Shunluo Electronics: a number of new inductors have been supplied in bulk and actively laid out in 5G and automotive electronics market.

SMM: on the evening of September 25th, Shunluo Electronics released a table of investor research activities, answering investors' questions about product development, production capacity and production expansion, as well as future planning.

A number of inductor products have been supplied in bulk.

As for the reasons for the year-on-year increase in gross profit in the first half of 2020, Shunluo Electronics explained that Shunluo Electronics reached a semi-annual record high in gross profit in the first half of 2020, mainly due to Shunluo Electronics' emphasis on organizational efficiency, research and development and the expansion of new fields. the increase in the proportion of market sales of core technology products and the improvement of the management and control level of production costs and expenses. All the products of Shunluo Electronics belong to independent research and development and design, and they have strong core technology and comprehensive service strength. The gross profit margin levels of different product lines are different, and the future gross profit margin level is directly related to the change of product sales structure.

According to Shunluo Electronics, 01005 inductors are nanoscale miniaturized, high-precision inductors, representing the coming new generation of technical products. At present, customer development is progressing smoothly and is gradually realizing batch supply. In 2020, miniaturized high-precision inductor products will continue to expand production capacity according to market demand, and the subsequent 01005 products will be accompanied by the improvement of the technical level of application-side products and the development demand of the 5G market. It will open up more market space for Shunluo electronic inductor products. In addition, the integrated molding inductor mainly uses molding technology, has achieved formal batch supply, and has been listed as a company-level key new product project, customer promotion and product research and development are under way.

With regard to the situation of customers in the communications field and the impact of 5G upgrading on the company, Shunluo Electronics said that the communication field is an important business area of Shunluo Electronics, and the market concentration of the first echelon major customers of mobile phones in the communications industry has further increased rapidly. the mobile phone share continues to increase, the company has a high-quality head key customer group, the share among major customers is increasing year by year, and new products continue to be introduced. The company participated in the pre-research of 5G project a long time ago, and has been having close R & D cooperation between 5G base stations and mobile phone terminal customers. First of all, base stations and mobile phone terminals bring increments due to the iteration of 5G business; secondly, driven by 5G service, the amount of mobile phone terminals for inductors, filters, antennas and other products has increased significantly. The development of 5G business will lay a solid foundation for the company's continued expansion in the field of communications.

In terms of production capacity, Shunluo Electronics responded that at present, the release of production capacity is relatively sufficient, and various projects are being carried out actively. Shunluo Electronics's products are electronic basic equipment products with strong core competitiveness and relatively stable market demand. Shunluo Electronics has continued to expand production over the years, and specific planning and progress have been carried out in an orderly manner according to strategic planning and market application progress and customer development. In addition, Shunluo Electronics said that it will continue to expand production in the second half of the year, and equipment investment will accelerate.

Actively lay out the automotive electronics market

With regard to the impact of materials on the company's costs, Shunluo Electronics said that the company is based on the research and development of magnetic materials and microwave materials, and is committed to promoting the localization of raw materials after listing. With the development of electronic components to be light and thin, the consumption of raw materials per unit product is getting smaller and smaller, and the impact of raw material price fluctuations on production costs is also gradually weakened. What is more important for Shunluo Electronics is to control production costs by improving the level of technology and management.

At present, the development and future layout of automotive electronics, Shunluo Electronics said that Automotive Electronics is one of the company's important business areas, and has actively laid out automotive electronics in the field of new energy electrification and intelligent applications for many years. Products such as reversing radar transformers, electric vehicle BMS transformers, power inductors and other products have been highly recognized by customers in terms of technical performance, quality and management. It has been used by many world-famous automotive electronics enterprises and new energy automobile enterprises or is in the process of introduction. Shunluo Electronics will continue to develop and launch new products in automotive electronic products according to the technology and market requirements of major customers in the future. the products can be widely used in automotive battery management system, automatic driving system, vehicle charging system, vehicle networking, headlight control system, motor management system and so on. Automotive electronics business will lay a solid foundation for the long-term sustained and stable growth of Shunluo Electronics, and there is a huge market space in the future.

With regard to the future development plan, Shunluo Electronics said that the company will formulate product research and development plans according to the future needs of the market, lay out and control in advance in the key application markets, and keep up with the application technology trend of the products. Shunluo Electronics through the customer advantage, quality advantage, technical advantage and service advantage accumulated in the process of long-term competition, Shunluo electronic inductor related products continue to grow steadily with the expansion of market application, the expansion of product series and the continuous increase of key customer share. Non-inductive products, including microwave devices, transformers, precision ceramics, sensors, thermistors and other products, have been continuously cultivated for many years, and the recognition and acceptance of the market have been continuously improved. it is expected to get the opportunity of rapid growth in the future market.