As we all know, BYD auto is strong, but its electronic business is rarely exposed. As a listed company spun off from BYD, BYD shares account for about 66% of BYD Electronics. Many people who pay attention to BYD know that the company is proud of its technical capital, and the chairman of the company is a technician. In fact, BYD Electronics is also making great strides and has invested heavily in technology research and development. According to the relevant person in charge of BYD Electronics, the company's annual R&D investment will basically account for 3% of revenue.
The third quarter financial report of 20 18 released by BYD Electronics shows that although the competition in the consumer electronics industry has intensified due to the weak macro-economy, the gross profit margin during the period has improved significantly compared with the same period of last year, thanks to the continuous improvement of the competitiveness of the metal parts business and the continuous expansion of the glass shell business. In the new business field, the Group's new intelligent products and automotive intelligent system business also achieved rapid growth during the period. BYD Electronics said that the Group's continuous increase in R&D investment in various business areas has affected the current profit level to a certain extent, making the third quarter net profit basically the same as last year.
In the fourth quarter, the demand for smartphones was weak, and the shipment growth of other domestic brands except Huawei was flat. From the perspective of supply chain, consumer electronics companies in the same industry, such as Tongda Group, Chang Ying Precision, Shengli Precision and Lance Technology, all faced greater profit pressure in the fourth quarter. In this context, although the company has increased its R&D expenditure and expanded its production capacity, the advantages of leading operations are prominent.
You know, in the OEM and ODM fields of smart phones, BYD still occupies about 20% of the global market share. BYD Electronics said that the increase in the group's R&D expenses will have an impact on its profitability in the short term. Next, on the one hand, R&D will increase its investment in new businesses such as automotive intelligent systems, glass and ceramics, and on the other hand, it will actively expand its production capacity to cope with the increasing market demand for glass and ceramics.
Seeking incremental market segments
According to the past data of BYD Electronics, the revenue of BYD Electronics accounts for nearly 40% of the total revenue of BYD Group. In the slogan of innovation, BYD attaches importance to electronic business, and the fine but few market segments have made BYD Electronics taste the sweetness.
It is understood that BYD Electronics is a company in the process of industry integration, and the research and development of materials and technology, molds and ceramics are the three major layouts of the company's electronic business. As for molds, we started manufacturing plastic structural parts in 2002. At present, the annual production capacity is 7,000 sets, the annual production capacity of precision metals is 200 million pieces, the annual production capacity of plastic products is 65.438+0.5 billion pieces, and the annual production capacity of electronic equipment assembly is 65.438+0 billion pieces. Ceramics now account for more than 1/3 of the Android market.
As can be seen from the financial report, most of BYD's electronic revenue mainly comes from the mobile phone case, and its metal case and metal middle frame technology have always been in the leading position in the industry. In 20 16, the metal parts business led to a substantial increase in revenue and profits, and the income of the metal parts business increased by 50% year-on-year. By 20 17, mobile phone brands at home and abroad have increased the use of metal cases and metal middle frames, so the market demand for metal parts has been rising, which has promoted the order growth of this business.
As far as new materials are concerned, BYD Electronics Co., Ltd. has cooperated with Huawei to complete the order and recently released the flagship model order. BYD Electronics expects that the revenue and production capacity of 3D glass shell will double in 20 19, and the total production capacity will reach 800,000/day. In 20 18, the production capacity of Huizhou BYD's 300,000 glass cover plates was at full capacity, including 200,000 3D glass cover plates and 65,438+/kloc-0.00 million 2.5D glass cover plates.
Today, BYD has production lines in Shenzhen, Huizhou, Tianjin, India, Hungary and Romania. In terms of products, in addition to the related business of assembling mobile phones, BYD's smart phone case has always been in the leading position in the industry, with Full Metal Jacket, 3D glass case, structural ceramics and other materials, and many unique technologies such as micro-slit antenna, high-gloss anode, nano-coloring, metal-glass integration and so on. Among them, the integrated metal-glass technology is currently owned by only three companies in the world.