Minxin Shares: The Consumer Electronics Market Is Not Optimistic, Hoping Vaping Will Become the Next

According to Jiemi Net, on May 12, Suzhou Minxin Micro-Electronics Technology Co., Ltd. (stock code: 688286, stock abbreviation: Minxin Shares) held its 2022 annual shareholders' meeting and discussed "About...

The consumer electronics market is not optimistic

Minxin Shares is a company with the ability to design and manufacture multiple categories of MEMS chips, and is committed to becoming an industry-leading MEMS chip platform company. Its main product lines currently include MEMS acoustic sensors, MEMS pressure sensors, and MEMS inertial sensors.

At present, Minxin Shares sells its products mainly through distributors, supplemented by direct sales. Li Gang said that in the future, major customers may mainly be served through direct sales.

In 2022, Minxin Shares achieved operating revenue of 292.6502 million yuan, down 16.80% year on year; net profit attributable to the parent company was -54.9339 million yuan, down 542.16% year on year.

Regarding the sharp decline in net profit, Minxin Shares summarized three reasons in its annual report: the overall downturn in the end-market led to lower sales volume, coupled with intensified industry competition causing lower unit prices for some products, which together led to a decline in overall gross margin; due to the decline in actual sales shipments and lower prices, inventory increased, inventory turnover time lengthened, and the risk of price declines increased, leading to higher impairment provisions; and because the company’s capacity expansion, customer breakthroughs, and new product R&D were in early-stage investment or pre-verification phases, the related investment benefits were not reflected in the current period.

Li Gang said at the meeting that the smartphone market declined last year, and some analysts believe the global smartphone market may still fall by nearly 10% this year. Overall, consumer electronics is not particularly optimistic, innovation is relatively lacking, and supply currently exceeds demand. Of course, this is also cyclical.

In the consumer electronics sector, Minxin Shares is relatively bullish on e-cigarettes. Li Gang said that, unlike mobile phones, which are in a downturn cycle, e-cigarettes are booming, and he hopes e-cigarettes will become the company’s next important growth driver.