Financial Performance - In 2020, Hua Hong Semiconductor achieved a record revenue of US$961.3 million, representing a year-on-year increase of 3.1%[23] - The gross margin for the year was 24.4%, with a net profit attributable to the parent company of US$99.4 million and basic earnings per share (EPS) of US$0.077[23] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[30] - The company reported a net profit margin of 12% for 2020, up from 10% in the previous year, indicating improved operational efficiency[51] - Profit for the year was US$33.3 million, a significant decline of 78.5% compared to US$155.0 million in 2019, resulting in a net profit margin of 3.5%[149] Operational Efficiency - Net operating cash flow increased by 65.2% year-on-year, reaching US$269.1 million[23] - The gross margin improved to 35%, up from 30% in the previous year, due to operational efficiencies[30] - The company has been profitable for 40 consecutive quarters, demonstrating consistent operational success[22] - The company has set a target to achieve a 30% reduction in production costs by 2023 through process optimization and automation[52] Production and Capacity Expansion - The 12-inch wafer production line began mass production on several new platforms, contributing to over 20,000 monthly wafer starts, setting a new industry record[24] - Hua Hong Semiconductor plans to accelerate capacity expansion for 300mm wafer production in 2021 to meet strong market demand[119] - The semiconductor production capacity increased by 20% in 2020, with the company operating at an average utilization rate of 85% across its fabs[52] - The company plans to expand its 12-inch wafer production capacity and introduce automotive products in 2021, supporting the automobile industry[138] Market Strategy and Growth - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[30] - The company plans to expand its market presence in North America and Europe, targeting a 25% increase in sales in these regions by 2022[56] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on advanced semiconductor technologies[30] - User data showed a 20% increase in active users, reaching 5 million by the end of the fiscal year[30] Research and Development - The company invested $150 million in new technology development, focusing on next-generation semiconductor manufacturing processes[30] - The company is investing $300 million in R&D for new technologies, focusing on advanced semiconductor manufacturing processes and products[49] - Hua Hong Semiconductor applied for 576 patents in 2020, bringing its total to over 3,600 granted patents[135] - The company developed key 650V-1200V IGBT manufacturing technology, winning the "14th China Semiconductor Award for Innovative Products and Technologies"[25] Corporate Governance and Compliance - The company has maintained compliance with all corporate governance codes and regulations, ensuring transparency and accountability in its operations[60] - The Audit Committee held five meetings during the year ended 31 December 2020, focusing on reviewing financial statements and the effectiveness of internal controls[90] - The Company aims to maintain a diverse Board, considering various factors such as skills, experience, and gender, to enhance its competitive advantage[92] - The Company encourages Shareholder participation in general meetings to ensure accountability and transparency regarding its strategy and goals[97] Financial Position and Assets - Cash and cash equivalents rose from US$476.3 million to US$922.8 million, reflecting a 93.7% increase driven by improved cash flow management[160] - Property, plant and equipment increased from US$1,558.3 million to US$2,510.4 million, a growth of 61.1% due to capacity expansion[153] - Total current liabilities increased by 39.9% from US$475.3 million to US$665.0 million, primarily due to higher trade payables and other current liabilities[160] - The company’s net assets increased by 8.8% from US$3,082.6 million to US$3,354.1 million, indicating overall financial growth[160] Shareholder Information - The total number of shares available for issue under the Share Option Scheme is 36,898,062 shares, representing approximately 2.8% of the total shares in issue[185] - The company will not pay dividends for the year ended 31 December 2020, maintaining cash reserves for future investments[170] - The total number of options granted on 23 December 2019 is 2,482,000, representing 0.19% of the issued shares as of 31 December 2020[199]
华虹半导体(01347) - 2020 - 年度财报