Summary of PNC (603690.SS) Management Call Company Overview - **Company Name**: PNC (603690.SS) - **Industry**: Semiconductor Equipment - **Key Products**: Wet cleaning tools, high purity systems, and components, primarily for semiconductor clients, with 87% of total revenues in 1H25 coming from this sector - **Client Base**: Includes foundries (SMIC, Hua Hong, Huali), memory manufacturers (YMTC, CXMT), and integrated device manufacturers (CR Micro, Silan) [2][3] Key Industry Insights - **Capex Growth**: Anticipated growth in China's semiconductor capital expenditure (capex) from US$41 billion in 2024 to US$43 billion and US$45 billion in 2025 and 2026, respectively, driven by capacity expansions from foundries and memory players [1] - **Advanced Nodes Expansion**: Continuous capacity expansion expected from local foundries in advanced nodes to support the rise of local AI chips and the growing AI ecosystem [1] - **Localization Trend**: The trend towards localization in semiconductor production is expected to continue, initially in logic and later expanding to memory, which will drive demand for local semiconductor production equipment (SPE) and components [1] Company Performance and Strategy - **Order Backlog**: PNC has an order backlog of RMB 5 billion, with 85% of orders for semiconductor clients, and 89% of semiconductor orders coming from 12-inch clients [2] - **Product Development**: The company has received batch orders for cleaning tools designed for 28nm production lines after successful verification. The S300-D platform is aimed at advanced nodes clients and can improve wafer per hour (WPH) by 30% [3] - **High-End Product Focus**: PNC is focusing on high-end products to differentiate itself in a competitive market, particularly with its sulfuric acid SPM cleaning tools that help clients achieve better performance [3] - **Comprehensive Solutions**: The company is developing comprehensive solutions that encompass cleaning tools, components, materials, and system solutions to enhance its market position [3] Financial Highlights - **Revenue Contribution**: 87% of total revenues in the first half of 2025 are derived from semiconductor clients [2] - **Client Orders**: The company has secured long-term orders and is actively expanding its product offerings to meet the needs of advanced node clients [3] Additional Insights - **Competitive Landscape**: Rising competition in cleaning tools for matured nodes is prompting PNC to enhance its focus on advanced node solutions and high-performance products [3] - **Strategic Partnerships**: The management emphasizes the importance of partnerships and collaborations to drive growth in the semiconductor equipment sector [3] This summary encapsulates the key points from the management call regarding PNC's position in the semiconductor industry, its growth strategies, and financial performance.

Group 1 - The core viewpoint of the news is that Zhichun Technology has shown significant trading activity and financial performance, with a notable increase in stock price and trading volume on January 16, 2023 [1] - On January 16, 2023, Zhichun Technology's stock price increased by 4.78%, with a trading volume of 1.925 billion yuan. The net financing purchase on that day was 36.90 million yuan, with a total financing and securities balance of 625 million yuan [1] - The financing balance of Zhichun Technology is at a high level, accounting for 4.75% of the circulating market value, exceeding the 90th percentile of the past year [1] Group 2 - As of October 31, 2023, the number of shareholders of Zhichun Technology increased by 43.52% to 110,800, while the average circulating shares per person decreased by 30.32% to 3,457 shares [2] - For the period from January to September 2025, Zhichun Technology reported a revenue of 2.367 billion yuan, a year-on-year decrease of 10.33%, and a net profit attributable to shareholders of 84.697 million yuan, down 56.08% year-on-year [2] - Zhichun Technology has distributed a total of 248 million yuan in dividends since its A-share listing, with 136 million yuan distributed in the last three years [3]

Core Viewpoint - ZhiChun Technology's stock has shown fluctuations in price and trading volume, reflecting investor sentiment and market conditions, with a notable increase in shareholder numbers and a decrease in average shares held per shareholder [1][2]. Group 1: Stock Performance - On January 15, ZhiChun Technology's stock rose by 2.02%, reaching 32.34 CNY per share, with a trading volume of 4.92 billion CNY and a turnover rate of 4.03%, resulting in a total market capitalization of 12.385 billion CNY [1]. - Year-to-date, the stock price has increased by 2.83%, with a 1.19% decline over the last five trading days, an 11.10% increase over the last 20 days, and a 5.02% decline over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, ZhiChun Technology reported a revenue of 2.367 billion CNY, a year-on-year decrease of 10.33%, and a net profit attributable to shareholders of 84.697 million CNY, down 56.08% year-on-year [2]. Group 3: Shareholder and Institutional Holdings - As of October 31, the number of shareholders for ZhiChun Technology reached 110,800, an increase of 43.52% from the previous period, while the average number of shares held per shareholder decreased by 30.32% to 3,457 shares [2]. - The company has distributed a total of 248 million CNY in dividends since its A-share listing, with 136 million CNY distributed over the past three years [3]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the fourth largest with 6.6843 million shares, and Guotai Junan's ETF is the ninth largest with 2.8115 million shares, both being new shareholders [3].

Group 1 - The semiconductor sector experienced a short-term rally, with ChipSource rising over 4% and Jingyi Equipment increasing by more than 3% [1] - Other stocks such as Crystal Rise and Pure Technology also saw gains, indicating a positive trend in the industry [1]

Core Viewpoint - The company, Zhichun Technology, is making significant advancements in semiconductor wet processing equipment, particularly at the 28nm node, and is focusing on capturing more advanced process demands while leveraging domestic opportunities [2] Group 1: Product Development and Market Position - The company’s semiconductor wet processing equipment covers the entire process flow at the 28nm node, with all process machines receiving orders [2] - The company has also secured some orders for more advanced process nodes, particularly in high-temperature sulfuric acid, FINETCH, and single-wafer phosphoric acid equipment, which are currently dominated by international manufacturers [2] - The company is investing heavily in R&D for a full range of products, including challenging single-wafer sulfuric and phosphoric acid equipment, aiming to provide one-stop solutions for customers [2] Group 2: Strategic Initiatives - The company is seizing opportunities presented by changes in the international landscape to shift from being a "backup" option to a "primary" choice for customers [2] - There is a focus on deepening collaborative partnerships with customers to enhance market positioning and competitiveness [2]

证券日报网1月13日讯 ，至纯科技在接受调研者提问时表示，气站没有开工率的概念，气站的收入主要 来自两部分：一是固定租金，具有稳定的前置性；二是根据客户实际用气量进行浮动的气费收入。因 此，总体收入与客户的用气量密切相关。公司第二个气站的客户目前还在爬坡阶段，随着其用气量的提 升，公司会为其配套相应的产能建设。 （文章来源：证券日报） ...

（文章来源：证券日报） 证券日报网1月13日讯 ，至纯科技在接受调研者提问时表示，大宗气站业务满产后，毛利率可参考其他 成熟电子大宗气供应公司的毛利率水平，且现金流稳定。大宗气站业务是公司的"压舱石"业务。它不依 赖于持续的资本开支，能提供长期稳定的收入和现金流，可改善公司整体财务质量，对公司发展具有正 向作用。 ...

Group 1 - The core viewpoint of the article highlights that the low gross margin in the equipment business is primarily due to low delivery volumes, which prevent effective dilution of fixed costs [2] - The company has been transitioning to domestic supply chain components, which initially resulted in lower yield rates and higher costs, leading to additional losses [2] - The key to improvement lies in increasing delivery volumes, and as the domestic supply chain matures (with approximately 80% of the transition completed), yield rates and economies of scale are expected to reduce costs [2]

证券日报网1月13日讯，至纯科技（603690）在接受调研者提问时表示，系统集成业务公司已经凭借扎 实的技术积累和过往的实践经验在12寸晶圆厂系统集成领域建立起一定的业务优势，毛利率前期基本维 持在30%以上，但也面临一定的价格压力。在优化整体盈利水平的过程中，公司采取差异化策略：主动 筛选并放弃普通低毛利订单，但全力保障与战略用户合作的连续性与稳定性。现金流方面，该业务垫资 较多。规模较大的项目需要提前垫付大量资金且回款周期长，对公司现金流压力较大。系统集成行业壁 垒高，气体纯度及稳定性等影响芯片产线良率，新进入者壁垒较高；主要竞争对手包括海外厂商及国内 企业等，公司目前在气体系统领域市场份额接近50%，化学品系统领域市场份额接近30%。 ...

Group 1 - The core focus of the company is to provide one-stop solutions in the semiconductor wet processing equipment sector, achieving full process coverage for 28nm technology and advancing towards more sophisticated processes [1][36] - The company aims to transition from being a "backup" option to a "primary" choice by leveraging domestic opportunities and establishing deep partnerships with clients to offer comprehensive lifecycle services from equipment to materials [2][31] - The equipment business has low gross margins primarily due to low delivery volumes, high fixed costs, and initial cost losses in the domestic supply chain, with improvements dependent on increasing delivery volumes and supply chain maturity [3][31] Group 2 - The system integration business has a gross margin exceeding 30% initially, but faces cash flow pressure due to high upfront costs and long payment cycles, with market shares in gas and chemical systems at nearly 50% and 30% respectively [4][31] - The bulk gas station business serves as a stabilizing cash flow source, enhancing overall financial quality, with measures in place to improve profit margins and cash flow through better receivables management and operational efficiency [5][31] - The company has seen significant growth in contract liabilities and inventory, indicating robust order volumes and ongoing business expansion, with contract liabilities reaching 741 million yuan, a year-on-year increase of 34.63% [9][36] Group 3 - The company reported a revenue of 2.367 billion yuan for the first three quarters of 2025, a year-on-year decrease of 10.33%, and a net profit attributable to shareholders of 85 million yuan, down 56.08% [9][36] - The third quarter gross margin improved to 35.07%, reflecting an increase of 8.24 percentage points quarter-on-quarter, driven by product structure optimization and effective cost control [9][36] - The company has increased R&D investment, with expenditures reaching 166 million yuan in the first three quarters of 2025, a year-on-year increase of 8.77%, enhancing product competitiveness [9][36]