AMEC(688012)2024-08-22 09:24Revenue and Financial Performance - Revenue increased by 36.46% YoY to 3.448 billion yuan in the first half of 2024, with plasma etching equipment revenue reaching 2.698 billion yuan, up 56.68% YoY[3] - Revenue for the first half of 2024 reached RMB 3.45 billion, a year-on-year increase of 36.46%[36] - Revenue for the first half of 2024 reached 3.448 billion yuan, a year-on-year increase of 36.46%[119] - Revenue for the first half of 2024 reached 3.45 billion yuan, a year-on-year increase of 36.46%[120] - Total operating revenue for the first half of 2024 reached 3,447,712,750.84 yuan, a significant increase from 2,526,501,011.91 yuan in the same period last year[190] - Revenue for the first half of 2024 reached 2,836,824,604.18 RMB, a significant increase from 1,716,090,759.78 RMB in the same period of 2023[193] Plasma Etching Equipment - Plasma etching equipment revenue grew by 56.68% to RMB 2.70 billion, contributing 78.26% of total revenue[39] - The company's plasma etching equipment is widely used in advanced integrated circuit manufacturing lines, ranging from 65nm to 5nm and beyond[48] - The company's 12-inch high-end etching equipment has been widely adopted in the production of logic chips from 65nm to 5nm and more advanced nodes[59] - The company's plasma etching equipment is extensively used in the production of advanced 3D NAND and DRAM memory chips[59] - The company's CCP etching equipment shipments in the first half of 2024 exceeded the total shipments for the entire year of 2023, with over 3,600 CCP etching reaction chambers delivered by June 2024[84] - The Primo AD-RIE-e CCP etching equipment shipments in the first half of 2024 were more than double the total shipments for 2023[84] - The company's ICP etching equipment is in mass production on over 60 customer production lines, with the Primo Nanova® series achieving a >70% CAGR in installed chambers over the past three years[86] MOCVD Equipment - MOCVD equipment revenue decreased by 49.04% YoY to 152 million yuan due to declining demand in the blue-green LED and Mini-LED markets[3] - MOCVD equipment revenue decreased by 49.04% to RMB 152 million due to market decline in blue-green LED and Mini-LED sectors[39] - The company's MOCVD equipment is in mass production at leading customer facilities, making it a top-tier GaN-based LED equipment manufacturer globally[48] - The company's PRISMO A7® MOCVD equipment holds a leading position in the global GaN-based LED MOCVD market[61] - The company's PRISMO UniMax® MOCVD equipment for Mini-LED production has started large-scale production at leading clients[61] - The company has shipped over 500 MOCVD chambers, maintaining a leading position in the international GaN-based MOCVD equipment market[88] - The PRISMO UniMax® MOCVD equipment has shipped nearly 150 chambers, leading the international market for Mini-LED display epitaxial wafer production equipment[88] R&D Investment and Innovation - R&D investment in the first half of 2024 surged by 110.84% YoY to 970 million yuan, focusing on six categories of equipment and over 20 new device developments[3] - R&D investment increased by 110.84% to RMB 970 million, accounting for 28.15% of total revenue[38][39] - Total R&D investment in the current period reached 970.49 million yuan, a 110.84% increase compared to the same period last year[66] - R&D investment as a percentage of revenue increased by 9.93 percentage points to 28.15%[66] - Capitalized R&D investment increased by 177.92% to 384.39 million yuan, accounting for 39.61% of total R&D investment[66] - The significant increase in R&D investment is attributed to the expansion of R&D projects, increased material costs, and higher employee compensation[67] - In the first half of 2024, the company's R&D expenditure was 970.49 million yuan, with government subsidies reducing R&D expenses by 18.41 million yuan[68] - The company's R&D investment in the first half of 2024 reached 970 million yuan, a year-on-year increase of 110.84%, accounting for 28.15% of total revenue[84] New Orders and Production - New orders in the first half of 2024 totaled 4.7 billion yuan, a 40.3% YoY increase, with plasma etching equipment orders accounting for 3.94 billion yuan, up 50.7% YoY[3] - New orders in the first half of 2024 totaled RMB 4.70 billion, a year-on-year increase of 40.3%, with etching equipment orders accounting for RMB 3.94 billion[39] - Production of 833 chambers in the first half of 2024, a 420% YoY increase, with a corresponding output value of 6.865 billion yuan[3] - Production of specialized equipment increased by 420% to 833 chambers, with a corresponding output value of RMB 6.87 billion[41] Net Profit and Financial Metrics - Net profit attributable to shareholders decreased by 48.48% YoY to 517 million yuan, primarily due to the absence of a one-time gain from the sale of shares in 2023[3] - Net profit attributable to shareholders decreased by 48.48% to RMB 516.69 million, primarily due to the absence of a one-time gain from the sale of shares in 2023[37] - Adjusted net profit attributable to shareholders, excluding the impact of share-based payments, increased by 11.65% year-on-year to RMB 69,415.23 million[44] - Net profit for the first half of 2024 was 516,250,546.94 yuan, a decrease from 1,002,304,157.67 yuan in the first half of 2023[191] - Net profit attributable to the parent company's owners in the first half of 2024 was 516,998,259.17 RMB, compared to 1,005,234,735.78 RMB in the same period of 2023[192] Subsidiaries and Business Expansion - The company's subsidiaries include 中微亚洲, 中微南昌, 中微临港, 中微汇链, and 中微惠创[28] - The company's subsidiaries, including Zhongwei Huilian, Zhongwei Huichuang, and Xinhui Kang, have made significant progress in new business expansion[104] - The company's subsidiary, Zhongwei Huichuang, has successfully applied purification equipment in various client sites and is actively exploring research in the new energy field[95] - The company's subsidiary, Zhongwei Huilian, has developed a distributed ecological industrial internet platform, covering over 70 industrial scenarios and offering more than 600 microservices for subscription[96] Environmental and Social Responsibility - The company's report includes a section on environmental and social responsibility[25] - The company invested 1,136 million yuan in environmental protection during the reporting period[138] - The company reduced carbon dioxide equivalent emissions by 237 tons through measures such as lowering operational energy consumption[142] - The company achieved green power supply at its Shanghai Jinqiao and Lingang bases by signing renewable electricity procurement agreements[141] - The company aims to achieve carbon neutrality by 2035 and has implemented multiple measures to advance climate change governance[141] - The company joined industry associations such as the Responsible Business Alliance (RBA) and Semiconductor Climate Consortium (SCC) to promote sustainable development[141] Risks and Challenges - The company faces risks from potential changes in government support and tax incentives, which could impact profitability[109] - Supply chain risks persist due to prolonged procurement cycles for key components and materials, potentially affecting equipment delivery and sales[110] - The company is exposed to risks from international trade friction, particularly between China and the US, which could impact operations[112] - Intellectual property disputes and potential infringement pose risks to the company's normal business operations[113] - The company has implemented a comprehensive employee stock ownership plan to retain key technical personnel, but faces risks from increasing competition for talent[114] - The company plans to expand its business through equity investments and mergers and acquisitions, but faces associated risks[115] - The company's R&D investment is significantly lower than that of leading international semiconductor companies, posing a risk of technological obsolescence[118] Shareholder and Equity Information - The company's registered address is at No. 188 Taihua Road, Jinqiao Export Processing Zone (South), Pudong New Area, Shanghai[30] - The company's legal representative is Yin Zhiyao[30] - The company's foreign name is Advanced Micro-Fabrication Equipment Inc. China, abbreviated as AMEC[30] - The company's Chinese name is 中微半导体设备（上海）股份有限公司, abbreviated as 中微公司[30] - The company's main financial indicators and company profile are detailed in Section 2 of the report[30] - The company's report includes a section on changes in shares and shareholder situations[25] - The company's total number of ordinary shareholders at the end of the reporting period was 36,600[172] - Shanghai Venture Capital Co., Ltd. holds 93,483,533 shares, accounting for 15.05% of the total shares[173] - Xunxin (Shanghai) Investment Co., Ltd. holds 80,996,822 shares, representing 13.04% of the total shares[173] - Hong Kong Securities Clearing Company Limited increased its holdings by 5,093,239 shares, totaling 32,939,937 shares, or 5.30% of the total shares[173] - China Merchants Bank Co., Ltd. - ChinaAMC SSE STAR Market 50 ETF holds 29,591,336 shares, accounting for 4.76% of the total shares[173] - China Integrated Circuit Industry Investment Fund Phase II holds 24,440,316 shares, representing 3.93% of the total shares[173] - Industrial and Commercial Bank of China - E Fund SSE STAR Market 50 ETF holds 16,117,546 shares, accounting for 2.59% of the total shares[173] - China Construction Bank - ChinaAMC Semiconductor Chip ETF holds 9,721,241 shares, representing 1.56% of the total shares[174] - Industrial and Commercial Bank of China - Noah Growth Hybrid Fund holds 7,867,231 shares, accounting for 1.27% of the total shares[174] - The total number of shares held by the top 10 shareholders and the top 10 unrestricted shareholders decreased due to share lending/returning activities, with specific changes noted for each shareholder[175] - The company's strategic investor, Huaxin Investment Management Co., Ltd., holds shares with a lock-up period of 4 days, which expired on January 2022[178] - Key executives and core technical personnel, including Chairman and CEO Yin Zhiyao, reduced their shareholdings during the reporting period, with a total reduction of 130,000 shares[179] - The company granted a total of 691,700 restricted shares to key executives and core technical personnel during the reporting period, with a cumulative total of 1,377,059 restricted shares granted[181] Cash Flow and Financial Position - Net cash flow from operating activities in the first half of 2024 was 381.92 million yuan, compared to -685.02 million yuan in the same period last year[120] - Operating cash flow for the period was RMB 381.92 million, compared to a negative RMB 685.02 million in the same period last year[199] - Investment cash inflow totaled RMB 7.21 billion, a decrease from RMB 10.35 billion in the previous year[199] - Investment cash outflow was RMB 5.37 billion, down from RMB 8.70 billion year-over-year[199] - Net cash flow from investment activities increased to RMB 1.84 billion from RMB 1.65 billion[199] - Financing cash inflow decreased to RMB 350.53 million from RMB 210.37 million[199] - Net cash flow from financing activities was negative RMB 399.20 million, compared to positive RMB 197.46 million in the prior year[199] - The company's cash and cash equivalents increased by RMB 1.83 billion during the period[200] - Ending cash and cash equivalents balance reached RMB 5.37 billion, up from RMB 3.65 billion at the start of the period[200] Assets and Liabilities - Total assets increased to 24,241,626,255.77 RMB, up from 21,525,546,561.69 RMB at the end of 2023[184][186] - Cash and cash equivalents rose to 7,649,070,420.06 RMB, compared to 7,090,409,172.79 RMB at the end of 2023[184] - Inventory surged to 6,777,933,020.27 RMB, a significant increase from 4,260,340,245.57 RMB at the end of 2023[184] - Accounts receivable grew to 1,439,491,392.88 RMB, up from 1,164,908,187.07 RMB at the end of 2023[184] - Total liabilities increased to 6,070,931,541.88 RMB, compared to 3,702,441,375.24 RMB at the end of 2023[185][186] - Contract liabilities jumped to 2,535,147,967.53 RMB, a substantial rise from 771,596,755.32 RMB at the end of 2023[185] - Development expenditure increased to 751,875,080.13 RMB, up from 505,792,998.61 RMB at the end of 2023[185] - Fixed assets grew to 2,568,337,527.18 RMB, compared to 1,987,606,137.52 RMB at the end of 2023[184] - Long-term loans stood at 250,000,000.00 RMB, a new addition compared to no long-term loans at the end of 2023[185] - Shareholders' equity increased to 18,170,694,713.89 RMB, up from 17,823,105,186.45 RMB at the end of 2023[186] - Total assets as of the end of the first half of 2024 were 21,487,529,952.56 yuan, up from 18,876,304,430.38 yuan at the end of the first half of 2023[188] - Long-term equity investments increased to 3,019,743,770.10 yuan in the first half of 2024, compared to 2,802,289,825.07 yuan in the same period last year[188] - Contract liabilities surged to 1,613,807,968.08 yuan in the first half of 2024, a significant rise from 230,419,951.67 yuan in the first half of 2023[188] - Total liabilities for the first half of 2024 were 4,509,389,138.38 yuan, up from 1,971,273,266.98 yuan in the first half of 2023[189] - Shareholders' equity increased to 16,978,140,814.18 yuan in the first half of 2024, compared to 16,905,031,163.40 yuan in the same period last year[189] - The company's total non-current assets reached 5,300,356,823.50 yuan in the first half of 2024, up from 4,991,324,756.29 yuan in the first half of 2023[188] Other Financial Metrics - Non-recurring gains and losses amounted to RMB 33,463,805.67, including gains from the disposal of non-current financial assets of RMB 9,886,212.19 and government subsidies of RMB 30,367,126.05[42][43] - The company's contract liabilities increased significantly by 228.56% to 2.54 billion RMB, driven by sustained order growth and increased production and shipment volumes[124] - Accounts payable rose by 68.42% to 2.20 billion RMB due to increased procurement activities[124] - Overseas assets amounted to 674 million RMB, accounting for 2.78% of total assets[125] - The company's investment in external equity increased by 21.55% to 98.33 million RMB compared to the same period last year[126] - The fair value of trading financial assets, primarily bank wealth management products, decreased to 493 million RMB from 1.87 billion RMB at the beginning of the period[127] - Other non-current financial assets increased by 3.51% to 1.24 billion RMB, with a significant 164.36% increase in prepaid rental subscription balances[124] - The company added 250 million RMB in long-term loans during the reporting period[124] - The fair value of the company's equity investments in listed companies decreased by 0.40 billion RMB, with a total ending book value of 4.70 billion RMB[128] - The company invested 35 million RMB in private equity fund A, representing a 2.35% ownership stake, with a cumulative profit impact of 15 million RMB[130] - Zhongwei Lingang, a subsidiary, reported total assets of 1,010,883.23 million yuan, net assets of 139,376.35 million yuan, operating income of 200,442.02 million yuan, and net profit of 15,063.79 million yuan[131] - Zhongwei Nanchang, another subsidiary, reported total assets of 435,433.25 million yuan, net assets of 173,096.83 million yuan, operating income of 147,456.12 million yuan, and net profit of 25,693.79 million yuan[131] - Zhongwei International, responsible for overseas sales, reported total assets of 74,141.41 million yuan, net assets of 5,350.79 million yuan, operating income of 21,705.13 million yuan, and a net loss of 5,271.60 million yuan[131] Corporate Governance and Shareholder Commitments - The company held its 2023 Annual General Meeting on April 17, 2024, with resolutions published on the Shanghai Stock Exchange website[132] - The company approved a