KINGSEMI(SH:688037)2022-03-09 16:00Financial Performance - The company reported a significant increase in revenue for the fiscal year 2021, reaching RMB 1.2 billion, representing a growth of 25% compared to the previous year[21]. - The company's operating revenue increased by 151.95% year-on-year, reaching ¥828,672,512.29, driven by favorable semiconductor industry conditions and increased market expansion efforts[37]. - Net profit attributable to shareholders rose by 58.41% to ¥77,349,494.43, primarily due to the growth in sales revenue[37]. - The net profit attributable to shareholders after deducting non-recurring gains increased by 395.83% to ¥63,838,961.51, reflecting significant sales growth and fewer non-recurring gains in the previous year[37]. - The company's total assets grew by 60.13% to ¥1,960,914,071.65, attributed to increased inventory and accounts receivable due to business expansion[38]. - Basic and diluted earnings per share increased by 58.62% to ¥0.92, while the basic earnings per share after deducting non-recurring gains surged by 406.67% to ¥0.76[34]. - The company's operating cash flow was negative at -218,325,429.94 RMB, indicating challenges in cash generation from operations[161]. - The company received government subsidies amounting to 39,957,900 RMB, which accounted for 51.66% of the total profit for the period[159]. Research and Development - The company is investing RMB 100 million in R&D for next-generation chip technology, aiming for a 5nm process node by 2023[21]. - Research and development expenses accounted for 11.16% of operating revenue, a decrease of 2.65 percentage points compared to the previous year[34]. - The company’s R&D investment totaled ¥92,499,621.62, representing a year-on-year increase of 103.68%[115]. - The number of R&D personnel increased to 217, up by 73 from the previous year, with R&D staff accounting for 34.12% of the total workforce[130]. - The company has achieved significant progress in developing key technologies for semiconductor equipment, with 217 patents granted, including 162 invention patents[135]. - The company’s R&D focus includes high-end packaging and single-wafer wet processing equipment, with ongoing development aimed at improving reliability and performance[125]. - The company has established partnerships with several major domestic fabs, including SMIC and Huahong, securing repeat orders for its front-end cleaning equipment[63]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2023[21]. - A strategic acquisition of a local semiconductor firm was completed, expected to contribute an additional RMB 200 million in revenue annually[21]. - The company is focusing on expanding its market presence in Taiwan and overseas, aiming to capture growth opportunities in the semiconductor equipment sector[92]. - The company has established a subsidiary in Shanghai to enhance its proximity to clients, talent, and supply chains, marking a significant step in its international development strategy[139]. Corporate Governance - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report, ensuring compliance with legal responsibilities[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[11]. - The company has confirmed that all board members attended the board meeting, ensuring collective governance and decision-making[6]. - The company has not disclosed any special arrangements for corporate governance or other significant matters[8]. Risks and Challenges - The company has outlined various risks in its operations, which are detailed in the management discussion and analysis section[5]. - The company is at risk of significant fluctuations in operating performance due to high customer concentration and potential overcapacity in the semiconductor market[147][145]. - The company is facing increased competition in the semiconductor equipment market, which may impact its market position and operational performance[153]. Product Development and Innovation - New product development includes the launch of advanced semiconductor packaging technology, which is expected to enhance production efficiency by 15%[21]. - The company has successfully developed advanced technologies in the front-end coating and developing equipment, achieving breakthroughs in multiple key technologies for 28nm and above process nodes[57]. - The company has achieved breakthroughs in key technologies for front-end photoresist coating and developing equipment, which have been applied to new products and have received multiple orders from major clients in the semiconductor industry[89]. - The company has successfully replaced imported cleaning equipment with its Spin Scrubber, receiving bulk repeat orders from major domestic fabs such as SMIC and Shanghai Huali, indicating a significant improvement in its product performance[92]. Awards and Recognition - The company has been recognized as a "National Specialized and Innovative 'Little Giant' Enterprise" since 2019[107]. - The company has received multiple awards, including "Best Equipment Supplier in Advanced Packaging" and "National Strategic Innovation Product," highlighting its industry position[140]. - The company’s products have passed SEMIS2 international safety certification, facilitating entry into the international semiconductor equipment supplier system[141].