Giantec Semiconductor(SH:688123)2021-08-15 16:00Financial Results - Giantec Semiconductor Corporation reported its 2021 semi-annual financial results on August 16, 2021[2]. - The semi-annual report is unaudited, ensuring transparency in financial disclosures[7]. - No profit distribution or capital reserve transfer plans were proposed during this reporting period[8]. - The company's revenue for the first half of 2021 reached ¥264,480,149.39, representing a 21.24% increase compared to ¥218,142,429.25 in the same period last year[24]. - Net profit attributable to shareholders was ¥65,752,158.51, up 41.23% from ¥46,558,182.96 year-on-year[24]. - The net cash flow from operating activities increased by 63.75%, amounting to ¥47,963,944.71 compared to ¥29,290,387.31 in the previous year[24]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,478,047,674.11, a slight increase of 1.16% from ¥1,461,079,275.65 at the end of the previous year[24]. - Total assets increased by 2.64% to ¥1,597,598,809.38 from ¥1,556,469,946.19 at the end of the previous year[24]. - The net profit excluding non-recurring gains and losses was ¥30,735,809.81, which is a decrease of 23.09% from ¥39,963,462.36 in the same period last year[24]. - The comprehensive gross margin for the first half of 2021 was 31.64%, a decrease of 4.9 percentage points compared to the same period last year[27]. - The basic earnings per share were 0.54 yuan, up 39.52% from 0.39 yuan in the same period last year[25]. Governance and Compliance - The company emphasizes the accuracy and completeness of the financial report, with all board members present at the meeting[4][6]. - There are no significant risks or non-operational fund occupation by controlling shareholders reported[5][9]. - There are no special governance arrangements or significant matters affecting the company[8]. - The company has not faced any issues with board members being unable to guarantee the report's authenticity[9]. - All financial statements are signed by the legal representative and accounting personnel, ensuring accountability[7]. - The company has established a complete independent intellectual property system with 133 total patents and design registrations[62]. - The company has committed to ensuring that all related party transactions comply with legal regulations and the company's articles of association[24]. Research and Development - Research and development expenses accounted for 12.17% of operating revenue, an increase of 1.92 percentage points year-on-year[25]. - The company has developed 25 core technologies related to non-volatile memory chips, voice coil motor driver chips, and smart card chips, maintaining a competitive edge in these areas[58]. - The company is focusing on enhancing product compatibility and reducing chip size in its new product developments, which include various memory and driver chips aimed at consumer electronics and automotive applications[68][69][70]. - The R&D team consists of professionals with over 8 years of experience, with core technical personnel holding advanced degrees from top universities and backgrounds in renowned semiconductor companies[83]. - The company has increased R&D investment significantly due to the growth in personnel costs and project expenditures, reflecting a commitment to product enhancement and new technology development[66]. Market Position and Growth - The company ranks third globally in the EEPROM market, holding the top position among domestic EEPROM suppliers[52]. - The company has established long-term stable partnerships with leading smartphone camera module manufacturers, becoming a leading brand in smartphone camera EEPROM chips since 2012[76]. - The company has expanded its market presence in the NOR Flash domain, enhancing its position in the non-volatile memory chip market[75]. - The company plans to expand into the NOR Flash market, targeting applications in smartphones, IoT, and automotive electronics[90]. - The company is collaborating with leading smartphone manufacturers to develop closed-loop and optical image stabilization voice coil motor driver chips[56]. Financial Management - The company has approved a stock incentive plan to grant 900,000 restricted stocks, with an initial grant of 720,000 shares at a price of ¥22.64 per share[141]. - The company has committed to ensuring that the registration application documents and other information disclosure materials for the public offering do not contain false records, misleading statements, or significant omissions, and will bear legal responsibility for their accuracy and completeness[161]. - The company has confirmed that all commitments have been fulfilled in a timely manner, with no noted failures[155]. - The company committed to repurchase its shares in the secondary market within three months if stock price stabilization measures are needed, with a limit of 3% of total shares and a maximum expenditure of 20% of the previous year's net profit attributable to shareholders[159]. Risks and Challenges - The company faces risks from intensified market competition, which may lead to price declines and reduced profit margins[100]. - The company is at risk of technological obsolescence if it fails to keep pace with industry upgrades and product innovations[102]. - The company is exposed to supply chain risks, including potential price increases for raw materials and outsourcing processing fees[104]. - The company has not faced any significant legal violations, lawsuits, or administrative penalties that could harm investor rights or public interests since January 1, 2016[25]. Subsidiaries and Investments - Hong Kong Import and Export subsidiary reported total assets of approximately ¥61.07 million and net profit of ¥4.11 million[135]. - Ju Chen America subsidiary had total assets of approximately ¥1.11 million with a net loss of ¥7.21 million[135]. - Ju Dong Semiconductor subsidiary reported total assets of approximately ¥10.15 million and a net loss of ¥3.18 million[135]. - The total revenue for the Hong Kong Import and Export subsidiary was approximately ¥98.67 million[135]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 9,927[187]. - The largest shareholder, Jiangxi Heguang Investment Management Co., Ltd., held 25,703,785 shares, accounting for 21.27% of the total shares[187]. - The second-largest shareholder, Jucheng Semiconductor (Hong Kong) Co., Ltd., held 11,268,552 shares, representing 9.33% of the total shares[187].