Chinas printed circuit boards already have an absolute say, the Huawei supplier said

category:Finance
 Chinas printed circuit boards already have an absolute say, the Huawei supplier said


In the post epidemic era, as one of the leaders in the printed circuit board industry, Huaweis aoshikang (002913. SZ) has achieved adverse growth? How does the management view the merger and reorganization of enterprises? What is the future direction of domestic substitution of printed circuit board raw materials? With these questions in mind, recently, China Economic Weekly interviewed Cheng Yong, chairman of aoshikang.

The mystery of performance growth against the trend

China Economic Weekly: novel coronavirus pneumonia suddenly came into view earlier this year. Under the influence of macro-economy, the demand of electronic industry has fallen, especially the impact of automobile electronics and household appliances. Why is auscons market orders unique scenery here and its performance achieve adverse growth?

Cheng Yong: affected by the epidemic situation in the first quarter, many enterprises in the printed circuit board industry are facing a sharp decline in orders, or even cut back. From the first three quarters of auscon revenue, more than 25% growth. The most important reason for the decline of the industry and the adverse growth of oshicom is the transformation and layout of the company in 2017. Three years later, the company began to produce food under the background of the epidemic situation.

If we didnt make up our mind to transform in 2017, it would be a dead end. Ive been doing PCB for more than 20 years, and I havent tried it in other industries. Its very good to do two or three things in ones life. Its already very good if we can do a good job in printed circuit boards, so I havent been brought into the minefield of cross-border transformation by capital.

Long term development

Cheng Yong: it has been three years since aoshikang was listed on the stock market. There are few attempts to merge and reorganize the company, issue additional shares and issue bonds, which can be described as rigid.

There is an unwritten rule within the company: whoever talks to me about merger and acquisition within three or five years will leave. We havent done well in our main business. Why should we do M & A. Aoshikangs main business is at least among the top three in the printed circuit board industry, so it has the foundation to look at the merger and acquisition projects.

What is the core of a successful M & A? It is whether the listed companies can control the target of M & A. This has put forward high requirements for the construction of enterprise talent echelon. Without the accumulation of talents, the target of M & A can not become a hot money, can not form industrial synergy with the main business of the company, or even become the negative assets of the company. Such M & A is meaningless.

Auscon development adheres to the long-term principle - this is my tone for the future development of the company. We do not engage in short-term behavior. From the perspective of the development of the printed circuit board industry, we can see that the industry can not be replaced in the next 20 years, and the ceiling of this industry is high enough.

The manufacturing industry cant play games. Aoshikang should adhere to the main business for a long time, benchmarking the leader of the printed circuit board industry, constantly improve the management and development of the company with the mentality of running with you, absorb and digest the survival logic and industrial thinking of competitors. When the wings are full, we will naturally grow into the main runner of the printed circuit board industry.

My strategic determination is logical, in line with the interests of the majority of shareholders, but also in line with the interests of the whole companys fighters. In my opinion, the interests of the strivers may be more important than the interests of shareholders.

At present, auscons technology and talent reserves determine that our future market and scale still have a lot of room for improvement, especially our marketing development can be described as invincible. At present, the only short board is capacity.

PCB raw materials have been replaced by domestic ones

China Economic Weekly: the integrated circuit industry has become a wind outlet. Does this mean that the process of PCB localization is speeding up? How to treat the localization of PCB industry?

Cheng Yong: in 2019, Chinas integrated circuit sales revenue reached 756.2 billion yuan, an increase of 15.8% year-on-year, which has become one of the fastest growing regions in the world.

Only when the manufacturing enterprises are strong can the national strength be strong. Throughout the world, China has an absolute say in PCB industry. At present, the scale of PCB industry in Chinese mainland has become the trend of monopoly. Foreign enterprises have no advantage in raw materials and supporting industrial chains.

From the perspective of printed circuit board raw materials, at present, they are all in the hands of the Chinese people. From 2017, the national level began to promote the domestic substitution of printed circuit board materials. After two or three years of development, the printed circuit board industry materials have basically realized localization. There are two reasons for the successful implementation of domestic substitution of PCB production materials in China: one is the national policy orientation; the other is the acceleration of domestic iteration driven by commercial interests. Before the replacement of domestic products, the raw materials of printed circuit boards in European and American countries may be 100 yuan / m2, and the Chinese will only make them 60 yuan / m2. We will sell them to the downstream with 80 yuan / m2, and there is still 20 yuan profit margin in the middle. In the post epidemic era, we should change the habitual thinking of domestic products are not good and give domestic brands a try. In particular, the epidemic crisis has intensified the trend of domestic substitution in all walks of life. Editor in charge | Yao Kun format | Meng Fantings wechat duty: Yang Baihui source: China Economic Weekly Author: Guo Zhiqiang, responsible editor: Zhong Qiming_ NF5619

From the perspective of printed circuit board raw materials, at present, they are all in the hands of the Chinese people. From 2017, the national level began to promote the domestic substitution of printed circuit board materials. After two or three years of development, the printed circuit board industry materials have basically realized localization.

There are two reasons for the successful implementation of domestic substitution of PCB production materials in China: one is the national policy orientation; the other is the acceleration of domestic iteration driven by commercial interests. Before the replacement of domestic products, the raw materials of printed circuit boards in European and American countries may be 100 yuan / m2, and the Chinese will only make them 60 yuan / m2. We will sell them to the downstream with 80 yuan / m2, and there is still 20 yuan profit margin in the middle.

Yao Kun

Wechat on duty: Yang Baihui