The revenue ranking of China's local electronic component distributors in 2022 is released! Weishixin ranked fifth!

The annual "International Electronic Business situation"   "China's local electronic components distributors revenue ranking" officially released!2023 is the seventh consecutive year of releasing the rankings.

The 2022 ranking continues the standard of last year. The respondents are all electronic component distributors who have set up corporate headquarters in China, and their main business is electronic components distribution (i. e., the revenue of distribution business accounts for more than 60%), and the revenue of non-distribution business will not be excluded after inclusion in this ranking. All the ranking data comes from voluntary disclosure of companies and financial statements of listed companies. In 2022, the global semiconductor industry has entered a downward cycle. As a result, China's local component distribution market is far less as hot as 2021, and this ranking also reflects this, for example:

· The total revenue of the TOP25 in 2022 decreased by 13% compared with 2021,

· The number of companies with negative revenue growth in 2022 is seven times higher than that in 2021, and so on.

In 2022, electronic components will be characterized by structural differentiation on the demand side, and the volatility on the supply side is stronger and more uncertain than before. Distributors are facing huge challenges and severe tests.

(1) Total revenue decreased by 13%

Year on year Overall, the total revenue of the TOP25 yuan of local distributors in China in 2022 was 207.459 billion yuan, down 13% compared with the total 238.14 billion yuan of the TOP25 yuan in 2021.

However, two TOP25 distributors of 2021 did not disclose the specific performance of this year, so they were not included in the 2022 ranking, which partly affects the sum of the TOP25 in 2022. Adding the revenue data of these two companies, the combined revenue of the TOP25 companies in 2022 is expected to reach 220 billion yuan, down only 8% compared with 2021.

(2) 60% of distributors have positive revenue growth

In 2022, among the 34 local distributors in the total survey sample, a total of 20 distributors achieved year-on-year revenue growth, with the number of enterprises accounting for about 60%. You know, more than 90 percent of distributors achieved positive year-on-year revenue growth in 2021, but due to market volatility, this number will drop to 60 percent by 2022. From the distribution of the growth interval:

· In 2022, no single Chinese local distributor will achieve "excess growth" (i. e., an annual growth rate of more than three digits);

· The number of local distributors that have achieved "accelerated growth" has also plummeted;

· The number of distributors with a growth range of 0 to 50% has increased slightly;

· The number of distributors with negative growth is seven times that of distributors in 2021!

Although the number of companies with negative revenue growth in 2022 increases, the decline is basically in the range of 0% to-35%, and there is no "performance explosion".

(3) "10 billion Club"

"International Electronic Business Situation" divides component distributors with revenue of more than 10 billion yuan into "ten billion club". In 2021, there are 9 local distributors with revenue of more than 10 billion yuan, and only 5 in 2022.among:

· In 2022, only China Power Port, Shenzhen Huaqiang and Xiangnongxin Innovation will achieve positive year-on-year growth;

· The performance of the four companies, namely, Taikeyuan, Viesletter, Liyuan Information and Xinlei Electronics, all showed negative year-on-year growth.

· Last year, two distributors of billions of dollars were not included in this ranking because they did not disclose specific results this year.

It is worth mentioning that the TOP3 of "10 billion Club" in 2022 is China Power Port, Shenzhen Huaqiang and Taikeyuan, which is slightly changed compared with 2021.

· China Power Port once again refreshed its revenue record. In 2022, the scale exceeded 40 billion yuan for the first time, reaching 43.3 billion yuan, further widening the gap with the second and third place.

· Shenzhen Huaqiang ranked second with a revenue of 23.941 billion yuan, rising to the second place for the first time.

· Tykeyuan, which ranked second for three consecutive years from 2019 to 2021, ranked third in 2022.

(4) the ranking threshold has been reduced

In the final ranking of the "gold content".Since 2019, the revenue of the 25th distributor in this ranking has all been more than 2 billion yuan. In 2021, the threshold for 25th ranking exceeded 2.5 billion yuan; in 2022, the threshold for 25th ranking exceeded 2.2 billion yuan.

According to incomplete statistics, local distributors with annual revenue of more than 1 billion yuan in 2022 include: ineng Technology (2.136 billion yuan), Runxin Technology (2.102 billion yuan), Lianchuang Jie (2.1 billion yuan), Shenzhen Jiansan Industry (up 20% year on year), Pai Mingxin City (1.971 billion yuan, * 2022 fiscal year), Shenzhen Law Electronics (1.69 billion yuan), Yida Kai (1.5 billion yuan), Zhenguang Technology (1.17 billion yuan), Rufanwei (1 + billion yuan) and so on.

In addition, it was found in the survey that in 2022, some enterprises developed well in distribution business, but because the revenue of their distribution business accounted for less than 60%, it was not included in this ranking. They include: Weil Shares (annual total revenue of 20.078 billion yuan: distribution business revenue of 3.565 billion yuan, accounting for 18%), and Torch Electronics (annual total revenue of 3.559 billion yuan: distribution business revenue of 1.936 billion yuan, accounting for 54.4%).

Objectively speaking, the revenue of local distributors in 2022 is generally less than that of 2021. Investigate its reason:

• Most distributors blame objective factors such as declining market sentiment and weak demand;

• Some distributors think that this is the inevitable result of following the theme of "destocking";

• Other distributors who maintain positive revenue growth see 2022 as a key year for adjustment to return themselves to a more rational track.

  
  

In 2021, the distribution industry went crazy. If 2022 is only compared with that of 2021, the results may not be objective and accurate. So let's take the hour hand back to the previous year and compare 2022 with 2020:

· The total revenue of the TOP25 in 2020 7.459 billion yuan) increased slightly compared with the 19 TOP259.46 billion yuan in 2020.

· In terms of annual growth rate, about 60% of the distributors achieved positive year-on-year revenue growth in 2022, which is almost the same as in 2020.

· In terms of ranking threshold, the threshold for the 25th ranking in 2020 is 1.9 billion yuan, and the threshold for the 25th ranking in 2022 is more than 2.2 billion yuan, indicating that the "gold content" of enterprises has also been improved.

It is not difficult to see that compared with 2020, Chinese local distributors will still make significant progress in 2022, which is enough to show that the distribution industry is still in the rising period of development and has not "entered the era of negative growth".

From the perspective of industrial life cycle, the hot distribution market reached the peak in 2021, and the performance of local distributors in 2021 increased collectively, which is unprecedented. In 2022, the prosperity of the electronic components industry has been "frozen", most of the electronic components enter the destocking cycle, and the performance of local distributors is bound to fall.

But in the face of all aspects of the "fall", local distributors do not blindly "lie flat", or even find opportunities in the uncertainty.

At the downstream market level, the prosperity of the component distribution market in 2022 shows a certain degree of differentiation. In some industries such as electric vehicles, photovoltaic, energy storage, industrial control and other high prosperity, the demand for components has increased, boosting the performance of related distributors.

On the other hand, most of the demand in the traditional electronics industry, especially the consumer electronics market, has been depressed throughout the year, and the performance of distributors in these industries has declined. This reality has led more local distributors to move to the high-return terminal industry.

In this regard, this survey statistics the seven promising market opportunities for local distributors in China in 2023:

· The most concerned one is inevitably the new energy industry (including photovoltaic, electric vehicles, energy storage, charging pile, etc.);

· The second is the AI industry (including AIoT, AI speakers, AI robots, etc.);

· Then is the industrial industry and the automobile industry, among which: the industrial industry is no longer limited to the traditional hardware market, such as industrial interconnection software link also has market potential; electric vehicles in the automobile industry are more attention than the traditional car;

· Finally, there are yuanuniverse industry, medical industry and 5G industry with a high topic, which have a high growth ceiling and considerable growth potential.

It is concluded that Chinese local distributors will enter the rational growth stage from 2022. And this trend will continue, "seek progress in stability" will be a key word for local distributors in the coming years.

So how do distributors achieve "word stability, progress in stability"? The following are the ten feasible countermeasures derived from this survey:

1.Capital operation: The capital market provides an excellent platform for the merger and integration of electronic components distribution enterprises. The acquisition of high-quality targets by issuing shares to purchase assets can not only reduce the capital burden of enterprises, but also share the future development achievements of enterprises with the merger and acquisition targets to achieve a win-win situation. Listed local distributors will look for competitive, sound financial stability, standardized management and consistent corporate culture in the distribution industry and upstream and downstream fields, invest and acquire, integrate high-quality resources, and realize the rapid development of the company; and unlisted distributors are also actively seeking opportunities to enter the capital market.

2.Technical service: regularly increase the investment of technical personnel, strengthen the development of customized solution module, specialize in a certain field, improve the stickiness with customers, increase sales, and expand the market share of each segment.

3.Overseas strategy: The pace of global industrial adjustment has quietly begun. Local distributors cannot be limited to the domestic market, but should focus on both domestic and overseas markets, move their business from China to the world, improve the penetration rate of the company's products in the overseas market, and realize the global expansion of the company's business.

4.Management means: distributors should be "both internal and external", strengthen service and brand promotion, enhance the company's management investment, optimize workflow and management system to improve and reduce efficiency; especially risk control ability has become the necessary core capability for the healthy development of the whole industrial chain.

5. Expand product line: to meet the medium and long-term development of strategic planning, distributors need to actively involved in new technology and products, with market demand as the guidance, on the basis of the existing product line, increasing complementarity, high collaborative product line, rich product structure and types, realize high-performance electronic components product series, improve more product service ability to the downstream customers.

6.Digital upgrade: The general trend of digitalization, actively promote the construction of digital supply chain, to improve the work efficiency of the supply chain and the level of enterprise management, improve the flexibility of the supply chain, and fundamentally respond to emergencies.

7.Universal layout: distributor business model, is from a single product supply to more comprehensive services, including market development ability, inventory management, financial support, provide quality supplier resources, provide complete solutions, professional technical support and logistics services, etc., "combination" value is greater than good at a specific and single business model.

8.Domestic alternative opportunities: under the special environment, we will actively seek for domestic brand agents as a breakthrough point, vigorously expand the channels and distribution channels of domestic brands, and have the support ability of domestic chip / component material number selection and replacement.

9.Big customer strategy: increase the cooperation with industry head customers, these large customer scale, capital flow, purchasing volume, the material delivery, quality, timeliness, such as supply chain more seriously, although the distributors of the business indicators requirements is higher, but can provide relatively better deal for distributors, for distributors development to lay a solid foundation, the future will become one of the embodiment of distributors market competitiveness.

10.Talent: Talent is the key to maintaining the company's innovation ability and competitive strength. Distributors can adopt a variety of differentiated incentive measures including compensation, employee welfare and equity incentive to stabilize and expand the talent team, fully mobilize the enthusiasm of employees, and provide continuous talent support for the development of the company.