Recently, Chipown Electronics released its 2018 performance forecast, projecting a net profit of 161.7 million to 172.4 million yuan, representing a year-on-year increase of 21%-29%, delivering a stable and growing performance. Chipown Electronics recently received inquiries from several institutions, who responded to questions regarding the development of its various products in 2018 and related issues.
Founded in 1994, Chipown Microelectronics specializes in the design of microcontroller (MCU) products, including home appliance chips, lithium battery management chips, smart meter management chips, and OLED display driver chips. Chipown states that while its products have a degree of versatility, they are particularly suitable for specific applications. The company will continue to invest in R&D based on market demand, and its products can be used in many fields.
Among Chipown's various product categories, home appliance chips account for the largest share of revenue. Chipown stated that sales of home appliance control chips accounted for approximately half of the company's total sales in the first three quarters of 2018. After rapid growth in 2017, customer demand for home appliance control chips remained relatively stable in 2018. However, overall, the number of new design-in chips increased significantly compared to the same period last year, accumulating momentum for continued expansion of market share in the home appliance control chip market.
Chipown Electronics released its 2018 earnings forecast, with lithium battery management chips accounting for the largest share of revenue and showing the fastest year-on-year sales growth.
Regarding lithium battery management chips, Chipown Technology stated that among its various product lines, lithium battery management chips saw the fastest year-on-year sales growth. The application scenarios for these products continue to expand, extending beyond laptop battery packs to include lithium battery metering chips for mobile phones and lithium battery protection chips for electric bicycles. Chipown Technology also pointed out that the company has effectively broken the monopoly of major international manufacturers in this field, and the market space for import substitution in lithium battery management chips is still vast, with the market itself also growing.
Furthermore, regarding the AMOLED product line, which has garnered significant industry attention, Chipown Technology stated that sales of its new AMOLED display driver chip are still in their initial stages and in small quantities. However, the product is highly competitive in the target market applications, and there is a good chance of steady sales growth in the future. Chipown Technology further stated that it will continue to deepen its expertise in AMOLED display driver chip technology, enhance its technological capabilities, and actively seize the opportunities presented by the takeoff of the domestic AMOLED industry.
When asked whether it would consider using external expansion for growth, Chipown Technology responded that external investment is a strategic direction for the company's operations and is constantly being evaluated. The company will actively consider expansion through collaborations with chip design companies engaged in wireless communication, motor control, and power supply, or strategic partnerships to strengthen and expand the company. The main focus is on the relevance and complementarity of key core technologies with the company's own, the future stability of the acquired company's R&D team, synergistic effects, and development prospects.
