells, PACK, power battery ladder utilization and other industrial chain links. However, in the past year or so, the progress of the power battery business has not reached the company's expectations, and has not made a substantial contribution to the company's performance.

PV product prices continue to fall

Recently, due to the macroeconomic environment and industry policies and other factors, the photovoltaic industry in the company's first main business has undergone dramatic changes. The domestic PV market is increasingly competitive. The company's PV products prices continue to fall, and domestic product billing period. Generally speaking, the overseas market has a good period of accounts, and the demand is increasing year by year. In order to adapt to the above changes, the company has focused on trade barriers and overseas market demand, made major strategic deployments, adjusted the market layout, and shifted the strategic focus from the domestic market. Overseas, the initiative has also achieved good results, especially after the announcement of the PV '531' New Deal, which strengthened the company's 'photovoltaic internationalization' strategy and continued to increase the investment and layout of overseas markets. The proportion of overseas markets from the first half of 2017 14% of the rapid increase to the current 50%.

Explore semiconductor projects

In April 2018, the company began to contact the semiconductor industry, intending to lay out the semiconductor industry through capital market platforms, industrial funds and other reasonable ways, with a view to minimizing capital investment, integrating optimal social resources, and exploring the feasibility of semiconductor projects. The industry has gradually upgraded to the national strategy. The government has provided all-round support for taxation, capital, and finance. At the same time, due to the friction of 'China-US trade', China's self-sufficiency rate of semiconductors is also urgent. To grasp this historic opportunity, 2018 4 On the 27th, the company announced that it intends to acquire a semiconductor material manufacturing enterprise with special focus on support. On July 10, 2018, the company announced its investment in the semiconductor industry fund.

GCL Integrated said that based on the above factors, in order to actively adapt to the above changes, the company's management decided to integrate and focus on the company's existing advantageous resources after careful consideration and trade-offs, focusing on the development of the company's first main business 'photovoltaic internationalization' Strategy and grasp the historic opportunities in the semiconductor industry, explore the feasibility of semiconductor projects. This matter will not adversely affect the company's normal production and operation, and will not harm the interests of the company and shareholders, especially small and medium shareholders.

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