NCE(605111)2024-03-27 16:00Financial Performance - The company achieved operating revenue of 147,656.14 million yuan, a decrease of 18.46% compared to the same period last year [34]. - Main business revenue was 147,083.92 million yuan, down 18.51% year-on-year [34]. - Net profit attributable to shareholders was 32,311.63 million yuan, a decline of 25.75% year-on-year [34]. - The decline in performance was primarily due to a continued downturn in the downstream application market since Q4 2022, influenced by weakened demand, increased capacity release from domestic foundries, and intensified competition in the power semiconductor industry [34]. - The company's operating revenue for 2023 was ¥1,476,561,366.82, a decrease of 18.46% compared to ¥1,810,946,756.88 in 2022 [41]. - The net profit attributable to shareholders for 2023 was ¥323,116,344.25, down 25.75% from ¥435,180,979.82 in 2022 [41]. - Basic earnings per share for 2023 decreased by 25.66% to CNY 1.13 compared to CNY 1.52 in 2022 [69]. - The weighted average return on equity dropped to 9.25% in 2023, down 9.52 percentage points from 18.77% in 2022 [70]. - The net cash flow from operating activities increased by 73.97% to ¥475,469,445.87 in 2023, compared to ¥273,308,464.57 in 2022 [41]. - The net assets attributable to shareholders increased by 8.32% to ¥3,642,558,105.24 at the end of 2023, compared to ¥3,362,694,574.64 at the end of 2022 [41]. Product Development and Innovation - The fifth-generation P-channel 20V40V product platform has been developed, achieving a 31% reduction in Rsp compared to the previous generation, with full-scale production ongoing [20]. - The seventh-generation N-channel 12V20V product platform is under engineering development, currently undergoing finished product testing and reliability assessment [20]. - The IGBT parallel SiC diode products have passed customer validation and are now in mass production [23]. - The third-generation SGT MOS products for N-channel 60V, 85V, and 100V have completed engineering validation, with the 100V product showing a 20% lower Rsp and a 15% reduction in gate charge (Qg) compared to the best competitors [24]. - The company is developing IGBT chips based on 650V and 1000V product platforms, with several IGBT module products for photovoltaic storage and inverters expected to complete development in the first half of 2024 [26]. - The company has developed two new products: 650V/190mohm E-Mode GaN HEMT and 650V 460mohm D-Mode GaN HEMT, both achieving leading domestic electrical performance metrics [50]. - The fourth-generation 800V deep trench SJ MOS platform has achieved design expectations, with a 35% reduction in Rsp compared to the third generation, and is currently undergoing yield improvement and customer application testing [49]. - The company has developed 140 products that have passed AEC-Q101 automotive reliability certification, with nearly 90 Tier 1 manufacturers receiving bulk deliveries [91]. - The company has completed the development of multiple IGBT chip products based on 650V and 1200V platforms, with the first product for 110KW photovoltaic inverters (450A/650V) undergoing customer testing [144]. - The company has launched 6 new products in 2023 under its high-side driver and motor driver product lines, targeting applications in heavy trucks and smart homes [145]. Market Trends and Strategic Focus - The global investment in data center construction is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2026, driven by advancements in 5G, cloud computing, and artificial intelligence [30]. - The company is actively responding to market changes by optimizing product, market, and customer structures, focusing on sales to the new energy vehicle and charging pile sectors [34]. - The company is committed to enhancing its product structure and expanding its market presence in high-demand sectors such as electric vehicles [34]. - The report highlights the critical role of power semiconductors in achieving the goals of Industry 4.0, particularly in automation and efficiency improvements [34]. - The company is focusing on expanding its market presence in the electric vehicle and charging pile sectors, as well as in AI servers and data centers [59]. - The company plans to enhance its market presence in emerging fields such as new energy vehicles, photovoltaic storage, AI servers, and data centers, expecting a recovery in photovoltaic demand in 2024 [108]. - The global power semiconductor market reached 59.6 billion by 2027, where power ICs will account for 54.8% of the market [131]. - The global IGBT market size was 12.1 billion by 2026, with China being the largest consumer market at 21.1 billion in 2023, projected to grow to $34.7 billion by 2026, reflecting a 5-year CAGR of 17.3% [136]. - The company is actively exploring new downstream application areas and strengthening strategic cooperation with key customers to increase market share [105]. Research and Development - R&D investment for 2023 was CNY 87.31 million, accounting for 5.91% of total revenue, with 600 new products launched [86]. - The company is focusing on R&D investments, expanding its team, and attracting high-education talent to enhance development in new energy storage, automotive electronics, and AI servers [140]. - The company has established a complete independent R&D system and has been certified with ISO9001 quality management system [120]. - The company has implemented a rigorous quality control system and has been certified under ISO9001:2015 and IATF16949 quality management systems [199]. - The company has a strong focus on R&D, with CNY 87.31 million spent on research and development, a decrease of 13.30% from the previous year [176]. Corporate Governance and Investor Relations - The company aims to enhance its governance and investor relations, ensuring timely and accurate information disclosure to build a positive capital market image [148]. - The company is actively pursuing external expansion opportunities, focusing on strategic investments in emerging industries with growth potential [123]. - The company has established partnerships for investment in Wuxi Jinyuan Semiconductor Technology Co., Ltd. and Suzhou Matrix Optoelectronics Co., Ltd., aimed at promoting business synergies and new technology development [149]. Production and Supply Chain - The company has established a strong supply chain with leading domestic and international foundries, ensuring product quality and reliability [199]. - The company has built advanced packaging and testing lines through its subsidiary, achieving partial in-house packaging and testing of chips [196]. - The company is upgrading its production line to meet automotive-grade requirements, with a planned capacity of 60,000 modules per month once fully operational [119]. - The company has successfully developed and mass-produced MOSFET products based on a 12-inch chip process platform, enhancing its product offerings [196]. Market Position and Competitive Landscape - The company is a leader in the domestic market for power semiconductor devices, ranking 5th in the domestic MOSFET market sales in 2021, including international competitors [164]. - The company aims to become the largest domestic brand in terms of power device shipments in the automotive market, with rapid growth expected in sales scale and market share [85]. - The company has over 3,000 product models covering voltage ranges from 12V to 1700V, focusing on sectors such as new energy vehicles, AI servers, and 5G communications [162]. - The company has over 3,000 differentiated product models, enabling it to meet diverse customer needs across various downstream markets [198]. - The company is the largest semiconductor power device design company in China in terms of wafer production volume on 8-inch and 12-inch process platforms for IGBT and MOSFET chips [200]. - The company holds 196 patents, including 86 invention patents, positioning it among the top in the domestic semiconductor power device industry [165].