Analysis of top 100 electronic components in China in 2019 (32nd session)

With the active cooperation and assistance of key backbone enterprises in China's electronic components industry, after more than four months of efforts, the information center of China electronic components industry association successfully completed the ranking of China's top 100 electronic components enterprises in 2019 (the 32nd session). 100 Chinese electronic component backbone enterprises with excellent performance in scale, strength, financial status and R & D capacity were selected into the new top 100 Chinese electronic components.

In 2019 (the 32nd session), China's top 100 electronic components completed a total of 519.1 billion yuan of main business income, realized a total profit of 39 billion yuan, paid a total tax of 16.4 billion yuan, and exported 20 billion US dollars, driving nearly 490000 jobs.

1、 Hengtong group ranks first, and Xinwei communication is among the top ten

Among the current top 100 electronic components, Hengtong group still ranks first among the top 100 by virtue of its strong total revenue from electronic components business, which is the 11th time that Hengtong group has won the title.

Lixun precision, the largest domestic connector and cable assembly enterprise, advanced two places again and won the runner up of the top 100 electronic components. From the 16th place in 2013 to the 2nd place in this year, the ranking of the seventh top 100 electronic components of Lixun precision has improved year by year, which is very consistent with its rapid expansion in recent years.

Zhongtian Technology, another leading enterprise in the photoelectric cable industry, is still ranked as the top 100 in terms of assets. It is worth mentioning that the total assets of Zhongtian Technology have exceeded Hengtong group and become the top 100 electronic components with the most abundant assets.

Futong group, Ruisheng technology, Changfei optical fiber, goer Co., Ltd. and Yongding group ranked fourth to eighth among the top 100 of the current year. These enterprises have ranked among the top 10 of the top 100 of electronic components in recent years.

Although the business volume of electronic components of Sanhuan group is only more than 3 billion yuan, which is only slightly higher than the average value of all enterprises participating in the ranking, and barely enters the first group ranking, with excellent profitability, Sanhuan group ranks among the top 10 of the top 100 electronic components again, ranking ninth.

Xinwei communication, a leading domestic enterprise in micro antennas, electronic structural parts and connectors, performed well when it participated in the ranking of the top 100 electronic components for the first time, ranking among the top 10 and the 10th among the top 100 electronic components of this year.

In 2018, due to the superposition of various reasons, the chip multilayer ceramic capacitor (MLCC) formed a market shortage, and the product price soared, driving the income and profit of enterprises of chip multilayer ceramic capacitor and its key materials to grow at the same time. Therefore, MLCC enterprises generally improved significantly in the top 100 electronic components. For example, The ranking of Yuyang technology jumped from 71 in the previous session to 26, with an increase of 45, becoming a real dark horse. The ranking of foreign porcelain materials (increased by 35), Hongyuan Electronics (increased by 18), Fenghua high tech (increased by 15) and torch Electronics (increased by 10) has increased significantly.

In sharp contrast to the MLCC industry, the piezoelectric quartz crystal component industry is a rare collective halberd. Although the quartz crystal component industry does not have a large volume in the whole electronic component industry, several enterprises will be among the top 100 components in each session. Due to overcapacity and market downturn in 2018, including many backbone enterprises, the business situation deteriorated. Among the top 100 components, only one company of Taijing Technology (excluding Seven Star Huachuang precision with diversified products) remained, ranking 100th among the top 100 components, and all other enterprises participating in the ranking of quartz crystal components fell out of the top 100.

2、 The growth of main business income and electronic components business income slowed down

The total main business income of the 32nd China's top 100 electronic components enterprises was 519.1 billion yuan, a year-on-year increase of 16.54%, a decrease of about 9 percentage points compared with the growth rate of the main business income of the last top 100 electronic components enterprises. Compared with the total main business income of the last top 100 electronic components, it increased by 13.94%.

Figure 1   Growth chart of main business income of top 100 electronic components enterprises in recent 10 years (unit: RMB 100 million)

The total electronic component business of the current top 100 electronic component enterprises reached 383 billion yuan, a year-on-year increase of 17.33%, but it decreased by 9.5 percentage points compared with the growth rate of the electronic component business of the last top 100 electronic component enterprises. The total electronic component business of the top 100 electronic component enterprises accounted for 73.77% of the total main business income.

Among the top 100 electronic components, the number of large companies with an electronic component business volume of more than 10 billion yuan is the same as that of the previous session, and there are still 9. Among them, the electronic component business volume of Hengtong group is as high as 61.6 billion yuan, which is worthy of becoming the largest enterprise in China's electronic component industry. In addition, there are three companies with an electronic component business volume of more than 20 billion yuan: Lixun precision, Futong group and Zhongtian Technology, with an electronic component business volume of 35.6 billion yuan, 24.5 billion yuan and 23.8 billion yuan respectively.

Table 1: Top 10 electronic components business volume of China's top 100 electronic components in 2019 (32nd session)

3、 The growth rate of total profits fell for the first time since the financial crisis

The total profit of the 32nd top 100 electronic components enterprises reached 39 billion yuan, a year-on-year decrease of 1.58%. This is the first year-on-year decline in the total profits of China's top 100 electronic components enterprises in the 11 years since the 2008 financial crisis (as shown in Figure 2). The reasons are as follows: first, due to the downturn of the downstream market and the impact of the Sino US trade war, most branches of the electronic component industry increased their income without increasing their profits in 2018; Second, the individual top 100 electronic components enterprises suffered huge losses due to the provision of goodwill impairment, which reduced the total profit of the top 100 electronic components.

Figure 2   Year on year growth rate of total profits of top 100 electronic components enterprises from 2008 to 2018 (unit:%)

Among the current top 100 electronic components, the total profit of 65 enterprises in 2018 increased year-on-year, 11 less than that of the previous year. There are 19 Enterprises with a total profit growth rate of more than 50%, the same as that of the previous year. The total profits of 24 enterprises decreased by more than 10%, seven more than the previous session. The profits of 11 enterprises fell by more than 50%, eight more than the previous year. It can be seen that the top 100 enterprises, as the representative of excellent enterprises in China's electronic component industry, are still like this. The profit level of the whole electronic component industry in 2018 can be imagined.

Among the top 10 enterprises with the highest total profits of the current top 100 electronic components, 7 are among the top 10 of the current top 100 electronic components. Although Ruisheng technology has declined slightly in sales, its total profits still rank first among all the enterprises participating in the ranking, followed by Hengtong group and Lixun precision. The gap between the total profits of the three enterprises is very close. Fenghua high tech benefited from the soaring prices of chip multilayer ceramic capacitors (MLCC) and chip resistors in 2018, with a significant increase in total profits, and was able to enter the top 10 of the top 100 electronic components for the first time.

Table 2: Top 10 in total profits of China's top 100 electronic components in 2019 (32nd session)

According to the ranking rules of the top 100 electronic components, the profitability of enterprises is investigated with the weight of sales gross profit margin and total asset contribution rate of 1:2. Among the ten enterprises with the strongest profitability, enterprises engaged in the production of chip multilayer ceramic capacitors (MLCC) occupy half of the seats, including Yuyang technology ranked first, Hongyuan electronics ranked fourth and Sanhuan group ranked sixth, Torch electronics ranked seventh and Fenghua high tech ranked tenth. If we add HTC electronics, the fifth largest manufacturer of tantalum electrolytic capacitors, capacitor enterprises account for six seats in the top ten profitability ranking, which is rare. The two new enterprises that participated in the ranking of the top 100 components for the first time, canqin technology, a manufacturer of microwave dielectric ceramic frequency devices, and Xinya electronics, an electronic wire rod manufacturer, have strong profitability, ranking second and eighth among the top 10 profitability respectively.

Table 3: Top 10 enterprises with the strongest profitability of China's top 100 electronic components in 2019 (32nd session)

4、 Canqin technology won the first prize for growth, and Zhongtian Lixun is the strong one

According to the weight of 2:1:1 of the three indicators of electronic component business income growth rate, asset preservation and appreciation rate and total asset growth rate, we investigated the growth capacity of the top 100 enterprises. Jiangsu canqin Technology Co., Ltd., which was shortlisted as the top 100 components for the first time, doubled its electronic component business volume and total assets, becoming the fastest-growing enterprise among the top 100 components. Canqin technology's revenue from electronic components business in 2018 was only RMB 220 million. It is the only one of the top 100 components with an electronic component turnover of less than RMB 300 million. It is by virtue of its outstanding performance in the two indicators of growth ability and profitability, one first and one second, that canqin technology entered the top 100 components, and its ranking is not low.

Although the revenue growth rate of Huafeng new energy's electronic components business was only 15.6%, with its large-scale acquisition in 2018, its total assets increased by 182%, and its asset preservation and appreciation rate was also ranked first among the top 100, so it was able to rank second among the top 10 growth of the current top 100 components.

Yuyang technology ranks third in the top ten growth with the growth rate of total assets and electronic components business revenue of more than 60%.

It is worth mentioning that Zhongtian Technology and Lixun precision are two top three enterprises in the overall ranking. Both companies are super large enterprises with an electronic component business volume of more than 10 billion yuan. In 2018, the revenue growth rate of electronic component business can be more than 60%, and the growth rate of total assets can reach 69.5% and 35.5% respectively. It is particularly amazing that they can rank fourth and fifth in the growth ranking.

Table 4: Top 10 growth rankings of China's top 100 electronic components in 2019 (32nd session)

5、 The number of authorized patents has increased unprecedentedly

The total R & D expenses of the current top 100 electronic components reached 21.7 billion yuan, an increase of 22.38% compared with the same period last year, and an increase of 35.48% compared with the total R & D expenses of the previous top 100 electronic components. In terms of the ratio of R & D expenses to main business income, the average R & D investment ratio of China's top 100 electronic components enterprises is 4.18%, which is significantly higher than the R & D investment of about 3.6% in recent top 100 components.

In terms of the proportion of R & D investment of various enterprises, the R & D investment ratio of military electronic component enterprises is generally high. Five military electronic component enterprises such as Huafeng Group, aerospace electrical appliances, AVIC optoelectronics, Zhenhua Xinyun and Qixing Huachuang all rank among the top ten enterprises with the highest R & D investment ratio of components.

The authorized patents of the current top 100 electronic components can be called a concentrated burst. The total number of authorized patents reached an amazing 8250, an increase of 56% over the previous top 100 components. Among them, the number of authorized invention patents reached 1867, more than three times that of 526 in the previous session.

In recent years, goer shares, known as the "patent maniac" among the top 100 electronic components, has once again demonstrated amazing strength. It has authorized 396 invention patents, more than 20% of the total number of authorized patents of the current top 100 components, and 2219 other authorized patents, more than 1 / 3 of the total number of other authorized patents of the current top 100 components. However, among the current top 100 components, there are still 20 enterprises that have not obtained an authorized invention patent within one year.

According to the ranking rules of the top 100 components, the R & D strength of the enterprise is comprehensively investigated in the proportion of R & D investment, annual authorized invention patents and annual authorized other patents of 1.5:2.5:1. In the ranking of R & D strength, goer Co., Ltd. won the first place by far surpassing the patent level of other powers, and AVIC optoelectronics and Ruisheng technology ranked second and third respectively.

Table 5: Top 10 R & D strength of China's top 100 electronic components in 2019 (32nd session)

6、 Smartphone supporting enterprises account for a high proportion of exports

In 2018, despite the impact of weak growth in the international market and the imposition of tariffs on products produced by the United States to China, the exports of the top 100 electronic components enterprises continued to grow. According to statistics, the overall export volume of the current top 100 electronic components enterprises reached US $20 billion, a year-on-year increase of 18.36%, about 6 percentage points lower than the export growth rate of the last top 100 electronic components. The total export volume of the current top 100 electronic components accounts for about 26.5% of the total main business income, which is the same as that of the previous top 100 electronic components.

In terms of the export scale of each enterprise, the top four enterprises are Lixun precision, goer shares, Xinwei communication and Ruisheng technology. These four enterprises are all electronic component enterprises mainly supporting smart phones. Only the total export volume of these four enterprises has reached 60% of the total export volume of the current top 100 electronic components. The influence of mobile phone market on China's electronic component export and sales revenue can be seen.

Table 6: Top 10 of China's top 100 electronic components export earning foreign exchange in 2019 (32nd session)