The competition on the intelligent vehicle track is becoming increasingly fierce.
This week, Huayang Group released its 2023 semi-annual report. From January to June this year, it achieved operating income of 2.868 billion yuan, an increase of 15.39% over the same period last year, and a net profit attributable to shareholders of listed companies of 182 million yuan, an increase over the same period last year. 11.64%.
Among them, automotive electronics achieved operating income of 1.856 billion yuan, an increase of 15.82% over the same period last year; the growth rate declined slightly compared to the same period last year (19.08%).
Huayang Group 2023 Semi-Annual Report
During the reporting period, sales of screen displays, AR-HUD, in-vehicle wireless charging, cockpit domain control, digital acoustic systems, digital keys, APA automatic parking, DAB digital radio and other products increased significantly.
In terms of fundraising projects, the "Automotive Infotainment and Connected Vehicle Products Project" with a total investment of 500 million yuan did not reach the expected revenue during the reporting period. The reason is that since the implementation of the investment project, product forms have undergone great changes, and product integration is a trend; R&D investment continues to increase, and output lags behind.
In addition, the "Automotive Air Conditioning Control System Project" also decided to terminate the project because the product form has undergone major changes. The air conditioning control function has gradually been integrated with other products, and the demand for separate air conditioning controllers has decreased.
Huayang Group 2023 Semi-Annual Report
In terms of the three major segments of automotive electronics business, Huayang Multimedia, which specializes in product lines such as HUD, wireless charging, and digital keys , achieved revenue of 490 million yuan in the first half of the year, a year-on-year increase of 23.74%; net profit was 7.7473 million yuan, a sharp decline of 66.61% .
Among them, as one of the representative configurations of the current intelligent car cockpit, the HUD track is characterized by low penetration rate of front-end installation and large market potential. However, in the past two years, market players have increased rapidly, and competition has begun to enter a fierce price war stage.
Monitoring data from the Gaogong Intelligent Automobile Research Institute shows that from January to June 2023, 904,900 units of standard passenger car front-end W/AR HUD were delivered to the Chinese market (excluding import and export), a year-on-year increase of 50.62% (continuing to maintain a high growth trend ).
In terms of the price range distribution of standard models, the price range of 200,000 to 250,000 yuan accounted for the highest installation rate, reaching 15.76%; the installation rate of models priced above 500,000 yuan was the highest, reaching 50.56%. At the same time, the effect of hot-selling models is also highlighted.
For example, FUTURUS, which has been selected by Li Auto for multiple models, will ship approximately 65,000 front-mounted HUD units in 2022. On March 23 this year, the 100,000th unit rolled off the assembly line at the Chongqing smart production base. The company expects total HUD product delivery this year to reach 350,000 units.
At the same time, in addition to a group of start-up companies, more traditional Tier1s are also entering the HUD track.
During this year's Shanghai Auto Show, Desay SV's smart travel solution Smart Solution 2.0 debuted AR-HUD for the first time to further improve the smart cockpit solution and enhance the business's risk resistance.
From the perspective of business segment growth, Desay SV’s smart cockpit business revenue will be 11.755 billion yuan in 2022. Although the business contribution is still as high as 78.72% (declining year by year), the growth rate of 47.97% lags behind the smart driving business and Network services.
Jingwei Hengrun has also successively won the designation of AR-HUD solutions based on DLP solutions for multiple models. Starting this year, it will be mass-produced and delivered to Geely Lynk & Co, SAIC Maxus and other brand models.
Judging from the market performance from January to June this year, the average delivery price of mainstream W/AR HUD standard equipment for new cars has risen instead of falling, further highlighting the cost pressure on car companies.
At the same time, in another advantageous area of Huayang Multimedia, data from the Gaogong Intelligent Automobile Research Institute shows that from January to July this year (excluding import and export), 3.7629 million new cars were delivered to the Chinese market (excluding import and export) for passenger cars equipped with standard on-board mobile phone wireless charging functions. , an increase of 42.51% year-on-year, and the pre-installation rate rose to 34.12%.
In terms of suppliers, Yougan Technology, Huayang Multimedia, and Luxshare Precision rank the top three in terms of market share. The total share of TOP3 exceeds 50%, and the total share of TOP10 exceeds 90%. However, Luxshare Precision’s share began to catch up with Huayang Multimedia.
In addition, Desay SV has entered the top 10 suppliers of automotive mobile phone wireless charging modules for the first time. As an extended product line of the traditional cockpit business, mass production cooperation customers include SAIC-GM, Mazda, Nezha and many other OEMs.
This means that the car-mounted mobile phone wireless charging track, which has received little market attention in the past, has also entered a cycle where "latecomers" are actively competing for share; for traditional players, the pressure has doubled.
In addition, Huayang General Motors, which is mainly engaged in smart cockpit (screen, domain controller, LCD instrument, infotainment system, etc.) business , achieved revenue of 1.562 billion yuan in the first half of the year, a year-on-year increase of 14.10%; net profit was 74.8034 million yuan, a significant year-on-year increase 40.09%.
Currently, the smart cockpit track is in a new round of kinetic energy conversion cycle. Leading manufacturers are also continuing to benefit from window period dividends.
Monitoring data from the Gaogong Intelligent Automotive Research Institute shows that from January to June 2023, 8.5613 million passenger cars with front-mounted standard central control entertainment systems were delivered to the Chinese market (excluding import and export), and the penetration rate of front-mounted standard equipment has exceeded 90%. , reaching 92.13%.
Among them, the proportion of hosts supporting the Internet of Vehicles function has exceeded 80%, reaching 83.03%. This means that the need to support more in-vehicle entertainment functions, networked content and services, OTA iterations, and the computing power requirements for core SoCs are all increasing.
For example, in the key computing platform part, from January to June 2023, in the Chinese market (excluding import and export), 649,100 new cars were delivered with the standard 8155 chip installed in the front of passenger cars (some with dual 8155 configurations), a year-on-year increase of 275.42% .
Currently, Huayang GM's cockpit domain control based on domestic chip solutions has achieved mass production, and its cockpit domain control products have won more than ten projects from customers such as Changan, Great Wall, Chery, BAIC, Yutong, and China National Heavy Duty Truck.
Huayang Digital, which is mainly engaged in the vehicle camera business , achieved revenue of 61.9102 million yuan in the first half of the year, a sharp decline of 33.67% year-on-year; net profit was a loss of 2.1507 million yuan, compared with a profit of 1.2934 million yuan in the same period last year.
Last year, the company slowed down its investment progress in the "Automotive Camera System Project" based on the principle of caution due to the impact of factors such as the capacity utilization rate of the completed automated production line that has not yet reached saturation, product upgrades, and the COVID-19 epidemic.
Judging from the progress in the first half of this year, the development of new projects fell short of expectations and some mass production projects were delayed. At present, Huayang's 360-degree surround view and APA automatic parking products have undertaken many projects and achieved mass production.
At the same time, camera products with 200w, 300w, 500w, and 800w pixels have received some designations, and some have been mass-produced; in the future, projects will be gradually implemented in the driving field and high-speed field.
In addition, focusing on the development trend of domain integration and central integration, the company plans to successively launch integrated cabin and parking and driving domain control products, is participating in project bidding, and is pre-researching cross-domain integration and central computing platforms.