艾森股份(688720) - 2024 Q2 - 季度财报

Definitions Common Terminology Definitions This section defines key terms and entities, including the company, its subsidiaries, major investors, and semiconductor industry terminology - Aisem Corp refers to Jiangsu Aisem Semiconductor Material Co, Ltd[11] - Key subsidiaries include Kunshan Aisem Shihua Optoelectronic Material Co, Ltd and Aisem Semiconductor Material (Nantong) Co, Ltd[11] - The report defines key semiconductor technical terms such as chip, integrated circuit (IC), wafer, advanced packaging (FC, WLP, SiP, 25D/3D), and photoresists (g/i-line, KrF, ArF, EUV, PSPI)[11][13][15] Company Profile and Key Financial Indicators Company Basic Information This section outlines the company's basic registration information, including its name, legal representative, addresses, and contact details - The company's Chinese name is 江苏艾森半导体材料股份有限公司, with the short name Aisem Corp[16] - The legal representative is Zhang Bing, and the registered address is No 1647, Huangpujiang Road, Qiandeng Town, Kunshan City, Jiangsu Province[16] Contact Persons and Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative for investor communication - The Board Secretary is Chen Xiaohua, and the Securities Affairs Representative is Xu Wen[17] - The contact phone number is 0512-50103288, and the email is ir@asemcn[19] Information Disclosure and Document Location This section specifies the designated newspapers and websites for information disclosure, which remained unchanged during the reporting period - The company's designated newspapers for information disclosure are China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[20] - The semi-annual report is published on the website of the Shanghai Stock Exchange (http://wwwssecomcn)[20](index=20&type=chunk) Company Stock/Depositary Receipts Profile This section details the company's stock information, including its type, listing exchange, ticker, and code, confirming no depositary receipts - The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange under the ticker "Aisem Corp" and stock code "688720"[21] - The company does not have any depositary receipts[22] Key Accounting Data and Financial Indicators The company's H1 2024 financial data shows revenue and net profit growth, but a decline in non-recurring profit and EPS Key Accounting Data (H1 2024 vs H1 2023) | Key Accounting Data | H1 2024 (RMB) | H1 2023 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,797,308.00 | 154,028,817.49 | 20.63 | | Net Profit Attributable to Shareholders | 13,739,486.17 | 11,118,609.96 | 23.57 | | Net Profit Attributable to Shareholders (Non-recurring) | 8,196,272.66 | 10,908,521.32 | -24.86 | | Net Cash Flow from Operating Activities | -34,068,177.19 | -52,742,122.56 | N/A (Net outflow decreased) | | Net Assets Attributable to Shareholders (End of Period) | 1,007,294,074.62 | 1,016,246,943.63 | -0.88 | | Total Assets (End of Period) | 1,184,163,965.68 | 1,279,889,093.54 | -7.48 | Key Financial Indicators (H1 2024 vs H1 2023) | Key Financial Indicators | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | 0.16 | 0.17 | -5.88% | | Diluted Earnings Per Share (RMB/Share) | 0.16 | 0.17 | -5.88% | | Basic EPS after Non-recurring Items (RMB/Share) | 0.09 | 0.17 | -47.06% | | Weighted Average Return on Equity (%) | 1.33 | 2.5 | Decreased by 1.17 p.p. | | Weighted Average ROE after Non-recurring Items (%) | 0.79 | 2.45 | Decreased by 1.66 p.p. | | R&D Expenditure as a Percentage of Revenue (%) | 11.33 | 8.83 | Increased by 2.5 p.p. | - Operating revenue increased by 20.63%, driven by the recovery of the domestic semiconductor industry, rising downstream demand, and continued growth in advanced packaging sales[24] - Net profit attributable to shareholders grew by 23.57%, while net profit excluding non-recurring items decreased by 24.68%, mainly due to a 54.81% surge in R&D investment and a significant increase in non-recurring gains (government grants, investment income)[24] - Net cash flow from operating activities remained negative but improved year-over-year, primarily due to reduced bill discounting and increased cash inflows from matured acceptance bills[24] Differences in Accounting Data under Domestic and Foreign Accounting Standards The company reports no differences in accounting data under domestic and foreign accounting standards - The company has no differences in accounting data under domestic and foreign accounting standards[25] Non-recurring Profit and Loss Items and Amounts The company's non-recurring profit and loss items for the period totaled RMB 5,543,21351, mainly from government grants and financial asset gains Non-recurring Profit and Loss Items and Amounts (H1 2024) | Non-recurring Profit and Loss Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -24,367.37 | | Government Grants Recognized in Current Profit or Loss | 4,169,400.00 | | Fair Value Change and Disposal Gains on Financial Assets | 2,527,947.33 | | Reversal of Impairment Provision for Individually Tested Receivables | 158,626.45 | | Other Non-operating Income and Expenses | -8,000.00 | | Less: Income Tax Effect | 1,280,392.90 | | Total | 5,543,213.51 | Management Discussion and Analysis Industry and Main Business Overview This section details the company's position in the semiconductor materials industry and its main business progress in packaging and wafer fabrication Industry Overview The company is a leading domestic provider of electronic chemicals, operating in a technology-intensive industry where import substitution is accelerating - The company is a well-known enterprise in the domestic electronic chemicals sector, with products used in integrated circuits, semiconductor displays, and new electronic components[28] - The semiconductor materials industry is characterized by high R&D investment, long cycles, and high technical barriers, with import substitution being a long-term trend[28] - National policies supporting the semiconductor industry and accelerating demand for domestic raw materials create market opportunities for local material suppliers[30] China's Wet Chemicals Market for Integrated Circuits | Market Segment | 2023 Market Size (RMB Billion) | 2025 Estimated Market Size (RMB Billion) | | :--- | :--- | :--- | | IC Packaging Wet Chemicals | 1.40 | 1.63 | | IC Wafer Fabrication Wet Chemicals | 5.88 | 6.98 | | Total Market Size | 7.28 | 8.61 | China's Photoresist Market for Integrated Circuits | Market Segment | 2023 Market Size (RMB Billion) | 2025 Estimated Market Size (RMB Billion) | | :--- | :--- | :--- | | IC Wafer Fabrication Photoresist | 4.939 | 5.861 | | IC Packaging Photoresist | 1.131 | 1.369 | | OLED Photoresist | 0.118 | 0.161 | - The domestic photoresist localization rate remains low: 20%-25% for g/i-line, ~3% for KrF, and <1% for ArF, with high-end products heavily reliant on imports[32] Main Business and Key Products The company focuses on R&D and sales of electronic chemicals, with breakthroughs in advanced packaging and wafer fabrication materials - The company provides customized, one-stop high-end electronic chemical solutions centered on electroplating and photolithography processes[34] - In electroplating solutions, the company maintains a leading position in traditional packaging and has achieved breakthroughs in advanced packaging (tin-silver additives certified by JCET, copper-based solutions supplied to TFME) and wafer fabrication (28nm copper interconnect additives in trial production)[35][36] - In photoresists and ancillary reagents, the company has achieved mass supply of various reagents and successfully commercialized its self-developed negative photoresist for advanced packaging and i-line positive photoresist for wafer fabrication, breaking foreign monopolies[37] Core Technology and R&D Progress The company increased R&D investment, mastered multiple core technologies, and achieved significant progress in ongoing advanced materials projects Core Technology, Advancement, and Changes During the Reporting Period The company has developed core technologies in electronic chemicals, achieving performance on par with foreign competitors and earning national recognition - The company's core technologies cover formulation, production processes, and application techniques for electroplating solutions and photoresists, including anti-oxidation additives, copper/tin-silver plating solutions, and thick-film negative photoresists[38] - Core technologies are protected through patents for product formulations and trade secrets for manufacturing processes[38] - The company was recognized as a national-level "Specialized, Refined, Unique, and Innovative (SRUI) Little Giant" enterprise in 2021[39] R&D Achievements During the Reporting Period The company achieved key R&D milestones in advanced packaging, with its self-developed tin-silver plating additive receiving customer certification - The company's self-developed tin-silver plating additive for advanced packaging has been certified by JCET and received small-batch orders, with performance comparable to foreign products[39] - As of June 30, 2024, the company and its subsidiaries held 35 invention patents and 1 software copyright[39] - In H1 2024, R&D investment reached RMB 21.05 million, a 54.81% YoY increase, with the R&D team growing to 67 members[39] Intellectual Property (as of June 30, 2024) | IP Type | New Applications (Current Period) | New Grants (Current Period) | Cumulative Applications | Cumulative Grants | | :--- | :--- | :--- | :--- | :--- | | Invention Patent | 8 | 0 | 73 | 35 | | Utility Model Patent | 3 | 0 | 3 | 0 | | Software Copyright | 1 | 1 | 1 | 1 | | Total | 12 | 1 | 77 | 36 | R&D Investment Table R&D investment surged by 54.81% to RMB 21.05 million, driven by team expansion, increased compensation, and higher technical service fees R&D Investment (H1 2024 vs H1 2023) | Indicator | H1 2024 (RMB) | H1 2023 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 21,051,618.47 | 13,598,491.46 | 54.81 | | Total R&D Investment | 21,051,618.47 | 13,598,491.46 | 54.81 | | R&D Investment as a % of Revenue | 11.33 | 8.83 | Increased by 2.5 p.p. | - Total R&D investment increased by 54.81% YoY, primarily due to strengthening the R&D team, which led to higher personnel compensation, asset depreciation, and technical service fees[42] Ongoing R&D Projects The company has 16 ongoing R&D projects with a total planned investment of RMB 115.33 million, covering advanced materials for semiconductor manufacturing - The company has 16 ongoing R&D projects with a total estimated investment of RMB 115.33 million, with RMB 21.05 million invested in the current period[50] - Multiple projects have entered client certification, stability validation, or small-batch delivery stages, such as the mass production of high-performance insulating ink and small-batch delivery of cleaning solutions for copper processes[44][46] - Ongoing projects are benchmarked against international competitors to achieve domestic substitution, such as the copper interconnect plating additive aimed at enabling a fully localized 28nm process for clients[46] R&D Personnel The R&D team expanded to 67 members, accounting for 35.26% of the total workforce, with a focus on young, highly educated talent R&D Personnel Overview (H1 2024 vs H1 2023) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Number of R&D Personnel | 67 | 52 | | R&D Personnel as a % of Total Employees | 35.26 | 30.59 | | Total R&D Personnel Compensation (RMB Million) | 10.46 | 6.93 | | Average R&D Personnel Compensation (RMB Million) | 0.16 | 0.13 | R&D Personnel Educational Background (H1 2024) | Education Level | Number of People | Percentage (%) | | :--- | :--- | :--- | | Doctorate | 3 | 4.48 | | Master's Degree | 5 | 7.46 | | Bachelor's Degree | 52 | 77.61 | | Associate Degree | 4 | 5.97 | | High School and Below | 3 | 4.48 | | Total | 67 | 100 | R&D Personnel Age Structure (H1 2024) | Age Range | Number of People | Percentage (%) | | :--- | :--- | :--- | | Below 30 | 32 | 47.76 | | 30-40 | 28 | 41.79 | | 40-50 | 6 | 8.96 | | 50-60 | 1 | 1.49 | | Total | 67 | 100 | Core Competitiveness Analysis The company's core strengths lie in its technological advantages, efficient R&D platform, turnkey solutions, and strong customer relationships Core Competitiveness Analysis The company's competitiveness is built on proprietary technology, a collaborative R&D platform, turnkey solutions, and long-term partnerships with industry leaders - In electroplating solutions, the company holds key patents like "An Electroplating Tin Additive and Its Preparation and Use Method" and is a major supplier in the traditional packaging sector[53] - In photoresists and ancillary reagents, the company has achieved mass supply of various reagents and holds patents such as "A Negative Photoresist for Semiconductor Packaging Processes"[54] - As a national-level "SRUI Little Giant," the company collaborates with universities like Fudan and Shanghai Jiao Tong to maintain an efficient R&D innovation system[55] - The company offers Turnkey solutions, providing rapid response and comprehensive support covering chemical design, R&D, production, and application optimization[56] - The company has established long-term, stable partnerships with renowned domestic and international companies, including JCET, TFME, Huatian Technology, Huali, and BOE[57][58] Discussion and Analysis of Business Operations In H1 2024, the company achieved steady growth with revenue and net profit up 20.63% and 23.57% respectively, driven by strong photoresist sales - In H1 2024, the company achieved operating revenue of RMB 185.80 million, a YoY increase of 20.63%, and net profit attributable to shareholders of RMB 13.74 million, a YoY increase of 23.57%[59] Main Business Revenue Growth (H1 2024 vs H1 2023) | Product Segment | Sales Revenue (RMB Million) | YoY Growth (%) | | :--- | :--- | :--- | | Electroplating Solutions & Ancillary Reagents | 83.45 | 13.31 | | Photoresist & Ancillary Reagents | 40.83 | 44.57 | | Electroplating Ancillary Materials | 55.31 | 24.09 | - The company continued to increase R&D investment, with H1 2024 spending reaching RMB 21.05 million, a 54.81% YoY increase, accounting for 11.33% of operating revenue[60] - The company implements a differentiation and high-end development strategy, enhancing product performance and reliability through technological innovation and brand building to meet diverse industry needs[61] Risk Factors The company faces risks from market competition, potential delays in photoresist industrialization, margin pressure, and negative operating cash flow Core Competitiveness Risks The company faces risks from intensifying market competition and potential challenges in the large-scale industrialization of its self-developed photoresists - Market Competition Risk: The advanced packaging chemicals market is promising but faces pressure from domestic competitors on technology updates, cost reduction, and market share[62] - Photoresist Industrialization Risk: Although the company's self-developed photoresist products have been certified, they have not yet fully replaced existing customer solutions, posing a risk to large-scale industrialization due to stability or market demand factors[63] Operational Risks The company faces the risk of declining gross margins due to product mix and raw material price volatility, alongside pressure from sustained negative operating cash flow - Gross Margin Decline Risk: Gross margin may decline due to changes in product mix, raw material price fluctuations, or failure to keep pace with technological upgrades[64] - Negative Operating Cash Flow Risk: The company experiences negative operating cash flow due to a mismatch in settlement terms, where downstream customers pay with bills while upstream suppliers require cash, necessitating bill discounting[65][66] - Raw Material Price Fluctuation Risk: Prices of key raw materials are subject to international oil and metal price volatility, which could adversely affect operating results[67] Industry Risks The company is exposed to the cyclical nature of the semiconductor industry and the relatively small size of its niche market segments - Semiconductor Industry Cyclicality Risk: The industry's performance is tied to macroeconomic conditions and downstream demand; a market downturn could negatively impact the company's business[68] - Niche Market Size Risk: The company holds a high market share in the traditional packaging electroplating solutions market, which has limited growth potential, posing a risk if market expansion falls short of expectations[69] Key Operating Activities During the Reporting Period In H1 2024, revenue grew 20.63% to RMB 186 million and net profit rose 23.57% to RMB 13.74 million, with detailed analysis of financial statement changes provided Main Business Analysis Revenue grew 20.63% to RMB 186 million, driven by industry recovery, while rising costs and R&D expenses impacted profitability Financial Statement Item Analysis (H1 2024 vs H1 2023) | Item | H1 2024 (RMB) | H1 2023 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,797,308.00 | 154,028,817.49 | 20.63 | | Operating Costs | 139,462,249.06 | 109,586,714.39 | 27.26 | | Selling Expenses | 12,848,761.57 | 9,694,003.27 | 32.54 | | Administrative Expenses | 10,073,359.92 | 8,368,616.98 | 20.37 | | Finance Costs | -4,508,002.17 | -596,984.57 | N/A | | R&D Expenses | 21,051,618.47 | 13,598,491.46 | 54.81 | | Net Cash Flow from Operating Activities | -34,068,177.19 | -52,742,122.56 | N/A | | Net Cash Flow from Investing Activities | -198,249,110.06 | -66,009,572.93 | N/A | | Net Cash Flow from Financing Activities | -104,035,795.51 | 117,027,979.35 | N/A | - Revenue growth was primarily driven by the domestic semiconductor industry's recovery and increased sales in advanced packaging[71] - The growth rate of operating costs outpaced that of revenue, mainly due to changes in the product mix that led to a lower gross margin[71] - R&D expenses increased by 54.81% YoY, reflecting the company's focus on strengthening its R&D team and increasing investment in personnel, equipment, and technical services[71] - Finance costs decreased significantly due to a year-over-year increase in interest income after the receipt of IPO proceeds[71] Analysis of Assets and Liabilities Cash and cash equivalents decreased sharply by 86.91% due to cash management activities, while construction in progress grew 118.38% from project investments Asset and Liability Changes (End of Period vs Prior Year-End) | Item | End of Period (RMB) | % of Total Assets | Prior Year-End (RMB) | % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 50,676,579.00 | 4.28 | 387,218,435.88 | 30.25 | -86.91 | Use of idle funds for cash management | | Accounts Receivable | 147,910,762.48 | 12.49 | 152,118,862.68 | 11.89 | -2.77 | | | Inventories | 41,945,367.19 | 3.54 | 39,590,439.90 | 3.09 | 5.95 | | | Construction in Progress | 89,182,326.93 | 7.53 | 40,837,212.62 | 3.19 | 118.38 | Increased investment in Test Center E1 project | | Short-term Borrowings | 70,552,000.00 | 5.96 | 93,931,310.11 | 7.34 | -24.89 | Decrease in discounted but unmatured bills | | Long-term Borrowings | - | - | 36,039,016.32 | 2.82 | N/A | Repayment of borrowings | Investment Analysis The company's financial assets measured at fair value totaled RMB 172.52 million at period-end, reflecting active purchasing and redemption activities Financial Assets at Fair Value (H1 2024) | Asset Category | Opening Balance (RMB) | Fair Value Change (RMB) | Purchases (RMB) | Sales/Redemptions (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 205,224,029.30 | 1,297,516.10 | 131,000,000.00 | -165,000,000.00 | 172,521,545.40 | | Total | 205,224,029.30 | 1,297,516.10 | 131,000,000.00 | -165,000,000.00 | 172,521,545.40 | Corporate Governance General Shareholders' Meetings During the reporting period, the company held four general shareholders' meetings, and all proposed resolutions were successfully passed General Shareholders' Meetings (H1 2024) | Meeting | Date | Resolution Publication Date | Outcome | | :--- | :--- | :--- | :--- | | 1st Extraordinary General Meeting of 2024 | 2024-1-18 | 2024-1-19 | All resolutions were passed; no resolutions were rejected | | 2nd Extraordinary General Meeting of 2024 | 2024-2-22 | 2024-2-23 | All resolutions were passed; no resolutions were rejected | | 2023 Annual General Meeting | 2024-5-17 | 2024-5-18 | All resolutions were passed; no resolutions were rejected | | 3rd Extraordinary General Meeting of 2024 | 2024-6-12 | 2024-6-13 | All resolutions were passed; no resolutions were rejected | Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel The company appointed a new CFO, Ms Lyu Min, following the resignation of Mr Chen Xiaohua, and elected two new independent directors Changes in Directors, Supervisors, and Senior Management (H1 2024) | Name | Position | Change | | :--- | :--- | :--- | | Chen Xiaohua | Chief Financial Officer | Resigned | | Lyu Min | Chief Financial Officer | Appointed | | Qin Shu | Independent Director | Resigned | | Zhu Xuezhen | Independent Director | Resigned | | Huang Xiaogang | Independent Director | Elected | | Li Ting | Independent Director | Elected | - After resigning as CFO, Mr Chen Xiaohua continues to serve as a Director, Executive Vice President, and Board Secretary[76] - Mr Li Ting and Mr Huang Xiaogang were elected as independent directors of the third session of the Board of Directors[77] Profit Distribution or Capitalization of Capital Reserve Plan The company proposes a cash dividend of RMB 0.45 per 10 shares for H1 2024, totaling RMB 3.95 million, with no bonus shares or capital reserve conversion H1 2024 Profit Distribution Plan | Item | Details | | :--- | :--- | | Distribution or Capitalization | Yes | | Cash Dividend per 10 Shares (RMB, tax inclusive) | 0.45 | | Total Proposed Cash Dividend (RMB, tax inclusive) | 3,952,901.75 | | As a % of H1 2024 Net Profit Attributable to Parent | 28.77% | | Bonus Shares | No | | Capitalization of Capital Reserve | No | - The profit distribution plan has been approved by the Board of Directors and the Supervisory Committee and is pending approval at the general shareholders' meeting[78] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives The company had no new developments or changes regarding equity incentive plans during the reporting period - The company reports no progress or changes related to equity incentive plans, employee stock ownership plans, or other employee incentive measures during the period[79] Environmental and Social Responsibility Environmental Information The company invested RMB 1.14 million in environmental protection, disclosed pollutant information as a key monitoring unit, and implemented carbon reduction measures - The company has established environmental protection mechanisms and invested RMB 1.14 million in environmental funds during the reporting period[79] - The company is listed as a key environmental monitoring unit in Suzhou for 2024; its subsidiaries are not designated as key polluters[79] - Pollution control facilities for waste gas and hazardous waste storage are operating normally and in compliance with regulations[81] - The company has received environmental impact assessment approval for its IC materials testing center and has filed an environmental emergency response plan[82][83] - The company conducts self-monitoring for pollutants such as particulate matter, non-methane hydrocarbons, and noise in accordance with its annual plan[84][85] - No administrative penalties related to environmental issues were received during the reporting period[86] - The company maintains an ISO14001 environmental management system and promotes energy conservation, though specific CO2 reduction data is not disclosed[87][88] Poverty Alleviation and Rural Revitalization Efforts The company did not disclose specific activities related to poverty alleviation or rural revitalization during the reporting period - The company has not disclosed specific information on its efforts in poverty alleviation and rural revitalization[89] Significant Matters Fulfillment of Commitments All commitments made by the company and its key stakeholders regarding share lock-ups, price stability, and corporate governance were strictly fulfilled - The controlling shareholder and actual controller, Zhang Bing, committed to a 36-month lock-up period from the listing date and a 6-month lock-up post-resignation[90][93] - The actual controller Cai Kadun and shareholder Aisem Investment committed to a 36-month lock-up period from the listing date[90][94][95][96] - Other major shareholders and key personnel committed to a 12-month lock-up period from the listing date[90][91][96][97][98][99] - The company and its key stakeholders committed to initiating share price stabilization measures, including share buybacks and share purchases, under specific conditions[91][107][108][109][110] - The company and its key stakeholders committed to the authenticity of the prospectus information and assume corresponding liability[91][113][114][115][116] - The controlling shareholder and actual controller committed to avoiding non-competition and regulating related-party transactions[93][133][134][135][136][137] - During the reporting period, all commitments were strictly and timely fulfilled without any instances of non-compliance[90][91][93][94][95][96][97][98][99][100][101][102][103][104][105][106][107][108][109][110][111][112][113][114][115][116][117][118][119][120][121][122][123][124][125][126][127][128][129][130][131][132][133][134][135][136][137] Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties The company reports no instances of non-operational fund occupation by its controlling shareholder or other related parties - During the reporting period, there were no instances of non-operational fund occupation by the controlling shareholder or other related parties[138] Irregular Guarantees The company had no irregular guarantees during the reporting period - During the reporting period, the company had no irregular guarantees[138] Semi-annual Report Audit Status This semi-annual financial report has not been audited - This semi-annual report has not been audited[4] Changes and Handling of Matters Related to Non-standard Audit Opinions in the Previous Annual Report The company had no matters related to non-standard audit opinions from the previous year to address - The company has no changes or handling of matters related to non-standard audit opinions from the previous year's annual report[139] Bankruptcy and Reorganization Matters The company was not involved in any bankruptcy or reorganization matters during the reporting period - The company has no bankruptcy or reorganization matters to report[139] Major Litigation and Arbitration The company had no major litigation or arbitration matters during the reporting period - During the reporting period, the company had no major litigation or arbitration matters[139] Violations, Penalties, and Rectifications Concerning the Company and Its Key Personnel No violations, penalties, or rectifications were reported for the company or its key personnel during the period - The company and its directors, supervisors, senior management, controlling shareholder, and actual controller were not involved in any suspected violations, penalties, or rectifications[139] Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller The company and its controlling shareholder and actual controller maintained a good integrity status - The company, its controlling shareholder, and actual controller maintained a good integrity status[139] Major Related-party Transactions The company did not engage in any major related-party transactions during the reporting period - During the reporting period, the company had no related-party transactions related to daily operations[139] - During the reporting period, the company had no related-party transactions involving asset or equity acquisitions or sales[139] - During the reporting period, the company had no major related-party transactions involving joint external investments[140] - During the reporting period, the company had no related-party credit or debt transactions[140] Major Contracts and Their Performance The company had no major contracts such as custody, contracting, leasing, or significant guarantees during the reporting period - During the reporting period, the company had no custody, contracting, or leasing matters[140] - During the reporting period, the company had no major guarantees that were performed or outstanding[140] - During the reporting period, the company had no other major contracts[140] Progress on the Use of Raised Funds The company has invested 63.14% of its net IPO proceeds, with surplus funds from a completed project redirected to another ongoing project Overall Use of Raised Funds (as of Period-End) | Funding Source | Total Funds Raised (RMB Million) | Net Proceeds (RMB Million) | Committed Investment (RMB Million) | Cumulative Investment (RMB Million) | Investment Progress (%) | Current Year Investment (RMB Million) | Current Year Investment Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 617.59 | 544.50 | 710.77 | 343.77 | 63.14 | 330.58 | 60.71% | - The "12,000 Tons/Year Semiconductor Specialty Materials Project" has been completed, and the surplus funds were reallocated to the "IC Materials Testing Center Project"[144] - The company used RMB 243.64 million of raised funds to replace self-funded pre-investments in fundraising projects and RMB 6.11 million to replace self-funded issuance expenses[145] - The company used up to RMB 300 million of temporarily idle raised funds for cash management, with a period-end balance of RMB 171 million in low-risk, liquid products[146][147] Other Significant Matters The company had no other significant matters to report for the period - The company has no other significant matters to report[147] Changes in Share Capital and Shareholders Changes in Share Capital The company's total share capital remained unchanged, while the release of lock-up shares from the IPO increased the number of unrestricted shares Share Capital Change Table (H1 2024) | Share Class | Pre-Change Quantity (Shares) | Pre-Change (%) | Change (+,-) (Shares) | Post-Change Quantity (Shares) | Post-Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 70,995,847 | 80.5550 | -561,931 | 70,433,916 | 79.9175 | | II. Unrestricted Shares | 17,137,487 | 19.4450 | 561,931 | 17,699,418 | 20.0825 | | III. Total Shares | 88,133,334 | 100.00 | 0 | 88,133,334 | 100.00 | - On June 6, 2024, 1,068,631 restricted shares from the offline placement of the initial public offering were released from lock-up and became tradable[149] Restricted Share Changes (H1 2024) | Shareholder Name | Opening Restricted Shares | Released Shares | Added Restricted Shares | Closing Restricted Shares | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Offline Placement Shareholders | 1,068,631 | 1,068,631 | 0 | 0 | IPO offline placement lock-up | | Huatai Innovation Investment Co, Ltd | 594,966 | 0 | 506,700 | 1,101,666 | IPO strategic placement lock-up | | Total | 1,663,597 | 1,068,631 | 506,700 | 1,101,666 | / | Shareholder Information As of the period-end, the company had 6,811 shareholders, with the controlling shareholder Zhang Bing and his concerted parties holding the largest stakes - As of the end of the reporting period, the company had a total of 6,811 common shareholders[151] Top Ten Shareholders (as of Period-End) | Shareholder Name | Shares Held | Percentage (%) | Restricted Shares | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | | Zhang Bing | 19,031,621 | 21.59 | 19,031,621 | Domestic Individual | | Cai Kadun | 6,847,826 | 7.77 | 6,847,826 | Domestic Individual | | Kunshan Aisem Investment Management Enterprise (LP) | 5,869,565 | 6.66 | 5,869,565 | Other | | Kunshan Shihua Management Consulting Partnership (LP) | 5,335,968 | 6.05 | 5,335,968 | Other | | Beijing Sinopower Capital Fund (LP) | 4,398,164 | 4.99 | 4,398,164 | Other | | Tianjin Harmony Haihe Equity Investment Partnership (LP) | 4,066,418 | 4.61 | 4,066,418 | Other | | Avary Holding (Shenzhen) Co, Limited | 2,600,000 | 2.95 | 2,600,000 | Domestic Non-state-owned Corp | | Huatai Aisem Corp Homeland No1 STAR Market Employee Stock Ownership Collective Asset Management Plan | 2,161,969 | 2.45 | 2,161,969 | Other | | Zhuang Jianhua | 1,636,364 | 1.86 | 1,636,364 | Domestic Individual | | Shanghai Chengfeng Equity Investment Co, Ltd | 1,500,000 | 1.70 | 1,500,000 | Domestic Non-state-owned Corp | - Zhang Bing and Cai Kadun are spouses; Zhang Bing is the general partner of Aisem Investment, and the three are parties acting in concert[154] - As of the period-end, the company's share buyback account held 291,073 shares, representing 0.33% of the total share capital[153] Information on Directors, Supervisors, Senior Management, and Core Technical Personnel Core technical personnel member Hu Qinghua acquired 1,000 shares through the secondary market during the reporting period Shareholding Changes of Directors, Supervisors, Senior Management, and Core Technical Personnel (H1 2024) | Name | Position | Opening Shares | Closing Shares | Change in Shares | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Hu Qinghua | Core Technical Personnel | 0 | 1,000 | 1,000 | Secondary market purchase | - During the reporting period, the company did not grant any equity incentives to its directors, supervisors, senior management, or core technical personnel[157] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - During the reporting period, there was no change in the company's controlling shareholder or actual controller[158] Implementation and Changes of Depositary Receipt Arrangements The company had no implementation or changes related to depositary receipt arrangements during the period - The company had no implementation or changes related to depositary receipt arrangements[158] Special Voting Rights Shares The company did not have any special voting rights shares during the reporting period - The company had no special voting rights shares[158] Preferred Shares Corporate Bonds and Non-financial Enterprise Debt Financing Instruments The company had no preferred shares during the reporting period - The company has no preferred shares[158] Bonds Corporate Bonds and Non-financial Enterprise Debt Financing Instruments The company had no corporate bonds or non-financial enterprise debt financing instruments during the period - The company has no corporate bonds or non-financial enterprise debt financing instruments[158] Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[158] Financial Report Audit Report This semi-annual financial report has not been audited - This semi-annual report has not been audited[4] Financial Statements This section provides the company's consolidated and parent company financial statements for H1 2024, reflecting its financial position and performance - The consolidated balance sheet shows total assets of RMB 1,184,163,965.68, total liabilities of RMB 176,869,891.06, and total equity of RMB 1,007,294,074.62 as of June 30, 2024[159][161] - The consolidated income statement shows total operating revenue of RMB 185,797,308.00 and net profit of RMB 13,739,486.17 for H1 2024[165][166] - The consolidated cash flow statement shows net cash flow from operating activities of -RMB 34,068,177.19, from investing activities of -RMB 198,249,110.06, and from financing activities of -RMB 104,035,795.51 for H1 2024[170][171] Company Basic Information This section details the company's history, including its incorporation, restructuring, and 2023 STAR Market listing, and identifies its business scope and ultimate controllers - The company was established on March 26, 2010, and was converted into a joint-stock limited company on September 30, 2017, after several capital increases and equity transfers[183][184][185][186] - The company was listed on the STAR Market of the Shanghai Stock Exchange on December 6, 2023, with its registered capital increasing from RMB 66.10 million to RMB 88.13 million[189] - The company's main business is in the chemical raw materials and products manufacturing industry, with a scope covering semiconductor and electronic materials[191] - The company has no parent company; the ultimate controllers are Zhang Bing and Cai Kadun[191] Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis and comply with Corporate Accounting Standards, providing a true and fair view of the company's financial status - The financial statements are prepared on a going concern basis, with no material uncertainties identified regarding the company's ability to continue operations for the next 12 months[192][193] - The prepared financial statements comply with the requirements of Corporate Accounting Standards and provide a true and complete reflection of the company's financial position and performance[204] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates used, covering areas such as revenue recognition, impairment, depreciation, and deferred taxes - For revenue recognition, the company makes judgments based on past experience to identify contracts, estimate variable consideration, and determine the timing of performance obligation fulfillment[194][279][280] - The company uses an expected credit loss model to assess impairment for financial instruments, considering all reasonable and supportable information, including forward-looking data[194][226][227] - Inventory is measured at the lower of cost and net realizable value, with provisions made for impairment, and costs are determined using the weighted average method[195][242][243] - Fixed assets are depreciated using the straight-line method over their estimated useful lives, with a residual value rate of 5%[258] - R&D expenditures are expensed in the research phase and capitalized in the development phase if specific criteria are met[264] - The company accrues work safety funds monthly based on a progressive tiered rate applied to the previous year's operating revenue[297] Taxation This section lists the company's main taxes and rates, noting that as a high-tech enterprise, it benefits from a reduced corporate income tax rate of 15% Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services | 13% | | Urban Maintenance and Construction Tax | VAT and consumption tax paid | 5% | | Corporate Income Tax | Taxable income | 25% | | Land Use Tax | Land area used | Aisem Corp: 1.2 RMB/sqm; Nantong Aisem: 5 RMB/sqm | | Property Tax | 70%-90% of the original property value | 1.2% | | Education Surcharge | VAT paid | 3% | | Local Education Surcharge | VAT paid | 2% | - As a high-tech enterprise, Jiangsu Aisem Semiconductor Material Co, Ltd is subject to a reduced corporate income tax rate of 15% from 2022 to 2024[301] Notes to Consolidated Financial Statement Items This section provides detailed disclosures on the balances and movements of each item in the consolidated financial statements - Cash and cash equivalents at period-end were RMB 50.68 million, a sharp decrease of 86.91% from the beginning of the year, mainly due to the use of idle funds for cash management[302] - Trading financial assets at period-end were RMB 172.52 million, a decrease of 15.94%, reflecting active purchasing and redemption activities[303] - Accounts receivable at period-end were RMB 147.91 million, a decrease of 2.77%, with a bad debt provision ratio of 5.26%[309] - Construction in progress at period-end was RMB 89.18 million, an increase of 118.38%, primarily due to continued investment in the IC Test Center E1 project[337][338] - Short-term borrowings at period-end were RMB 70.55 million, a decrease of 24.89%, mainly due to a reduction in discounted but unmatured notes receivable[353] - Operating revenue for the period was RMB 185.80 million, a YoY increase of 20.63%, while operating costs were RMB 139.46 million, a YoY increase of 27.26%[377][378] - R&D expenses for the period were RMB 21.05 million, a YoY increase of 54.81%, driven by team expansion, higher compensation, depreciation, and technical service fees[382] - Finance costs for the period were -RMB 4.51 million, a significant decrease from the prior period, mainly due to increased interest income[385] - Net cash flow from operating activities was -RMB 34.07 million, from investing activities was -RMB 198.25 million, and from financing activities was -RMB 104.04 million[401] R&D Expenditures Total expensed R&D spending for the period was RMB 21.05 million, a 54.81% increase, primarily composed of employee compensation, materials, and technical service fees R&D Expenditures by Nature (H1 2024 vs H1 2023) | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Employee Compensation | 10,458,712.53 | 6,933,126.34 | | Material Costs | 5,052,520.53 | 4,771,703.29 | | Technical Service Fees | 2,033,403.05 | 438,892.51 | | Maintenance Fees | 37,321.04 | - | | Depreciation & Amortization | 2,407,666.45 | 885,287.67 | | Travel Expenses | 528,524.09 | 351,939.37 | | Others | 533,470.78 | 217,542.28 | | Total | 21,051,618.47 | 13,598,491.46 | | Of which: Expensed R&D | 21,051,618.47 | 13,598,491.46 | | Capitalized R&D | - | - | - Expensed R&D spending increased by 54.81% YoY, driven by the company's efforts to strengthen its R&D team, leading to higher personnel compensation, depreciation, and technical service fees[42] Changes in Consolidation Scope The company's consolidation scope did not change during the reporting period - During the reporting period, the company's consolidation scope remained unchanged[409] Interests in Other Entities This section discloses the company's interests in its subsidiaries, both of which are wholly-owned Composition of the Corporate Group | Subsidiary Name | Main Place of Business | Registered Capital (RMB) | Business Nature | Ownership (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Kunshan Aisem Shihua Optoelectronic Material Co, Ltd | Jiangsu Province | 20,000,000.00 | Chemical Sales | 100 | Business combination under common control | | Aisem Semiconductor Material (Nantong) Co, Ltd | Jiangsu Province | 200,000,000.00 | Chemical Production and Sales | 100 | Establishment | Government Grants The company recognized a total of RMB 4.17 million in government grants in the current period, primarily related to income Government Grants Recognized in Profit or Loss (H1 2024 vs H1 2023) | Type | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Asset-related | - | - | | Income-related | 4,169,400.00 | 253,464.00 | | Total | 4,169,400.00 | 253,464.00 | Financial Instrument-related Risks The company manages credit, liquidity, and market risks through diversified investments, credit monitoring, and cash flow forecasting - The company is exposed to credit risk, liquidity risk, and market risk (including currency and interest rate risk)[410][414] - Credit risk arises from cash, notes, and accounts receivable, which is managed by assessing customer creditworthiness and monitoring their payment history[412] - Liquidity risk is managed by monitoring cash balances and forecasting future cash flows to ensure sufficient funds are available to meet obligations[413] - Currency risk stems from financial assets and liabilities denominated in USD, which the company mitigates by continuously monitoring the scale of foreign currency transactions[416] Impact of Exchange Rate Fluctuations on Net Profit | Exchange Rate Change | Impact on Net Profit (RMB) | | :--- | :--- | | 10% Increase | 768,755.57 | | 10% Decrease | -768,755.57 | Fair Value Disclosures The company's assets measured at fair value are primarily categorized under Level 2, valued using the discounted cash flow method Assets and Liabilities at Fair Value at Period-End | Item | Level 2 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | Trading Financial Assets | 172,521,545.40 | 172,521,545.40 | | Other Debt Investments | 46,744,357.30 | 46,744,357.30 | | Total Assets at Fair Value | 219,265,902.70 | 219,265,902.70 | - Wealth management products, structured deposits, and notes receivable financing are valued using the discounted cash flow method with expected yield and counterparty credit risk as inputs[420] - The carrying amounts of financial assets and liabilities not measured at fair value, such as accounts receivable and payable, approximate their fair values[421] Related Parties and Transactions This section discloses the company's related parties and reports total key management personnel compensation of RMB 2.39 million for the period - Information on the company's subsidiaries is detailed in Note "X. Interests in Other Entities"[423] - Other related parties include major shareholders, investment funds, and the company's directors, supervisors, and senior management[424][425] Key Management Personnel Compensation (H1 2024 vs H1 2023) | Item | H1 2024 (RMB Million) | H1 2023 (RMB Million) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 2.39 | 1.39 | - The company had no related-party transactions involving the sale of goods, provision of services, asset transfers, or financing during the reporting period[426][427] Unsettled Balances with Related Parties in Other Payables (Period-End) | Item | Related Party | Closing Balance (RMB) | | :--- | :--- | :--- | | Other Payables | Xie Liyang | 17,667.00 | | Other Payables | Chen Xiaohua | 5,427.81 | | Other Payables | Xiang Wensheng | 4,045.74 | | Other Payables | Zhang Bing | 9,801.00 | | Other Payables | Lyu Min | 2,749.95 | | Total | / | 39,691.50 | Share-based Payments The company had no share-based payment arrangements during the reporting period - The company had no share-based payment activities during the reporting period[429] Commitments and Contingencies The company has proposed a profit distribution plan of RMB 3.95 million, which is subject to approval at the general shareholders' meeting - The company proposes to distribute a cash dividend of RMB 0.45 per 10 shares (tax inclusive), based on the total number of shares on the record date, excluding shares in the buyback account[430] - As of August 16, 2024, the proposed total cash dividend is RMB 3,952,901.75 (tax inclusive), representing 28.77% of the net profit attributable to parent company shareholders for H1 2024[430] - This profit distribution plan requires approval at the company's fourth extraordinary general meeting of 2024 before implementation[430] Subsequent Events The company's proposed profit distribution of RMB 3.95 million is a key subsequent event pending shareholder approval Profit Distribution (Subsequent Event) | Item | Amount (RMB) | | :--- | :--- | | Proposed Profit or Dividend Distribution | 3,952,901.75 | | Approved and Declared Profit or Dividend Distribution | 3,952,901.75 | - The proposed profit distribution is subject to approval at the company's fourth extraordinary general meeting of 2024[431] Other Significant Matters The company reports no other significant transactions or events, such as accounting error corrections, debt restructuring, or asset swaps - The company has no prior period accounting error corrections, major debt restructuring, asset swaps, annuity plans, or discontinued operations to report[431][432] - The company has determined it has a single operating segment based on its internal organizational structure and reporting system[431] Notes to Parent Company Financial Statement Items This section provides detailed disclosures on key items from the parent company's financial statements, including receivables, investments, and revenue - The parent company's accounts receivable at period-end were RMB 137.49 million, a decrease of 9.91%, with a bad debt provision ratio of 5.28%[435] - The parent company's other receivables at period-end were RMB 1.34 million, a sharp decrease of 95.27%, mainly due to a reduction in intercompany balances[439][441] - The parent company's long-term equity investments at period-end were RMB 202.16 million, an increase of 97.90%, primarily due to an additional RMB 100 million investment in its subsidiary, Aisem Semiconductor Material (Nantong) Co, Ltd[446][447] - The parent company's operating revenue for the period was RMB 177.30 million, a YoY increase of 15.97%, while operating costs were RMB 144.95 million, a YoY increase of 26.01%[448] - The parent company's investment income for the period was RMB 1.15 million, a significant increase from the prior period, mainly due to higher returns from trading financial assets[449] Supplementary Information This section provides details on non-recurring items, which totaled RMB 5.54 million, and reports a weighted average ROE of 1.33% Non-recurring Profit and Loss Details (H1 2024) | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -24,367.37 | | Government Grants Recognized in Current Profit or Loss | 4,169,400.00 | | Fair Value Change and Disposal Gains on Financial Assets | 2,527,947.33 | | Reversal of Impairment Provision for Receivables | 158,626.45 | | Other Non-operating Income and Expenses | -8,000.00 | | Less: Income Tax Effect | 1,280,392.90 | | Total | 5,543,213.51 | Return on Equity and Earnings Per Share (H1 2024) | Profit Item | Weighted Average ROE (%) | Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 1.33 | 0.16 | 0.16 | | Net Profit Attributable to Common Shareholders (Excl. Non-recurring Items) | 0.79 | 0.09 | 0.09 | - The company has no differences in accounting data under domestic and foreign accounting standards[451]