Xinwei Communication: We are closely cooperating with major mobile terminal manufacturers in the development of 5G mobile phones

Recently, Xinwei Communication received 21 research institutions and organized research activities on the company's operating conditions in the first half of the year, 5G layout and other contents.

Looking back at the semi-annual report of Xinwei Communication, the company achieved operating income of approximately 1.954 billion yuan, an increase of 7.05% over the same period last year; the net profit attributable to shareholders of the listed company was approximately 369 million yuan, a decrease of 15.67% over the same period last year.

Regarding the company's performance changes during the period, Xinwei Communication stated that in the first half of 2019, faced with an uncertain external economic environment, the continued expansion of some customers' existing businesses encountered periodic challenges; on the other hand, the company completed the construction and relocation of new factories in Shenzhen, Jintan Industrial Park, and Vietnam factories, which affected the output and sales of some products and increased costs; at the same time, in order to cooperate with the expansion of 5G and other new businesses, the company increased its R&D investment and expanded the scale of cutting-edge R&D and management personnel, and R&D expenses increased by 66.15% year-on-year.

However, Xinwei Communication also pointed out that the construction, relocation and R&D expenses of the factory have temporarily affected the company's operating conditions in the first half of the year, but we believe that the commissioning of new production capacity and the expansion of new business will lay a solid foundation for sustained and healthy development in the next few years.

According to him, the company's domestic revenue in the first half of the year decreased significantly year-on-year, while its overseas revenue increased significantly year-on-year, mainly because the settlement form of some major customers changed from domestic delivery to overseas delivery this year. For example, Samsung's customer's factory moved from China to overseas.

In terms of 5G, Xinwei Communication has the design and manufacturing capabilities of flexible transmission line products such as LCP and MPI, and is accelerating the construction of production capacity in Changzhou. The company's LCP transmission line products are also used for the connection between Qualcomm's 5G baseband chips and 5G millimeter wave antenna modules. In addition, with the advent of the 5G era, the number and value of antennas will increase. The company also closely cooperates with major mobile terminal manufacturers in the development of 5G mobile phones and provides antennas and other RF components.

On the base station side, the company has provided base station antenna vibrator solutions to major domestic base station equipment manufacturers and has already shipped them in batches. In addition to antenna vibrators, the company is also exploring the layout of other products on the base station side.

It is understood that currently, Samsung, a major North American customer of Xinwei Communication in the wireless charging business, has already applied wireless charging in large quantities. Domestic high-end mobile phone models are also equipped with wireless charging. In the future, more and more domestic mobile phone models will be equipped with wireless charging. In addition, the application of wireless charging in the automotive and other fields is also increasing. Overall, the market penetration rate of wireless charging will further increase in the next few years. Xinwei can provide a one-stop solution from materials to modules in the field of wireless charging, and has become a core partner of important mobile phone manufacturers and some automobile manufacturers.

Xinwei Communication said: "At present, the company's products are arranged in stages, and many products will become important forces for the company's development. Specifically, 5G antennas, LCP/MPI related products, wireless charging, EMI/EMC products, RF front-end products, etc. are all important growth points in the future."