For a long time, as an intermediate link in the electronics industry, electronic component distributors mainly provide services in two aspects: on the one hand,we help original manufacturers actively develop new products and develop new customers to solve the pain points that upstream original manufacturers cannot effectively cover many customers, and reduce the marketing costs of the original factory; On the other hand, distributors provide in-depth services to downstream electronics manufacturing companies through marketing personnel and field application engineers FAE, integrate customer needs, and provide technical support and application solutions.
However, in recent years, the value of distributors has been weakened since some international semiconductor manufacturers have tried to bypass agents and adopt a direct supply model, streamline agent lines and open official online shopping malls. While being challenged, distributors also began to seek transformation or tap new value in component distribution.
"The original factory took over the business of developing customers, and naturally took away part of the value of the agent. Therefore, for the agent, in addition to taking down the agent line, there is also how to provide product services and logistics services. , The product ecology is done well, all in all, it is to enhance the value of agents.”
In the next step, China Power Port plans to strengthen the application innovation project in the new field of electronic components and the digital transformation and upgrading project, which can be understood as improving the value of agents and increasing customer stickiness by improving service quality.
China Power Port also stated in the prospectus that the application innovation project in the new field of electronic components will help improve the ability of China Power Port to provide customers with systematic application solutions, and the digital transformation and upgrading project can further improve operational management efficiency and enhance Information management capabilities.
Although currently judging from the financial data of CLP Port during the reporting period, the revenue of the design chain, collaborative support and industrial data services is less than 100 million, accounting for only 0.1%. However, the gross profit margin of this category of business in 2019-2022 Both are above 40%, much higher than the authorized distribution and non-authorized distribution business, and in the long run, it is sustainable.
In fact, if we put the value of local electronic component distributors in the context of the current era calling for the rise of domestic chips, we will find that the future of local electronic component distributors is full of opportunities.
From a historical point of view, the development of the semiconductor industry and the growth of distributors are at the same frequency and feed each other. The decades-long prosperity of the semiconductor industry in Europe, America, Japan, and South Korea is inseparable from the strong cooperation and global support of distributors, and the rise of distribution giants such as Arrow, Wanda, Avnet, and WT Technology is also thanks to integrated circuits. Driven by continuous iteration of technology.
At present, China's local electronic component distributors have not yet entered the ranks of tens of billions of dollars in revenue, that is, there is still a certain distance from the world's first camp. The global share of China's semiconductor design industry is still relatively low.
This also requires local electronic component distributors to work hard to keep up with the level of the world's first echelon. It is foreseeable that with the listing bringing more capital, N&S Electronic will be able to accelerate the integration of resources with a more competitive attitude in the future, and become bigger and bigger. Become stronger and launch an attack on the world's first camp.