Total Zhi net Fall 70% local chip roller-coaster growth challenge

Absrtact: The tablet market is slowing, and Zhuhai, the chip supplier, has stepped out of a steeper downward curve. The four-chi nuclear chip failed to flush, affecting profits. July 3, Shenzhen, a tablet computer company in charge of the 21st century Economic report

The
Tablet PC market has slowed, and the Zhuhai full ambition as a chip supplier has emerged from a steeper downward curve.





Four nuclear chips failed to flush up, affecting profits. "July 3, a Shenzhen tablet computer company in charge of the 21st century Economic report, said that, in spite of its shipments did not decline, but the product is mainly concentrated in the relatively low gross margin of single and dual-core products.





Zhuhai, announced on June 30 in advance of the disclosure of documents showed that in January-May this year, the chip shipments and the same period in 2013 on the basis of flat, its sales revenue fell about 25% year-on-year, net profit fell by about 70%.





in 2012, when Apple ipad detonated tablet computer tide, Zhuhai Canzhi once occupied the market first, because of its high cost-performance, Low-power chip, once a year, has hit 5 times times revenue, net profit 10 times times legend.





"In the tablet market, the whole Zhi guessed the beginning, but did not guess the outcome." "The Tablet PC believes that many local chip companies face the problem, that is, the possibility of a product burst red, but after overseas competitors to join the war, facing the challenge of how to maintain sustainable competitiveness."





Four nuclear war defeat





for entrepreneurship, Millet founder Lei had a familiar summary: is to do a pig standing in the tuyere.





obviously, in the tablet computer chip market, Zhuhai Canzhi once very lucky to stand in the "Tuyere".





January 2010, Apple released the ipad, and it took only two years to complete the process from being published to being widely accepted by consumers. After Apple's ipad led the trend, the Android industry chain followed.





Some insiders believe that if the Apple to create a tablet computer blue sea, and the full Zhi, rui-core micro-and so on to create a Shenzhen tablet computer (or the White brand market) The real sense of the first climax. Ultra-high cost performance of the local chip, so that the rapid volume of China's tablet computer market, tablet computer was once a small and medium-sized manufacturing enterprises in Shenzhen after the mobile phone to find a sweet pastry.





's statistics show that in 2012, Zhuhai's full-log tablet computer chip shipments accounted for China's market share of 35.9%, sales accounted for a share of 29.7%, ranked first in the domestic non-ipad tablet computer chip market.





Zhuhai, the results of the year also soared in 2011, its revenue and net profit of 260 million yuan and 58.92 million yuan respectively, to 2012, has grown to 1.34 billion and 570 million yuan respectively.





2012 is the peak of Zhuhai's full-ambition profitability, 2013, its revenue continued to increase to 1.65 billion yuan, while the net profit has slipped to 420 million yuan. 2014 1-May, the company is the emergence of revenue, net profits at the same time the decline of the "double drop" situation.





Zhuhai full local data revealed that its chip product price in 2012 for 35.65 Yuan, to 2013 has fallen 41.51% to 20.85 yuan. Overall gross profit margin, 2012 was 56.6%, 2013 fell to 41.32%.





, the head of the tablet computer business, told reporters, "Needless to say, the slow growth of the tablet computer market and the decline in profits is the trend of the whole industry, but the Zhuhai landslide also has its own factors."





the personage thinks, in the dual core, four core and so on product upgrade node, another local chip manufacturer Rui Core Micro grabbed a certain opportunity. Rui Core micro-side challenge, one side in the relatively high-end dual-core, four-core products on the force, and occupy the opportunity.





and Zhuhai's full-log product upgrade is not smooth, while the tablet chip market competitors are more and more, the most powerful include MediaTek and Intel.





, MediaTek has been involved in the tablet computer market





After the field, and soon achieved with Rui Core micro, the whole Zhi "three points world has one" status. Digitimes's latest data show that in the first quarter of 2014, China's mainland tablet processor shipments, RUI-core micro-, MediaTek, the total records accounted for 28.9%, 25.3% and 23.5% respectively.





Native chip growth sample





industry insiders told reporters that the second half of this year, with several major tablet manufacturers will be available next generation of products, the market will enter a new round of competition. Among them, the A80 eight nuclear processor, is expected to carry the chip in the second half of the tablet computer products listed, "The full ambition on the eight-core chips can be robbed, whether to reverse the current unfavourable situation, but also to wait and see."





"After seizing a market explosion point, how to develop continuously is a problem." "The tablet computer said to reporters that the chip industry is a technology, capital-intensive industry, the talent and management requirements are very high, Zhuhai, the case has a certain sample significance."





in fact, electronic information products upgrade quickly, as the upstream supplier of chip enterprises, in the fierce market competition, if not grasp the rhythm of market transformation, timely launch of new products, will soon be in the market share and performance of the company reflected.





"China's local chip design companies are generally small, technology accumulation is very limited to the international giants." "This is a challenge for sustainable development," said the chip industry.





However, the good news for Zhuhai Canzhi is that it caught up with the last bus of the SFC's pre disclosure.





June 30, the China Securities Regulatory Commission announced the latest IPO disclosure list, of which Zhuhai's full-records of the pre-disclosure documents show that it is intended to be listed in Shenzhen Stock Exchange, issued no more than 40 million shares, the main underwriter for Ping An securities, the funds raised mainly to intelligent Terminal Application processor technology upgrades, Integrated communication features intelligent terminal Processor upgrades and other projects.





Zhuhai Full-log of the pre-disclosure document also shows that it does not exist holding shareholders and the actual control, its 120 million total equity, the company chairman, general manager Zhang Jianhui shareholding 12.77%, Dinghan, Shanhui, Tang Lihua shareholding are 11.95%, Houlierong shareholding ratio of 11.05%. More than 5% of shareholders also include Cai Jianyu, with a stake of 8.33% per cent.





　　Although there is still a long way to go to the official IPO, Zhuhai is fully interested in catching up with the last bus, which is the first chip design enterprise to a A-share IPO after the State Council released the "National Integrated circuit industry Development platform" on June 24. (Edit Lu Aifang Sin Yunwei)