Guoxin Electronic Tongfang Co., Ltd. formerly known as Crystal source electronic, this year the company through a private placement Tongfang Microelectronics acquired a 100% equity interest and a 51.94% stake of the shares held by the company after the issuance of the same side.
Visible from the core revenue and gross profit spin-off of the country in the same side, the same side of the country in the reorganization of core profitability has been transferred to the chip business, which is non-telecom smart card chip business is particularly eye-catching, although only 34% of the main business income, but contributed 72% of gross profit.
Chip gross profit margin of nearly 50%
People's Bank issued in 2011 "to promote financial IC card applications and select the part of the city to carry out financial IC card applications in the field of public service work notice", the national commercial banks should start planning 2013 issue financial IC card, bank card commercial banks from 2015 issue RMB settlement accounts in economically developed areas and focus on cooperation sectors are financial IC card.
Bank procurement, financial IC card chip missing as a result of security and reliability standards, the basic use only imported chips. Based on financial security and the use of imports the high financial IC card chip cost reasons, the central bank IC card issued by the domestic unified domestic chip manufacturers expressly.
In the past two years, largely due to the lack of security and reliability standards of homemade chips, delay domestic EMV (Editors note: Europay, MasterCard, VISA three major international bank card organization to develop the chip card specification, chip cards and chip interactive dialogue mechanism between the terminal) the pace of migration.
Tongfang Microelectronics represented domestic chip manufacturers have been actively layout product line of financial IC card, the maturing domestic chip technology, domestic security and reliability standards certification domestic chip large-scale promotion needs across the last bridge.
Bank Card Test Center officially began in February 2012 to provide financial IC card integrated circuit security testing services in the CUP technology management Head Zhang Zhibo the end of this year will be completed ahead of financial IC card authentication, established in early 2013 with the international standards of IC The card overall safety testing and certification system.
We believe that, with the completion of the safety certification, the biggest obstacle will lift domestic EMV migration, we expect domestic EMV migration and financial IC card chip localization will be fully launched in 2013.
The In 2013 domestic EMV migration the acceleration and financial IC card chip localization trend, the domestic smart card chip leader is the biggest beneficiary of the subject; understanding of the level of benefit, we can refer to the development of second generation ID card path.
2004 the second generation identity card replacement work began, the second-generation ID card chip (non-contact IC card chip) requires all domestic manufacturers products for information security considerations, national cultivation Tongfang Microelectronics Datang Microelectronics, Shanghai Hua Hong, CLP Chinese senior vendor to complete the development of the second generation ID card chip. After eight years inside, the Ministry of Public Security only four vendors to participate in the research and development of the second generation ID card chip procurement of second generation ID card chip procurement price stability, the gross profit margin of over 50%.
It is worth mentioning that since 2008, Tongfang Microelectronics gross margin of the second generation ID card chip is not only not decreased, but increased with decreasing costs.
Major research and development enterprise in the domestic financial IC card chip (contactless / dual interface) only Tongfang Microelectronics, DMT, CLP UW Microelectronics of Fudan University (microblogging) and national technology; company's products in the country in the lead status, and has been certified by the Central Bank PB2.0 financial IC card has been censorship reliable security certification, most companies want to first approved one.
We believe that the financial IC card chip market copy the path of development of the second generation ID card is a high probability event, we expect future financial IC card chip price of 6 yuan to 8 yuan, we refer to the second generation ID card chip, is expected to the domestic IC debit card chip about 50% gross margin, net profit margin of about 40%; expected future possession of financial IC card chip market by 20%.
Mobile payment card heavy volume soon
Human Resources and Social Security Ministry and the central bank in July 2011 "on the financial functions of the Social Security Calgary upload its content to the late issuance of social security cards are to be attached with the financial function basically - that is newly issued social security card may also regarded as the financial IC card.
As of the end of 2011, social security card cardholder 199 million, according to the Ministry of Human Resources and Social Security "12th Five-Year Plan, a unified national social security card card number to the end of the 2015 target of 800 million, social security card will be the next four years is expected to more than 6 one hundred million, with an annual issue about 150 million.
Assuming an average annual issue about 150 million chip prices 6-8 dollars, corresponding to a market of about 1 billion yuan per year.
The same side of the core countries in the field of social security debit card has been active layout, the future of social security debit card into the outbreak of companies use qualified and channel advantages, is expected to occupy 15% to 25% of the market share.
The Specifically Tongfang Microelectronics launched by the end of 2010 in line with the social security card product of the social security card specification THC26E05C is a use of the contactless smart card chip 8-bit CPU. 2011 completed the qualification as well as the social security institutions of the country close finalists, and quickly formed a production and sales. August 15, 2012, announcement of the chip product finalists social security card chip for the record list, qualified to obtain a Social Security card chip. , Social security debit card samples have been sent to the Social Security Ministry to do testing, is expected to begin shipping in the second half.
The Ministry of Health, said that this year the country will accelerate the construction work of resident health card, start the pilot of the provinces, the fight for the "second five" at the end of the residents' health card holds rate residents EHRs archiving rate synchronization up to 80%.
Deepening medical and health system planning cum implementation program under the State Council issued the "12th Five-Year period, to 2015, the urban and rural residents' health records standardized electronic filing rate of more than 75%.
Based on the above data, it is expected that the resident health card coverage in 2015 reached more than 60% of the country's 14 million population, the card issuer will reach 840 million in total.
Based on national support for information security as well as domestic enterprises attitude, it is expected that the residents' health card supplier will continue to be the mainstream domestic four to five chip companies.
Capacity provided by the same side of the core countries successfully use the the residents health card issued in the first high-performance non-contact CPU card chip, future residents' health card heavy volume is expected that the company will receive a 20% market share.
In addition, on June 21, 2012, China UnionPay and China Mobile (microblogging) signed the Framework Agreement of mobile payment services, China Mobile is expected future unified mobile payment program to the Consortium led 13.56MHz standard which marks the mobile payment the three pillars impasse has break the industry will usher in accelerated phase.
Analysys International (microblogging) report shows that in 2011, China's mobile payment market scale reached 742 billion yuan, an increase of 67.8% from 2010, the size of the market in 2013 is expected to more than 150 billion yuan, is expected to reach 385 billion yuan in 2014, The size of up to 387 million users, China Mobile paid an average annual growth rate will exceed 50% in the next few years.
Regulatory authorities for consideration to the interests of national security and financial security, and the information industry and the cardholder's more important to consider the development of the domestic chip industry, clearly pointed out that the to encourage mobile payment chip products industry using local vendors.
The major domestic mobile payment chip companies: Tongfang Microelectronics, Datang Microelectronics, Fudan Microelectronics, Shanghai Hua Hong and national technology.
The same side of the core countries pay the security chip THC80F09BC support SE on the SIM, SE in SD and SE phone all three solutions, and in March 2012 through the UnionPay mobile payment card detection.
Tongfang States core provide support Native and JAVA chip card chip THD20F06BD of and THD86 series of platform products, the current issue has been applied in some areas.
The same side of the country core dual-interface SIM card mobile payment the chip THD86EF59AC support SIM card mobile payment function can be realized simply replace one pair interface.
The same side of the core countries with the technical advantages of long-term investment, with the corresponding solutions for all mobile payment solutions, industry, once started, will be the first to benefit.
Microprocessor
