China Resources Microelectronics

Transcription

1 Corporate Presentation China Resources Microelectronics A leading Analog Semiconductor Company in China July

2 Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -1-

3 Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -2-

4 China s s Semiconductor Market China Market is expected to grow 10% in 2011 The emerging electronic products like auto electronics, energy-saving and environmentally friendly products drive China market growth % US$Bn 30.8% % % % -5.0% % 30% 25% 20% 10.0% 45% % % 15% 10% 8.0% 7.1% 5% 0% -5% (F) 2012(F) 2013(F) -10% China Market China Market Growth Sources: CCID, 2011/03-3-

5 Global Semiconductor Market Global market is expected to grow 5%+ in 2011 SIA:6.3%; TRI:5.4% Global Semiconductor Market (US$ billion) % 12.8% % 3.2% -2.8% -12.0% % % % 4.2% 5% 0% -5% (F)2012(F)2013(F) Global Market Global Market Growth 35% 30% 25% 20% 15% 10% -10% -15% Sources: , SIA; , isuppli 2010/10-4-

6 Semiconductors Everywhere The 3C industry (Computer, Communication, and Consumer Electronics) occupied 88% semiconductor consumption in China (in revenue, CCID 2010) Others 12% Communication 20% Computer 46% Consumer 22% -5-

7 New Killer Applications The Killer Application will drive the high growth of IC Market i.e. IC cost occupied 2-3% in auto production cost in 1970s, but it will become 40% in year 2011~ Global LED lighting CAGR: 97.4% over (Digitimes Research, 2010/12) The market size of Internet of Things (IOT) industry in China is expected to top RMB 200 billion (USD30 b) in value this year, and is further forecast to top RMB 750 billion by % Production cost 97.4% CAGR RMB 750B By 2015 Auto Electronics LED Internet of Things IGBT IGBT MOSFET MOSFET Sensor Sensor MCU MCU LED LED Control Control LED LED driver driver RFID RFID Sensor Sensor -6-

8 Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -7-

9 Overview CR Micro- A Leading Analog Semiconductor Company in China Business Product & Service Focus End Market Focus Technology IC Design, Open Foundry, IC Packaging & Testing, Discrete Devices Analog IC and Discrete Devices with focus on power management Consumer electronics, Green Lighting & Automotive Electronics Design: 0.11 m Manufacturing: 0.18 m Turnover: HK$ 3.8 billion (2010) Total Assets: HK$ 7.5 billion Capacity Foundry: 6-inch over 90K WPM / 8- inch 30K WPM Discrete Devices: 170K WPM Packaging & Testing: 4 billion wires per month Employees 7,751 as end of 2010 Beijing Operations 3 design houses 2 open foundries lines with 6-inch capacity of over 90K wafers per month( WPM ) 8-inch open foundry line with 30K WPM inch discrete device production line 2 IC testing lines 1 mask production line Shenzhen Wuxi Shanghai -8-

10 Our Strengths CR Micro- A leading Analog Semiconductor Company in China Strong Shareholder Support Strong China Presence Unique Positioning Strong Customer Base CR Micro Strong Team Strong Analog in Growing Market Proven Profitability Track Record -9-

11 Unique Positioning Utilize comprehensive and synergetic capabilities in IC design, open foundry, testing and packaging, as well as discrete devices. Customers System Companies Design Houses/IDM CR Micro One of Top 3 Semiconductor Manufacturers in China (1) Huajing #3 (4) Discrete Devices Semico: #10 (2) Powtech: #34 (3) Design Foundry CSMC: largest 6 in China (5) Packaging & Testing Notes/Sources: Note (1) from China Semiconductor Industry Association (CSIA) based on year 2010 revenue; Note (2) and (4) based on CCID 2011 research reports 2010 in terms of company revenue Note (3): Powtech was awarded No. 34 in the Deloitte Technology Fast 500 Asia Pacific Ranking Note (5): ranked by CCID in terms of 6 inch wafer capacity in year

12 Strong Team Experienced management team and effective local labor force WANG Guoping, Chairman Former Executive Director and Chief Executive Officer of CR Logic Extensive experience in semiconductor research & development and production management Well versed in managing operation of manufacturing bipolar integrated circuits and discrete devices, testing & packaging Master Degree in Engineering from the University of Electronic Science and Technology, Chengdu, the PRC Elvis DENG Mao-Song, CEO Former President of CSMC Technologies Corporation, the foundry business of the Group Cofounder and Former Vice President of Resources and Strategy at Ardentec Corporation in Taiwan Former liaison director for product development and support of Vanguard International Semiconductor-America, in California of the United States Began his semiconductor career at ERSO/ITRI in Taiwan from 1988 Graduated from National Chiao Tung University, Taiwan with a Bachelor of Science in engineering degree and holds a MBA degree from the Management School of the National Taiwan University -11-

13 Key Products and Target Market Green Lighting & Electronics Electronic Lighting LED Frequency Control Green Power Supply Consumer Electronics TV Stereo AC Home Applian ces Power Mgt IC Handsets Automobile LED driver Audio Video SOC MCU based IC Display Driver DMOS/IGBT/ bi-polar power device Area of applications CR Micro s target market CR Micro s future target products -12-

14 Why Analog Focus? Nature Analog IC Process nature signals such as lighting, sound, visual, etc. Digital IC Process digital signals R&D & Manufacturing Performance oriented, handle complexity than technology (more Art ) Mainly produced at 6 and 8 inch lines with um technology; key of success lies in process technology (such as BCD) and unique IPs instead of geometry and the wafer size Function and speed oriented, technology oriented (more Technical ) Pursue high-integration, most advanced geometry (90, 60, 45nm) and largest wafer size (8 inch and 12 inch) Market Longer product life cycle Relatively stable market Relatively low price volatility Niche markets focus Shorter product life cycle High generation replacement Relatively high price volatility Mass market focus -13-

15 Reasons for Strong China Growth Semiconductor Industry End Product Manufacturer Marco Consumer Market Global Fab-lite trend Semiconductor supply chain completing in China Domestic 3C brands getting strong China as the world factory Green awareness & Low-carbon Strong domestic market China Fabless getting strong Govt funding & support Local sourcing China-specific applications (Shanzhai etc) Internet of Things Economic stimulus package Killer applications (LED lighting, automobile electronics) -14-

16 12 th Five-Year Program China is considering investments of up to US$1.5 trillion over five years in seven strategic industries, a plan to accelerate the country's transition from the world's supplier of cheap goods to a leading purveyor of high-value technologies Seven Strategic Industries new-generation information technology energy-saving and environmentally friendly technologies alternative energy biotechnology high-end equipment manufacturing advanced materials Related Semiconductors Products/Applications LED LED IGBT/MOSFET Power Power Mgt Mgt IC IC Semiconductors Equipment Semiconductors Materials alternative-fuel cars Auto Electronics -15-

17 Strong Customer Base -16-

18 Semiconductor Market CR Micro Highlights Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -17-

19 2011 Interim Financial Review For 6 months ended 30 June HK$M Increase/ (Decrease) Turnover 1, , % Gross profit (18.7%) Gross margin 20.6% 25.7% point Profit (loss) for the period (63.4%) Operating cash flows, net (88.8%) EBITDA (21.7%) Earnings (loss) per share (Basic) (HK cents) (64.1%) Earnings (loss) per share (Diluted) (HK cents) (64.1%) -18-

20 2010 Financial Highlights For 12 months ended 31 December HK$M Increase/ (Decrease) Turnover 3, , % Gross profit % Gross margin 25.1% 18.2% points Profit (loss) for the year ( Net profit (loss) ) (182.38) -- Net cash inflow from operating activities % EBITDA % Earnings (loss) per share (Basic) (HK cents) 3.13 (2.35) -- Earnings (loss) per share (Diluted) (HK cents) 3.13 (2.35) -- Proposed dividend for the Year (HK cents) 0.5 N/A N/A -19-

21 Results by Geographical Region The Group continued its focus in China market in Meanwhile maintained a healthy geographical business mix to balance the market differentiation, growth potential as well as concentration risks 2010 Revenue (HK$ M) 2009 Revenue (HK$ M) 574.4, 15% 434.8, 11% 17.0, 0% 413.7, 14% 332.8, 11% 17.9, 1% , 74% The mainland China Asia, other than the mainland China United States Europe The mainland China Asia, other than the mainland China United States Europe , 74% -20-

22 Technology Turnover contribution from analog segment maintained a healthy 60+% 2010 Revenue (HK$ M) 2009 Revenue (HK$ M) 837.6, 22% 122.6, 3% 571.5, 19% 154.0, 5% 499.9, 13% , 62% 434.7, 14% , 62% Analog Non-analog Testing & Packaging Others Analog Non-analog Testing & Packaging Others -21-

23 Application / Product Consumable electronic product was the largest contributor to the Group s revenue, accounting for 41%; Turnover of the green lighting and power management segments increased 35.9% and 34.9% to HK$711.3 million and HK$557.1million respectively during the year Turnover from green lighting and power management together accounted for 32.8% of the consolidated turnover Turnover from Green Lighting (HK$ M) Turnover from Power Management (HK$ M) % +35.9% % % +34.9% %

24 8-inch Open Foundry Operation Manufacturing capacity reached 30,000 8-inch wafers per month in December 2010 Set up reliable quality assurance and manufacturing management system Successfully extended its processing geometry into 0.18µm and several products started mass-production Main market focuses include green power, LED lighting and automotive electronics -23-

25 CRM Highlights Semiconductor Market Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -24-

26 Strategic Business Units Consumer Goods Power Property Cement Gas Medication Finance Others CR Retail is one of the largest retail operator in China CR Power has been listed in the Platt's top 250 Global Energy Companie s Ranking CR Land is one of the most competiti ve real estate developer in mainland China CR Cement is one of the biggest cement producer which obtained governme nt support CR Gas is one of the biggest gas operator in China CR Medicati ons is one of the most competit ive national medicati on corporati on CR Finance provided persiste nt drive for CR Holdings longterm develop ment CR Microelec tronics CR Textiles CR Chemical CR Compres sor -25-

27 Listed Companies CR Enterprise (Stock Code: 0291.HK) Retail & Distribution Mkt Cap: HK$75.1Bn CR Cement (Stock Code: 1313.HK) Cement Mkt Cap: HK$45.1Bn CR Land (Stock Code: 1109.HK) Real Estate Mkt Cap: HK$76.7Bn CR Gas (Stock Code: 1193.HK) Gas Mkt Cap: HK$14.4Bn CR Power (Stock Code: 0836.HK) Power Generation Mkt Cap: HK$72.8Bn CR Microelectronics (Stock Code: 0597.HK) Semiconductor Mkt Cap: HK$3.5Bn Reference to 30 April, 2011 closing price -26-

28 Financial Performance In 2010, CR Holding s total assets and revenues was HK$542Bn and HK$217Bn, respectively. 94% of total assets and 93% of revenues was contributed from domestic market. Meanwhile, CR Holding s total revenue was ranked No. 9 in all central corporations, as well as No. 395 in Fortune Global 500 companies. Revenue (HK$100M) Operation Profit (HK$100M) Source: China Resources (Holdings) Co., Ltd. (For the year ended 2010) -27-

29 CRM Highlights Semiconductor Market Financial Summary China Resources (Holdings) Co., Ltd. Conclusion -28-

30 Conclusion CR Micro- A leading Analog Semiconductor Company in China Strong Shareholder Support Strong China Presence Unique Positioning Strong Customer Base CR Micro Strong Team Strong Analog in Growing Market Proven Profitability Track Record -29-

31 Thank you! -30-

32 Disclaimer The information and opinions contained in this document have been compiled or arrived at in good faith from the Company and other sources believed to be reliable. This document is for information purposes only, and all information contained or opinions expressed herein are subject to change without prior notice. Descriptions of the Company herein are not intended to be complete and this document is not, and should not be construed as, an offer or solicitation of an offer to buy or sell securities in any jurisdiction. No legal or other responsibility whatsoever is accepted for the contents of this document and any error, omission, misunderstanding or other inaccuracy which may appear or not appear therein as the case may be. This document may not be reproduced, distributed or published in any medium for any purpose without prior express written consent the Company. The Company has not verified any stories, statistical reports or articles and does not reassure for their accuracy where the stories, reports or articles are excerpted. This information made available in this document contains certain forecast statements that reflect the Company s current view of future events and financial performance. Whenever used, the words "plan", "believe", "expect", "anticipate" and similar expressions identify forecast statements. Any such forecast statements are subject to risks and uncertainties and the company's future results of operation could differ materially from historical results or current expectations. -31-