In early February, Konka Holding Co., Ltd. Hefei kangxinwei Storage Technology Co., Ltd. (hereinafter referred to as kangxinwei) released a signal that it will strive to sell 100 million storage master chips in 2020. In addition, Konka also released the news that it is developing microled products and plans to build a 10 billion energy Internet industry platform. Since then, shenkangjia a has suffered from secondary market speculation, and its share price has also made a surprising rise: from the highest of 4.74 yuan / share on the 3rd of this month, it once rose to 11.61 yuan / share, up 144.9%.
In response to the Shenzhen Stock Exchanges inquiry on February 25, Kangjia said that the target sales of 100 million subsidiaries did not constitute a performance commitment, and explained relevant matters together. The market reaction immediately turned cold. Shenkangjia a had two stops and falls in recent two days, and only slightly recovered up to today. By the end of the closing, the share price remained at a high of 10.01 yuan.
After a farce, the market also questioned whether Kangjias high-profile promotion of 100 million chip sales put satellites.. In recent years, Konkas main color TV business has been weak, with negative net cash flow for several years, seeking transformation for many years. Entering the semiconductor industry requires intensive investment of capital, talents and technology. As an old home appliance giant, can its strength support its ambition?
Many semiconductor industry professionals told time finance that the advantage of Kangjias core lies in its own capital and scale advantage, but other aspects are not obvious.
What are the advantages of Konka in the red sea of chips?
Is the production target set too high for 100 million chips? In its public response, Konka said that in 2020, the global storage master chip market will have a capacity of about 2.5 billion-3 billion chips, and 70% of the market demand will come from China, but the market share of domestic brands is only about 8%, and the comprehensive cost of its products can be about 15% lower than the industry average level, so it is not exaggeration to set the sales target of Kongwei in 2020 as 100 million chips.
Time finance and economics found that Kang Xinwei was founded in November 2018 (51% owned by Konka), mainly engaged in the design and sales of memory master chips, not involving production. At present, the only public product of kangxinwei is EMMC memory master control chip of model ks6581a, which has been mass produced in December 2019. The first 100000 chips were sold in that month, with a total amount of about 200000 yuan. According to this calculation, the unit price of this chip is about 2 yuan / piece.
Generally speaking, the memory master chip controls one or more memory chips, including memory management function and computer interface. Together with the controlled memory chips, it constitutes the data memory card (disk) of intelligent terminals and industrial equipment, such as hard disk, SD card, etc., which is the core chip of memory products.
According to time finance and economics, at present, domestic enterprises such as guokewei and Lanqi technology have been involved in the field of chips, and Konka is a latecomer.
Among them, Guoke micro is a domestic solid-state memory controller chip head company. According to the revenue data of its 2018 annual report, the total revenue of each business of Guoke micro in that year is about 400 million yuan. In the first half of 2019, the revenue reached 124 million yuan, a year-on-year increase of 26.39%. The overall revenue scale is not very large.
Hisilicon, a semiconductor engineer, told time finance that he was not very optimistic about Konkas storage products. The engineer said, EMMC itself is not very technical, they just came up with it. SSD is still a little difficult in technology. If its true, the performance is barely passable in China, but its only cost-effective. I dont believe that their main control of SSD is mature enough to be mass produced. The more complex chips are, the more they need practice, pay more tuition fees and market inspection.
In addition, Konka said that its integrated chip cost is 15% lower than the industry average, and its size is more than 10% smaller than the mainstream products in the industry. Some industry people also explained the logic behind it to times finance.
Cai Yuming, general manager of Suzhou Sifang Jiexin Electronic Technology Co., Ltd., explained to times finance and economics that the cost of chip is almost half of that of chip flow and package test. If the chip size is 10% smaller, it means that the overall cost is about 5% less, but the operating cost of many small and medium-sized companies is much smaller than that of Konka, so the cost gap in this respect is not big.
Konkas strength lies in the overall resource scale. After the purchase volume and shipment volume are piled up to increase the film quantity, it can get lower film cost and sealing test cost. In addition, it has a cost advantage of nearly 15%. Cai Yuming thinks.
A CEO of a chip design company also told time finance and economics that assuming that other factors and functions are the same, Konkas chip does have a marginal cost advantage.
There are many memory master chips in China, but in my opinion, Konka has no obvious advantages other than funds. Cai Yuming said, Samsung and Hynix are making memory chips. No one in China can make them. Several are in trial production. Konka only makes the main control chip, which is the control chip for docking these memory chips. I think its really hard to achieve 100 million
There are also industry based on the first batch of Konka chip production speculation, expressed doubts about product maturity. A months mass production of 100000 main control chips, or back to the Kangjia tree, this product is not mature. A personage inside course of study reveals to time finance and economics, price, now domestic majority chip manufacturer is in Red Sea competition.
Semiconductor industry is beginning to take shape, and the main business is weak to be solved
Konka was founded in 1980. As an old black power giant, Konka became the first enterprise in Shenzhen with a revenue of more than 10 billion yuan in 1999. It is also known as the three big black power giants together with Changhong and TCL.
However, in recent years, with the increasingly fierce competition in the home appliance market and the sluggish demand of the industry, Kangjias main business revenue of color TV has been standing still for many years, and it is always difficult to achieve a breakthrough. In Kangjias 2015 annual financial report, the old household appliance giant even had a net profit of - 1.257 billion yuan attributable to shareholders of listed companies, a year-on-year decrease of 2488.32%.
In addition, Konkas non net profit deduction has been at a loss for eight years since 2011, and its net cash flow from operations has been negative for three years. From 2016 to 2018, it was - 972 million yuan, - 3.23 billion yuan and - 4.314 billion yuan respectively. In this situation, Konkas current liabilities at the end of 2018 have reached 22.676 billion yuan, more than 21.843 billion yuan of current assets in the same period.
In fact, looking at the whole industry, domestic home appliance brands that grow up in the worlds largest color TV production and consumer market have been faced with the dilemma of lack of core and less screen. Without independent research and development of chips, relying on imports can only be controlled by people. It is a long-term consideration in the process of transformation for home appliance enterprises to develop their own chips and reshape the core value chain, which is not just started in the past two years.
As an important direction of the transformation and upgrading of the main business, the layout of the semiconductor industry chain has become one of the choices for home appliance enterprises.
From 2016, Konka started to design, research and development, seal test and sales of storage master chips and storage products in the semiconductor industry. Konka told time finance that the above three businesses will form a storage industry collaboration in the mode of design + test + channel.
In the same year, Konka established a joint venture company, Zhongkang storage technology, which specializes in the sales of storage products (DRAM, SSD, microSD, EMMC). According to Konka, the companys revenue reached 769 million US dollars in 2017 and 1.346 billion US dollars in 2018.
Since then, Konka has taken frequent actions in the field of semiconductors. In 2018, Konka announced the establishment of the semiconductor technology business department at its 38th anniversary celebration, and the whole industrial chain of semiconductor equipment, semiconductor materials and so on has become its key business.
Since then, Konka has made strategic transformation towards the development direction of technology + industry + park, and the supply chain management business for IC chip storage, LCD screen and other materials has become one of its three main businesses.
In the field of storage, in addition to the planned Hefei kangxinwei Storage Technology Co., Ltd., Kangjia also established Kangjia Xinying semiconductor technology (Shenzhen) Co., Ltd. (hereinafter referred to as Kangjia Xinying) to research, develop, seal and sell Kangjia brand memory chip products. The planned three storage product lines include EMMC, SSD and ddrl, which are mainly used in PC And intelligent terminal equipment.
On November 25, 2019, Konka released an investment announcement, saying that it will invest more than 1 billion yuan to build a semiconductor chip sealing and testing factory in Yancheng, Jiangsu Province, with Konka core profit as the main body. This sealing and testing factory will become the only unmanned factory open to the third party in China, and it is planned to complete mass production in 2020 to achieve a production capacity of more than 200 million pcs / year.
The person in charge of Konka core surplus disclosed to times finance and economics that Konka storage products have three main advantages: first, the product has strong performance and fast reading and writing speed. At present, the highest reading speed of Konka SSD products can reach 3500mb / S; second, the yield is high, and the yield of storage products produced by Konka core surplus is expected to exceed 99.9%, leading the industry level; third, it has obvious price cost advantage and price comparison Well known brands with the same positioning have a price advantage of about 10%.
In terms of the whole environment, in recent years, the market of home appliance enterprises is not very prosperous, and it is in urgent need of transformation. Konkas transformation is mainly to use its platform brand to develop an industrial park with the operation mode of technology + industry + park, speed up the layout of the semiconductor sector, and have some core competitiveness. Hong Shibin, an analyst in the household appliance industry, told Time Finance on February 25 that after overcoming the technical problems in the semiconductor field, Kangjia had the opportunity to open up all the industrial chains in a valuable way.
On the other hand, Konka said to time finance, Konkas expectation that the revenue of semiconductor business in the next 5-10 years will exceed 10 billion will remain unchanged. If the semiconductor industry wants to do well, it needs continuous and huge capital investment, and the stable sales of products will contribute a lot to the companys profits.
However, at present, the proportion of semiconductor business in the overall plate of Konka is still very small, which has limited impact on Konkas performance. If the companys goal of selling 100 million storage master chips in 2020 can be achieved, according to the companys current forecast on the price of storage master chips, the corresponding total sales amount of 100 million storage master chips is expected to be about 250 million yuan, accounting for no more than 1% of the companys sales revenue in 2020, Konka said in the announcement