GRINM Semiconductor Materials (SH:688432)2024-03-28 16:00Financial Performance - The company's operating revenue for 2023 was CNY 960.40 million, a decrease of 18.29% compared to CNY 1,175.32 million in 2022[23]. - The net profit attributable to shareholders for 2023 was CNY 254.18 million, down 27.65% from CNY 351.33 million in 2022[23]. - The net profit after deducting non-recurring gains and losses was CNY 165.00 million, a decrease of 47.28% compared to CNY 313.00 million in 2022[23]. - The cash flow from operating activities decreased by 38.04% to CNY 266.64 million from CNY 430.35 million in 2022[25]. - Basic earnings per share for 2023 were CNY 0.20, down 37.50% from CNY 0.32 in 2022[24]. - The company achieved an annual revenue of 960 million RMB and a total profit of 324 million RMB in 2023, reflecting the impact of a declining semiconductor industry and weak market demand[35]. - The company reported a total net profit attributable to ordinary shareholders for the year was 254,181,046.52 RMB[159]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.1 per 10 shares for the 2023 fiscal year, pending shareholder approval[5]. - The company has a cash dividend policy that stipulates at least 10% of the distributable profits must be distributed as cash dividends, barring special circumstances[151]. - The company declared a cash dividend of 87,333,474.06 RMB, which represents 34.36% of the net profit attributable to ordinary shareholders in the consolidated financial statements[159]. - The company has a policy of not exceeding one year between cash dividend distributions, with the board able to propose interim dividends based on current profit levels and cash flow[153]. Governance and Compliance - The company has confirmed that all board members attended the board meeting, ensuring governance compliance[5]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not experienced any significant changes in competition or independence from its controlling shareholder[117]. - The company has not disclosed any significant adverse impacts from competition with its controlling shareholder or related parties[117]. - The company has established a commitment to avoid or minimize related party transactions to ensure independent operations and decision-making[199]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 8.56%, up 1.35 percentage points from 7.21% in 2022[24]. - The total R&D investment for the current period is CNY 82.22 million, a decrease of 2.93% compared to the previous period's CNY 84.70 million[64]. - The company has 86 R&D personnel, representing 11.15% of the total workforce, up from 10.86% in the previous period[66]. - The company has developed new products including 8-inch zone-melted wafers and ultra-low oxygen single crystals, enhancing unit efficiency[57]. - The company has completed the development of ultra-low oxygen silicon single crystal wafers, with a total investment of CNY 400 million[63]. Market Conditions - The semiconductor industry is experiencing a cyclical adjustment, impacting revenue and net profit for the company[25]. - The global semiconductor market experienced a decline of approximately $47 billion in 2023, a decrease of about 8.2% compared to 2022, with a 14.3% drop in global silicon wafer shipments[49]. - Despite the market downturn, forecasts indicate that the semiconductor market will grow by over 10% in 2024, driven by the recovery in consumer electronics and the rise of emerging fields like artificial intelligence[49]. Operational Efficiency - The company has implemented cost control measures and increased the domestic sourcing of raw materials, reducing reliance on imports and enhancing supply chain security[38]. - The company maintained a relatively high operating rate for silicon wafer production, with an increase in shipments of 8-inch polished wafers despite a continuous decline in prices[83]. - The cost of direct materials for etching equipment silicon materials decreased by 44.13% compared to the previous year, contributing to overall cost reduction efforts[87]. Environmental Responsibility - The company invested 1,211.69 million RMB in environmental protection during the reporting period[163]. - The company has achieved compliance in all emissions monitoring, including real-time monitoring of heavy metals and conventional pollutants in wastewater[176]. - The company has implemented a distributed photovoltaic power generation project with a total installed capacity of 3 MW, expected to generate over 3.6 million kWh annually, reducing carbon emissions by approximately 1,000 tons per year[179]. Strategic Planning - The company held multiple strategic planning seminars to determine a rolling plan for the next three years, focusing on product direction, capacity scale, technological innovation, quality control, talent team, supply chain security, and environmental safety[43]. - The company is actively conducting research on upstream and downstream projects in the industry chain and has invested in Shandong Hengsheng Graphite Technology Co., Ltd. and holds shares in Shandong Shangtai New Materials Co., Ltd.[43]. Leadership and Management - The company has undergone several leadership changes with various directors and managers appointed since 2012[129]. - The company has maintained a stable board structure with independent directors since 2021[129]. - The company’s management team includes individuals with extensive experience in various roles, indicating a depth of expertise within the organization[131]. Customer Relations - The company emphasizes a customer-centric approach, aiming to enhance market development and client satisfaction in 2024[112]. - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous year[125].