GKG(SZ:301338)2023-04-26 16:00Company Information - The company's stock abbreviation is KEGG Precision Machine with the stock code 301338 [16] - The company's registered and office address is No. 2, Shalang Road, Dongcheng Street, Dongguan City, with a postal code of 523000 [16] - The company's international website is www.gkg.cn and the email address is gkg@gkg.cn [16] - The company's board secretary is Qiu Jinglin and the securities affairs representative is Liu Dan, with contact information provided [17] - The company's annual report is disclosed on the Shenzhen Stock Exchange website (www.szse.cn) and other specified media [18] - The company's annual report is available at the company's securities department [18] - The company's legal representative is Qiu Guoliang [16] Financial Performance - Revenue for 2022 was RMB 7.793 billion, a decrease of 2.26% compared to 2021 [19] - Net profit attributable to shareholders in 2022 was RMB 1.271 billion, an increase of 13.39% compared to 2021 [19] - Operating cash flow in 2022 was RMB 344.81 million, a significant decrease of 70.85% compared to 2021 [19] - Total assets in 2022 were RMB 1.863 billion, a substantial increase of 96.45% compared to 2021 [20] - Net assets attributable to shareholders in 2022 were RMB 1.397 billion, an increase of 211.19% compared to 2021 [20] - Revenue in Q2 2022 was RMB 236.94 million, the highest among all quarters [21] - Net profit attributable to shareholders in Q2 2022 was RMB 42.11 million, the highest among all quarters [21] - Government subsidies in 2022 amounted to RMB 3.617 million, a decrease compared to 2021 [25] Industry and Market Trends - The company operates in the electronic assembly equipment industry, focusing on SMT production lines [31] - The electronic assembly industry is moving towards automation and intelligence due to rising labor costs [32] - The global server market is expected to grow at a compound annual growth rate (CAGR) of 9.83% from 2021 to 2026, driven by increased demand for PCBs and connectors due to the rise in server needs [33] - China's new energy passenger vehicle sales reached 5.674 million units in 2022, a 90% year-on-year increase, with car electronics cost ratios significantly higher in new energy vehicles (65% for pure electric vehicles) [34] - China's electronic information manufacturing industry revenue grew from 5.13 trillion yuan in 2008 to 15.40 trillion yuan in 2022, with a CAGR of 8.17%, driving fixed asset investment growth in the sector [35] - The LED application market in China is projected to reach 726 billion yuan by 2025, with emerging applications like virtual shooting and 3D billboards driving growth [39] - The global semiconductor equipment market is around $100 billion, with back-end packaging equipment accounting for 6% of the total market share [41] - China's semiconductor packaging equipment localization rate was only 10% in 2021, with the lowest rates in wire bonding (3%) and die bonding (3%), expected to reach 18% by 2025 [41] - Mini LED packaging is dominated by COB (Chip on Board) technology, which is the mainstream choice for mid-to-high-end products, with COG (Chip on Glass) offering cost advantages as technology matures [37] - LED chip sizes are shrinking, with traditional sizes like 0620 and 0406 transitioning to smaller sizes like 0305 and 0204, driving demand for new high-efficiency chip sorting equipment [38] - The LED display market for virtual shooting reached 1.5-2 billion yuan in 2021, with significant growth potential in applications like film and advertising production [39] - Semiconductor packaging trends include a shift from single-chip to multi-chip packaging, planar to 3D packaging, and independent chip packaging to system-in-package (SiP) integration [42] Product and Technology - The company's solder paste printing equipment achieves a repeat positioning accuracy of ±8μm and ±15μm (@6σ, CPK ≥2.0) for the GLED-mini model [48] - The R1 model supports multi-panel/single-panel printing with a repeat printing accuracy of ±18μm (@6σ, CPK≥2.0) and repeat positioning accuracy of ±12.5μm (@6σ, CPK≥2.0) [48] - The GT++ model meets the printing precision requirements for metric M03015 (0.30mm0.15mm) components [48] - The Pmax-pro model can print products up to 1200800mm in size and meets the precision requirements for imperial 01005 (0.40mm0.20mm) components [48] - The company's packaging equipment is used in LED and semiconductor packaging, including die bonding and wire bonding processes [49] - The LED chip sorting equipment categorizes bare chips based on photoelectric characteristics for subsequent packaging and mass transfer [49] - The Climber series SL200 semiconductor wafer printing and ball planting equipment achieves a ball diameter leakage rate of ≤0.01% and supports 4/6/8/12-inch wafer printing and ball planting solutions, significantly reducing manual intervention and improving environmental cleanliness [50] - The GD200 series high-precision die bonder for semiconductors offers a placement accuracy of ±10μm, a placement angle of ±1°, and a stable placement speed of up to 18,000 units per hour (UPH), suitable for applications such as QFN, DFN, and automotive-grade packaging [50] - The D-semi series semiconductor dispensing equipment achieves a dispensing accuracy of ±5μm and a laser height measurement accuracy of 0.25μm, ensuring high-quality, high-yield, and stable dispensing for applications like BGA solder ball reinforcement and chip-level packaging [50] - The GMC 180A Mini/Micro LED sorting equipment achieves a sorting speed of 180,000 UPH with a positioning accuracy of ±15μm@3σ, capable of sorting LED chips as small as 24 mil, suitable for the testing phase of chip manufacturing [50] - The GD91M series die bonder achieves a die bonding efficiency of up to 210,000 UPH with a bonding accuracy of ±15μm@3σ, supporting LED chips as small as 50μm100μm, suitable for Mini LED direct display and backlight applications [50] - The D series dispensing machine offers a maximum dispensing range of 350mm550mm with a precision of ±12μm, suitable for applications in computers, mobile phones, and automotive industries [52] - The DLED-mini dispensing machine, designed for miniLED backlight lens processes, achieves a dispensing precision of ±15μm with a maximum dispensing range of 890mm*510mm [52] - The DX5 dispensing machine supports a minimum dot size of 80μm and is equipped with a high-precision lifting platform with flatness ≤0.01mm, specifically for high-precision dispensing of solder paste and silver paste [52] - The D-Tec3D glue path inspection system uses 3D laser line scanning with a scanning accuracy of <0.01mm, capable of detecting glue path width, distance, thickness, and height differences, especially useful for transparent glue identification [52] - The company's flexible automation equipment (FMS) enables flexible manufacturing by combining universal FMS platforms with specific functional modules, reducing costs and simplifying production line adjustments for electronic manufacturing [53] R&D and Innovation - The company's R&D investment increased from 35.5055 million yuan in 2019 to 71.1764 million yuan in 2022, accounting for 6.89%, 6.63%, 6.81%, and 9.13% of revenue respectively [69] - The company has accumulated 117 patents, including 22 invention patents, 90 utility model patents, and 5 design patents, along with 21 software copyrights [69] - The company completed several key R&D projects, including a dual-substrate vision alignment technology and an offline board separation and placement machine, aimed at improving production efficiency and product quality [88] - The company is developing a high-precision, high-efficiency mass transfer equipment for the Mini/Micro LED industry, which is expected to enhance competitiveness in the LED market [88] - The company is advancing the development of a high-precision chip mounting device with a positioning accuracy of ±1um, targeting high stability and precision requirements [89] - The company is working on a fully automatic high-precision LED strip solder paste printer to improve production efficiency and reduce customer costs [88] - R&D investment accounted for 9.13% of operating revenue in 2022, showing an increase compared to previous years [92] - The number of R&D personnel increased by 22.22% to 253 in 2022, with the proportion of R&D personnel rising to 25.82% from 23.63% in 2021 [90] - R&D personnel with a bachelor's degree increased by 18.75% to 114 in 2022, while those with a master's degree rose by 9.09% to 12 [90] Sales and Market Expansion - The company serves over 5,000 customers globally, with its "GKG" brand registered in more than 70 countries and regions [71] - Mini LED die bonder sales breakthrough contributed to the growth of LED packaging equipment revenue, which increased by 6.29% to 59.4434 million yuan [72] - The company's flexible automation equipment sales rebounded significantly due to recovery in overseas orders and domestic market expansion [73] - The company has established a strong presence in Southeast Asia through its subsidiary in Singapore and regional sales and service networks [65] - The company's solder paste printing equipment has achieved or surpassed the performance level of top international manufacturers, breaking foreign monopolies [71] - The company's gross margin and profitability improved due to optimized product sales structure, particularly in high-end printing equipment and LED die bonders [74] - Revenue from the solder paste printing equipment segment decreased by 9.02% to 589,539,999.30 yuan, accounting for 75.65% of total revenue [78] - Revenue from the flexible automation equipment segment increased significantly by 295.71% to 62,104,715.02 yuan [78] - Domestic sales accounted for 79.79% of total revenue, but decreased by 9.73% year-over-year to 621,844,075.36 yuan [78] - International sales increased by 45.18% to 157,494,026.16 yuan, accounting for 20.21% of total revenue [78] - The company's gross margin for the specialized equipment manufacturing industry increased by 5.31 percentage points to 45.23% [80] - Sales volume decreased by 22.52% to 3,963 units, while production volume decreased by 28.99% to 4,110 units [81] - The top five customers accounted for 24.26% of total sales, with the largest customer contributing 8.08% of total revenue [84] - The top five suppliers accounted for 18.04% of total procurement, with the largest supplier contributing 6.00% [85] Corporate Governance and Leadership - The company's board of directors consists of 5 members, including 2 independent directors, ensuring compliance with legal and regulatory requirements [129] - The board held 7 meetings during the reporting period, with all procedures and resolutions in compliance with relevant laws and regulations [129] - The company's supervisory board consists of 3 members, including 1 employee representative, and held 7 meetings during the reporting period [130] - The company has established a performance evaluation system and transparent compensation schemes for senior management [131] - The company has designated specific media and websites for information disclosure, ensuring equal access to information for all shareholders [132] - The company has established an independent financial department with a complete financial management system and independent bank accounts [140] - The company has a complete and independent asset structure, including R&D systems, production systems, and service systems [142] - The company held its 2021 Annual General Meeting on March 30, 2022, with 100% investor participation, approving various reports and plans including the 2021 financial report and 2022 financial budget [143] - The company held three temporary shareholders' meetings in 2022 with investor participation rates of 67.77%, 67.76%, and 67.77% respectively [143] - The company's total shares held by directors, supervisors, and senior management at the end of the period remained unchanged at 45,000,000 shares [145] - Deng Di stepped down as the company's board secretary on October 11, 2022, due to the expiration of his term, but continued to serve as the vice president [146] - Qiu Jinglin was appointed as the new board secretary on October 11, 2022 [146] - Chairman Qiu Guoliang has extensive experience in the electronics and precision machinery industries, serving as the chairman since September 2019 [147] - Director Peng Xiaoyun has been with the company since 1999, holding various roles including director since September 2019 [148] - General Manager Liu Xiaoning brings over 20 years of financial management experience, having served as CFO and VP at Dongguan KEG Precision Machinery Co., Ltd. before becoming GM in September 2019 [149] - Independent Director Rao Pingu is a renowned accounting professor with multiple board positions, serving as independent director since September 2019 [150] - Independent Director Wang Gang is a professor at Sun Yat-sen University with expertise in semiconductor technology, serving as independent director since September 2019 [151] - Supervisor Zhang Yan has over 15 years of experience in production management, currently serving as Production Deputy Director and Chairman of the Supervisory Board [152] - Supervisor Chen Bo has been with the company since 2007, currently serving as Quality Department Manager and Supervisor [152] - Supervisor Ye Yanping has over 10 years of experience in business operations, currently serving as Business Follow-up Department Supervisor and Supervisor [152] - CFO Song Kaiping is a certified public accountant with extensive financial management experience, serving as CFO since September 2019 [153] - R&D Director Yu Yang has over 10 years of experience in software development, currently leading the company's R&D efforts [154] - The total pre-tax remuneration for directors, supervisors, and senior management in 2022 was 7.1055 million yuan [158] - The company's board of directors held 14 meetings in 2022, covering various financial and operational decisions [159] - The company's chairman, Qiu Guoliang, received a pre-tax remuneration of 1.0266 million yuan in 2022 [157] - The company's general manager, Liu Xiaoning, received a pre-tax remuneration of 1.2799 million yuan in 2022 [157] - The company's independent directors, Rao Pingui and Wang Gang, each received a pre-tax remuneration of 90,000 yuan in 2022 [157] - The company's vice president, Deng Di, received a pre-tax remuneration of 1.4073 million yuan in 2022 [158] - The company's financial director, Song Kaiping, received a pre-tax remuneration of 909,200 yuan in 2022 [158] - The company's R&D director, Yu Yang, received a pre-tax remuneration of 1.0058 million yuan in 2022 [158] - The company's board secretary, Qiu Jinglin, received a pre-tax remuneration of 309,300 yuan in 2022 [158] - The company's board of directors approved the 2022 financial budget report and the 2021 profit distribution plan [159] Employee and Workforce - Total number of employees at the end of the reporting period is 980, with 957 from the parent company and 23 from major subsidiaries [167] - All 980 employees received compensation during the reporting period [167] - Total number of employees is 980, with 257 production personnel, 92 sales personnel, 253 technical personnel, 15 financial personnel, 163 administrative personnel, and 200 other personnel [168] - Education level distribution: 1 PhD, 17 master's degree holders, 168 bachelor's degree holders, 289 associate degree holders, and 505 with secondary education or below [168] Profit Distribution and Dividends - The company's profit distribution plan is to distribute a cash dividend of 5 yuan per 10 shares (tax included) based on 76,000,000 shares, with no bonus shares, and to transfer 4 shares per 10 shares from capital reserves [5] - The company did not distribute profits in 2022 and did not implement capital reserve to share capital conversion [172] - Cash dividend policy: 5 yuan per 10 shares, totaling 38 million yuan, with a capital reserve conversion of 4 shares per 10 shares, increasing total shares to 106.4 million [173] - Available profit for distribution is 286.72 million yuan, with cash dividends accounting for 100% of the total profit distribution [174] - Net profit attributable to parent company shareholders in 2022 is 127.1 million yuan, with parent company net profit of 125.52 million yuan [177] - The company allocated 10% of parent company net profit as statutory surplus reserve, totaling 12.55 million yuan [177] - Capital reserve balance at the end of 2022 is 990.84 million yuan [177] - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place [178] Internal Control and Compliance - The company conducted internal control evaluations in 2022, with no significant or important defects found in financial or non-financial reporting [179] - The company's internal control evaluation report was fully disclosed on April 27, 2023, covering 100% of the total assets and operating revenue of the consolidated financial statements [182] - No significant or important defects were identified in the financial or non-financial reports for the year 2022 [183] - The internal control certification report confirmed that the company maintained effective internal control over financial reporting as of December 31, 2022, with a standard unqualified opinion [184] - The company is not classified as a key pollutant discharge unit by environmental protection authorities and has not received any environmental penalties during the reporting period [186] Social Responsibility and Donations - The company donated 80,000 RMB to support educational poverty alleviation by purchasing student desks for Tongren City Fourth Primary School [187] Shareholder Commitments and Lock-up Periods - The company's actual controllers, shareholders, and related parties have committed to not transferring or entrusting the management of their shares within 36 months from the date of the company's stock listing on the stock exchange [190] - During the tenure of directors and senior management,