KINGSEMI(SH:688037)2021-03-19 16:00Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year 2020, representing a year-over-year growth of 15%[22]. - Revenue for 2020 reached ¥328,900,200.07, a 54.30% increase compared to ¥213,156,650.17 in 2019[34]. - Net profit attributable to shareholders was ¥48,828,560.81, up 66.79% from ¥29,275,895.55 in 2019[34]. - Basic earnings per share rose to ¥0.58, a 26.09% increase from ¥0.46 in 2019[35]. - The company achieved a revenue of 328.90 million yuan, representing a 54.30% increase compared to the same period in 2019[116]. - The net profit attributable to shareholders reached 48.83 million yuan, a growth of 66.79% year-on-year[116]. - Revenue from photolithography coating and developing equipment reached ¥236,120,267.40, with a gross margin of 42.89%, marking a significant year-over-year increase of 111.43%[143]. - The single-wafer wet processing equipment saw a revenue decline of 20.26%, resulting in a gross margin of 38.63%[143]. - Revenue from mainland China accounted for 99.50% of total revenue, with a year-over-year increase of 58.24%[146]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 2.00 CNY per 10 shares, totaling 16,800,000.00 CNY (including tax) based on a total share capital of 84,000,000 shares as of December 31, 2020, resulting in a cash dividend payout ratio of 34.41%[8]. - The company does not plan to issue bonus shares or convert capital reserves into share capital, with remaining undistributed profits carried forward to the next fiscal year[8]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm, ensuring the accuracy and completeness of the financial report[7]. - The board of directors and supervisory board members have confirmed the authenticity and completeness of the annual report, taking legal responsibility for any misrepresentation[4]. - The company’s financial report has been confirmed by the responsible persons, ensuring its authenticity and accuracy[7]. - There are no non-operating fund occupations by controlling shareholders or related parties reported[10]. - The company does not have any special arrangements for corporate governance or significant matters that require disclosure[12]. Research and Development - The company has allocated RMB 200 million for R&D in 2021, focusing on next-generation semiconductor technologies[22]. - R&D expenditure as a percentage of revenue was 13.81%, down 2.64 percentage points from 16.45% in 2019[35]. - The total R&D investment for the year was 45,414,740.24 RMB, representing a 29.55% increase compared to the previous year[90]. - The company has 144 R&D personnel, which constitutes 36.46% of the total workforce, an increase from 31.67% in the previous year[97]. - The company has received a total of 195 patent authorizations, including 151 invention patents, 23 utility model patents, and 21 design patents as of December 31, 2020[88]. - The company has focused on R&D of core components to meet higher technical requirements and market needs for its front-end coating and developing equipment[81]. Market and Industry Trends - The global semiconductor equipment sales reached $68.9 billion in 2020, a 16% increase from $59.8 billion in 2019, with projections for continued growth in 2021 and 2022[61]. - The compound semiconductor market is projected to grow at a compound annual growth rate (CAGR) of 12.9%, driven by the demand for high-frequency and high-power applications in 5G and electric vehicles[71]. - The SiC power semiconductor market is expected to grow at a CAGR of 29% and reach $2 billion by 2024, highlighting the increasing demand for advanced semiconductor technologies[71]. - The global advanced packaging market is expected to grow to $43.6 billion by 2024, with a compound annual growth rate (CAGR) of 8.2% from 2018 to 2024[191]. - The Mini LED market is expected to see rapid growth, becoming a mainstream expansion direction for LED chip manufacturers[194]. Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2023[22]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q2 2021, which is expected to increase production capacity by 40%[22]. - The company aims to enhance its supply chain efficiency, targeting a reduction in operational costs by 10% over the next year[22]. - The company is actively working on new product commercialization, which is critical for maintaining competitive advantage in the market[131]. - The company is focused on developing multi-layer stacked cavity equipment to enrich its product line in advanced packaging technology[198]. Risks and Challenges - The company has detailed various risks faced during its operations in the "Risk Factors" section of the report, urging investors to be cautious of investment risks[5]. - The semiconductor equipment industry faces risks from potential overcapacity and demand fluctuations, which could impact future performance[127]. - The company is exposed to risks related to high customer concentration, which may lead to revenue volatility[129]. - Future R&D investments may significantly increase, potentially impacting operational performance[128]. Operational Performance - Net cash flow from operating activities decreased by 691.67% to -¥72,389,945.01, compared to ¥12,234,952.89 in 2019[34]. - Total assets increased by 31.52% to ¥1,224,599,920.37 from ¥931,116,076.19 in 2019[34]. - The company has established a stable supply chain with domestic and international suppliers, ensuring the reliability of raw material sources[112]. - The company has expanded its customer base to include major clients such as TSMC, Changjiang Electronics Technology, and Huada Semiconductor[121]. - The company has established significant relationships with major domestic clients, including TSMC and Longi Green Energy, in the advanced packaging sector[192].