Beijing Junzheng plans to add 140 million yuan to the automotive electronics industry

Beijing Junzheng plans to add 140 million yuan to the automotive electronics industry

On April 1, 2020, Beijing Junzheng Integrated Circuit Co., Ltd. (hereinafter referred to as “Beijing Junzheng”) issued an announcement to disclose the “Regarding Foreign Investment and Establishment of Wholly-owned Assets” reviewed and approved at the twelfth meeting of the fourth board of directors. Subsidiary’s Proposal.

The announcement stated that in order to make full use of the rich human resources, perfect industrial environment and better policy support in first-tier cities in integrated circuit design, timely grasp the good opportunity for the development of the domestic integrated circuit industry, promote the steady expansion of the company’s business, and improve the company’s comprehensive Competitiveness, according to the company’s overall development plan, the company plans to invest RMB 140 million to invest and establish a wholly-owned subsidiary in Shanghai Pudong, one of the domestic integrated circuit industry clusters, to conduct research and development of integrated circuit related technologies and solutions for the automotive electronics industry. .

The newly established wholly-owned subsidiary is tentatively named Shanghai Inzane Microelectronics Co., Ltd. (tentatively named, subject to the name approved by the industry and commerce administrative department). The business scope includes technology development, technical services, technical consultation, technology transfer in the field of microelectronics technology, research and development, design and sales of Electronic products and components, semiconductor devices, computer software and hardware and auxiliary equipment, communication equipment, and integrated circuits.

Beijing Junzheng said that the purpose of establishing a wholly-owned subsidiary is to realize the company’s overall layout in the field of automotive electronics research and development and the market, promote the steady expansion of the company’s business in this field, improve the company’s comprehensive competitiveness, and better achieve The company’s overall development strategy. The establishment of a subsidiary is still subject to the approval of the industry and commerce administrative department, and there will be certain uncertainties such as research and development risks, market risks, operational risks and management risks. In view of the relatively long time required for technology research and development and market promotion in the field of automotive electronics, in the early stage of investment, it may have a certain impact on the company’s operating performance.

This foreign investment is a prudent decision made by the company from the overall strategy and long-term development. It will promote the steady expansion of the company’s business, realize the company’s long-term plan for in-depth expansion in the field of automotive electronics, comprehensively enhance the company’s comprehensive competitive advantages, and promote the company’s sustainable development. Sustained development will have a positive impact on the company’s business development.

According to the 2019 annual report released in the same period, Beijing Junzheng achieved an operating income of 339 million yuan in 2019, a year-on-year increase of 30.69%; through the introduction of new products, an echelon-based product layout was formed, covering high, medium and low-end products respectively. The demand for production has increased in the main business, especially in the sales of smart video chips. In 2019, smart video chip revenue increased by 79.47% year-on-year, gross profit margin was 23.62%, up 2.43pct year-on-year; microcontroller chip sales revenue increased by 1.37% year-on-year, gross profit margin was 54.26%, up 6.54pct year-on-year. The company’s profitability has steadily increased with the revenue growth of main products and the optimization of gross profit margins; superimposed on the company’s two subsidiaries, Hefei Junzheng and Shenzhen Junzheng Times have achieved substantial growth in net profit, promoting the company to belong to shareholders of listed companies in 2019 Net profit was 59 million yuan, a year-on-year increase of 334.02%.

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