The revenue ranking of China's local electronic component distributors in 2021 is released! Weishixin ranked seventh!

The annual "International Electronic Business situation"   "China's local electronic components distributors revenue ranking" officially released! Based on our observations and interviews with local Chinese distribution companies, this report shares the current situation and development of China's distribution industry.2022 marks the sixth consecutive year of releasing the rankings.

The year's ranking has three features:

· First, it is more targeted. The objects of this survey are all electronic component distributors who have set up corporate headquarters in China, and the annual revenue of 2021 exceeds RMB 1 billion (the same below), and the revenue of distribution business accounts for more than 60%.

· Second, there are various forms. For the first time, it combines directional invitation and questionnaire survey, including not only face-to-face interview, telephone interview, written letter inquiry and other active interviews, but also opened an open electronic questionnaire survey of "distributor one billion revenue club".

· Third, the data source is reliable. All the ranking data are derived from the voluntary disclosure of enterprises or the financial statements of listed companies.

Although the number of the list enterprise decreased, from 2019 and 202035 back to 25, but the respondents still involves more than 50 distributors, confirmed 41 of the revenue, and based on all effective sample depth analysis, analyze the growth of the distributors keywords, more comprehensive thoroughly summarizes the trend of China's distribution industry and opportunities.

Since 2019, due to the direct impact of international trade disputes and repeated COVID-19, the distribution market for components and components has gradually changed from a purely free market to a seller's market in a more favorable position. Specifically, supply is less than demand, price increase, shortage of stock and extended delivery period have become the "new normal", and it is difficult to fundamentally ease in a short time.

As a link between upstream electronic component manufacturers and downstream electronic product manufacturers, electronic components distributors are particularly important in the context of drastic market fluctuations. According to the survey data of "International Electronic Business Situation", the local electronic components distribution market in China in 2021 is very good, and the performance of distributors is collectively rising.

(1) In general, the total revenue of TOP35 of local distributors in 2020 was 214.03 billion, and the total revenue of TOP25 in 2021 was 238.14 billion, with a significant increase. The combined revenue of the Top25 companies in the 2021 ranking easily surpassed that of the Top35 companies in 2020. If the TOP25 is accurately calculated (Figure 1), the total revenue of the TOP25 in 2020 is 199.36 billion yuan, and the TOP25 in 2021 has increased by 19.4% to 238.14 billion yuan.

(2) From the perspective of individual companies, among 23 distributors in the TOP25 ranking in 2021, the number of enterprises accounted for 92%; only 2 revenue decline —— only two revenue declines (detailed analysis later).

In other words, more than 90% of the distributors will achieve positive year-on-year revenue growth in 2021.(graph 2)

(3) In terms of the growth rate, more than 30 distributors have achieved an annual growth rate of more than double digits.(Table 1)

· The performance of 15 distributors maintained a year-on-year growth range of 10% -50%;

· 9 distributors' year-on-year growth in the performance of 50% -100% range;

· The annual growth rate of 7 distributors is more than three digits (excess growth), in order: Xima Technology (550%), Kemin Electronics (500%), Anxin Yi (400%), Kangbo Electronics (400%), Mingguan International (310%), Yunhan Core City (150%), and Sinoxin (104.1%).

Interestingly, most of the distributors that doubled in 2021 were concentrated in 20 to 30 or new "new faces"; the top distributors (especially top 10) had relatively stable growth rates. We see that small and medium-sized distributors still have room to grow, especially in the market volatility and innovation cycle shortening, small and medium-sized distributors even maintain a relatively higher activity.

(4) In the top "10 billion club", the TOP3 are CLP Port, Taikeyuan and Shenzhen Huaqiang, which has been continuing since 2019 (Figure 3). Among them, in 2021, the revenue of CLP Port exceeded 30 billion yuan for the first time, reaching 38.3 billion yuan, firmly occupying the first place, and continuing to lead with a certain distance between the second and third place.

At the same time, Xinheda, United Chuangtai and Xinlei Technology broke through the 10 billion yuan mark for the first time in 2021, and successfully entered the "10 billion yuan club". Among them, the annual revenue of United Chuangtai increased by 99.29% year on year, Xinlei Technology increased by 92.7% year on year, and Xinhe Da Electronics (only group) increased by 66.7% year on year, which is the top three enterprises with year-on-year revenue growth rate of "ten billion club".

(5) Finally, look at the "gold content" of the ranking. With the good market, the revenue of various enterprises rose, and the threshold of entering the TOP25 ranking is also gradually increasing.

Recall from 2016 to 2018, the 25th ranked distributor had a revenue of about 1 billion yuan. From 2019 to 2020, the revenue of the 25th place has doubled to 2 billion yuan. Now by 2021, the threshold for the 25th place is over 2.5 billion yuan, and the distributors with about 1 billion yuan are close to the 40th place.

Distributors of more than 1 billion yuan in 2021 include: Innovative Online Technology (2.48 billion), Mingguan International (2.2 billion), Fubao Electronics (2.16 billion), Keming Electronics Development (2.1 billion), Reneng Technology (20.85), Xima Technology (2 billion), ICZOOM Pai Core City (1.9 billion), Runxin Technology (1.858 billion), Shenzhen Faben Electronics (1.85 billion), Shenzhen Jiansan Industry (1.6 billion), Artron Electronics (1.418 billion), Zhenguang Technology (1.35 billion) and so on.

In addition, we estimate that the revenue of Haiying Technology Group and Core confidant Digital (Supreme Electronics subsidiary) will exceed 10 billion yuan in 2021, and the revenue of Lubikang and Nanji International (Supreme Electronics subsidiary) will exceed 5 billion yuan. The above four distributors should be able to enter the ranking. However, as companies are not willing to disclose the specific performance, the "International Electronic Business Situation" has not been included in the list.

Distributors in Hong Kong, Macao and Taiwan also generally achieved positive growth in 2021, such as Dalian University, Wenye Technology and Eden Technology, which set up corporate headquarters in Taiwan, as well as Israel Jet Group, which also saw positive growth. We will share further details in the "2021 Global Electronic components Distributor revenue ranking" report, please look forward to it!

Is the so-called "wind just sail", under the trend of "globalization" reconstruction electronic components of the supply chain, the downstream industry demand than expected, the global new crown outbreak repeatedly disturbance under the influence of factors such as increased mismatch of supply and demand, electronic components, electronic components out of stock tide, it has a certain competitive advantage of distributors bring further development opportunity.

Strong market demand directly benefits the performance of distributors, which is the external cause; to stand out in the shortage tide, distributors must build the core competitive advantage, including scale operation, scientific stocking, continuous supply and risk control ability, which is the internal cause.

1、External factors

1.1 External environment

In the context of the ongoing global epidemic, China has adopted the active epidemic prevention policy of "dynamic zero clearance". The local epidemic has been effectively under control, the overall social and economic operation has remained stable, and the whole industrial chain of the manufacturing industry has maintained strong vitality, and the demand for integrated circuit chips has increased substantially.

At the same time, global manufacturing orders have returned to China, and the deepening of domestic substitution process in the semiconductor field, further promoting the growth of demand for local electronic components, and the popularity of "domestic substitution" is not reduced.

1.2 Growth of the Digital Industry

In terms of the application market, China's digital technology innovation achievements are constantly emerging, driving the rapid growth of the digital industry. According to statistics, in 2021, the downstream AIoT, new energy, 5G, automotive electronics, industrial and other application markets, the demand for electronic components has expanded rapidly, which drives the rapid development of distributors.

In addition, in the short term, data centers / servers benefit from telecommuting demand while orders surge, and the demand for home entertainment stimulates the consumption desire of new displays, wearables and robots.

In the long term, medical electronics is waiting for the next market outbreak point. Whether it is professional medical supplies or the public health needs, they contain unlimited business opportunities, and distribution players need to layout in advance and wait for opportunities.

1.3 Change of Procurement Strategy

In the current macro environment, the end customers have changed the procurement strategy, which is the most necessary external factor.

The first change: because the seller is in a favorable position in the current distribution market, the end customers have to change the original procurement strategy. Even if some profit margins are sacrificed, they need to ensure the purchase of goods first to ensure that the production and operation are carried out in the case of spot. Therefore, the 2021 price procurement, the phenomenon of excess order is not uncommon.

According to the results of the quarterly "component procurement survey" conducted by the International Electronic Business Situation, in Q32021, more than 90% of terminal enterprises for scarce and necessary devices said to "obtain" through price increase ", generally" 10% to 50% " to obtain scarce devices. The phenomenon of excess orders throughout the year, although Q3 and Q4 have eased, Q1 in 2022 by shutdown production rebound again.

2. Internal factors

For supply chain in 2021, distributors should strengthen close communication with upstream partners, timely transmit the market supply and demand situation to the upstream, and predict the market supply and demand trend in advance; on the other side, guide downstream customers to make reasonable arrangements and prepare goods for procurement and inventory.

First Branch Electronics took measures to place orders in advance, maintain full communication with the original factory to ensure timely update and symmetry of production information, to the factory to ensure the consumption of key customers, make full use of domestic bonded warehouses to ensure the smooth supply chain and other measures to reduce the adverse impact. In 2021, Shouke Electronics achieved a good result of 3.05 billion yuan, with a year-on-year growth rate of 41.0%.

2.2 Internal adjustment, long-term layout

And the technical service capability, is the choice of the most distributors. No matter the size and ranking of enterprises, distributors need to focus professionally and make long-term layout in long life cycles.

In addition, financial management and risk control awareness is becoming increasingly important. In 2021, some distributors have strengthened their financial management to ensure the safety of the capital chain. Some distributors strictly examine customer qualifications, speed up the receivable cycle, reduce and stop the cooperation with customers with serious payment delay, so as to improve their risk response ability.

It is worth mentioning that Yingtang Holdings. As the company promoted the deepening integration of the existing semiconductor business, the transformation to the upstream chip factory, the early business optimization and adjustment of the assets led to the contraction of the scope of the merger, Yingtang Holdings did not achieve positive growth in 2021. However, without considering the impact of the divestiture, the company realized the operating income of the electronic components distribution business sector of 5.66 billion yuan in 2021, a 38.34% increase over the distribution business in the same period of last year. Vertical expansion must be a painful period of transformation, and enterprises are mainly prepared to fight for a protracted war.

Of course, so subdivided service capacity, a distributor volume is limited, it is difficult to achieve "more than better", let alone "the sea accepts all rivers". This requires the helm of the leader, choose the ability to suit their actual situation, play a combination of boxing, do a good job of addition and subtraction.