Dilemma and solution for MO source leader Nanda Optoelectronics

★ Dilemma and solution for MO source leader Nanda Optoelectronics

As the leader of MO source, Nanjing Optoelectronics is not generally favored by the capital market. The upstream LED and photovoltaic industries are in recession, and the company's gross profit margin continues to decline, causing Nanjing Optoelectronics' stock price and performance to decline year by year. Since entering the A-share market in 2012, Nanjing Optoelectronics' performance has not returned to the pre-listing level in the seven years since its listing. In recent years, the LED lighting market has faced overcapacity, price declines, and slowing industry demand. The MO source segment products have also seen an oversupply, and the industry competition is very fierce. Nanjing Optoelectronics' MO source business faces severe challenges and its performance is difficult to revive. The sluggish MO source market has prompted Nanjing Optoelectronics to start attacking special gases and deploying semiconductor materials. In January 2013, Nanjing Optoelectronics received support for the national "02 Special Project" high-purity special electronic gas research and industrialization project and started the research and development of special gases such as arsine and phosphine for very large-scale integrated circuits.

★Just now! Silicon Industry Group completed the listing guidance on the Science and Technology Innovation Board

On April 24, the Shanghai Regulatory Bureau released a summary report on the guidance work of the Silicon Industry Group. Haitong Securities believes that the Silicon Industry Group has met the guidance acceptance and application conditions for the initial public offering of A-shares and listing on the Science and Technology Innovation Board to the China Securities Regulatory Commission and the Shanghai Stock Exchange. The Silicon Industry Group is mainly engaged in the research and development, production and sales of semiconductor silicon wafers. It is one of the largest semiconductor silicon wafer companies in mainland China and the first company in mainland China to achieve large-scale sales of 300mm semiconductor silicon wafers. Since its establishment, the Silicon Industry Group has adhered to the major strategic needs of the national semiconductor industry, adhered to a global layout, and adhered to keeping up with international cutting-edge technologies. It has made breakthroughs in a number of key core technologies in the field of semiconductor silicon wafer manufacturing, breaking the situation where the localization rate of 300mm semiconductor silicon wafers in my country is almost 0%, and promoting the process of "independent control" of my country's key semiconductor material production technology.

★ North Huachuang's net profit in 2018 increased by 86% year-on-year, and government subsidies supported its performance

On April 24, North Huachuang released its 2018 annual report, achieving operating income of 3.324 billion yuan, a year-on-year increase of 49.53%; net profit attributable to shareholders of listed companies was 234 million yuan, a year-on-year increase of 86.05%. Among them, electronic process equipment achieved operating income of 2.521 billion yuan, a year-on-year increase of 75.68%. Electronic components achieved operating income of 788 million yuan, a year-on-year increase of 3.23%. It is worth mentioning that during the reporting period, non-recurring gains and losses had a significant impact on North Huachuang's performance, totaling 157 million yuan, of which government subsidies were 177 million yuan. After deducting non-recurring gains and losses, the net profit attributable to the parent was 76.317 million yuan, turning from a loss of -210 million yuan in the previous year to a profit.

Ziguang Guowei's net profit increased by 42% in the first quarter and is expected to increase to 200 million yuan in the first half of the year

On April 24, Unigroup Guoxin released its first quarter report for 2019. The company achieved revenue of 669 million yuan, a year-on-year increase of 29.80%; net profit of 67.07 million yuan, a year-on-year increase of 41.52%; non-net profit of 37.7 million yuan, a year-on-year decrease of 3.82%; net cash flow from operating activities was -310 million yuan, a year-on-year decrease of 242.52%. At the same time, Unigroup Guoxin made a forecast for its performance in the first half of 2019, and it is expected that the net profit will fluctuate between 174 million yuan and 210 million yuan, with a fluctuation range of 45%-75%. This performance change is mainly due to the rapid growth of the company's integrated circuit design business and the steady improvement of operating performance.

★TCL Group: Net profit increased by 27.7% in the first quarter, and CSOT is in the process of transformation and transformation

 TCL Group released its first quarter 2019 performance announcement on April 24. During the reporting period, TCL Group achieved a total operating income of 29.6 billion yuan, a year-on-year increase of 15.5%; of which the main business income was 29.33 billion yuan, a year-on-year increase of 15.2%; and achieved a net profit of 1.01 billion yuan, a year-on-year increase of 27.7%; of which the net profit attributable to shareholders of listed companies was 779 million yuan, a year-on-year increase of 6.6%. During the reporting period, CSOT achieved a shipment area of ​​5.56 million square meters, a year-on-year increase of 17.1%; operating income was 7.25 billion yuan, a year-on-year increase of 12.1%; EBITDA rate was 28.2%, and net profit was 683 million yuan, a month-on-month increase of 35.2% compared with the fourth quarter of last year. Affected by the global economic downturn and the trough of the industry cycle, the prices of CSOT's main products have dropped significantly compared with the same period last year.

★Benefiting from the growth of the automotive electronics/integrated circuit market, Innotronics' revenue increased significantly last year

On April 24, Yingtang Intelligent Control released its 2018 performance announcement. During the reporting period, the company achieved operating income of 12.114 billion yuan, a year-on-year increase of 63.71%. The average operating income growth rate of individual stocks in the electronics manufacturing industry that have disclosed annual reports was 17.26%; the net profit attributable to shareholders of listed companies was 141 million yuan, a year-on-year decrease of 1.72%, and earnings per share was 0.13 yuan. Yingtang Intelligent Control said that in 2018, benefiting from the continued growth of the cloud service, automotive electronics, and integrated circuit market scale, 5G communication ushered in the construction period, and artificial intelligence and Internet of Things technologies matured. The market demand for core storage, main control chips and other components of the company's strong resource-based products continued to grow rapidly, and downstream customers continued to expand, and the company's performance achieved rapid growth.

★Jingrui shares' first quarter net profit was 5.79 million, or bad debt losses may occur

On April 24, Jingrui Chemical released its first quarter report for 2019. The company achieved operating income of 193 million yuan from January to March 2019, a year-on-year increase of 19.01%; net profit attributable to shareholders of listed companies was 5.7877 million yuan, a year-on-year decrease of 37.67%; net profit after deducting non-recurring items was 3.0096 million yuan, a year-on-year decrease of 52.37%. As of March 31, 2019, Jingrui Chemical's accounts receivable reached 237 million yuan. Jingrui Chemical pointed out that during the reporting period, the company's photovoltaic industry customers were affected by the overall fluctuations in the industry's prosperity, resulting in some of the company's accounts receivable being overdue.

★The fundraising and investment projects are progressing well. Guanghong Technology's performance in 2018 increased by more than 57%

On April 24, Guanghong Technology released its 2018 annual report. During the reporting period, under the leadership of the board of directors and the joint efforts of all employees, the company achieved operating income of 1.598 billion yuan, a year-on-year increase of 25.43%; total profit of 313 million yuan, a year-on-year increase of 57.26%; net profit attributable to shareholders of listed companies of 273 million yuan, a year-on-year increase of 57.48%; net cash flow from operating activities of 217 million yuan, a year-on-year decrease of 23.73%. Guanghong Technology believes that the main reason for the change in the company's performance during the period is that the fundraising and investment projects have made good progress, intelligent production has improved efficiency, and at the same time, the company's advantages have been brought into play to improve operating efficiency.