SICC CO.(SH:688234)2022-08-29 16:00Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 20%[1]. - The company's operating revenue for the first half of 2022 was ¥160,809,861.17, a decrease of 34.95% compared to ¥247,215,801.48 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was -¥72,842,861.80, representing a decline of 252.05% from a profit of ¥47,908,004.02 in the previous year[15]. - The net cash flow from operating activities was ¥909,429.98, down 98.51% from ¥60,862,638.20 in the previous year[15]. - The total comprehensive income for the first half of 2022 was a loss of CNY 70,421,324.73, compared to a profit of CNY 51,79 million in the same period of 2021[147]. - The gross margin for the main business was 5.92%, a decrease of 34.06 percentage points compared to the same period last year, primarily due to capacity switching of main products[59]. - The company achieved total revenue of 160.81 million yuan, a decrease of 34.95% compared to the same period last year[42]. - The net profit attributable to shareholders was -72.84 million yuan, a decline of 252.05% year-on-year[42]. Research and Development - Research and development expenses increased by 15%, totaling RMB 80 million, reflecting the company's commitment to innovation[1]. - The total R&D investment reached ¥53,135,027.95, an increase of 27.50% compared to ¥41,673,129.96 in the same period last year[33]. - R&D investment accounted for 33.04% of operating revenue, up by 16.18 percentage points from 16.86% in the previous year[33]. - The company has established partnerships with three leading technology firms to co-develop new technologies in the semiconductor space[1]. - The company aims to enhance R&D investment, strengthen independent innovation, accelerate product iteration, and expand market share to become a leader in the international wide bandgap semiconductor industry[25]. - The company has developed high-purity silicon carbide powder with an impurity concentration controlled below 0.05 ppm, ensuring high-quality silicon carbide crystal preparation[26]. - The company has achieved a significant reduction in cutting damage through its unique silicon carbide crystal cutting fluid formulation, improving the surface quality of cut pieces[28]. - The company has filed for a total of 636 patents, including 206 invention patents and 334 utility model patents, reflecting strong innovation capabilities[32]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[1]. - A strategic acquisition of a local semiconductor firm is in progress, expected to close by Q4 2022, which will enhance production capacity by 40%[1]. - The company signed a long-term supply agreement worth approximately 1.393 billion yuan over three years for conductive silicon carbide substrates[22]. - The company is accelerating the construction of its Shanghai Lingang project to increase production capacity for conductive substrates[22]. - The company is focusing on increasing the production capacity of conductive substrates, aiming to improve market share[43]. Risks and Challenges - The company has identified potential risks in supply chain disruptions, with mitigation strategies in place to ensure continuity[1]. - The company faces risks related to product quality due to the complex growth environment of silicon carbide crystals, which may negatively impact brand image and customer relationships[56]. - The company is experiencing challenges in the high cost of silicon carbide substrates, which may limit market penetration and application development in the short term[57]. - The company has a risk of inventory impairment, with inventory accounting for 12.05% of current assets at the end of the reporting period[61]. - The company’s accounts receivable net amount was 95.96 million yuan, indicating potential risks in timely collection as the business scales[62]. Shareholder and Governance - The company has established a framework for managing shareholding changes and compliance with regulatory requirements for its executives and shareholders[92]. - The company will disclose any failure to fulfill commitments and the reasons for such failures in a timely manner[106]. - The company has received commitments from shareholders holding over 5% to adhere to legal regulations regarding stock reduction[99]. - The controlling shareholder, Zong Yanmin, pledged to vote in favor of profit distribution policies that benefit minority investors during shareholder meetings[101]. - The company has committed to fulfilling all public commitments made during the IPO process[106]. Environmental and Social Responsibility - The company has established a complete pollution treatment system, ensuring all emissions meet standards[87]. - The company actively promotes low-carbon and environmentally friendly travel methods, equipping parking lots with new energy vehicle charging stations and battery vehicle charging stations[88]. - The company is committed to fulfilling its environmental responsibilities and has taken measures to prevent pollution and protect the ecosystem[90]. Financial Position - Total assets reached ¥5,818,005,795.64, reflecting a 122.19% increase from ¥2,618,436,151.68 at the end of the previous year[15]. - The net assets attributable to shareholders of the listed company increased to ¥5,352,633,976.62, a growth of 140.84% from ¥2,222,464,236.70 at the end of the previous year[15]. - The company’s cash and cash equivalents at the end of the period were CNY 1,379.15 million, a 301.34% increase from the previous year[73]. - The company’s total liabilities increased significantly, with cash outflows for investment activities rising to 2,862,604,284.68 RMB from 237,609,884.75 in the previous year[151]. - The company’s total equity at the end of the reporting period was CNY 5,358,537,338.54, an increase from CNY 2,225,487,319.29, reflecting a growth of approximately 141%[154].