[Glossary](index=5&type=section&id=First%20Section%20Glossary) This section provides definitions of key terms used throughout the report [Company Profile and Key Financial Indicators](index=8&type=section&id=Second%20Section%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section introduces the company's background and presents its key financial performance over recent years [Company Profile](index=8&type=section&id=Company%20Profile) ACM Research (Shanghai), Inc., a semiconductor equipment company, was listed on the STAR Market of the Shanghai Stock Exchange on November 18, 2021 Company Information | Item | Content | | :--- | :--- | | **Company Chinese Name** | 盛美半导体设备（上海）股份有限公司 | | **Company Chinese Abbreviation** | 盛美上海 | | **Legal Representative** | HUI WANG | | **Registered Address** | Building 4, No. 1690 Cailun Road, China (Shanghai) Pilot Free Trade Zone | | **Stock Exchange** | STAR Market, Shanghai Stock Exchange | | **Stock Abbreviation** | 盛美上海 | | **Stock Code** | 688082 | [Key Accounting Data and Financial Indicators](index=9&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators%20for%20Recent%20Three%20Years) In 2021, the company achieved robust revenue and net profit growth, driven by business expansion and IPO proceeds, despite negative operating cash flow 2019-2021 Key Accounting Data (Unit: Million Yuan) | Key Accounting Data | 2021 | 2020 | YoY Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,620.87 | 1,007.47 | 60.88 | 756.73 | | **Net Profit Attributable to Parent Company Shareholders** | 266.25 | 196.77 | 35.31 | 134.89 | | **Net Profit Attributable to Parent Company Shareholders (Excl. Non-recurring)** | 194.73 | 92.44 | 110.67 | 130.48 | | **Net Cash Flow from Operating Activities** | -189.18 | -88.24 | N/A | 72.71 | | **Total Assets (Year-end)** | 6,337.41 | 1,843.52 | 243.77 | 1,308.00 | | **Net Assets Attributable to Parent Company Shareholders (Year-end)** | 4,814.96 | 1,048.67 | 359.15 | 829.93 | 2019-2021 Key Financial Indicators | Key Financial Indicators | 2021 | 2020 | Change | 2019 | | :--- | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/Share)** | 0.68 | 0.50 | Increased by 36.00% | 0.36 | | **Basic Earnings Per Share (Excl. Non-recurring, Yuan/Share)** | 0.49 | 0.24 | Increased by 104.17% | 0.32 | | **Weighted Average Return on Net Assets (%)** | 18.09 | 21.20 | Decreased by 3.11 percentage points | 34.22 | | **Weighted Average Return on Net Assets (Excl. Non-recurring, %)** | 13.23 | 9.96 | Increased by 3.27 percentage points | 30.67 | | **R&D Investment as Percentage of Operating Revenue (%)** | 17.18 | 13.97 | Increased by 3.21 percentage points | 13.12 | - The company's operating revenue growth in 2021 was primarily driven by expanding market demand and continuous growth in sales orders and production capacity, with significant increases in semiconductor cleaning equipment, electroplating equipment, and advanced packaging wet process equipment[23](index=23&type=chunk) - Total non-recurring gains and losses in 2021 amounted to **71.51 million yuan**, primarily consisting of **76.55 million yuan** in government subsidies[27](index=27&type=chunk)[28](index=28&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Third%20Section%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive analysis of the company's operational performance, strategic initiatives, competitive landscape, and financial results for the reporting period [Discussion and Analysis of Operations](index=12&type=section&id=I.%20Discussion%20and%20Analysis%20of%20Operations) In 2021, the company capitalized on semiconductor industry demand, rapidly expanding business, sales, and profitability, achieving significant results in R&D, customer expansion, and operations 2021 Annual Key Operating Results | Indicator | 2021 (Million Yuan) | 2020 (Million Yuan) | YoY Growth | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,621 | 1,007 | 60.88% | | **Net Profit** | 266 | 197 | 35.31% | | **Net Profit (Excl. Non-recurring)** | 195 | 92 | 110.67% | | **Total Assets (Year-end)** | 6,337 | 1,872 | 238.46% | | **Net Assets Attributable to Parent Company (Year-end)** | 4,815 | 1,049 | 359.15% | - The company achieved significant new product development, launching high-speed copper electroplating technology, new wet edge etching products, and delivering the first 300mm single-wafer high-temperature SPM equipment, with over **170 units** shipped in total, including **20 copper plating units** and **8 furnace tube units**[31](index=31&type=chunk) - In customer expansion, the company secured repeat orders from existing major clients and added **five new renowned clients** outside mainland China in 2021, including an order for SAPS single-wafer cleaning equipment from a major US international semiconductor manufacturer[32](index=32&type=chunk) - As of the end of 2021, the company and its controlled subsidiaries held **347 authorized patents**, including **342 invention patents**, with **156 authorized domestically** and **191 authorized internationally**[33](index=33&type=chunk) [Description of Main Businesses, Operating Model, Industry Conditions and R&D During the Reporting Period](index=15&type=section&id=II.%20Description%20of%20Main%20Businesses%2C%20Operating%20Model%2C%20Industry%20Conditions%20and%20R%26D%20During%20the%20Reporting%20Period) The company specializes in semiconductor cleaning, electroplating, and advanced packaging wet process equipment, leveraging proprietary technologies like SAPS and TEBO to offer customized solutions to global clients, maintaining a leading position in the domestic cleaning equipment market [Main Businesses and Products](index=15&type=section&id=Main%20Businesses%2C%20Main%20Products%20or%20Services) The company primarily develops, produces, and sells semiconductor cleaning, electroplating, and advanced packaging wet process equipment, offering efficient, cost-effective solutions through core technologies like SAPS and TEBO - The company's main products include semiconductor cleaning equipment, semiconductor electroplating equipment, advanced packaging wet process equipment, stress-free polishing equipment, and vertical furnace tube series equipment[36](index=36&type=chunk) - Core cleaning technologies include: - **SAPS Megasonic Cleaning Technology**: Suitable for flat wafer surfaces and high aspect ratio structures, addressing uneven megasonic energy distribution challenges - **TEBO Megasonic Cleaning Technology**: Applicable to patterned wafers at 28nm and below, achieving damage-free cleaning for advanced structures like FinFET, DRAM, and 3D NAND - **Tahoe Single-Wafer Batch Cleaning Technology**: Integrates batch and single-wafer modules, significantly reducing sulfuric acid consumption and lowering costs[36](index=36&type=chunk)[37](index=37&type=chunk) - The company is one of the few globally to master and industrialize core copper interconnect electroplating technology, with its Ultra ECP map technology targeting 28-14nm and below technology nodes[39](index=39&type=chunk) [Operating Model](index=18&type=section&id=Main%20Operating%20Model) The company operates on an independent R&D, build-to-order, and global direct sales model, establishing stable partnerships with industry leaders like Hynix, Yangtze Memory, and SMIC - **R&D Model**: Employs independent R&D, customer-demand-oriented, and differentiated competition strategies, with R&D teams in Shanghai and Korea[42](index=42&type=chunk) - **Procurement Model**: Established a comprehensive global supply chain system, with procurement teams in Korea and the US responsible for some overseas raw material purchases[42](index=42&type=chunk) - **Production Model**: Adopts a build-to-order, customized production model, organizing production based on customer orders[43](index=43&type=chunk) - **Sales Model**: Utilizes a global direct sales approach, first targeting industry-leading customers to build reputation, then expanding into emerging regional markets[43](index=43&type=chunk) [Industry Conditions and Position](index=19&type=section&id=Industry%20Conditions) The semiconductor equipment industry is expanding, driven by downstream application growth and industry migration to mainland China, with global sales projected to reach **$95.3 billion** in 2021 - According to SEMI forecasts, global semiconductor equipment sales are expected to reach **$95.3 billion** in 2021, a **34.1% year-on-year increase**, with a further **11% growth** projected for 2022[44](index=44&type=chunk) - The global semiconductor cleaning equipment market is highly concentrated, with DNS, TEL, LAM, and SEMES collectively holding over **90% market share**[47](index=47&type=chunk) - According to BOC International, the company holds a **23% domestic market share** in cleaning equipment; Gartner data shows the company's global cleaning equipment market share was **4% in 2020**, with single-wafer and batch cleaning equipment reaching **5.2% globally**[48](index=48&type=chunk) - The company was ranked among the **top five semiconductor equipment manufacturers in mainland China** in 2020[48](index=48&type=chunk) [Core Technologies and R&D Progress](index=22&type=section&id=Core%20Technologies%20and%20R%26D%20Progress) The company possesses five core technologies, with TEBO megasonic cleaning, Tahoe high-temperature sulfuric acid cleaning, and stress-free polishing technologies achieving international leading levels Core Technology Advancement Assessment | Technology Area | Core Technology Name | Technology Advancement | | :--- | :--- | :--- | | **Cleaning Equipment** | SAPS Megasonic Cleaning Technology | Internationally Advanced | | | TEBO Megasonic Cleaning Technology | Internationally Leading | | | Single-Wafer Batch Tahoe High-Temperature Sulfuric Acid Cleaning Technology | Internationally Leading | | **Polishing Equipment** | Stress-Free Polishing Technology | Internationally Leading | | **Copper Electroplating Equipment** | Multi-Anode Electroplating Technology | Internationally Advanced | 2021 R&D Investment (Unit: Yuan) | Item | Current Year | Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | **Total R&D Investment** | 278,394,178.76 | 140,791,112.52 | 97.74 | | **Total R&D Investment as Percentage of Operating Revenue (%)** | 17.18 | 13.97 | Increased by 3.21 percentage points | - R&D investment increased by **97.74% year-on-year**, primarily due to increased consumption of R&D materials for new product and process development, as well as an increase in R&D personnel and their compensation[60](index=60&type=chunk) R&D Personnel Information | Item | Current Period | Prior Period | | :--- | :--- | :--- | | **Number of Company R&D Personnel (persons)** | 391 | 228 | | **R&D Personnel as Percentage of Total Company Employees (%)** | 44.99 | 42.07 | [Analysis of Core Competencies During the Reporting Period](index=27&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its globally pioneering SAPS/TEBO and single-wafer batch cleaning technologies, offering a competitive edge over domestic peers Megasonic Single-Wafer Cleaning Equipment Technology Comparison | Comparison Item | ACM Shanghai | Chinese Peers | International Giants | | :--- | :--- | :--- | :--- | | **Technical Features** | SAPS/TEBO megasonic technology, addressing cleaning uniformity and pattern damage issues | Primarily two-fluid cleaning technology | Primarily uses chemical liquids combined with nitrogen atomized water for physical cleaning | | **Technology Node** | SAPS applied to 28nm logic/19nm DRAM, TEBO for 45nm and below patterned wafers | Relatively backward technology nodes, narrower application areas | Applied to 5nm and above production lines, wider application areas | | **Market Share** | Higher in China, lower internationally | Lower in China | Higher in China, monopolistic internationally | - The company's single-wafer batch cleaning equipment is a global first, significantly reducing sulfuric acid consumption compared to mainstream single-wafer equipment, with no similar products from domestic or international peers currently available[68](index=68&type=chunk) [Risk Factors](index=29&type=section&id=IV.%20Risk%20Factors) The company faces risks across core competitiveness, operations, finance, and macro environment, including technology updates, market competition, and high customer concentration [Core Competitiveness Risks](index=29&type=section&id=Core%20Competitiveness%20Risks) The company faces risks of technology updates, loss of key technical talent, core technology leakage, and R&D investments not yielding expected results - The company faces four major core competitiveness risks: - **Technology Update Risk**: If the advancement of core technologies (SAPS, TEBO, Tahoe) declines, it may adversely affect operating performance - **Key Technical Talent Loss Risk**: Competition for talent in the semiconductor equipment industry is intensifying, and the loss of core talent will impact R&D capabilities - **Core Technology Leakage Risk**: The company relies on outsourced and subcontracted components, posing a risk of core technology leakage due to improper handling by suppliers or employees - **Technology R&D Risk**: New technology R&D is long-cycle and capital-intensive; if R&D direction does not align with market demand, investments may not yield expected results[70](index=70&type=chunk)[71](index=71&type=chunk) [Operating Risks](index=30&type=section&id=Operating%20Risks) The company's operations face intense market competition, reliance on key suppliers, market development failures, high customer concentration, and product quality control challenges - The company faces direct competition from international giants with stronger financial resources and technological reserves[72](index=72&type=chunk) - Reliance on single or major suppliers for certain key components, such as megasonic generators (Product Systems, Inc.) and robotic arms (NINEBELL), poses a risk of supply disruption[72](index=72&type=chunk) - Customer concentration is relatively high, with sales to the top five customers accounting for **54.97%** of total sales in 2021; loss of major customers or changes in their procurement plans would significantly impact revenue[74](index=74&type=chunk) - The company's product sales cycle is long (**6-24 months**), and acceptance periods are influenced by various factors, potentially leading to delayed revenue recognition[73](index=73&type=chunk)[75](index=75&type=chunk) [Financial Risks](index=33&type=section&id=Financial%20Risks) The company faces financial risks including accounts receivable collection, inventory impairment, tax incentive changes, exchange rate fluctuations, gross margin volatility, and declining return on net assets - At the end of the reporting period, the book value of accounts receivable was **542 million yuan**, accounting for **8.56%** of total assets; inventory book value was **1.443 billion yuan**, accounting for **22.77%** of total assets, with goods in transit comprising **44.17%**[78](index=78&type=chunk) - The company benefits from high-tech enterprise income tax incentives and R&D expense super deduction policies; future policy adjustments or failure to meet conditions would impact performance[79](index=79&type=chunk) - Most of the company's product sales are denominated in US dollars, and some purchases are in US dollars and Korean Won, exposing it to RMB exchange rate fluctuation risks, with a foreign exchange loss of **4.52 million yuan** incurred during the reporting period[79](index=79&type=chunk) - Following the initial public offering, the company's net asset scale significantly increased, and as fundraising projects require time to reach full capacity, there is a risk of declining return on net assets[81](index=81&type=chunk) [Industry and Macroeconomic Risks](index=34&type=section&id=Industry%20and%20Macroeconomic%20Risks) The company faces risks from the cyclical nature of the semiconductor industry, where fluctuations in downstream demand directly impact equipment procurement - Demand in the semiconductor equipment industry is directly affected by chip manufacturing, packaging and testing, and terminal application markets; industry prosperity fluctuations will impact the company's business development and operating performance[82](index=82&type=chunk)[83](index=83&type=chunk) - Escalating Sino-US trade disputes could lead to reduced customer demand or increased procurement costs for the company, adversely affecting operating results[84](index=84&type=chunk) [Key Operating Performance During the Reporting Period](index=38&type=section&id=V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) In 2021, the company's operating revenue reached **1.621 billion yuan**, a **60.88% year-on-year increase**, with operating costs rising by **64.44%** Income Statement and Cash Flow Statement Key Item Changes | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,620,869,141.67 | 1,007,471,809.80 | 60.88 | | **Operating Cost** | 931,440,396.51 | 566,422,360.10 | 64.44 | | **Selling Expenses** | 158,887,812.23 | 105,639,504.93 | 50.41 | | **Administrative Expenses** | 64,108,924.87 | 50,318,924.37 | 27.41 | | **Financial Expenses** | 8,381,378.35 | 32,371,427.01 | -74.11 | | **R&D Expenses** | 278,394,178.76 | 140,791,112.52 | 97.74 | | **Net Cash Flow from Operating Activities** | -189,182,778.11 | -88,244,945.02 | N/A | | **Net Cash Flow from Investing Activities** | -69,597,878.78 | -260,149,794.08 | N/A | | **Net Cash Flow from Financing Activities** | 3,394,744,863.29 | 188,575,602.50 | 1,700.20 | Main Business Revenue by Product (Unit: Yuan) | By Product | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | **Semiconductor Cleaning Equipment** | 1,055,805,768.08 | 29.34 | 44.31 | Decreased by 0.70 percentage points | | **Other Semiconductor Equipment** | 273,682,004.89 | 352.44 | 42.53 | Increased by 17.70 percentage points | | **Advanced Packaging Wet Process Equipment** | 217,778,002.10 | 120.95 | 25.17 | Decreased by 8.90 percentage points | - Sales to the company's top five customers accounted for **54.97%** of total annual sales, while purchases from the top five suppliers accounted for **27.09%** of total annual purchases[101](index=101&type=chunk)[103](index=103&type=chunk) [Company's Discussion and Analysis of Future Development](index=48&type=section&id=VI.%20Company's%20Discussion%20and%20Analysis%20of%20Future%20Development) The company will continue its "technology differentiation, product platformization, and customer globalization" strategy, focusing on independent innovation to capitalize on China's semiconductor industry growth - The company's development strategy is "technology differentiation, product platformization, and customer globalization," aiming to enhance core competitiveness and expand revenue and profit through independent R&D[122](index=122&type=chunk) - Key future operating plans include: - **Product R&D**: Continuously improve existing equipment performance and develop new products based on customer needs - **Human Resources**: Attract and cultivate global high-end talent, and implement equity incentive plans - **Market Expansion**: Increase market share in mainland China while boosting international sales proportion - **Investment and M&A**: Consider investing in and acquiring domestic and international high-end semiconductor equipment manufacturers to cover more product categories - **Internal Control Construction**: Strengthen internal controls to adapt to the company's rapid scale expansion[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [Corporate Governance](index=51&type=section&id=Fourth%20Section%20Corporate%20Governance) This section details the company's governance structure, including information on its board of directors, supervisors, senior management, and employees [Information on Directors, Supervisors, and Senior Management](index=53&type=section&id=VI.%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company's core management team remains stable, with key technical personnel like Chairman HUI WANG and General Manager Jian Wang serving long-term tenures 2021 Compensation for Selected Directors, Supervisors, and Senior Management (Unit: Ten Thousand Yuan) | Name | Position | Total Pre-tax Compensation from Company During Reporting Period | | :--- | :--- | :--- | | HUI WANG | Chairman, Core Technical Personnel | 216.90 | | Jian Wang | Director, General Manager, Core Technical Personnel | 147.48 | | Fuping Chen | Deputy General Manager, Core Technical Personnel | 137.22 | | LISA YI LU FENG | Chief Financial Officer | 142.78 | | **Total** | / | **1,079.66** | - The total compensation actually received by all directors, supervisors, and senior management at the end of the reporting period was **8.8615 million yuan**; the total compensation actually received by core technical personnel was **7.8916 million yuan**[144](index=144&type=chunk) [Employee Information of Parent Company and Major Subsidiaries at Period-End](index=63&type=section&id=XI.%20Employee%20Information%20of%20Parent%20Company%20and%20Major%20Subsidiaries%20at%20Period-End) As of the end of the reporting period, the company and its major subsidiaries had a total of **869 employees**, with technical personnel comprising the largest proportion at **44.99%** Employee Professional Composition | Professional Category | Number of Persons | Percentage (%) | | :--- | :--- | :--- | | Technical Personnel | 391 | 44.99 | | Production Personnel | 173 | 19.91 | | After-Sales Service Personnel | 185 | 21.29 | | Administrative Personnel | 91 | 10.47 | | Financial Personnel | 15 | 1.73 | | Sales Personnel | 14 | 1.61 | | **Total** | **869** | **100** | [Environmental, Social, and Governance (ESG)](index=67&type=section&id=Fifth%20Section%20Environmental%2C%20Social%20Responsibility%20and%20Other%20Corporate%20Governance) This section outlines the company's environmental protection measures, social responsibility initiatives, and other corporate governance practices [Environmental Information](index=67&type=section&id=Environmental%20Information) The company is not classified as a key pollutant-discharging entity and had no environmental administrative penalties during the reporting period, with production primarily involving equipment assembly and debugging - The company is not classified as a key pollutant-discharging entity, and its production processes primarily involve machine equipment assembly, testing, and debugging, with no severe pollution issues[170](index=170&type=chunk)[174](index=174&type=chunk) - The company has established environmental management systems, collecting small amounts of R&D wastewater containing fluorine, acids, and alkalis for centralized treatment by qualified third parties[172](index=172&type=chunk)[174](index=174&type=chunk) [Social Responsibility](index=68&type=section&id=Social%20Responsibility%20Work) The company actively fulfills its social responsibilities by protecting the rights of shareholders, creditors, employees, customers, and suppliers - In 2021, the company made external donations totaling **120,000 yuan** to the Tsinghua University Shanghai Alumni Association[175](index=175&type=chunk) - The company strictly adheres to labor laws, protects employee rights, and provides benefits beyond statutory social insurance, such as commercial medical insurance and annual physical examinations[178](index=178&type=chunk) Employee Stock Ownership | Item | Quantity | | :--- | :--- | | **Number of Employees Holding Shares (persons)** | 101 | | **Percentage of Employees Holding Shares to Total Employees (%)** | 11.62 | | **Number of Shares Held by Employees (ten thousand shares)** | 572.82 | | **Percentage of Shares Held by Employees to Total Share Capital (%)** | 1.32 | [Significant Matters](index=72&type=section&id=Sixth%20Section%20Significant%20Matters) This section covers important events and commitments, including the fulfillment of IPO commitments, significant related party transactions, and the progress of raised funds utilization [Fulfillment of Commitments](index=72&type=section&id=I.%20Fulfillment%20of%20Commitments) The company and relevant parties strictly fulfilled all commitments made during the initial public offering in the reporting period - Controlling shareholder ACMR committed not to transfer pre-IPO shares for **36 months** from the company's listing date (November 18, 2021)[188](index=188&type=chunk) - Actual controller HUI WANG, as Chairman and core technical personnel, committed to a **36-month** share lock-up period, and thereafter, not to transfer more than **25%** of his shares held at the time of listing annually for the next **4 years**[189](index=189&type=chunk)[191](index=191&type=chunk) - The company, controlling shareholder, actual controller, and directors, supervisors, and senior management committed to initiating share price stabilization measures, including company buybacks and shareholder增持, if the company's share price falls below net assets per share for **20 consecutive trading days** within three years of listing[202](index=202&type=chunk) [Significant Related Party Transactions](index=100&type=section&id=XII.%20Significant%20Related%20Party%20Transactions) In 2021, the company engaged in routine operating purchase and sales transactions with related parties, all conducted at market-based pricing 2021 Key Routine Related Party Transactions (Unit: Ten Thousand Yuan) | Related Party | Related Transaction Type | Related Transaction Content | Related Transaction Amount | | :--- | :--- | :--- | :--- | | Ninebell Co., Ltd. | Purchase of Goods | Purchase of Raw Materials | 21,710.41 | | Sheng Yi Semiconductor Technology (Wuxi) Co., Ltd. | Purchase of Goods/Acceptance of Services | Purchase of Raw Materials/Installation Service Fees | 1,932.31 | | Shanghai Hanjing Silicon Material Co., Ltd. and its Subsidiaries | Sale of Goods/Provision of Services | Sale of Equipment/Services and Accessories | 867.87 | [Explanation of Progress in Use of Raised Funds](index=104&type=section&id=XIV.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company raised a net amount of **3.481 billion yuan** through its 2021 IPO, with a committed investment of **1.8 billion yuan** Overall Use of Raised Funds (Unit: Yuan) | Total Raised Funds | Net Raised Funds | Total Committed Investment | Total Investment in Current Period | Cumulative Investment as of Period-End | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 3,685,239,005.00 | 3,481,258,520.34 | 1,800,000,000.00 | 671,137,898.48 | 671,137,898.48 | 37.29 | Raised Fund Investment Project Details (Unit: Yuan) | Project Name | Total Committed Investment | Cumulative Investment as of Period-End | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | | ACM Semiconductor Equipment R&D and Manufacturing Center | 700,000,000.00 | 14,346,965.93 | 2.05 | | ACM High-End Semiconductor Equipment R&D Project | 450,000,000.00 | 32,712,968.98 | 7.27 | | Supplement Working Capital | 650,000,000.00 | 624,077,963.57 | 96.01 | | **Total** | **1,800,000,000.00** | **671,137,898.48** | **37.29** | [Share Capital Changes and Shareholder Information](index=107&type=section&id=Seventh%20Section%20Share%20Capital%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and provides information on its shareholders and actual controller [Changes in Share Capital](index=107&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased from **390,201,347 shares** to **433,557,100 shares** due to its initial public offering - The company was listed on the STAR Market of the Shanghai Stock Exchange on November 18, 2021, publicly issuing **43,355,753 shares**, increasing its total share capital to **433,557,100 shares** after the issuance[242](index=242&type=chunk) Share Capital Change Table (Unit: Shares) | Share Class | Quantity Before This Change | Increase/Decrease in This Change | Quantity After This Change | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | | **I. Restricted Shares** | 390,201,347 | +9,878,213 | 400,079,560 | 92.28 | | **II. Unrestricted Tradable Shares** | 0 | +33,477,540 | 33,477,540 | 7.72 | | **III. Total Shares** | **390,201,347** | **+43,355,753** | **433,557,100** | **100.00** | [Shareholders and Actual Controller Information](index=109&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of the end of 2021, the company had **7,054 common shareholders**, with its controlling shareholder being NASDAQ-listed ACM RESEARCH, INC., holding **82.50%** of shares - As of the end of the reporting period, the company had a total of **7,054 common shareholders**[248](index=248&type=chunk) Top Ten Shareholders as of Reporting Period End | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Share Nature | | :--- | :--- | :--- | :--- | | ACM RESEARCH, INC. | 357,692,308 | 82.50 | Overseas Legal Person | | Xinwei (Shanghai) Management Consulting Partnership (Limited Partnership) | 4,756,154 | 1.10 | Other | | Shanghai Pudong Emerging Industry Investment Co., Ltd. | 4,615,384 | 1.06 | State-owned Legal Person | | Shanghai Integrated Circuit Industry Investment Fund Co., Ltd. | 4,615,384 | 1.06 | State-owned Legal Person | - The company's controlling shareholder is ACM RESEARCH, INC., listed on NASDAQ in the United States, and the actual controller is Mr. HUI WANG, who indirectly controls the company through his personal holdings, spouse, and family trust, collectively holding **35.10%** of ACMR's voting rights[258](index=258&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[263](index=263&type=chunk) [Financial Report](index=118&type=section&id=Tenth%20Section%20Financial%20Report) This section presents the company's audited financial statements, including the balance sheet, income statement, and cash flow statement, along with significant accounting policies [Audit Report](index=118&type=section&id=I.%20Audit%20Report) Lixin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements - The auditing firm is Lixin Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[271](index=271&type=chunk) - The key audit matter was the recognition of operating revenue; the auditors' responses included testing internal controls, examining sales contracts, sampling supporting documents, performing confirmations, conducting customer interviews, and performing cut-off tests[272](index=272&type=chunk)[273](index=273&type=chunk) [Financial Statements](index=120&type=section&id=II.%20Financial%20Statements) The 2021 financial statements show significant growth in the company's asset scale and profitability, driven by IPO proceeds and business expansion [Consolidated Balance Sheet](index=120&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2021, the company's total assets reached **6.337 billion yuan**, a **243.77% increase** from the beginning of the year, primarily driven by IPO proceeds Consolidated Balance Sheet Key Items (Unit: Yuan) | Item | December 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | 5,807,250,202.35 | 1,421,562,708.43 | | Of which: Cash and Cash Equivalents | 3,402,530,435.40 | 271,267,852.84 | | Inventories | 1,443,333,238.01 | 614,869,365.46 | | Accounts Receivable | 542,192,682.46 | 256,075,757.62 | | **Total Non-Current Assets** | 530,163,207.95 | 421,960,971.40 | | **Total Assets** | **6,337,413,410.30** | **1,843,523,679.83** | | **Total Liabilities** | **1,522,452,307.17** | **794,850,355.98** | | **Total Equity Attributable to Parent Company** | **4,814,961,103.13** | **1,048,673,323.85** | [Consolidated Income Statement](index=125&type=section&id=Consolidated%20Income%20Statement) In 2021, the company achieved total operating revenue of **1.621 billion yuan**, a **60.88% year-on-year increase**, with total operating costs also rising by **60.88%** Consolidated Income Statement Key Items (Unit: Yuan) | Item | 2021 Annual | 2020 Annual | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **1,620,869,141.67** | **1,007,471,809.80** | | **II. Total Operating Costs** | **1,442,023,415.54** | **896,386,734.45** | | Of which: Operating Cost | 931,440,396.51 | 566,422,360.10 | | R&D Expenses | 278,394,178.76 | 140,791,112.52 | | **III. Operating Profit** | **267,956,600.14** | **222,710,252.61** | | **V. Net Profit** | **266,248,156.63** | **196,769,941.64** | | Net Profit Attributable to Parent Company Shareholders | 266,248,156.63 | 196,769,941.64 | | **VIII. Earnings Per Share** | | | | (I) Basic Earnings Per Share (Yuan/Share) | 0.68 | 0.50 | | (II) Diluted Earnings Per Share (Yuan/Share) | 0.67 | 0.50 | [Consolidated Cash Flow Statement](index=128&type=section&id=Consolidated%20Cash%20Flow%20Statement) In 2021, net cash flow from operating activities was **-189 million yuan**, primarily due to increased cash outflows for purchases and employee compensation Consolidated Cash Flow Statement Key Items (Unit: Yuan) | Item | 2021 Annual | 2020 Annual | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **-189,182,778.11** | **-88,244,945.02** | | **Net Cash Flow from Investing Activities** | **-69,597,878.78** | **-260,149,794.08** | | **Net Cash Flow from Financing Activities** | **3,394,744,863.29** | **188,575,602.50** | | **Effect of Exchange Rate Changes on Cash** | -4,701,623.84 | -8,942,116.25 | | **Net Increase in Cash and Cash Equivalents** | **3,131,262,582.56** | **-168,761,252.85** | | **Cash and Cash Equivalents at Period-End** | **3,402,530,435.40** | **271,267,852.84** | [Significant Accounting Policies and Estimates](index=139&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's accounting standards, periods, and functional currency, along with key policies for financial instruments, revenue recognition, and asset valuation [Changes in Significant Accounting Policies and Estimates](index=161&type=section&id=44.%20Changes%20in%20Significant%20Accounting%20Policies%20and%20Estimates) Effective January 1, 2021, the company adopted the revised Accounting Standard for Business Enterprises No. 21 – Leases, adjusting opening financial statements using the cumulative effect method - The company adopted the new lease standard effective January 1, 2021, choosing to adjust opening financial statements based on cumulative effects without restating comparative period data[394](index=394&type=chunk) Impact of First-Time Adoption of New Lease Standard on Consolidated Balance Sheet as of January 1, 2021 (Unit: Yuan) | Affected Statement Item | Adjustment Amount | | :--- | :--- | | **Right-of-Use Assets** | +29,356,683.06 | | **Other Current Assets** | -470,357.14 | | **Lease Liabilities** | +20,831,486.25 | | **Non-Current Liabilities Due Within One Year** | +9,309,269.06 | | **Other Payables** | -1,254,429.39 |