On November 20, 2023, Siwei Tuxin (002405.SZ) responded to concentrated inquiries from investors regarding chip shipments and revenue recognition on its investor relations platform. Previously, the company’s semi-annual report disclosed that its subsidiary Jiefa Technology shipped approximately 90 million SoC chips and about 80 million MCU chips in the first half of the year. In early November, the company confirmed that both MCU and SoC shipments had exceeded 100 million. The company stated that the over 100 million figure for both MCU and SoC is cumulative data, and there is no time delay in the recognition of related sales revenue.
Some investors on the interactive platform estimated that based on the semi-annual report and the “over 100 million” progress, Jiefa’s annual shipment volume is expected to approach 100 million units, corresponding to a sales scale of around one billion yuan. They further inquired about the invoicing cycle and payment recovery cycle after chip shipments. In response, Siwei Tuxin stated that the revenue recognition for its chip business is aligned with the actual shipment pace, and revenue is recognized promptly in accordance with accounting standards.
Public information shows that Siwei Tuxin has entered the automotive-grade chip market through its subsidiary Jiefa Technology, with related SoC and MCU products primarily applied in smart cockpits, in-vehicle infotainment systems, instrument panels, and body control systems. Against the backdrop of increasing penetration of smart vehicles, the shipment pace of automotive chips is closely related to the production schedules of OEMs and model iterations, with order execution typically exhibiting certain periodic fluctuations.
From the information disclosed by the company, the current “over 100 million” shipments of MCU and SoC are historical cumulative data, reflecting the ongoing installation of the company’s related chips in both existing and new models. The statement of “no time delay” in revenue recognition also addresses market concerns regarding whether there is a significant mismatch between “shipment and revenue recognition.” The company emphasizes that it will strictly adhere to contract performance schedules and accounting policies for financial processing.
Industry insiders point out that in the automotive electronics and smart cockpit supply chain, automotive-grade chip manufacturers must not only maintain technological iteration and stable supply capabilities but also manage reasonable expectations with the capital market regarding information disclosure and operational rhythm. For Siwei Tuxin, the transparency of the shipment and revenue recognition rhythm, as well as subsequent penetration progress in overseas automotive companies and new force clients, will be key observation points for the market regarding the growth potential of its chip business.
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