Jiaxin Silk (002404): Participation In Core Technology In Sensor Industry

Jiaxin silk (002404), the main engine of the silk industry, has recently launched an interactive platform for investors. It said that the core technology, which had previously held a stake of 40.40%, had already been supplied to customers for trial production in a small batch.

Panoramic network learned that the company owned a wholly-owned subsidiary of Zhejiang Jiaxin Technology Development Co., Ltd. holding core technology 40.40% equity.

The core technology products are mainly used in high-end industry, national defense industry and other fields. After the 6 inch MEMS production line was put into operation, it began to supply small quantities of trial production for customers.

Zhejiang core technology Co., Ltd. was founded in April 2017, located in Jiaxing science and technology city. It is a production and processing enterprise that focuses on high-end MEMS OEM and has independent intellectual property rights. It has an advanced 6 inch MEMS chip industrial production line, and the process capability covers the whole process of MEMS chip production. In October 2018, the first batch of "core moving" products were produced.

Why does Jiaxin silk, whose main business is textile industry, set foot in MEMS business? In response to investors in the interactive platform, the company said: the company's development strategy is based on the main business, optimizing diversification, and will continue to moderately diversify the layout while strengthening and strengthening the main business. With regard to core technology, the company will make further investment decisions based on its subsequent development.

According to the Jiaxing government website, this is the first chip industrial chain enterprise in South Lake district. After the core technology is put into operation, the production capacity can reach 4 million chips per year, with an annual output value of up to 400 million yuan, and the whole industry chain from design, manufacture to packaging and testing is formed in the city of science and technology with its "Na Jie microelectronics" and "enpai" in the group.

MEMS is a micro device or system constructed by semiconductor manufacturing process. It usually consists of micro sensors, signal processing and control circuits, micro actuators, communication interfaces and power supply components. The size is usually between micron to millimeter level.

Frequent and high quality signal transmission is inseparable from MEMS. If we focus on the navigation and Avionics business, we start our MEMS layout, and acquire the world's leading MEMS chip manufacturer Silex Microsystems AB, which has become a global leader in the MEMS chip industry. (300456)

In recent years, a series of relevant policies and action plans and guidelines have been introduced to support the development of MEMS sensor industry from many angles, such as key technology research and development, industrial application and so on. Coupled with the rapid development of consumer electronics, automotive electronics and other downstream industries, China's MEMS sensor market is booming, and has maintained rapid growth in recent years.

From the perspective of regional distribution, MEMS sensor industry resources are mainly concentrated in the Yangtze River Delta region, accounting for more than 50% of enterprises, of which Jiangsu accounts for nearly 30%. This is mainly due to the Yangtze River Delta has a good integrated circuit industry foundation, silicon based MEMS R & D and foundry production line resources are more, the industrial chain is complete, covering design, OEM and sealing test key enterprises. According to CDI's white paper on 2019 China MEMS sensor potential market and local outstanding enterprises in the field of subdivision, the total scale of MEMS in China reached 50 billion 430 million yuan in 2018, and it is expected to reach 85 billion 110 million yuan by 2021.

As one of the largest silk production and sales enterprises in China, Jiaxin silk issued a performance bulletin. The company achieved operating income of 3 billion 545 million yuan in 2019 1-12, an increase of 11.45% over the same period last year, and the average operating revenue growth rate of the textile manufacturing industry was -1.10%. The net profit attributable to shareholders of listed companies was 164 million yuan, up 14.01% over the same period last year, and the average net profit of textile manufacturing industry increased. The length is -3.56%. The company said that the main reason for its growth was the increase in sales of clothing products, and the further expansion of the supply chain financing and cooperative trade of the golden silkworm network.

Market analysis shows that China's MEMS sensor market is booming and has maintained rapid growth in recent years. Jiaxin silk shares shares in MEMS business, and is expected to open up new profit growth points.

However, the chip industry has a large investment and a long cycle. Jiaxin silk said that the company was involved in the field with financial investment in the short term, and the core technology has not been incorporated into the consolidated statement. The company will invest in the field in the short term.