As an important branch of the whole integrated circuit, memory chips occupy a high share in the market and grow fastest in scale. In 2021, the data volume increased explosively, and the annual performance of domestic data storage chip manufacturers was “in the limelight”.

At the end of April, the annual performance and financial report of listed companies ushered in the release peak. Focusing on the field of memory chips, the leading domestic manufacturers, such as Zhaoyi innovation, Beijing Junzheng, Dongxin semiconductor and Pran semiconductor, have successively disclosed their 2021 transcripts.

Source: ElectronicEnthusiasts sort out according to public information

Doubling of net profit became a common phenomenon, with the largest increase of 1240.27%

By tracking the financial reports of five domestic enterprises that have done well in the field of memory chips, it is found that almost all memory chip manufacturers achieved double growth in revenue and net profit in 2021, and the growth of net profit is much higher than that of revenue, which is a common phenomenon. The enterprises whose net profits have increased by more than twice include puran shares, Dongxin semiconductor and Beijing Junzheng, and the latter two enterprises have even increased by more than 10 times. The largest increase in net profit was 1240.27%, which occurred in Dongxin semiconductor.

The only enterprise with a loss is Juchen semiconductor, which is related to the insufficient supply of suppliers’ production capacity, voice coil motor drive chips, expenses for purchasing 3.5502 million shares of SMIC international, and a 40% increase in R & D expenses over last year.

In terms of operating income, the top five memory chip manufacturers in China did not decline. There are three enterprises with a growth rate of more than 50%. Their growth rates are puran semiconductor, Zhaoyi innovation and Beijing Junzheng. The operating income of the latter two enterprises doubled.

Beijing Junzheng has doubled its revenue and net profit. Beijing Junzheng had the strongest performance growth momentum, with its revenue increasing by 1.43 times over the same period last year and its net profit increasing by 11.65 times. Beijing Junzheng’s main business consists of microprocessor chips, intelligent video chips, memory chips, analog and Internet chips, technical services and others. The products sold by the memory chip business are mainly SRAM, DRAM and flash. In 2021, the revenue from this business was 3.594 billion yuan, an increase of 135.63% over 1.525 billion yuan in the same period of last year, accounting for 68.15% of the total operating revenue, It has contributed nearly 70% of Beijing Junzheng’s annual revenue.

Domestic memory chip replacement process significantly accelerated in 2021

According to the statistics of China Semiconductor Industry Association, in 2021, China’s integrated circuit industry broke through trillion yuan for the first time, and the sales increased to 1045.83 billion yuan, an increase of 18.2% year-on-year. As the segment with the highest market share in the integrated circuit industry, memory chips grew strongly in 2021, with the fastest growth rate in scale.

The favorable market has greatly promoted the production and sales of domestic memory chips, and the manufacturers’ revenue and net profit have doubled in 2021. As leading domestic memory chip enterprises, Changjiang storage, Changxin storage, Zhaoyi innovation and Dongxin semiconductor are the backbone of domestic replacement, which determines whether the domestic replacement wheel can continue to move forward.

From the reasons for performance changes disclosed by listed companies, we can also see the shadow of the acceleration of domestic substitution in 2021. Zhaoyi innovation clearly stated in its financial report that the reason for the sharp rise in performance in 2021 is related to the increasingly obvious localization trend of the supply chain. Whether it is the reasons for performance changes disclosed by enterprises or the data of doubling the growth of revenue and net profit, it proves that the domestic substitution process in the segment of memory chips will be significantly accelerated in 2021.

The performance, products and growth reasons of domestic memory chip manufacturers are as follows

Beijing Junzheng

In 2021, Beijing Junzheng realized an operating revenue of 5.274 billion yuan, an increase of 143.07% over 2.170 billion yuan in the same period of the previous year; The net profit attributable to the parent company was 926million yuan, a year-on-year increase of 1165.27%. In the memory chip business, the revenue realized in 2021 was RMB 3.594 billion, an increase of 135.63% over RMB 1.525 billion in the same period of the previous year, accounting for 68.15% of the total operating revenue.

In the first quarter of 2022, the operating revenue reached 1.414 billion yuan, a year-on-year increase of 32.37%; The net profit attributable to the parent company was 232million yuan, a year-on-year increase of 93.42%; The net profit deducted from non-profit was RMB 225million, with a year-on-year increase of 93.07%.

Figure source: electronic enthusiasts sort out according to public data

Reasons for performance change: the company’s sales revenue in the automotive electronics field continues to grow due to the continuous development of automotive intelligence and the strong demand of the automotive terminal market; At the same time, the sales revenue in the industrial, medical, communication, consumption and other fields also achieved a good year-on-year growth, driving the substantial growth of the company’s net profit.

Dongxin Co., Ltd

In 2021, Dongxin semiconductor realized an operating revenue of 1.134 billion yuan, an increase of 44.62% over the previous year’s 784million yuan; The net profit attributable to the parent company was RMB 262million, a year-on-year increase of 1240.27%, and the net profit after deduction was RMB 255million, a year-on-year increase of 1354.24%.

The products of Dongxin semiconductor memory chip business segment are mainly NAND, nor and DRAM. In 2021, NAND achieved a sales revenue of 660million yuan, an increase of 65.63% year-on-year, and its gross profit margin increased by 28.67 percentage points over the previous year; The sales revenue of nor products was 188million yuan, a year-on-year increase of 2.71%, and the gross profit margin increased by 6.32 percentage points over the previous year; The sales revenue of DRAM products was 79million yuan, a year-on-year increase of 41.25%, and the gross profit margin increased by 8.87 percentage points over the previous year.

In the first quarter of 2022, the operating revenue reached 344million yuan, an increase of 82.86% year-on-year; The net profit attributable to the parent company was RMB 110million, a year-on-year increase of 216.92%; The net profit deducted from non-profit was RMB 110million, a year-on-year increase of 280.88%.

Figure source: electronic enthusiasts according to public informationMaterial finishing

Reasons for performance change: the product line will be further enriched in 2021, new customers will be introduced, the product volume will increase, and the sales scale will be greatly expanded compared with that in 2020. Due to the recovery of the global semiconductor market, strong demand has driven up product prices.

Zhaoyi innovation

In 2021, Zhaoyi innovation achieved an operating revenue of RMB 8.51 billion, an increase of 89.25% over the same period last year’s RMB 4.497 billion; The net profit attributable to the parent company was 2.337 billion yuan, an increase of 165.33% over 881million yuan in the same period of the previous year; The net profit excluding non-profit was 2.225 billion yuan, an increase of 300.48% over 555million yuan in the same period of the previous year.

Figure source: electronic enthusiasts sort out according to public data

The main business of Zhaoyi innovation consists of memory chips, microcontrollers, sensors, technical services and other revenues. The products of memory chip business include flash memory chips (NOR flash, NAND flash) and dynamic random access memory (DRAM). In 2021, 3.288 billion memory chips were sold, realizing a revenue of 5.451 billion yuan. The sales volume increased by 22.43% over the previous year, and the revenue increased by 66.04% over the 3.283 billion yuan in the same period of the previous year, accounting for 64.08% of the total operating revenue.

In the first quarter of 2022, the operating revenue was 2.229 billion yuan, a year-on-year increase of 39.02%; The net profit attributable to the parent company was RMB 686million, a year-on-year increase of 127.65%; The net profit deducted from non-profit was RMB 655million, with a year-on-year increase of 136.51%.

The reasons for the performance growth are: the demand for intelligent terminals and the localization of supply chain are becoming more and more obvious, and the demand for products in the market continues to be strong. At the same time, Zhaoyi innovation actively develops new markets, new customers, optimizes the product and customer structure, and increases the revenue contribution of consumer, computer, industry and other fields.

Pran shares

In 2021, Pran semiconductor realized an operating revenue of 1.103 billion yuan, an increase of 53.75% over 717million yuan in the same period of the previous year; The net profit attributable to the parent company was 291million yuan, an increase of 238.39% over 86million yuan in the same period of the previous year; The net profit excluding non-profit was 273million yuan, an increase of 239.93% over 80million yuan in the same period of the previous year.

Figure source: electronic enthusiasts sort out according to public data

The products of Pran semiconductor memory chips are mainly nor flash and EEPROM. In 2021, the sales revenue of NOR flash products was 784million yuan, a year-on-year increase of 58.93%, and the shipment volume was 2.76 billion pieces, a year-on-year increase of 12.15%. The sales revenue of EEPROM products was 319million yuan, a year-on-year increase of 43.55%, and the shipment volume was 2.046 billion pieces, a year-on-year increase of 29.59%.

In the first quarter of 2022, the operating revenue was 224million yuan, a year-on-year decrease of 4.91%; The net profit attributable to the parent company was 42million yuan, with a year-on-year increase of 8.07%; The net profit deducted from non-profit was RMB 39million, with a year-on-year increase of 0.73%.

Reasons for performance change: benefiting from 2021, the global semiconductor industry has a high prosperity and strong demand for downstream applications. Pran semiconductor has vigorously promoted market expansion and achieved major breakthroughs in many downstream segmented application fields such as the Internet of things and industrial control. Its position in the domestic market has been further consolidated and improved, and its business performance has grown rapidly overseas. At the same time, the upgrading of the 40nm process and the iteration of the original products have reduced the production cost and increased the gross profit margin.

Juchen Co., Ltd

In 2021, Juchen semiconductor realized an operating revenue of 544million yuan, an increase of 10.29% over 494million yuan in the same period of the previous year; The net profit was 107million yuan, a year-on-year decrease of 34.09%. As Juchen Co., Ltd. has not disclosed detailed financial statements at present, the specific sales revenue of nor/eeprom products in the memory chip business segment has not been known yet.

Figure source: electronic enthusiasts sort out according to public data

Reasons for performance change: the net profit loss in 2021 is related to the insufficient supply of suppliers’ capacity, voice coil motor drive chips, expenses for purchasing 3.5502 million shares of SMIC international, and an increase of 40% in R & D expenses over last year.

From the performance changes of these memory chip manufacturers in recent five years, 2021 is the most significant year for the growth of enterprise revenue and net profit. One year net profit of Dongxin semiconductor increased by 12 times, that of Beijing Junzheng increased by 11 times, and that of Zhaoyi innovation increased by 3 times. These amazing performance data reflect that domestic storage manufacturers are entering a stage of strong growth, and domestic alternative wheels continue to accelerate forward.

Summary

The performance of domestic memory chip manufacturers in 2021 has released a positive signal. From the performance of the latest quarter of 2022, the performance growth momentum of domestic memory chip manufacturers is still strong, and the localization trend of the industrial chain is becoming more and more obvious. This year, domestic replacement in the field of memory chips is expected to usher in a new inflection point.

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