Net profit soared, and suppliers made a fortune behind the huge sales of 3C products!

With the promising prospects of the 3C market, many domestic 3C companies are penetrating into overseas markets by relying on their product strength and are experiencing rapid development.

Recently, Xianying Technology announced its performance report for 2022. As a supplier of 3C sellers, Xianying Technology 's sales data is very impressive .

Xianying Technology's performance in 2022 will increase rapidly

In 2022 , Xianying Technology achieved operating income of approximately RMB 687 million , an increase of 20.65 % compared with RMB 569 million in the same period of 2021. Net profit attributable to shareholders of the listed company was approximately RMB 72.9 million , an increase of 36.25 % compared with RMB 53.5 million in the same period of 2021 .

In 2022, Xianying Technology's net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was approximately RMB 65.72 million , an increase of 31.34 % compared with the same period in 2021 .

The net cash flow generated from operating activities was approximately RMB 88.47 million, an increase of 69.60% compared with the same period in 2021.

At the end of the reporting period, Xianying Technology's total assets were approximately RMB 1.084 billion, an increase of 0.80 % from the end of the previous year ; the net assets attributable to shareholders of the listed company were approximately RMB 849 million, an increase of 3.28 % from the end of the previous year .

Xianying Technology said that the main factors driving the company's performance growth are the rapid popularization of Type-C interface products and the continuous increase in interface conversion demand due to mismatched transmission between different devices . The main sources of the company's revenue are signal conversion expansion products, molds , and precision structural parts.

According to Xianying Technology 's performance report, the operating income of conversion and expansion products in 2022 was approximately 573 million yuan , an increase of 19.93% compared with the same period last year ; in the same period, the operating income of molds and precision structural parts products was approximately 110 million yuan , an increase of 25.02% compared with the same period last year .

It is understood that Shenzhen Xianying Technology Co., Ltd. was established in 2011 and is mainly engaged in the research and development, design, manufacturing and sales of high-definition audio and video adapters and adapters . Its products include DisplayPort adapter series, MiniDisplayPort adapter series, HDMI adapter series, USB2.0/3.0/3.1Type-C adapter series, SlimPort adapter series, MHL adapter series, HDMI distributor series, etc. The company's main product is the signal converter , which mainly solves the problems of inconsistent signal transmission protocols, mismatched interfaces or insufficient number of interfaces between electronic devices . Such products are widely used in various smart mobile terminals, home and commercial audio and video equipment, computer peripherals and other electronic terminal equipment.

Xianying Technology's main customers include world-renowned 3C peripheral brands Belkin, StarTech.com, UGREEN Technology, Cropmark, etc.

Xianying Technology's products are mainly exported, and the export destinations of Xianying Technology's products are spread over more than 50 countries and regions around the world . Mainly sold to North America (the United States, Canada), Europe (Germany, France, Italy, the Netherlands, Switzerland, Sweden, Denmark, Finland, etc.), Asia (South Korea, Japan), etc.

In the past three years , Xianying Technology 's overseas revenue has accounted for more than 60%. According to statistics, in 2022, Xianying Technology's overseas revenue accounted for 66.33% of its operating income .

Xianying Technology said that the company's performance increased rapidly during the reporting period for the following reasons:

The demand for downstream smart terminals has seen rapid growth, and the retention of PC/NB in ​​the global market has also increased . In the current market environment, 3C products have a wide variety of interfaces, and the use cycle of PC/NB is relatively long. Consumers have a clear demand for signal transmission conversion and expansion products .

If there are problems with the interfaces of mobile phones, computers and other products , most consumers will not directly choose to replace the main product, but will directly choose to replace the interface, which has led to an increase in sales of Xianying Technology's interface converter products.

R&D investment increases year by year, Xianying Technology insists on technological innovation

In recent years, branding has become a major trend. Most companies are increasing their investment in research and development, and the country is also introducing corresponding policies to encourage companies to increase research and development.   ,

In the first half of 2022 alone , Xianying Technology 's R&D expenses reached 17.95 million yuan, a year-on-year increase of 66.03%.

As of 2022, Xianying Technology has obtained 165 authorized patents, including 5 invention patents , 69 utility model patents, and 91 appearance patents . Many patents are still being applied for and processed this year.  

Xianying Technology said: "Signal conversion and expansion products are peripheral products of 3C electronic products. The 3C electronic products industry has the characteristics of fast technology and product update cycles. The company needs to continue to develop new technologies and new products. The company insists on technological innovation and continues to invest in research and development to ensure the company's continuous development."

Xianying Technology revealed that it will continue to increase investment in research and development in 2023 to develop innovative, practical, and high-quality new products that meet market demand . At the same time, it will continue to develop products with potential, strive to broaden product categories, and enrich product application scenarios to promote the company's performance growth. On the other hand, the company will also actively expand into high-power charging-related fields such as GaN and continue to develop new customers.

Xianying Technology acquires 51% equity interest in Dongguan Runzhong

With the rapid growth of performance year by year, Xianying Technology 's cash flow has become quite abundant, so it has begun to buy high-quality assets.

Recently, Xianying Technology announced that it plans to purchase a 51% stake in Dongguan Runzhong Electronics Co., Ltd. ("Dongguan Runzhong") for RMB 55.2952 million. After the transaction is completed, Xianying Technology will hold a 51 % stake in Dongguan Runzhong , and Dongguan Runzhong will become a holding subsidiary of Xianying Technology . The final transaction price is valued at 6.8 times the P/E ratio of Dongguan Runzhong's audited net profit after deducting non-recurring gains and losses in 2022 (RMB 15.9444 million), which was determined by negotiation between the two parties.

It is understood that Dongguan Runzhong Electronics Co., Ltd. was established in 2012. It is a technical OEM/ODM technology industry company specializing in the development, production and sales of mobile phone chargers , car chargers , voltage regulators and peripheral products . The company's products are also mainly aimed at overseas markets, sold to Europe, America and Australia , and the company 's annual output can reach 6 million units.

In recent years, with the popularity of smart electronic products, the demand for portable power products has been growing, and this track has ushered in rapid development. Runzhong Electronics ' main products are mobile phone chargers , car chargers , laptop fast charging adapters and other products. After 51% of its equity was acquired by Xianying Technology , product technology, R&D capabilities and customer resources can be effectively integrated by Xianying Technology , and the company's power adapter products will also have a higher market share.

At the same time, this acquisition can further enhance Xianying Technology's profitability and risk resistance, and also provide Xianying Technology with a new profit growth point . This acquisition can further enhance the brand value and influence of both parties.

In general, the 3C electronic peripheral products track that Xianying Technology focuses on has great development potential. For the majority of sellers, they can seize the current development opportunities.

3C Track

Xianying Technology