On March 26, China's MLCC and chip resistor manufacturer Fenghua Advanced Technology Holding CO., LTD released its 2018 annual report. According to the report, Fenghua's total revenue in 2016 was 4.58 billion yuan, a year-on-year increase of 36.51%, and the total profit was 1.224 billion yuan, a year-on-year increase of 293.56%.
In terms of sales performance of MLCC and chip resistors, the revenue and gross profit of MLCC and chip resistors have been greatly improved. The MLCC revenue reached 1.704 billion yuan, with a gross profit margin of 65.14%; chip resistor revenue was 1.057 billion yuan, and the gross profit margin reached 39.46%.
According to Fenghua, due to industry capacity structure adjustment and new application demand growth in 2018, supply and demand imbalances in the first three quarters led to an increase in product prices, especially the price of MLCC and chip resistors. Affected by the decline in consumer electronics demand such as smartphones and the trade war between China and the United States, market supply and demand gradually balanced, and prices began to fall in the fourth quarter.