PNC(SH:603690)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,084,097,721.32, representing a 49.18% increase compared to CNY 1,397,056,129.25 in 2020[27]. - The net profit attributable to shareholders for 2021 was CNY 281,764,365.40, an increase of 8.12% from CNY 260,599,716.15 in 2020[27]. - The net profit after deducting non-recurring gains and losses was CNY 162,159,706.57, up 46.57% from CNY 110,639,917.21 in 2020[27]. - Total assets increased by 33.18% to CNY 7,933,017,527.63 at the end of 2021, compared to CNY 5,956,662,795.43 at the end of 2020[27]. - The weighted average return on net assets decreased to 8.10% in 2021, down 7.93 percentage points from 16.03% in 2020[27]. - The company reported a net cash flow from operating activities of CNY -190,723,819.30 for 2021, an improvement from CNY -280,927,495.31 in 2020[27]. - The basic earnings per share for 2021 was CNY 0.891, a decrease of 12.04% from CNY 1.013 in 2020[27]. - The company achieved a quarterly revenue of CNY 801,583,658.29 in Q4 2021, contributing to the overall annual growth[29]. - Non-recurring gains included government subsidies amounting to CNY 84,055,571.01 in 2021, compared to CNY 12,850,035.77 in 2020[34]. - The company's net assets attributable to shareholders increased by 29.38% to CNY 4,066,221,927.32 at the end of 2021, compared to CNY 3,142,734,673.53 at the end of 2020[27]. Business Strategy and Development - The company plans to focus on future development strategies without making substantial commitments to investors[7]. - The company is committed to maintaining transparency and accountability in its financial reporting[4]. - The company plans to issue convertible bonds totaling up to RMB 1.1 billion to support various R&D projects and manufacturing initiatives[43]. - The company aims to achieve over 4 billion yuan in new orders for 2022, with over 2 billion yuan specifically for wet process equipment, and expects single wafer equipment to account for 60% of new orders[120]. - The company plans to double the production capacity of wet process equipment in 2022 compared to 2021 to meet the increasing demand for advanced process production lines[121]. - The company is focusing on expanding its semiconductor equipment business in response to increasing demand from downstream manufacturers[173]. - The company has established a competitive advantage in the high-purity process system segment, with significant growth in orders from leading integrated circuit manufacturers[42]. - The company is expanding its business model to include core process equipment and materials, aiming to become a core supplier in the semiconductor industry[75]. Research and Development - The total R&D investment amounted to ¥302,291,088.79, representing 14.50% of the operating revenue[6]. - Research and development expenses rose by 51.18% to ¥144,407,020.22, reflecting the company's continued investment in advanced semiconductor equipment and core component technology[79]. - The company has filed 551 patent applications, with 322 patents granted, including 250 invention patents[71]. - The company is investing in high-end process equipment development, focusing on advanced cleaning technologies for 28nm process nodes[71]. - The company has established a semiconductor-grade bulk gas factory to supply high-purity gases for at least 15 years[69]. Market and Industry Trends - The global semiconductor equipment spending reached a record high of USD 89 billion in 2021, with expectations to exceed USD 100 billion in 2022[46]. - The semiconductor cleaning equipment market is projected to grow to $3.193 billion by 2024[97]. - The average investment in fixed assets in the electronic information manufacturing industry has increased by 17.3% over the past two years, significantly outpacing the overall manufacturing sector[46]. - China has become the largest semiconductor market globally, with a self-sufficiency rate of only 27%, aiming for 40% by 2020 and 50% by 2025[115]. Risk Management - There were no significant risks that materially affected the company's operations during the reporting period[8]. - The company has detailed potential risks in its management discussion and analysis section[8]. - The company faces risks related to industry development, including cyclical fluctuations in downstream investment in the integrated circuit sector, which can directly impact market demand and sales margins[124]. - The company is exposed to operational risks due to reliance on imported components for cleaning equipment, which may be affected by international tensions[124]. - The company has established policies to control credit risk related to accounts receivable, regularly monitoring customer credit records to mitigate potential risks[128]. - The company maintains a certain level of reserve funds to meet short-term and long-term financial needs, addressing liquidity risk[128]. - The company is subject to exchange rate risks as its main operations are in China with transactions primarily in RMB, while its overseas subsidiaries operate in foreign currencies[128]. Corporate Governance - The company has a governance structure that includes a board of directors and various committees to ensure effective oversight and compliance with regulations[130]. - The company’s board of directors includes independent directors who actively participate in meetings and decision-making[154]. - The company’s board of directors has established specialized committees, including an audit committee[154]. - The company has a strategic focus on equity incentives, as evidenced by multiple executives receiving significant share increases due to this program[135]. - The overall compensation structure reflects a strong alignment of management interests with shareholder value, promoting long-term growth[135]. Environmental Responsibility - The company is actively implementing measures to reduce carbon emissions, including a 560KWp distributed photovoltaic power generation project on the rooftops of its office and R&D buildings, which generates self-consumed electricity[187]. - The company has invested in a 12-inch wafer regeneration project aimed at developing low-loss wafer regeneration processes, improving energy conservation and emission reduction in collaboration with wafer factory clients[187]. - The headquarters building is designed with energy-saving features, including the use of LED lighting and a rainwater collection system with a capacity of 30 cubic meters for irrigation and cleaning purposes[187]. - The company has not faced any environmental pollution incidents or administrative penalties related to environmental issues during the reporting period[186]. - The company’s factories comply with pollution discharge standards and have set up wastewater treatment facilities[186].