S-KING(SH:688328)2023-08-25 16:00Financial Performance - The company's net profit attributable to shareholders for the first half of 2023 was -22,485,276.00 CNY, a decrease of 220.07% compared to the same period last year[19]. - Basic earnings per share for the first half of 2023 was -0.28 CNY, down 220.63% from 0.23 CNY in the same period last year[19]. - The weighted average return on net assets decreased to -3.05% from 2.42% in the previous year, a decline of 5.47 percentage points[19]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was -28,156,437.02 RMB, a decrease of 290.28% compared to the same period last year[20]. - The net profit attributable to shareholders for Q2 was -4.8033 million RMB, significantly reduced compared to Q1 losses[21]. - The company's revenue for the first half of the year was 393,386,372.54 RMB, an increase of 11.53% compared to the same period last year[20]. - The net cash flow from operating activities was -76,311,467.66 RMB, a decrease of 313.55% year-on-year[20]. - The total assets at the end of the reporting period were 1,855,597,979.11 RMB, an increase of 2.66% from the end of the previous year[20]. - The company's net assets attributable to shareholders decreased by 1.34% to 728,809,066.01 RMB compared to the end of the previous year[20]. Research and Development - Research and development expenses accounted for 12.49% of operating revenue, an increase of 1.58 percentage points compared to 10.91% in the same period last year[19]. - Research and development expenses amounted to approximately ¥49.13 million, representing a 27.69% increase compared to ¥38.48 million in the same period last year, with R&D expenses accounting for 12.49% of operating revenue[45]. - The number of R&D personnel increased to 274, representing 23.08% of the total workforce[57]. - The company has submitted a total of 47 patent applications and received 46 new patent authorizations during the reporting period, bringing the total authorized patents to 502, including 39 invention patents and 376 utility model patents[43]. - The company has been recognized as a national-level "specialized, refined, distinctive, and innovative" small giant enterprise since 2019, highlighting its commitment to innovation and technology[42]. Market and Industry Trends - The semiconductor equipment market in China has become the largest globally for three consecutive years, presenting significant growth opportunities for domestic companies[26]. - The flat panel display module equipment industry is showing signs of recovery, with prices for various TV panels increasing since February 2023[29]. - The domestic AR/VR market saw a rapid increase, with sales of AR glasses equipped with Micro OLED technology reaching nearly 20% market share by Q1 2023[30]. - Apple announced its first MR product, Vision Pro, set to launch in 2024, featuring dual chips and 4K Micro OLED technology, which is expected to enhance the consumer AR market significantly[30]. Financial Management and Investments - Financial expenses surged by 548.09% to 8.39 million yuan, primarily due to interest expenses from convertible bonds issued in August 2022[71]. - The company plans to invest CNY 250 million in its subsidiary, Shenzhen Silicon Valley Semiconductor Equipment Co., Ltd. for capital increase and related transactions[107]. - The total amount of guarantees provided by the company, including those to subsidiaries, is CNY 7,500 million, which accounts for 9.44% of the company's net assets[112]. - The total amount of funds raised was RMB 360 million, with a net amount of RMB 350.82 million after deducting issuance costs[115]. Corporate Governance and Shareholder Matters - The company held its first temporary shareholders' meeting of 2023 on March 13, where all proposals were approved without any objections[84]. - The company appointed new board members and senior management on June 2, 2023, following the completion of the board and supervisory committee elections[86]. - The company did not propose any profit distribution or capital reserve transfer plans for the first half of 2023[87]. - The company has committed to ensuring that any stock reduction plans will be made cautiously, considering the need to stabilize the stock price[105]. Environmental Compliance - The company is not classified as a key pollutant discharge unit and adheres to national environmental protection laws and regulations[91]. - The company generates minimal pollutants during its production process, primarily consisting of employee domestic wastewater and minor waste from packaging and scraps[92]. - The company has implemented measures to reduce noise pollution through optimized factory layout and installation of soundproofing equipment[92]. - There were no administrative penalties imposed on the company due to environmental issues[93]. Operational Efficiency and Technology - The company has integrated various workstations into a fully automated production line, significantly reducing costs and increasing efficiency[41]. - The company’s advanced technology includes high-precision chip bonding machines, achieving a yield rate of 99.5% for optical fingerprint sensors[36]. - The integration of machine vision with robotic systems enables dynamic sorting and path planning, improving operational efficiency[40]. - The company has achieved a bonding yield of 99.5% in the automatic bonding line project, with a bonding efficiency of 4 seconds per piece[49]. Financial Position and Ratios - As of June 30, 2023, the company's total assets were RMB 1,855.60 million, total liabilities were RMB 1,060.98 million, resulting in a debt-to-asset ratio of 57.18%[146]. - The company's total liabilities and equity at the end of the reporting period were CNY 804,953,018, reflecting changes in equity components[170]. - The total equity attributable to the parent company at the end of the reporting period was 794,618,294 RMB, reflecting a decrease of 28,602,300 RMB compared to the previous period[178].