(1) Julong Technology acquired United Chuangtai to focus on semiconductor distribution business. Semiconductor distribution is an indispensable core link in the semiconductor industry. Semiconductor distributors are value-added service providers in the semiconductor industry. They need to have a deep understanding of the industry and its development trend, have strong information analysis and processing capabilities, and can provide perfect supply chain management capabilities, financial service capabilities and technical support capabilities for upstream and downstream partners, thus ensuring the safety of the entire supply chain. Its products mainly include SK Hynix's data memory and MediaTek's main control chip. The products are used in cloud computing storage (data center server), mobile phones, televisions, in-vehicle products, smart wear, Internet of Things and other fields. The downstream customers are mainly Alibaba, Tencent, ByteDance and Hua Qin Communication.
(2) The distribution agent is the main source of income of United Chuangtai, mainly focusing on core components, and has the authorization agency rights of SK Hynix, one of the three largest industrial memory suppliers in the world, MTK MediaTek, a world-renowned master control chip brand, GigaDevice, a leading domestic memory control chip manufacturer, and many other original factories. Among them, the chief customer is Alibaba, and the proportion of sales to its total sales is on the rise. By the end of 2020, the proportion has reached 55.74%.
(3) In 20 19, the operating income of United Chuangtai was 5.843 billion yuan, ranking 26th in the global electronic component distributor and 3rd in the domestic electronic component distributor.
2. There are shortcomings
(1) In the semiconductor distribution industry, once an agent is selected and a good cooperative relationship is formed, the original factory will not be easily replaced. Therefore, to become an authorized agent of a well-known original factory, the threshold and barriers are very high.
(2) With its high-quality agent resources, high-quality customer resources and rich industry experience, United Chuangtai has strong competitiveness, high market position and good profitability in the highly competitive electronic component distribution field in China.