HUA HONG SEMI(688347)2024-08-29 11:54Financial Performance - The company reported a revenue of 1.2 billion RMB for the first half of 2024, representing a 15% increase compared to the same period in 2023[12]. - The company's operating revenue for the first half of 2024 was ¥6,732,158,761.10, a decrease of 23.88% compared to the same period last year[16]. - The net profit attributable to shareholders for the first half of 2024 was ¥264,916,278.85, down 83.33% year-on-year[16]. - The net cash flow from operating activities was ¥1,328,909,045.07, representing a decline of 40.72% compared to the previous year[16]. - Basic earnings per share for the first half of 2024 were ¥0.15, a decrease of 87.60% from ¥1.21 in the same period last year[17]. - The gross margin for the first half of 2024 was reported at 35%, a slight improvement from 33% in the previous year[12]. - The company reported a total of ¥31,067,663.58 in non-recurring gains and losses for the period[23]. - The company achieved operating revenue of RMB 6.732 billion in the first half of 2024, a decrease of 23.88% compared to RMB 8.844 billion in the same period last year[63]. - The net profit attributable to shareholders was RMB 265 million, reflecting a significant decline due to lower average selling prices[63]. - The comprehensive income for the first half of 2024 was a loss of approximately 894.55 million in the same period of 2023[162]. Research and Development - Research and development expenses increased by 25% year-over-year, focusing on advanced semiconductor technologies[12]. - Research and development expenses accounted for 11.50% of operating revenue, an increase of 3.91 percentage points year-on-year[17]. - The company reported a total R&D investment of ¥774,466,472.45, representing a 15.35% increase compared to ¥671,406,155.41 in the same period last year[33]. - The company has established a comprehensive R&D system and project management process to enhance innovation and upgrade various process platforms[25]. - The company is focused on expanding its specialty process technology and providing diversified wafer foundry services[24]. - The company has increased its R&D personnel to 1,298, representing 18.56% of the total workforce, up from 1,177 and 17.42% in the previous year[36]. - The company has filed 478 new invention patents during the reporting period, with 184 patents granted, bringing the total to 9,404 applications and 4,573 granted[32]. Market Expansion and Strategy - The company expects a revenue growth guidance of 10-15% for the second half of 2024, driven by new product launches and market expansion strategies[12]. - The company is exploring new markets in Southeast Asia, aiming for a 5% market share by the end of 2025[12]. - A strategic acquisition of a smaller semiconductor firm was completed, enhancing the company's technology portfolio and market position[12]. - The semiconductor foundry industry is experiencing rapid growth in China, driven by increasing demand from domestic chip design companies[28]. - The company continues to innovate in wafer manufacturing processes to meet diverse market demands, particularly in power devices and analog/power management[28]. Financial Position and Assets - The company's total assets increased by 11.49% to ¥84,986,190,575.20 compared to the end of the previous year[16]. - The company reported a total of 13,132.34 million RMB in related sales transactions, accounting for 2.08% of similar business[124]. - The company incurred 12,614.41 million RMB in related procurement transactions, representing 1.64% of similar business[125]. - The total amount of raised funds planned for investment is CNY 2,092,067.70 million, with CNY 238,719.53 million invested in the current year, representing 11.41% of the total planned investment[133]. - The total number of shares increased to 1,717,328,145, with a significant reduction in restricted shares by 97,340,348[139]. Environmental and Compliance - The company has completed environmental impact assessments for all key pollutant discharge projects and obtained necessary environmental protection permits[88]. - The company has established a comprehensive environmental protection internal control management system in its domestic subsidiaries, certified by ISO 14001[92]. - The company has implemented carbon reduction measures, including high-efficiency freezer renovations and heat recovery systems, to control carbon emissions[93]. - The company adheres to the relevant pollutant discharge standards, ensuring compliance with environmental regulations[86]. - There were no administrative penalties received due to environmental issues during the reporting period[90]. Governance and Shareholder Commitments - The company emphasizes the need for continuous technological upgrades and R&D investments to maintain competitive advantages in the rapidly evolving semiconductor industry[44]. - The company will ensure that profit distribution policies align with operational performance and development plans to enhance shareholder returns[106]. - The company commits to stabilizing its A-share stock price according to the "Stabilization Plan" approved by the shareholders' meeting[103]. - The company will take responsibility for any failure to fulfill commitments regarding share repurchase and stabilization measures[105]. - The company has confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[169].