The revenue ranking of China's local electronic component distributors in 2023 is released! Only the letter ranked fourth!Issuing time:2024-05-22 18:40 The annual required reading report of distribution practitioners "China's local electronic components distributors revenue ranking" officially released! This is the eighth consecutive year that the International Electronic Business Situation has released the ranking. The 2023 ranking continues the standard of previous years. The respondents are all electronic components distributors who have set up corporate headquarters in China, and their ma n business is electronic components distribution (i. e., the revenue of distribution business accounts for more than 60%), and the revenue of nondistribution business will not be excluded. All the ranking data comes from voluntary disclosure of companies and financial statements of listed companies. In general, the overall prosperity of the electronic component industry in 2023 is declining, and the performance of the electronic component distributors is generally under pressure.in compliance with:
According to incomplete statistics, the 2023 annual revenue of more than 1 billion yuan (the same currency below) local distributors are: Yi Tongchuang (1.6 billion +), Lianchuang Jie (1.634 billion yuan), Pai Mingxin City (1.555 billion yuan), Zhenguang Technology (1.17 billion yuan), Ruifan Micro (1 + billion yuan) and so on.
Expected to return to the right path from the bottom 2023 is a year full of challenges and changes. Despite the complete end of the COVID-19 pandemic, global geopolitical tensions, developed economies continue to raise interest rates to combat inflation, and insufficient global demand and investment have constrained the momentum of global economic recovery. In the face of the global electronic market downturn in 2023, the shipments of electronic products generally decline, and the destocking of the industrial chain leads to the falling volume and price of the chip market. Combined with the changes of the client, the electronic components distributors are inevitably impacted, and the revenue declines significantly. From the perspective of total revenue, the total revenue of TOP25 of local distributors in China in 2023 was 182.142 billion yuan, down about 12% compared with the total revenue of 207.459 billion yuan of TOP25 in 2022.
From a purely numerical perspective, the total revenue of the TOP25 in 2023 is close to the pre-epidemic level (189.151 billion yuan in 2019). However, in terms of year-on-year growth (YoY), the combined decline of the TOP25 revenue in 2023 is slower than in 2022, with YoY being-13% in 2020 YoY-12% in 2023 / 2022, and 1 9% in YoY in 2021 / 2020. This may be one of the reasons why many distributors are actively bullish on 2024. In their view, 2022 is the lowest point of the global semiconductor industry downward cycle, and the future will be to re-enter the upward growth channel. Shenzhen Huaqiang, Liyuan Information, Good good and other distributors are actively looking forward to 2024, it is expected that the global electronic components market is expected to return to the growth track.
The test of the king Of course, the gradual improvement of the big market will not immediately reflected in the performance of distributors "report card". In 2023, the performance of electronic component distributors is generally under pressure. As can be seen from the above, 2022 is the first year with negative TOP25 total revenue growth, but 60% of distributors achieved positive revenue growth in that year. However, in 2023, only seven distributors achieved year-on-year revenue growth, with the number of companies accounting for about 30%. In other words, only nearly 30% of the distributors have achieved positive revenue growth in 2023.
From the distribution of the growth interval:
Although the number of companies with negative revenue growth in 2023 increases, the decline is basically in the range of 0% to-30%, and there is no "performance explosion". This is basically the same as the situation in 2022, enough to show that the distribution industry still has a strong viability and risk resistance ability. As for the reasons for the year-on-year decline, distributors generally blame the objective factor of the industry downward cycle, and the entire industry inventory reduction is expected to approach the end of the second quarter of 2024. In addition, the innovation cycle driven by smartphones has stagnated, the new round of innovation cycle represented by AI is still in its infancy, and the alternation of technological innovation cycle has also impacted the performance of some distributors. So, what are the main applications for the seven local distributors that saw positive revenue growth in 2023? According to statistics, the demand for automotive electronics, consumer electronics, servers (data centers), the Internet of Things and other fields will not decrease in 2023. On the automotive side, more than half of the seven distributors have auto-related businesses, and four of them say the auto business makes a significant contribution to the performance of 2023. Due to the relatively stable demand of automotive electronics itself, as well as the development of new energy vehicles in China, the overall demand is relatively good, so it can bring stable orders for related distributors. In terms of consumer electronics, in the second half of 2023, the demand of consumer electronics sector picked up. With the launch of new models of Huawei, Apple, Xiaomi and other companies, the consumer market demand of mobile phones showed obvious signs of recovery. In addition, the demand for communication equipment and data centers has maintained growing, the AI wave leads the industry change to drive new demand growth points, and the demand for industrial and Internet of Things applications driven by the digital transformation has increased steadily.
Explore the "new distribution" model According to tradition, "International Electronic Business Situation" divides component distributors with revenue of more than 10 billion yuan into "10 billion club". In 2023, a total of 5 local distributors in China whose revenue exceeded 10 billion yuan, and CLP Port, Shenzhen Huaqiang and Taikeyuan were TOP3, continuing the order of 2022. The difference is that It rose to fourth place with a revenue of 11.7 billion yuan; Shannunchip slipped slightly to fifth place.
It is worth mentioning that, whether it is the head distributor in the "10 billion club" or the distributor with a revenue of more than 1 billion, almost everyone has the ability of "technology distribution", and in recent years has successfully improved the profitability through the means of "technology distribution". But as technology distribution becomes more common, what is next for distributors? The answer is: the "new distribution" model. First of all, China Power Port is the first "ten billion club". Based on the in-depth understanding of upstream and downstream needs, it puts forward a new distribution development route of "big platform + fine professional".CLP Port started to build a component application innovation and modern supply chain integrated service platform integrating electronic component distribution, design chain service, supply chain collaborative supporting service and industrial data service earlier, highlighting the value of the company's comprehensive service capability. After years of hard work in the high-end storage field, Shannunchip has formed a development pattern of "distribution + products" and two wings."Chip distribution business" and "self-research product business" are each other, the two closely echo in channel, research and development, service, supply chain and other links, for the development framework for the company's next leap. Artron Electronics drives the distribution business by providing customers with competitive "supply chain services + technical services". Artron Electronics pointed out that in the distribution process of electronic components, the company has accumulated a lot of key information about the technology and performance parameters of electronic components. By participating in the development of different projects, the company has mastered a large number of product application solutions, and gradually formed its own core technology. By providing customers with technical support services such as type selection and product application solutions, Artron Electronics has improved the efficiency of customer research and development, and established a long-term and stable cooperative relationship with customers.
Distributors should have a sense of risk control! In the face of various unstable and uncertain factors, distributors should not only have the first hand to prevent risks, but also have the best way to deal with and defuse risks and challenges. From this survey, it is found that more and more distributors began to pay attention to the importance of risk control, and took a series of measures to strengthen the risk management. The International Electronic Business Situation collects more than 50 risks that distributors believe they may encounter, and is divided into two categories according to internal and external risks. As can be seen from figure 4 below, the distributor believes that the proportion of internal risk is more than external risk, but the type of internal risk is less than external risk; among them, financial risk is the most concerned part of the distributor.
So how do the TOP25 distributors deal with these risks? The following has selected a few popular cases to share, but also welcome colleagues and friends at the end of the article [comment section] to offer suggestions. Risk 1: Exchange rate fluctuations Since the purchase and sales of electronic components involve the settlement of foreign currencies such as US dollar and Hong Kong dollar, the exchange rate fluctuations will have an impact on the exchange gains and losses of foreign currency assets and liabilities of distributors. In order to cope with the risk of exchange rate fluctuations, CLP Port will further optimize the measures to deal with exchange rate fluctuations, maintain close communication with professional financial institutions, study the trend of RMB exchange rate in advance, and deal with foreign exchange fluctuations by adjusting the financing structure and other ways, so as to reduce the impact of exchange rate fluctuations on financial costs. Lilda adopts the principle of stability, predicts the unstable situation of RMB in the foreign exchange market, according to different periods, and adopts measures such as reasonably arranging the proportion of the settlement between US dollars and RMB, timely adjusting the scale of foreign currency loans and actively adjusting the arrangement of foreign exchange settlement. Risk 2: Accounts receivable have bad debts Generally speaking, the distributor provides about 90-120 days of account period for the core customers. Due to the long average account period of the sales link, the amount and proportion of the distributor receivables remain at a high level. In addition, in the past two years, in order to rapidly expand overseas markets, distributors actively carry out related sales business in different countries and regions, which may ignore the credit crisis in export trade, leading to the unrecovery of some overseas accounts. In view of this risk, Shenzhen Huaqiang took measures in the collection conditions, accounts collection, customer tracking and other aspects to strengthen the risk management of accounts receivable. Runxin technology said that the company has established a relatively perfect accounts receivable and customer credit management system and strictly implement it. Risk 3: Inventory decline Since the production and supply cycle of the upstream factory often does not match the production demand cycle of the downstream customers, in order to ensure the supply of electronic components, distributors generally purchase and stock the original factory in advance based on the market situation, customer demand forecast, the upstream factory delivery date and other information. However, if the unexpected situation occurs, it may lead to unsalable products, inventory backlog, and increased risk of inventory decline. For the inventory risk, we need to play the combination card. Lilda has "four measures" to respond: strengthen forecast management, strengthen supply chain management, strengthen inventory management, improve sales efficiency, so as to promote the inventory turnover in the whole process. Liyuan information will strengthen management from procurement, sales, accelerated inventory flow, storage and transportation. Risk 4: relatively concentrated suppliers Generally speaking, the supplier of the distributor's is IC design manufacturer, and IC design manufacturer has the characteristics of relatively concentrated market share worldwide. At the same time, technology-based distributors will generally deeply master the product application technology of several IC design manufacturers, and on this basis, provide customers with IC application solutions and on-site technical support services, so they also have the characteristics of relatively concentrated suppliers. Artron Electronics said that the company plans to further strengthen its strategic partnership with suppliers, further explore cooperation projects with common interests, and acquire downstream project opportunities while also bringing practical business increment to suppliers. By improving the service capability in the client, including the overall solution, we can enhance the stickiness of customers to the company, and focus on developing excellent domestic and foreign suppliers, expanding channels, and reducing the risks of the relative concentration of suppliers. Risk 5: attrition Semiconductor integrated circuit industry is a typical technology-intensive industry, business personnel involved in microelectronics, embedded software, communication systems, wireless radio frequency hardware and other professional, the core business personnel is the foundation for the survival and development of semiconductor enterprises. Especially in recent years, more and more distributors go "technical distribution" road, if it is difficult to continue to introduce talent, retain talent, not only will affect the company continue to improve technology innovation ability, reduce the ability to provide technical services for downstream customers, and may lead to the core technology leaks, a significant adverse impact on the company's business performance. It said that the company will continue to increase its efforts to cultivate and introduce talents, improve the internal incentive policy and employee welfare system, and improve the talent reserve mechanism. On the one hand, it will increase its efforts to recruit talents at all levels from outside, strengthen internal training and improve the training mechanism; On the other hand, it will further improve the compensation and welfare system to motivate employees. At the same time, the company will continuously strengthen the construction of enterprise culture and increase enterprise cohesion. |
