① Silanwei recorded a loss for the first time in the 20 years since its listing. Previously, several brokerage agencies predicted that the company would lose or exceed 60 million yuan in 2023; ② Silanwei expects to achieve revenue of about 12 billion yuan in 2024, an increase of about 28% over the previous year; ③ At the end of 2023, the company's inventory reached 3,962 billion yuan, accounting for 23.42% of total assets, an increase of 25.06% over the same period last year.
Financial Services Association, April 8 (Reporter Wang Bin) Due to factors such as changes in fair value due to a sharp drop in the price of shares held, combined with weak demand in the consumer electronics market, “IDM leader” Silanwei (600460.SH) recorded a loss for the first time in the 20 years since its listing.
On the evening of April 8, Silanwei announced that in 2023, the company achieved operating income of 9.34 billion yuan, a year-on-year increase of 12.77%, a record high. The net profit attributable to shareholders of listed companies was -357.8858 million yuan, a year-on-year decrease of 103.4%. The company's net profit for the same period last year was 1,052 billion yuan.
In terms of operation, the revenue growth of the company's three categories of products (integrated circuits, discrete device products, and light-emitting diode products) last year, as well as the operating conditions of major factories, are remarkable. Among them, IGBT products used in electric vehicles and photovoltaics performed the most, with revenue growth of over 140%. At the same time, due to the lackluster demand for consumer electronics terminals, the company's inventory pressure is high.
This year's revenue target is around 12 billion
Compared with the data previously predicted by brokerage firms, Silanwei's net profit loss in 2023 was lower than market expectations. A Financial Services Association reporter noticed that several brokerage agencies previously predicted that Silanwei would lose more than 60 million yuan in 2023.
Silanwei said that the main reason for the loss was the fall in stock prices of Yuneng Technology and Anlu Technology among other illiquid financial assets it held, resulting in net income after tax of -452 million yuan from changes in fair value. According to financial data, Silan's net fair value change revenue in 2022 was 426 million yuan.
It is worth noting that in its annual report, the company expects to achieve revenue of around 12 billion yuan in 2024, an increase of about 28% over the previous year. The company's revenue target for 2023 is around 11 billion yuan, and the final completion rate is about 90%.
In terms of capital expenditure, the company expects that the loan size required to carry out production, operation and investment activities this year will be limited to around 6 billion yuan. The total R&D expenditure is estimated to be about 1,055 billion yuan this year, an increase of about 20% over the previous year. The company said that this year it will accelerate the construction of fund-raising projects such as Silanminggallium's “SiC Power Device Chip Production Line Project” and Chengdu Silan's “Automotive Semiconductor Packaging Project (Phase I)”, and will continue to accelerate the construction of Silan Jike's 12-inch power semiconductor chip manufacturing production line project.
Delivery of the electric vehicle main motor drive module Q1 has begun
Looking at the main products, in 2023, Silanwei's integrated circuit sector achieved revenue of 3.129 billion yuan, an increase of 14.88% over the previous year. The main reason for the increase in the company's integrated circuit business revenue was a marked increase in shipments of IPM modules, DC-DC circuits, LED and low-voltage motor drive circuits, 32-bit MCU circuits, and fast charging circuits.
Discrete device products, which account for nearly half of the company's revenue, achieved revenue of 4.832 billion yuan in 2023, an increase of 8.18% over the previous year. Silanwei said that in addition to speeding up the expansion of large-scale white power and industrial control markets, the company's discrete devices and high-power modules have begun to accelerate their entry into markets such as electric vehicles and new energy, and it is expected that revenue will continue to grow rapidly in the future.
It is worth mentioning that in 2023, the company's IGBT (including IGBT devices and PIM modules) revenue reached 1.4 billion yuan, an increase of more than 140% over the previous year. Up to now, Silanming Gallium has developed a monthly production capacity of 6,000 6-inch SiC MOS chips, and is expected to produce 12,000 pieces per month by the end of 2024. Electric vehicle main motor drive modules produced based on second-generation SiC-MOSFET chips independently developed by the company have begun mass production and delivery in the first quarter of this year, and sales of silicon carbide PIM modules used in automobile drivers are expected to reach 1 billion yuan throughout the year.
Major products are under inventory pressure in the short term
Affected by the lackluster demand for consumer electronics terminals, in 2023, the inventory volume of the company's main products all increased to varying degrees, and inventory pressure increased. By the end of 2023, the company's inventory reached 3,962 billion yuan, accounting for 23.42% of total assets, an increase of 25.06% over the previous year.
(Source: 2023 Annual Report of Listed Companies)
In terms of expenses, Silan's sales expenses, management expenses, R&D expenses and financial expenses in 2023 were 167 million yuan, 379 million yuan, 864 million yuan, and 269 million yuan respectively, with year-on-year increases of 16.63%, 0.51%, 21.47%, and 28.52%, respectively.
According to financial data, the company's operating cost in 2023 was 7.265 billion yuan, an increase of 24.33% over the previous year, and the growth rate far exceeded the company's revenue growth rate. The company plans that the total operating cost in 2024 will be controlled at around 11.3 billion yuan, an increase of about 26% over the previous year. This growth rate is slightly lower than the 2024 revenue growth rate planned by the company.