KINGSEMI(688037)2024-04-26 10:24Topic 1: Product Development and Innovation - Shanghai Kingsemi Microelectronics Co., Ltd. officially released the KCE front-end single-wafer chemical cleaning machine, opening up a new market worth billions of RMB and completing the strategic layout of front-end coating development and front-end cleaning[1] - The company launched a strategic new product, the front-end single-wafer chemical cleaning machine, in March 2024, with a process coverage rate of over 80%, expanding the domestic market space for front-end products to 20 billion RMB[11] - The company's coating development and single-wafer wet equipment have been widely used in major manufacturers such as TSMC, JCET, and Huatian Technology, with some technologies reaching international leading levels[12] - The company officially launched the fully automatic SiC dicing and breaking machine, leveraging unique SnB dicing technology to solve traditional cutting issues, enriching the product layout in the small-size field[13] - The company's front-end chemical cleaning machine KS-CM300/200 has achieved over 80% process coverage and passed 26nm particle testing, meeting advanced process requirements[184] - The company's temporary bonding machine for Chiplet technology has achieved excellent TTV and warpage performance, compatible with 60μm and above thick film coating requirements[175] - The company's new SiC wafer dicing machine KS-S200-2H1L achieves a cutting speed of approximately 100mm/s, significantly improving efficiency[152] - The company's third-generation immersion high-capacity coater-developer has achieved mass production in conjunction with mainstream global lithography machines, with plans to develop next-generation higher-capacity models[197] Topic 2: R&D and Technological Advancements - The company's R&D expenses have consistently exceeded 10% of revenue, with a compound annual growth rate of over 50% in the past five years, and 131 new patent and software copyright applications in 2023[14] - The company plans to continue increasing R&D investment in 2024, focusing on market and customer demand, and strengthening basic R&D capabilities to drive product technology upgrades[16] - The company's R&D expenditure in 2023 was RMB 300 million, accounting for 11.2% of total revenue[74] - R&D expenditure accounted for 11.52% of revenue in 2023, an increase of 0.53 percentage points from 2022[85] - The company's technology center was recognized as a "National Enterprise Technology Center" in February 2023, highlighting its strong innovation capabilities[116] - The company was awarded the title of "National Manufacturing Single Champion Enterprise" in March 2024 for its coater/developer products[117] - As of the end of the reporting period, the company held 286 patents, including 181 invention patents, 69 utility model patents, and 36 design patents[117] Topic 3: Market Expansion and Strategic Growth - The establishment of Kingsemi Kyoto Co., Ltd. in Japan in August 2022 helps the company access high-end industrial and R&D resources in the semiconductor field, enhancing technical capabilities and reducing production costs[1] - Guangzhou Kingsemi Co., Ltd. was established in September 2023, focusing on the R&D and industrialization of core components such as photoresist pumps, supported by government funding, marking the start of a new development pattern of "whole machine + components"[2] - The global front-end 300mm wafer fab equipment expenditure is expected to grow by 20% to $116.5 billion by 2025 and reach a record $137 billion by 2027[8] - The company's market share in the semiconductor equipment sector increased to 12% in 2023[74] - The company completed the acquisition of a key competitor, enhancing its technological capabilities and market position[74] - The company's international sales grew by 30% in 2023, driven by expansion in Europe and North America[74] - The company's total orders at the end of the reporting period were approximately 2.2 billion yuan (including tax), providing strong support for 2024 performance[167] - The company's front-end coating and developing equipment has achieved full coverage of 28nm and above process nodes in front-end wafer processing, with 28nm and below process technologies currently under validation[183] - The company's front-end physical cleaning machines have been widely adopted by major domestic fabs such as SMIC, HLMC, and Silan, becoming the main production model for domestic logic and power device customers[169] - The company's next-generation high-capacity physical cleaning machine has been sent to a major domestic memory customer for validation, with potential to open new market space in the memory sector[169] - The company's back-end advanced packaging coating and developing equipment and single-wafer wet process equipment have been continuously used as mainstream models by top-tier manufacturers including TSMC, JCET, and Huatian for multiple years[171] - The company's ArF immersion high-capacity coater-developer equipment received orders from 5 major domestic customers[141] - The strategic new product, front-end chemical cleaning machine KS-CM300/200, received validation orders from major domestic customers in Q4 2023[145] - The company's temporary bonding and debonding equipment has reached international advanced levels and received orders from multiple domestic leading customers[152] - The company's compound and small-size equipment, including coating and developing machines and cleaning machines, are widely used in 4-8 inch wafer processes for RF devices, power devices, and MEMS production[189] - The global semiconductor equipment market is projected to see significant growth, with 300mm wafer fab equipment spending expected to exceed $100 billion in 2025 and reach a historic high of $137 billion by 2027[193] Topic 4: Financial Performance and Metrics - The company's revenue for 2023 reached RMB 2.67 billion, reflecting a 15% year-over-year growth[74] - The company's net profit for 2023 was RMB 500 million, marking a 20% increase compared to the previous year[74] - Revenue for 2023 reached 1,716,969,907.58 RMB, a 23.98% increase compared to 2022[85] - Net profit attributable to shareholders in 2023 was 250,626,202.20 RMB, up 25.21% year-over-year[85] - Net cash flow from operating activities in 2023 was -562,876,699.27 RMB, a 391.70% decrease compared to 2022, primarily due to increased material procurement and reduced sales collections[86] - Total assets at the end of 2023 were 4,301,555,628.29 RMB, a 23.03% increase from 2022[85] - Basic earnings per share in 2023 were 1.82 RMB, a 19.82% decrease compared to 2022[85] - Weighted average return on equity (ROE) in 2023 was 11.24%, a decrease of 2.12 percentage points from 2022[85] - The company's net profit attributable to shareholders excluding non-recurring gains and losses increased by 36.37% year-over-year in 2023[85] - The company's total equity attributable to shareholders at the end of 2023 was 2,380,440,281.77 RMB, a 13.00% increase from 2022[85] - Non-recurring profit and loss items for 2023 amounted to 63,461,030.55 RMB, with significant contributions from government subsidies and asset disposal gains[111] - Revenue for the reporting period reached 1.717 billion yuan, a year-on-year increase of 23.98%[137] - Net profit attributable to shareholders of the listed company was 251 million yuan, a year-on-year increase of 25.21%[137] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 187 million yuan, a year-on-year increase of 36.37%[137] - Total assets at the end of the reporting period were 4.302 billion yuan, with shareholders' equity of 2.38 billion yuan[137] - Quarterly revenue for Q4 2023 was 510,488,873.67 RMB, with net profit attributable to shareholders of 30,398,122.88 RMB[131] - The company's other non-current financial assets increased by 39,372,047.24 RMB, contributing to a total fair value change of 24,576,587.09 RMB[134] Topic 5: Supply Chain and Operational Efficiency - The company will continue to promote digitalization, informatization, and standardization in supply chain management in 2024 to ensure efficient, scientific, and standardized operations[17] - The company has established stable strategic partnerships with hundreds of core suppliers and implemented a multi-vendor strategy for key components to ensure timely supply[17] - The company is advancing the localization of key core materials, including mechanical hands, pumps, hot plates, and fluororesin components, to ensure quality while reducing reliance on imports[17] - The company's Japanese subsidiary was successfully established in August 2022, enriching its supply chain resources[17] - The Guangzhou subsidiary, established during the reporting period, focuses on the R&D and industrialization of core components such as photoresist pumps, leveraging the parent company's expertise in coating and development[17] - In 2024, the company will implement a comprehensive cost-reduction and efficiency-improvement plan, with key operational indicators such as new orders, production output, contract acceptance, and sales collection being tracked and optimized[18] - The company's procurement plan is based on production order materials, R&D materials, after-sales service materials, demand planning, and safety stock requirements, with a focus on supplier management and quality assurance[190] - The company adopts a production model that primarily relies on existing orders, supplemented by pre-production for potential orders, to meet customized product design and manufacturing needs while managing inventory risks[190] Topic 6: Employee Incentives and Corporate Governance - The company has launched a new restricted stock incentive plan in August 2023, granting 1.26 million shares at 50 yuan per share to 160 core technical employees to drive long-term sustainable development[21] - The company's 2023 restricted stock incentive plan has a total confirmed share-based payment expense of 25.16 million yuan, with all company-level performance targets met[29] - The company completed the registration of 304,880 restricted shares for the third vesting period of the 2020 restricted stock incentive plan and 75,480 shares for the second batch of the second vesting period of the 2021 plan on October 30, 2023[31] - On December 7, 2023, the company registered 57,720 restricted shares for the third batch of the second vesting period of the 2021 restricted stock incentive plan[31] - The company proposed to grant 1.6 million restricted shares, accounting for 1.16% of the total share capital, with 1.28 million shares (0.93% of total share capital) for the initial grant and 320,000 shares (0.23% of total share capital) reserved[31] - On August 14, 2023, the company granted 1.26 million restricted shares to 160激励对象 at a grant price of 50.00元 per share[31] - The company implemented three restricted stock incentive plans from 2020 to 2023, covering 299人次 of management and core business骨干, with clear performance考核目标[49] - The company has established a robust intellectual property and trade secret protection system, recognizing these as critical assets for its technological advancement and growth[22] Topic 7: Environmental and Social Responsibility - The company actively fulfills environmental protection obligations, optimizing carbon emission digital management and reducing emissions through digital monitoring[41] - The company has established a comprehensive environmental protection system and employs certified "carbon traders" for carbon emission trading management[41] - The company uses chemicals such as photoresist, OK73, alcohol, and various acid-base药液 for product testing, with strict safety measures and professional disposal of waste chemicals[43] - The company emphasizes ESG (Environmental, Social, and Governance) work, integrating it into corporate culture to achieve high-quality development[41] Topic 8: Subsidiaries and Geographic Expansion - The company established a wholly-owned subsidiary, Shenyang Xinli Microelectronics Equipment Co., Ltd., in January 2024, focusing on the R&D and industrialization of 2.5D/3D advanced packaging products[34] - The company has set up subsidiaries in Japan, Guangzhou, and Shenyang to focus on core component development, high-end packaging R&D, and overseas resource expansion[179] - The company has established three production bases in Shenyang and Shanghai, with the Shanghai Lingang facility officially put into operation in March 2024[179] - The company's employee count increased from 880 to 1,118, with over 50% of R&D personnel holding master's degrees or higher[178] Topic 9: Dividend and Shareholder Returns - The company's cash dividend policy includes a distribution of 2 yuan per 10 shares and a capital reserve transfer of 4.5 shares per 10 shares, with a total cash dividend of 27.57 million yuan[26] - The company plans to distribute a cash dividend of 2 RMB per 10 shares and a capital reserve transfer of 4.5 shares per 10 shares[90] Topic 10: Industry Trends and Market Outlook - Chiplet technology has emerged as a key pathway to enhance integration and chip computing power as Moore's Law slows down[197] - Sales in the compound semiconductor and small-sized equipment segment declined due to lower market demand[121] - The global semiconductor equipment market is projected to see significant growth, with 300mm wafer fab equipment spending expected to exceed $100 billion in 2025 and reach a historic high of $137 billion by 2027[193]