神工股份(688233) - 2021 Q2 - 季度财报

Company Overview and Key Financial Indicators This section details the company's profile, key financial performance, and analysis of non-recurring gains and losses for the reporting period Company Basic Information Jinzhou Jinggong Semiconductor Co., Ltd. (Jinggong Semiconductor, 688233.SH) is a company specializing in the R&D, production, and sales of semiconductor-grade single crystal silicon materials, with Pan Liansheng as its legal representative - The company's Chinese name is Jinzhou Jinggong Semiconductor Co., Ltd., its stock abbreviation is Jinggong Semiconductor, and it is listed on the STAR Market of the Shanghai Stock Exchange with stock code 688233[14][18] Key Financial Data and Indicators In the first half of 2021, the company achieved explosive performance growth, with operating revenue increasing by 354.80% and net profit attributable to shareholders of the parent company increasing by 415.40%, primarily driven by a significant increase in main product orders due to the semiconductor industry's upward cycle Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 204,049,687.07 CNY | 44,866,240.64 CNY | 354.80 | | Net Profit Attributable to Shareholders of the Listed Company | 100,034,093.48 CNY | 19,409,123.73 CNY | 415.40 | | Net Profit Attributable to Shareholders of the Parent Company After Deducting Non-Recurring Gains and Losses | 96,972,924.41 CNY | 11,139,891.41 CNY | 770.50 | | Net Cash Flow from Operating Activities | 45,698,175.85 CNY | 33,246,580.32 CNY | 37.45 | | Net Assets Attributable to Shareholders of the Listed Company | 1,295,803,495.92 CNY | - | 6.93 (vs. end of prior year) | | Total Assets | 1,388,980,024.55 CNY | - | 3.00 (vs. end of prior year) | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.63 | 0.13 | 384.62 | | Weighted Average Return on Net Assets (%) | 7.93 | 2.19 | Increased by 5.74 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 7.68 | 1.26 | Increased by 6.42 percentage points | | R&D Expenditure as a Percentage of Operating Revenue (%) | 9.54 | 11.77 | Decreased by 2.23 percentage points | - The company attributes its significant performance growth to the semiconductor industry's upward cycle and a substantial increase in main product orders driven by its first-class technology and stable quality[21] Analysis of Non-Recurring Gains and Losses During the reporting period, the company's total non-recurring gains and losses amounted to 3.06 million CNY, primarily from government grants of 3.64 million CNY recognized in current profit or loss Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit or loss | 3,644,382.81 | | Other non-operating income and expenses | -43,007.43 | | Income tax impact | -540,206.31 | | Total | 3,061,169.07 | Management Discussion and Analysis (MD&A) This section provides a comprehensive discussion of the company's industry, core business, technological advancements, competitive advantages, operational performance, and key risk factors Industry and Main Business The company operates in the semiconductor materials industry, which experienced a strong upward cycle in H1 2021, with its main business focusing on large-diameter single crystal silicon materials, silicon components, and large-size silicon wafers - In the first half of 2021, the semiconductor industry saw a significant recovery, entering an upward cycle, with WSTS forecasting a 19.7% year-over-year increase in global semiconductor sales for 2021[27] - The company's main business is divided into three segments: - Large-diameter single crystal silicon materials: 14-19 inches, primary revenue source, world-leading technology and market share - Silicon components: processed from large-diameter single crystal silicon, with bulk orders and ongoing client certifications - Large-size silicon wafers: 8-inch lightly doped low-defect polished wafers, progressing well in client certification[45][47] - The company adopts a 'customer order + self-stocking' production model and a direct sales model, with a lengthy customer certification cycle (typically 3-12 months), but stable cooperation once integrated into the supply chain[48][49] Core Technologies and R&D Progress The company continues R&D in large-diameter silicon materials, silicon components, and large-size silicon wafers, with R&D expenditure reaching 19.46 million CNY and an increase in R&D personnel to 50 during the period - The company possesses multiple core technologies, including non-magnetic field large-diameter single crystal silicon manufacturing, solid-liquid coexistence interface control, and hot zone size optimization, offering advantages in cost reduction and yield improvement[54][55] R&D Expenditure | R&D Expenditure | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total R&D Expenditure | 19,460,285.88 | 5,280,986.77 | 268.50 | | R&D Expenditure as a Percentage of Operating Revenue (%) | 9.54 | 11.77 | Decreased by 2.23 percentage points | - The company's ongoing R&D projects include 8-inch/12-inch low-defect single crystal silicon, silicon polycrystalline materials, and silicon wafer flatness optimization, aiming for scaled production and enhanced product performance[62][63][64] - During the reporting period, the number of the company's R&D personnel increased from 33 to 50, accounting for 21.55% of the total workforce[67] Core Competitiveness The company's core competitiveness stems from its technological leadership, stringent quality control, strong customer relationships, and leading position in the large-diameter single crystal silicon materials for integrated circuit etching - Technological Advantage: Utilizing technologies such as non-magnetic field large-diameter single crystal silicon manufacturing to effectively reduce unit production costs while maintaining high yield rates[68] - Customer Advantage: Certified by numerous international leading clients and established stable partnerships with multiple overseas customers, while securing long-term bulk orders from several domestic 8-inch and 12-inch integrated circuit manufacturers during the reporting period[69] - Leading Position in Niche Segments: Maintaining a leading position in large-diameter single crystal silicon materials, mastering mass production technology for crystals up to 19 inches, and achieving several domestically advanced core technologies in silicon components and 8-inch silicon wafers[70] Discussion of Operating Performance In H1 2021, the company achieved significant performance growth, with operating revenue and net profit increasing by 354.80% and 415.40% respectively, driven by strong market expansion and smooth progress in R&D and fundraising projects - In the first half of 2021, the company achieved operating revenue of 204.05 million CNY, a 354.80% year-over-year increase, and net profit attributable to shareholders of the parent company of 100.03 million CNY, a 415.40% year-over-year increase[78] - Regarding domestic and international market expansion, the company intensified its efforts in the domestic market, securing long-term bulk orders for silicon components from several 8-inch and 12-inch integrated circuit manufacturers, thereby reducing its sole reliance on overseas markets[78] - Fundraising projects are progressing smoothly, with 8-inch semiconductor-grade lightly doped low-defect single crystal silicon material successfully grown and defects effectively controlled, while process experiments for the 8-inch polished wafer project continue to advance[80][81] Risk Factors The company faces core risks related to technology, R&D, and operational challenges such as high customer and supplier concentration, raw material price volatility, and industry cyclicality, alongside macro-level trade policy and exchange rate risks - Core Competitiveness Risks: Including risks of core technology leakage, failure to keep pace with market demand in technological innovation, and R&D failure of fundraising projects (e.g., 8-inch silicon wafers)[82][83] - Operational Risks: High customer concentration (primarily in Japan, South Korea, and the United States), high supplier concentration (Wacker Chemie, SUMCO JSQ), raw material price fluctuations, and significant exposure to the cyclical fluctuations of the semiconductor industry[84][85][86][87] - Macroeconomic Risks: A high proportion of the company's products are sold overseas, exposing it to adverse impacts from trade policies, tariffs, and exchange rate fluctuations in relevant countries[88] Analysis of Financial Statement Item Changes Changes in the company's financial indicators during the reporting period are primarily linked to a 354.80% increase in operating revenue, which also drove a 365.69% rise in operating costs and a 268.50% increase in R&D expenses Item | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 204,049,687.07 | 44,866,240.64 | 354.80 | Upward industry cycle, significant increase in main product orders | | Operating Cost | 70,823,423.14 | 15,208,316.42 | 365.69 | Proportional change with operating revenue | | R&D Expenses | 19,460,285.88 | 5,280,986.77 | 268.50 | Orderly progress of R&D projects, increased investment | | Financial Expenses | -6,681,723.11 | -1,933,683.76 | -245.54 | Due to increased interest income | | Net Cash Flow from Operating Activities | 45,698,175.85 | 33,246,580.32 | 37.45 | Comprehensive impact of significant sales increase and raw material procurement | Significant Matters This section outlines the company's adherence to its commitments and the progress of its fundraising projects during the reporting period Fulfillment of Commitments During the reporting period, the company's actual controllers, shareholders, directors, supervisors, and senior management strictly fulfilled all commitments made during the initial public offering, including share lock-up, price stabilization, and avoidance of horizontal competition - All commitments made by the company and related parties, either during or continuing into the reporting period (including share lock-up, share price stabilization, avoidance of horizontal competition, and regulation of related-party transactions), were strictly fulfilled[110][111][114][115][116] Use of Raised Funds The company's initial public offering raised 774.87 million CNY for two projects, with 261.22 million CNY cumulatively invested as of the period-end, showing 94.38% progress for the R&D center and 16.03% for the 8-inch silicon wafer production project Committed Investment Projects | Committed Investment Project | Total Committed Investment from Raised Funds (CNY millions) | Cumulative Investment as of Period-End (CNY millions) | Investment Progress as of Period-End (%) | | :--- | :--- | :--- | :--- | | 1. R&D Center Construction Project | 174.87 | 165.04 | 94.38 | | 2. 8-inch Semiconductor-Grade Silicon Single Crystal Polished Wafer Production Project | 600.00 | 96.18 | 16.03 | | Total | 774.87 | 261.22 | - | - The company utilized a portion of its idle raised funds for cash management, acquiring 300 million CNY in structured deposits and 220 million CNY in time deposits[121] Share Capital Changes and Shareholder Information This section details the changes in the company's share capital structure and provides an overview of its shareholder composition during the reporting period Changes in Share Capital Structure During the reporting period, the company's total share capital remained at 160 million shares, with the proportion of restricted shares decreasing from 76.15% to 49.05% due to the unlocking of some initial public offering restricted shares - On February 22, 2021, 43,358,153 shares of the company's initial public offering restricted shares became tradable, leading to a reduction in the number of restricted shares[127][128] Shareholder Information As of the period-end, the company had 13,957 shareholders, with More Bright Lighting Co., Ltd. (23.13%), Xikang Semiconductor Technology (Shanghai) Co., Ltd. (22.22%), and Beijing Aerospace Science and Industry Military-Civilian Integration Technology Achievement Transformation Venture Capital Fund (16.53%) as the top three shareholders Shareholder Name | Shareholder Name | Shares Held at Period-End | Percentage (%) | Nature of Shares | | :--- | :--- | :--- | :--- | | More Bright Lighting Co., Ltd. | 37,003,560 | 23.13 | Overseas legal entity | | Xikang Semiconductor Technology (Shanghai) Co., Ltd. | 35,550,301 | 22.22 | Domestic non-state-owned legal entity | | Beijing Aerospace Science and Industry Military-Civilian Integration Technology Achievement Transformation Venture Capital Fund | 26,441,705 | 16.53 | Domestic non-state-owned legal entity | | 626 Investment Holding Co., Ltd. | 5,064,023 | 3.17 | Overseas legal entity | - Shareholders Xikang Semiconductor Technology (Shanghai) Co., Ltd., Ningbo Meishan Bonded Port Area Jingli Investment Management Partnership (Limited Partnership), and Ningbo Meishan Bonded Port Area Xujie Investment Management Partnership (Limited Partnership) have signed a concerted action agreement[134] Financial Report This section presents the company's unaudited consolidated financial statements, including the balance sheet, income statement, and cash flow statement, along with selected notes providing detailed explanations of key accounts Financial Statements The financial statements for this reporting period are unaudited, showing robust growth in total assets, revenue, and net profit, with healthy operating cash flow and investment activities focused on capacity expansion and wealth management Consolidated Balance Sheet As of June 30, 2021, the company's total assets grew steadily to 1.39 billion CNY, with total liabilities at 93.18 million CNY, resulting in a low debt-to-asset ratio of approximately 6.7%, and net assets attributable to shareholders of 1.30 billion CNY | Item | June 30, 2021 (CNY) | December 31, 2020 (CNY) | | :--- | :--- | :--- | | Total Assets | 1,388,980,024.55 | 1,348,567,761.67 | | Total Current Assets | 954,408,073.14 | 955,468,651.94 | | Total Non-Current Assets | 434,571,951.41 | 393,099,109.73 | | Total Liabilities | 93,176,528.63 | 136,721,124.53 | | Total Owners' Equity | 1,295,803,495.92 | 1,211,846,637.14 | Consolidated Income Statement In H1 2021, the company achieved total operating revenue of 204.05 million CNY, a 354.80% year-over-year increase, and total operating costs of 98.99 million CNY, leading to a net profit attributable to shareholders of the parent company of 100.03 million CNY, a 415.40% year-over-year increase | Item | H1 2021 (CNY) | H1 2020 (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 204,049,687.07 | 44,866,240.64 | | II. Total Operating Costs | 98,988,642.39 | 31,978,568.39 | | Including: Operating Cost | 70,823,423.14 | 15,208,316.42 | | R&D Expenses | 19,460,285.88 | 5,280,986.77 | | III. Operating Profit | 114,386,735.21 | 22,157,817.62 | | V. Net Profit | 100,034,093.48 | 19,409,123.73 | | Net Profit Attributable to Shareholders of the Parent Company | 100,034,093.48 | 19,409,123.73 | Consolidated Cash Flow Statement In H1 2021, net cash flow from operating activities was 45.70 million CNY, while net cash outflow from investing activities was 65.29 million CNY, primarily for fixed asset purchases and wealth management, and net cash outflow from financing activities was 15.99 million CNY for dividend distribution | Item | H1 2021 (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 45,698,175.85 | | Net Cash Flow from Investing Activities | -65,294,051.13 | | Net Cash Flow from Financing Activities | -15,994,023.96 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -913,660.52 | | Net Increase in Cash and Cash Equivalents | -36,503,559.76 | Notes to Financial Statements (Selected) The notes provide detailed information on financial statement items, including accounts receivable primarily from overseas clients, a significant increase in inventories due to higher orders, and the company's preferential 15% income tax rate as a high-tech enterprise - Accounts receivable balance at period-end was 44.15 million CNY, with overseas clients accounting for 75.92% and domestic clients for 24.08%[280] - Inventories book value at period-end was 92.49 million CNY, a significant 83.28% increase from 50.46 million CNY at the beginning of the period, primarily due to increased sales orders and large-scale raw material procurement[95][295] - The company enjoys high-tech enterprise tax incentives, with an enterprise income tax rate of 15% during the reporting period[270] - Total remuneration for key management personnel in the current period was 1.20 million CNY[409]