Company code: 603738 Company abbreviation: Taijing Technology
An important reminder
1 The summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plans, investors should go to the Shanghai Stock Exchange website and other media designated by the China Securities Regulatory Commission to carefully read the full text of the annual report.
2 The board of directors, supervisory board, directors, supervisors and senior management personnel of the company ensure that the content of the annual report is true, accurate and complete, and there are no false records, misleading statements or major omissions, and they bear individual and joint legal responsibilities. All directors of
3 company attended the board meeting.
4 Zhongshen Zhonghuan Accounting Firm (Special General Partnership) has issued a standard audit report with no reservations to the company.
5 The profit distribution plan for the reporting period or the capital increase plan for the reserve fund reviewed by the board of directors
According to the standard audit report without reservation issued by Zhongshen Zhonghuan Accounting Firm (Special General Partnership), the company achieved a net profit attributable to the parent company in 2018 of RMB 36,358,746.47. Based on the confidence in the company's stable operation and long-term development, the company's board of directors has fully considered the company's actual operating conditions and investor returns in recent years, and has formulated a profit distribution plan for 2018: based on the total share capital on the equity registration date when the profit distribution is implemented, and a cash dividend of 0.9 yuan (including tax) will be paid to all shareholders for every 10 shares, and no bonus shares will be given, and no capital reserve will be transferred to capital reserves. The remaining undistributed profits are carried forward to the next year.
This profit distribution plan still needs to be submitted to the company's shareholders' meeting for deliberation.
2 Company Basic Information
1 Company Profile
2 Company Profile
2 Company Profile
(I) The company's main business is the research and development, production and sales of quartz crystal resonators. The company's main business has not changed since its establishment. The company's initial fundraising investment projects revolve around the company's main business, which is consistent with the development trend of miniaturization and chipization in the electronic components industry and the national industrial policy direction. The implementation of the investment projects raised will expand the company's production capacity, optimize the company's product structure and improve product quality, and enhance the company's market competitiveness. At present, the company's main products are various models of quartz crystal resonators, covering DIP and SMD, etc. The specific model display and main applications are as follows:
(II) The company's main business model
1, procurement model
After years of operation, the company has formulated a relatively complete supplier management system and procurement control process, conducted a comprehensive review of supply capacity and material quality, and purchased through multiple choices and price comparisons. The company has years of stable business cooperation with its suppliers and sufficient raw materials supply.
2, production model
company adopts an order-driven model to organize production. According to customer needs and combined with the working mechanism of the product, its performance parameters and technical indicators are proposed, or the product specifications are determined directly based on the general product indicators. Then the sales department formulates a demand plan according to the order and submits it to the procurement and production department, and organizes the procurement of raw materials and product production.
3. Sales model
Our company mainly adopts the direct sales model, directly facing end customers, and maintains long-term strategic cooperative relationships with important customers; at the same time, the company uses buyout sales as a supplement through electronic product traders; expands new sales channels and expands market share every year according to market demand. Since 2018, the company has increased the promotion of chip solution providers and obtained more terminal customer opportunities through the certification of various solution provider product platforms. It is the company's micro-chip products that intervene in the intelligent and Internet of Things market and participate in international competition.
(III) The industry situation of the company
company is mainly engaged in the research, development, production and sales of quartz crystal resonators, and belongs to the quartz crystal components sub-industry in the electronic components industry. Electronic components are the basic industry of the electronic information industry and an important supporting force for promoting the development of my country's electronic information industry.
1, global and my country's quartz crystal components industry status
According to public information, the sales share of major production sites of quartz crystal components in the world from 2010 to 2017:
Data source: Japan Crystal Industry Association [QJAJ] 2010, 2011, 2013, 2015, 2016, 2017
(Note: Statistics in 2012 and 2014 are not disclosed)
Market share of major production sites of quartz crystal components in the world from 2016 to 2017 is as follows:
Data source: Siward 2016 annual report and 2017 annual report
Worldwide, Japanese quartz crystal component manufacturers have high basic technical level and production automation level, have strong scale and technical advantages, and are an international quartz crystal resonator manufacturing powerhouse. Before 2011, quartz crystal resonators produced by Japanese manufacturers accounted for nearly 60% of the world market, showing a competitive landscape that was dominant in one country. Since 2013, Japanese manufacturers have been affected by factors such as rising raw material and human resources costs and exchange rate fluctuations. At the same time, they have been affected by the expansion of production capacity of manufacturers and alternative products from other regions around the world such as Taiwan and mainland China. The market share has declined significantly, and it has slightly decreased in 2017. The proportion of global market share has dropped from 59.9% in 2010 to 48.80% in 2017, a decrease of 11.10 percentage points (Data source: Statistical Data of Japan Crystal Industry Association QIAJ, 2010, 2011, 2013, 2015, 2016, 2017).
Taiwanese manufacturers have developed rapidly in recent years, with fast product update speed and cost advantages reflected. In 2017, it occupied about 24.30% of the global market share, an increase of 6.00 percentage points from 2010. In other regions, such as American manufacturers, their products are mainly targeted at the domestic and part of the special product market in the United States, with relatively stable supply and demand channels and high unit value. In 2017, the global sales of similar products accounted for about 9.00%. The product application of manufacturers in South Korea, Europe and other countries is mainly based on their domestic demand, and showed a downward trend in 2017, accounting for about 7.0% of global sales in total. Due to the development of electronic information and wireless communication technologies, European countries have certain advantages in design, development and frequency utilization (data source: Statistical data of Japan Crystal Industry Association QIAJ, 2010, 2011, 2013, 2015, 2016, 2017). The overall market sales of mainland Chinese manufacturers are lower than those of Japan and Taiwan, but the growth rate is higher than that of the world. In 2017, sales accounted for about 10.10% of the world, an increase of nearly 6.1 percentage points from 4.0% in 2010. With the rise of mainland Chinese manufacturers, market competition has gradually intensified. With the help of the cost resources of mainland China's advantages, mainland Chinese companies still have a lot of room for growth in the quartz crystal resonator industry.
According to the 2017 annual report of Taiwan Jingji Co., Ltd., the global output value of frequency components remains at US$3.1-3.3 billion, with an annual compound growth rate of 0.1%. The annual sales of global frequency components are estimated to be 17.5-18.5 billion, with an annual compound growth rate of 2.1%. As mainland Chinese manufacturers have made great progress in raw material development, production equipment upgrades and capacity scale. According to the data on market share in the 2016 annual report and 2017 annual report of Taiwan Xihua Crystal Technology Co., Ltd., the market size of various quartz crystal resonators is increasing year by year. The main reason is that on the one hand, the cost advantages of Japanese companies in the application fields of consumer electronic products, small electronic products and information equipment have decreased, and they have turned to developing other product markets, and mainland Chinese manufacturers have gradually expanded their market share; on the other hand, as the manufacturing center of global electronic information products, mainland China has gradually increased its procurement demand in downstream markets, driving the development of the quartz crystal components industry. It is expected that with the rapid development of Intelligent Internet of Everything in the next few years, with the strengthening of competitiveness of mainland Chinese manufacturers, their market share will continue to rise.
2. The current output and distribution of various varieties of the company
(1) Comparison of the output of various varieties of the company from 2016 to 2018 (unit: billions):
The total production of the company's product has increased year by year: the output in 2018 was 2.78 billion, an increase of 23.51% over the previous year.
(2) Comparison of the proportion of revenue series in 2017 and 2018:
During the reporting period, the company achieved main business revenue of 548 million yuan, an increase of 7.67% over the previous year's 509 million yuan. The proportion of M series products in the main business revenue further increased, accounting for 60.75% of the main business revenue, an increase of 7.44% over the previous year's proportion of main business revenue.
In December 2017, after approval by the China Securities Regulatory Commission’s “Securities Supervision License [2017] No. 2094” document, the company issued convertible corporate bonds with a total face value of RMB 215 million, with the issuance price of RMB 100.00 each, with the total amount of funds raised of RMB 215 million. After deducting the issuance expense of RMB 17.5193 million, the actual net amount of funds raised was RMB 197.4807 million. After the funds raised are in place, the company will quickly invest and reasonably use the funds raised in response to market demand and accelerate the construction of fundraising projects. During the reporting period, the fundraising and investment project "TKD-M Series Micro Chip High-frequency Crystal Resonator Production Line (Phase II) Expansion Project" has invested a total of 82.5476 million yuan, accounting for 41.80% of the net funds raised by the convertible bond fundraising project; the fundraising and investment project "TKD-M Series Temperature Compensation Micro Chip High-frequency Crystal Resonator Industrialization Project" has invested a total of 114.9994 million yuan, accounting for 58.23% of the net funds raised by the convertible bond fundraising project. All funds for the above-mentioned fundraising and investment projects have been invested, and their economic benefits are in the process of release.
3. Main application trends of the company's products
. The company's main products are quartz crystal resonators, among which the core products are various models of tuning fork crystal resonators (including DIP, SMD) and SMD high-frequency crystal resonators. As the basic component of frequency control and frequency selection, quartz crystal resonators are widely used in information equipment (desktop computers, laptops, tablets), mobile terminals (multi-function mobile phones, smartphones, GPS, PDAs), network equipment (large base stations, routers), automotive electronics, consumer electronic products (digital cameras, cameras), small electronic products (quartz watches, multi-function calculators, remote control electronic toys, electronic gifts, etc.), smart application products such as smart meters, electronic banking password cards, electronic tags and other multi-level applications of the Internet of Things. It has a wide range of applications in wireless wide area networks (WAN), local area networks (LAN), metropolitan area networks (MAN), personal networks (PAN), including 3G/4G/5G, Bluetooth, WiFi, ZigBee technology, etc.
With the strong support of national policies, my country's Internet of Things industry has been growing strongly in recent years. According to statistics from the Ministry of Industry and Information Technology, in 2018, the revenue of IoT business increased significantly by 72.9% over the previous year. (Data source: "2018 Communications Industry Statistical Bulletin" of the Ministry of Industry and Information Technology). During the 13th Five-Year Plan period, the Internet of Things industry will usher in a new round of rapid structural upgrading and product updates, which will help promote the growth of the scale of the domestic consumer market and enable the demand for various types of crystal resonators to grow steadily.
(1) Information equipment
According to the latest statistics from the Ministry of Industry and Information Technology, in 2018, the added value of the computer manufacturing industry increased by 9.5% year-on-year, and the export delivery value increased by 9.4% year-on-year. Among the main products, the output of microcomputer equipment decreased by 1.0% year-on-year; among them, the output of laptop computers increased by 0.6% year-on-year, and the output of tablet computers increased by 2.8% year-on-year. (Data source: "Operation of Electronic Information Manufacturing Industry in 2018" by the Ministry of Industry and Information Technology). With the development of Intelligent Connection of Everything, the functions of information equipment will become increasingly rich. With the strong production capacity of the domestic laptop application market, it will drive a significant growth in upstream quartz crystal resonator products.
(2) Mobile terminal
With the rapid development of electronic communication technology and the emergence of the advantages of production scale, mobile terminals are becoming increasingly popular, and the world's intelligent mobile communication products have maintained a trend of rapid development. In recent years, my country's 4G users have maintained a rapid growth trend, driving the growth of domestic mobile phone market demand. According to the latest public information of the Ministry of Industry and Information Technology, in 2018, the added value of the communication equipment manufacturing industry increased by 13.8% year-on-year, and the export delivery value increased by 12.6% year-on-year. Among the main products, mobile phone production fell by 4.1% year-on-year, of which smartphones fell by 0.6% year-on-year. (Data source: "Operation of Electronic Information Manufacturing Industry in 2018" by the Ministry of Industry and Information Technology). Data shows that although communication equipment still maintains steady growth, the domestic mobile phone industry has entered a period of high maturity.The " Ericsson Mobile Report" in November 2017 showed that Ericsson predicted that wide-area IoT devices and short-range IoT devices are expected to reach 19.8 billion in 2023; the "Ericsson Mobile Report" in November 2018 showed that Ericsson predicted that wide-area IoT devices and short-range IoT devices are expected to reach 22.3 billion in 2024. It can be seen that with the accelerated promotion of 5G commercialization and the interconnection of everything, smartphones and peripheral application terminals will grow rapidly, especially in Northeast Asia (China, Japan, South Korea), which will surely bring development opportunities to China's electronic components industry and is also the best opportunity for the company's main industry to operate the crystal resonator industry.
Ericsson predicts the trend of various connected devices Data source: November 2017 "Ericsson Mobility Report")
Ericsson predicts the number of wide-area and short-range devices and regional distribution Data source: November 2018 "Ericsson Mobility Report")
Ericsson predicts the proportion trend of various technologies such as 5G Data source: November 2018 "Ericsson Mobility Report")
(3) Network equipment
According to statistics from the Ministry of Industry and Information Technology, as of the end of December 2018, the number of Internet broadband access ports reached 886 million, a net increase of 110 million from the end of last year. The net increase in mobile communication base stations nationwide was 290,000, with a total of 6.48 million. Among them, the net increase of 4G base stations was 439,000, bringing the total to 3.72 million. (Data source: "2018 Communications Industry Statistical Bulletin" of the Ministry of Industry and Information Technology).
With the project of increasing the popularity of broadband, there is a huge room for development in the communications and information services industry in the future. In 2016, the Ministry of Industry and Information Technology announced that the IMT-2020 (5G) reserves no less than 500MHz spectrum resources, and the three major domestic operators subsequently announced their respective 5G process tables. Based on the gradual implementation of 5G in my country and the promotion of broadband network development strategy, the scale of network equipment production and sales will steadily increase, and the application of quartz crystal resonators will also further increase.
(4) Automotive Electronics
The "Innovation and Development Strategy for Intelligent Vehicles" released by the country on January 7, 2018 requires that by 2020, the proportion of new smart cars will reach 50%, the construction of smart road traffic system has made positive progress, the coverage rate of automotive wireless communication networks in big cities and highways will reach 90%, and Beidou's high-precision space-time services will achieve full coverage. By 2025, new cars will basically be intelligent, and high-level intelligent cars will be widely used. According to the China Association of Automobile Manufacturers, in 2018, my country's automobile industry was generally running smoothly, and due to multiple factors, production and sales volume decreased year-on-year. The industry's major economic efficiency indicators maintained growth, but the growth rate declined. New energy vehicles are developing rapidly, and production and sales volume maintain a rapid growth trend (data source: "2018 Automobile Industry Economic Operation" of the Ministry of Industry and Information Technology). Among them, the cumulative production and sales of new energy vehicles were 1.2705 million and 1.2562 million, a year-on-year increase of 59.92% and 61.74% (Data source: "my country's new energy vehicles continue to maintain rapid growth in 2018" by the Ministry of Industry and Information Technology). With the acceleration of 5G commercialization, the Internet of Vehicles will usher in a golden period of development, which will bring greater market space for automotive electronics. More and more electronic devices (e.g., sensors, communications (GPS, 4G/5G), cameras, detection systems, etc.) are being applied to cars to improve safety, comfort, entertainment and stability. The rapid development of automobile networking, intelligent identification systems and unmanned driving will greatly promote the rapid growth of the upstream component market.
(5) Smart hardware
In 2016, China's smart hardware market maintained a stable growth trend. Smart hardware specifically includes wearable devices, smart homes, smart car equipment, smart service robots, etc. In recent years, the country has successively released plans such as " Made in China 2025" and "China Robot Industry Development Plan", providing strong support for smart hardware at the policy level and providing guidance. The development of the smart hardware market is mainly driven by technologies such as artificial intelligence and sensors. It is more perfect in human-computer interaction and intelligence, providing consumers with a richer experience and becoming an important part of the integration of the Internet of Things into daily life.
According to relevant data, the global wearable sensor market size in 2016 was approximately US$237.93 million, and is expected to reach approximately US$1.3874 billion by 2022; the average annual compound growth rate from 2017 to 2022 is about 34.2%.(Data source: China Electronic Components Industry Association http://www.ic-ceca.org.cn). It can be seen that the future market space of smart hardware is broad, and it will generate a large demand for the crystal resonator market, providing good development opportunities for domestic crystal resonator products to explore the domestic application market.
3 Company's main accounting data and financial indicators
3.1 Major accounting data and financial indicators in the past three years
Unit: Yuan Currency: RMB
3.2 Major accounting data for the quarterly period
Unit: Yuan Currency: RMB
Quarterly data and disclosed periodic report data description
□ Applicable √ Not applicable
4 Shareholders and shareholders
4.1 Number of preferred shareholders who have recovered common shareholders and voting rights and shareholding status of the top 10 shareholders
Unit: Stock
4.2 Block diagram of property rights and control relationship between the company and controlling shareholder
√ Applicable □ Not applicable
4.3 Block diagram of property rights and control relationship between the company and the actual controller
√Applicable □ Not applicable
4.4 Total number of preferred shareholders of the company at the end of the reporting period and the situation of the top 10 shareholders
□ Applicable √ Not applicable
5 Corporate bond situation
□ Applicable √ Not applicable
3 business situation discussion and analysis
1 Main operating conditions during the reporting period
During the reporting period, the company achieved operating income of 611.2996 million yuan, an increase of 13.21% over the same period last year; the total profit was RMB 57.863 million, a decrease of 39.79% over the same period last year; the net profit attributable to the parent company was RMB 44.1098 million, a decrease of 42.14% over the same period last year; the net profit attributable to the parent company was RMB 36.3587 million, a decrease of 43.66% over the same period last year.
2 The reason why the suspension of listing
□ Applicable √ Not applicable
3 The situation and reasons for the delisting of listing
□ Applicable √ Not applicable
4 The company's analysis of the reasons and impact of accounting policies and accounting estimates change
√Applicable □ Not applicable
1, accounting policy changes
∠ Change of financial statement format
∠ Change of financial statement formats
1 in June 2018 (Notices on the Revision and Issuance of General Enterprise Financial Statements Formats in 2018" (Financial Accounting [2018] No. 15). The company prepares financial statements in accordance with relevant requirements in accordance with the general enterprise financial statement format (applicable to enterprises that have not yet implemented the new financial standards and new income standards): (1) The original "notes receivable" and "accounts receivable" items are merged into "notes receivable and accounts receivable" items; (2) The original "interest receivable" and "dividends receivable" items are merged into "other receivable" (3) The original "fixed asset cleaning" project was incorporated into the "fixed asset" project; (4) The original "engineering materials" project was incorporated into the "construction projects under construction" project; (5) The original "notes payable" and "accounts payable" projects were merged into the "notes payable and accounts payable" project; (6) The original "interest payable" and " dividend payable " projects were merged into the "other payable" project; (7) The original "special payable" project was incorporated into the "long-term payable" project; (8) The expense expenditure incurred during the research and development process is listed in the "R&D expenses" project and is no longer listed in the "administrative expenses" project; (9) The detailed items of "interest expenses" and "interest income" are split under the financial expenses project; (10) The new "setting the change amount of the benefit plan carried forward retained income" project is added to the shareholders' equity change statement.
Our company re-reviews the comparison report according to the above-mentioned reporting requirements.
Due to the above requirements, some items in the financial statements of this year and the comparative period are different, but they have no impact on the merger of the company and the parent company's net profit and merger and the parent company's shareholders' equity in this year and the comparative period.
②Refund of personal income tax fees
In September 2018, the Ministry of Finance issued the "Interpretation on Issues Related to the Format of General Enterprise Financial Statements in 2018". The tax fees withhelded in accordance with the "People's Republic of China" should be filled in as other items related to daily activities in the "Other Income" items of the income statement. The company has recapitulated the comparison report accordingly.The impact on the consolidated income statement and the parent company's income statement presentation during the reporting period is as follows:
Unit: Yuan
2, accounting estimate changes
The Company has no accounting estimate changes during the reporting period.
5 Analysis of the reasons and impact of major accounting errors by the company
□Applicable√Not applicable
6 Compared with the financial report of the previous year, if the scope of the financial statements has changed, the company shall make specific explanations.
√Applicable □Not applicable
consolidated financial statements The scope of consolidation of the consolidated financial statements is determined on a control basis, including the annual financial statements of the Company and all subsidiaries for the year ended December 31, 2018. There are thirteen subsidiaries: Shenzhen Taijing Industrial Co., Ltd., Suizhou Runjing Electronic Technology Co., Ltd., Suizhou Taijing Jing Technology Co., Ltd., Shenzhen Kecheng Precision Hardware Co., Ltd., Taijing Industrial (Hong Kong) Co., Ltd., Hubei Dongao Electronic Technology Co., Ltd., Suizhou Taihua Electronic Technology Co., Ltd., Shenzhen Taizhuo Electronic Co., Ltd., Taizhuo Electronic (Hong Kong) Co., Ltd., Qingyuan Hongtai Surface Technology Co., Ltd., Wuhan Runjing Technology Co., Ltd., Chongqing Taiqing Electronic Technology Co., Ltd., Shenzhen Penghe Precision Technology Co., Ltd.
Note: Subsidiaries refer to entities controlled by the Company (including divisible parts of enterprises, invested units, and structured entities controlled by the Company, etc.). Control means that the investor has the power over the invested party, enjoys variable returns by participating in the relevant activities of the invested party, and has the ability to use the power over the invested party to affect its return amount.
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