Hongda Electronics(SZ:300726)2022-12-05 02:28Group 1: Impact of COVID-19 on Orders - The domestic pandemic has delayed the resumption of work for downstream customers, but demand has not decreased due to the strong planning nature of the high-reliability industry. The first quarter orders still showed growth compared to the same period last year [3]. - Orders in March and April exhibited a compensatory growth trend, indicating that the pandemic is not expected to impact the annual performance [3]. Group 2: Production and Delivery Cycle - High-reliability electronic components are characterized by small batch and multiple batches, leading to varying production cycles based on customer demand and product complexity. Products in stock can be delivered in about three days, while others depend on inspection and acceptance processes, resulting in longer delivery cycles [4]. Group 3: Future Development Strategy - The company aims to focus on electronic components and microcircuit modules over the next three to five years, leveraging its sales and management platforms, funding resources, and product incubation capabilities to strengthen existing products and diversify its offerings [5]. - The company is also actively expanding into civilian markets, particularly in 5G communications, automotive electronics, artificial intelligence, and the Internet of Things, enhancing production capabilities for products like single-layer ceramic capacitors and tantalum capacitors [5]. Group 4: Market Expansion in Civilian Sector - In 2020, the company plans to increase investment in civilian markets, particularly in high-end customers for tantalum capacitors, by upgrading production processes and shifting to a direct sales model [5]. - A new production base for civilian tantalum capacitors is being established in Xiangxiang to expand production capacity [5]. Group 5: Subsidiary Development and Capital Operations - The company is fostering an open platform development model to support the growth of subsidiaries, allowing them to operate independently and potentially pursue capital market opportunities if they achieve rapid growth [6]. Group 6: Product Growth Trends - The company anticipates stable demand for tantalum capacitors, which will remain the main revenue source, while MLCC and power module products are expected to experience significant growth due to their market expansion phase [7]. - The company has completed the R&D of high polymer aluminum capacitors and is establishing production lines, with market promotion planned for 2020 [8].