On April 25, Sanan Optoelectronics released a first-quarter report that in the first quarter of this year, the company achieved operating income of 3.107 billion yuan, an increase of 14.35% year-on-year; the net profit attributable to shareholders of listed companies was 0.46 billion yuan, down 43.01% year-on-year.
Sanan Optoelectronics said that during the reporting period, due to the impact of epidemic control, annual maintenance and downstream customer rhythm adjustment, the company's integrated circuit business (including Xiamen Sanan Integrated Circuit Co., Ltd., Hunan Sanan Semiconductor Co., Ltd., Quanzhou Sanan Semiconductor Technology Co., Ltd. filter business) achieved an overall revenue of 620 million yuan and a net profit of 152 million yuan (including non-recurring profit and loss of 215 million yuan recognized in the current period); among them, the filter business was affected by the epidemic, resulting in some customers being unable to successfully complete the factory inspection. Shipments were affected, and only $0.16 billion in sales revenue was realized. According to the preliminary communication with customers, with the elimination of the impact of the epidemic, it will be gradually replenished in the future.
This also led to an increase in the amount of its inventory. During the reporting period, the inventory amount of Sanan Optoelectronics increased by 712 million yuan compared with December 31, 2021, of which raw materials increased by 150 million yuan, in-products by 139 million yuan, semi-finished products increased by 65 million yuan, and inventory goods increased by 358 million yuan. Inventory goods increased by 358 million yuan, of which the LED epitaxial chip business increased by 230 million yuan, the integrated circuit business (including hunan Sanan Semiconductor Co., Ltd., quanzhou Sanan Semiconductor Technology Co., Ltd. filter business, Xiamen Sanan integrated circuit co., Ltd.) increased by 0.99 billion yuan, led application business increased by 0.29 billion yuan.
At the same time, Sanan Optoelectronics also disclosed the 2021 annual performance report. In 2021, the company achieved operating income of 12.572 billion yuan, an increase of 48.71% year-on-year; net profit attributable to shareholders of listed companies was 1.313 billion yuan, an increase of 29.20% year-on-year.
Industry turnover, traditional LED business after the price decline in previous years, 2021 attracted an inflection point, the overall demand in the first half of the year is strong, the product gross margin level has been improved to a certain extent, the second half of the market gradually flat. The market share of traditional LED products will be further improved, and there will be a certain amount of growth every year, and profitability will gradually increase. Segments of infrared / ultraviolet, automotive products, plant lighting, mini / microLED and other market penetration is further improving, especially in the mini LED, whether it is the willingness of application manufacturers to promote, or end customer acceptance, backlight in the medium and large size of the product solution is the most favored, and finally backlight products to 65, 75, 85 inch TV, PAD, notebook computer, e-sports display, desktop display, VA, car display and so on as the leading application. During the reporting period, the amount of product revenue in the company's segment increased by 175.47% year-on-year, of which mini/micro LED sales increased by 246.61% year-on-year, but the overall segment revenue scale is not large, and the proportion of revenue is also small.
At present, Sanan Optoelectronics in the Mini LED market expansion has achieved initial results, has entered in-depth cooperation with S004, A006 and other international customers, some products have been introduced to the market, domestic customers TCL, H002, Huaxing and other customers' TVs, notebook Mini LED backlight solutions will enter small batch production, other customers' product solutions are also in close contact. Quanzhou San'an, a wholly-owned subsidiary of the company, is mainly engaged in vertical structure and upside-down products, and Hubei San'an is mainly engaged in mini/micro LED business. According to the company has obtained the intention of orders and the actual needs of existing customers, the new expansion capacity of the two entities is gradually released, I believe that with the gradual increase in the proportion of the company's high-end products, the future operating income scale will continue to increase, profitability will continue to improve.
In terms of integrated circuit business, in 2021, San'an integration business made a major breakthrough, achieving sales revenue of 2.231 billion yuan, an increase of 129.15% year-on-year, and revenue to a new level; at the same time, the expansion and establishment of major business areas have reached the annual target, Hunan San'an silicon carbide production line, Quanzhou San'an filter production line has been connected to the line, entered trial mass production, and the total number of employees in the integrated circuit business has reached nearly 5,000 people.
In terms of radio frequency, the company's gallium arsenide RF shipment products fully cover 2G-5G mobile phone PA, WIFI and other application areas, the total number of customers is nearly 100, customer areas cover domestic and foreign countries, the company's foundry products (PA power amplifier, LNA low noise amplifier, etc.) has entered the domestic first-line brand supply chain, performance and reliability has been widely recognized by the industry, used in mobile phone terminal customers include Samsung, glory, transsion, VIVO, MOTO and communication modules of large factories to move far, Guanghetong. The company currently has two gallium arsenide factories, and the ability to stabilize the delivery of orders has been enhanced, which is of great significance to further accelerate the iteration of customer products and ensure the safety and stability of customers' future supply chains. On the basis of the existing process, the company continues to introduce new processes to meet the customer's more high-end design needs, product technology technology continues to mature, customer viscosity is further strengthened, Sanan integrated circuit will continue to consolidate the position of domestic RF foundry leader.
In terms of filters, the company's filter business is based on substrate materials and guided by market demand, providing customers with stable process manufacturing capabilities and strong supply guarantees. The company's filter product development performance is superior, and the company has launched a small-size Band 1+Band3 quad that can be mass-produced, which has reached the forefront of the industry, becoming the first enterprise in China to provide a full set of quad and duplexer products required for the Phase VNR architecture. The company's filter SAW and TC-SAW products have developed 41 customers, of which 17 are the main customers of domestic mobile phones and communication modules, and have successfully entered the supply chain of domestic mobile phone ODM enterprises and domestic and foreign smart phones; in the Internet of Things LTECat1 data module market, the company's duplexer market share has gradually increased, and the main customers are Guanghetong, Xinxuntong, Meige, Hezhou, etc. It is expected that in 2022, with the release of filter capacity, sales revenue will increase significantly.
In terms of optical technology, Sanan Optoelectronics' business covers full-wavelength, full-rate light emitting lasers and light receiving detectors. The company's laser and detector chips have successfully entered the access network PON, 5G fronthaul, data center, consumer AOC and other market areas; in the 100-megabit and gigabit access network PON market, the company's chips directly supply many domestic optical device packaging factories, indirectly supply the industry's leading enterprises and BOX manufacturers; in the data center application market, has become a number of digital optical module customers core chip suppliers, indirectly supplying part of the head digital center; in the 5G wireless application field, 25G The detector chip has been indirectly supplied to overseas system equipment manufacturers, and the 25G full range of DFB has gradually matured and sent samples to many domestic optical transceiver manufacturers for testing. In the field of consumer AOC, the company's products have successfully entered the domestic and international major cable customers, indirectly entered the supply chain of well-known consumer electronics giants in Asia and North America, and achieved small-batch supply; light sensing and power applications as a new strategic growth point of optical technology, and have also indirectly obtained the adoption of tablet computers, logistics cars and smart cars of well-known manufacturers. The company is also giving full play to the advantages of the platform, and actively developing silicon optical technology to boost the market demand for higher-speed optical communication applications. Consumer chips have entered the market areas such as the head mobile phone supply chain, automotive lidar, and sweeping robots.
In terms of power electronics, Sanan Optoelectronics' products are mainly high power density silicon carbide diodes, MOSFETs and silicon-based gallium nitride products. Silicon carbide diode in 2021 new sample delivery customers more than 500, shipping customers more than 200, more than 60 products have entered the mass production stage, in the PFC power benchmark customers Ofdi, Bit, Great Wall, etc.; photovoltaic inverter Solar Power Supply, Gurui Watt, Goodway, Crestec and other domestic top 20 customers have entered; in the vehicle charger Wimmex, Fordy Power (BYD) and other customers; in the field of home appliances Gree, Changhong, etc.; in the charging pile and UPS Infinitus, Kehua, INVT, Jiasheng, etc., Benchmark customers in various segments of the application market to achieve stable supply, with the help of europe, the United States, Japan and South Korea and other countries and regions of the technology and sales layout, has achieved strategic cooperation with international benchmarking customers, overseas market breakthroughs. In terms of gallium nitride products, about 60 customers have completed engineering sample delivery and system verification, and 24 have entered the mass production stage, with superior product performance. Silicon carbide MOSFET industrial products have been sent to customer verification, vehicle grade products are cooperating with a number of car companies to do tapelet design and testing; silicon carbide MOSFET vehicle grade and new energy vehicle key customers cooperation has made a major breakthrough, the new energy vehicle market is the core application market and important growth momentum of power electronic products line.
Sanan Optoelectronics said that the next 2-3 years is a crucial period for the company's development, the company will focus on the rapid expansion of the integrated circuit business and the continuous improvement of the proportion of LED high-end product structure, for which the company has made various preparations, the early expansion of customers has been gradually improved, the planning capacity layout has been implemented, and the organizational structure adjustment, technology update, internal control authority settings and other aspects have been implemented. According to the company's project new capacity planning, the new production capacity of the LED business segment is mainly in Quanzhou San'an and Hubei San'an, with the continuous release of production capacity, the proportion of high-end product structure in the LED segment will be greatly improved; the planned capacity of integrated circuit new projects is mainly in San'an Integration, Quanzhou San'an, Hunan San'an, gallium arsenide RF production capacity will be expanded to 30,000 pieces / month, filter will be expanded to 500KK / month production capacity, power electronic silicon carbide supporting capacity expanded to 30,000 pieces / month, gallium silicon nitride production capacity expansion to 0.4 million pieces / month, the optical technology production capacity expanded to 2600 pieces / month, and the production capacity can be gradually landed, which will drive the rapid growth of revenue scale. (Proofreading/Lee)