A Share Export Enterprises Nearly 50% Loss In The First Quarter, The Electronics Industry Is Preparing For Pre Stocking.

In March, global market share prices continued to unrest. Under the control of domestic epidemic situation, A shares are relatively down. However, for some A share listed companies whose business income is more dependent on overseas market, the spread of the overseas epidemic has forced these companies to face the pressure of supply chain disruption, logistics stagnation, and products being unable to sell, which has a greater impact on revenue and performance.

With the disclosure of quarterly reports of listed companies, the impact of overseas outbreaks on A share listed companies has been reflected. According to the twenty-first Century economic news reporter statistics, the overseas business income accounted for 30% of the listed companies, the 51% quarter recorded a loss.

The number of listed companies from overseas accounted for more than 30% of the total number of listed companies from the electronics industry.

A large part of the market supply of the global mobile phone industry chain comes from China's exports. Reporters learned that domestic core manufacturers during the spread of the epidemic, ahead of the core components of the upstream storage, so as to follow the market demand in time to integrate the device or module exported overseas.

Demand supply "two-way extrusion"

"In March, when the outbreak of the new crown pneumonia occurred in overseas multinational countries, we were paying attention to the relatively large number of overseas listed companies." A private equity fund manager told reporters.

With the disclosure of a quarterly report, the impact of overseas outbreaks on enterprises involved in import and export business is concentrated.

In twenty-first Century, according to the statistics of Wind, according to the statistics of Wind, the enterprises that reported 2019 annual reports accounted for more than 30% of overseas business revenue, accounting for 213 of the quarterly loss making enterprises, accounting for nearly 5 percent of the enterprises. From the 3829 listed companies of A shares that have disclosed quarterly financial data, there are 1206 losses recorded in the first quarter, accounting for only 30%. The impact of overseas outbreaks on imports and exports can be seen.

According to the industry, the number of overseas business accounts for more than 30% of the business revenue, the number of Listed Companies in the electronics, chemical, mechanical equipment, pharmaceutical and biological, automotive industry ranks the top five. In terms of segmentation, the number of companies from automobile parts, other chemical products, electronic parts manufacturing, other special machinery and chemical raw material drugs is in the front ranks.

Many of them belong to the processing trade oriented manufacturing enterprises, suffering from the two-way impact of import and export.

At the news conference of the State Council in April 10th, Li Xingqian, director of the foreign trade division of the Ministry of Commerce, pointed out that the characteristics of "two out of the way" in processing trade were affected by the epidemic and faced the "two way extrusion" of demand side and supply side. On the one hand, export orders are decreasing. On the other hand, the global supply chain is blocked, and there are difficulties in importing raw materials and spare parts.

In the performance forecast and a quarterly report, many manufacturing enterprises mentioned the impact of the epidemic, the domestic and export transportation was blocked, and the market demand of the related products was insufficient, which further affected the company's product sales and the first quarter results.

? ? For example, Ying Tang control, an electronics industry, said that the first quarter was affected by the outbreak of the new coronavirus pneumonia, and the resumption time of companies and upstream and downstream enterprises was generally delayed, especially when the downstream customers were labor-intensive electronic factories. The time of reemployment was particularly affected, which had an impact on the distribution of electronic components. After entering the March, with the spread of foreign epidemic, downstream The demand for overseas markets for terminal products also declined to some extent, which eventually led to a decline in company revenue in the first quarter of 2020 compared with the same period last year. But as of now, the domestic epidemic control has achieved remarkable results. The production and operation of the company and the upstream and downstream customers have gradually recovered orderly, and the company's revenue level is expected to return to normal level in a relatively short period of time.

Electronics industry preparing for pre stocking

As the largest smartphone market in the world, China plays an important role in the global industrial chain, both in R & D and manufacturing as well as in upstream component integration.

This also leads to a large part of the market supply of the global mobile phone industry chain from the export of the Chinese market. According to the State General Administration of customs, the proportion of exports of machinery and electricity related to the total import and export volume in the 1-3 months of this year accounted for the vast majority of the total export commodities. From the cumulative year-on-year data, the relative fluctuation is relatively small.

Reflected in the earnings reports of listed companies, mainly reflected in the domestic core manufacturers during the spread of the epidemic, the upstream core components of the reserve in advance, so as to follow the market demand in time to integrate the device or module exported overseas. The pressure of short-term pressure is looming.

For example, it is known as the "king of Africa" in the mobile phone community. Recently released quarterly report shows that during the period, the company's advance payments increased by nearly 70%, and inventories increased by nearly 40%. The company explained that this is mainly to cope with the impact of the epidemic. Early payment of advance payment locks some key components resources, which belongs to the strategic stocking behavior, but at the same time, it is also affected by short-term capacity, and some customer orders are not fully met.

In the earnings report, the voice control company also said that the orders for customers paid but not yet delivered at the end of 3 2020 increased, resulting in a corresponding increase in contractual liabilities.

This affects not just existing inventory but also short-term revenue performance. Show that the touch control company Heli Tai quarterly report shows that the company's operating income declined slightly during the period, and net profit and operating cash flow have declined sharply.

For this reason, the company explained that more than 43% of the advance payment was increased in the first quarter, mainly due to the increase of raw materials such as TFT, white glass and so on. It is also due to the rising cost of imported materials during the epidemic period and the delayed start up, but the company's fixed expenses and personnel wages have not correspondingly decreased, and the net profit of the company has dropped by 53.32%.

The increase in prepaid payments also affected the level of short-term cash flow, and the net cash flow generated by the company's business activities declined by 139.61%.

An industry watchdog confirmed to the twenty-first Century economic report reporter that during the first quarter of the domestic epidemic spreading, many industrial chains projected the risk that the epidemic could spread to the global market in the future, and made preparations in advance for overseas factories, including the core components such as PCB boards.

"By the early part of March, some overseas terminal markets were beginning to be affected, but we found that the order quantity of key components is still high, even higher than that of the assembly orders." The person added.

This kind of stock raising action is not blind, and can even be understood as a kind of "avoiding danger" action. In April 29th, at the conference held by Hui Ding technology, Zhang Fan, CEO, told the twenty-first Century business reporter that this year's epidemic brought uncertainty at both ends of supply and demand. At this stage, the appropriate increase in inventory will help reduce the risk of the supply chain. "Strategically speaking, we have to ensure that the supply risk is lifted for a long time, especially for optical products. Our cooperation with many customers is exclusive, and the appropriate increase in inventory is a positive signal for the company."

Zhang Fan further said that compared to the pressure on short-term profit and inventory, the company would pay more attention to what factors might bring long-term changes to work after the end of the epidemic and will respond positively.

2020 is the year when the industry expects the mobile phone industry to end its slump. The epidemic may affect the financial position of Listed Companies in the industry in the short term, but in the long run, the signal of follow-up good has also emerged.

An insider revealed that HUAWEI has begun to increase orders for supply chain in the near future, coupled with the slow recovery of the European market and the relaxation of the stores under the India line.

?