Thinkon Semi(SH:688233)2024-03-29 16:00Financial Performance - In 2023, the company faced its first loss in ten years, with a net profit attributable to shareholders of -69.11 million RMB[14]. - The company's revenue for 2023 was ¥135,033,152.23, a decrease of 74.96% compared to ¥539,236,503.68 in 2022[31]. - The net profit attributable to shareholders of the listed company for 2023 was CNY -69.11 million, a decrease of 143.70% year-on-year, mainly due to the downturn in the semiconductor industry and a substantial decline in revenue from large-diameter silicon materials[34]. - The net cash flow from operating activities decreased by 36.83% year-on-year, primarily due to reduced revenue leading to lower customer payments[34]. - Basic and diluted earnings per share for 2023 were both CNY -0.43, a decrease of 143.43% year-on-year[33]. - The weighted average return on equity for 2023 was -4.31%, a decrease of 15.15 percentage points compared to the previous year[33]. - The company's total assets at the end of 2023 were CNY 1,933.42 million, an increase of 9.87% compared to the end of 2022[32]. - The net assets attributable to shareholders of the listed company at the end of 2023 were CNY 1,761.79 million, an increase of 11.98% year-on-year[32]. - The company's revenue excluding non-core business income was ¥129,443,827.09, down 74.25% from ¥502,659,382.34 in the previous year[31]. - The company's operating revenue was 135.03 million yuan, a decrease of 74.96% year-on-year, with a net profit attributable to shareholders of -69.11 million yuan, down 143.70%[45]. Market Conditions - The semiconductor industry is experiencing a transformation driven by digitalization and low-carbon trends, with significant investments in chip capacity on both sides of the Pacific[8]. - The global semiconductor market size was $520 billion, a year-on-year decline of 9.4%[44]. - The global semiconductor silicon wafer shipment volume in 2023 was 12.602 billion square inches, a year-on-year decline of 14.3%[60]. - The total sales revenue of the global semiconductor silicon wafer market in 2023 reached 12.3 billion USD, down 10.9% year-on-year due to weakened end demand and inventory adjustments[60]. - The semiconductor market is highly concentrated, posing competitive risks for new entrants and ongoing projects[105]. - The semiconductor industry is experiencing a cyclical downturn, significantly impacting sales orders and revenue[111]. - The global semiconductor market (excluding memory) is projected to grow by over 10% in 2024, with the wafer foundry market expected to increase by about 20%[141]. Business Strategy - The company plans to focus on high-end products and increase production capacity to meet customer demands in the silicon component business[9]. - The company aims to enhance communication with downstream customers and strengthen its international position in the large-diameter silicon material market[9]. - The company is committed to improving production quality and efficiency while balancing evaluation certification needs and economic benefits in the silicon wafer segment[9]. - The company is actively developing new silicon components tailored to customer needs, enhancing its custom development capabilities[49]. - The company plans to enhance its R&D capabilities for large-diameter silicon materials to meet increasing market demand[77]. - The company aims to enhance the production of high-margin products such as lightly doped high-resistivity silicon wafers and ultra-flat silicon wafers, targeting certification from major domestic integrated circuit manufacturers within the year[151]. Research and Development - Research and development expenses accounted for 16.64% of operating revenue, an increase of 9.34 percentage points year-on-year[33]. - The company achieved a 42.95% decrease in research and development expenses, totaling ¥22,465,641.81 compared to ¥39,375,904.62 in the previous year[87]. - A total of 23 new intellectual property applications were filed during the reporting period, with 23 granted, bringing the cumulative total to 111 applications and 85 grants[85]. - The company has developed multiple advanced technologies, including a "multi-crystalline silicon crystal density optimization technology" that improves product quality by reducing the occurrence of voids[95]. - The company has developed silicon components for 12-inch plasma etching machines, meeting the evolving technical requirements of equipment manufacturers[78]. Production Capacity and Operations - The company has expanded its production capacity for large-diameter silicon materials by approximately 100%, maintaining a competitive advantage in the global market[47]. - The company has completed the construction of its "8-inch semiconductor-grade silicon single crystal polishing wafer production project," with annual production capacity reaching 1.8 million wafers[49]. - The company has optimized its large-diameter silicon material production processes, improving yield rates and reducing manufacturing costs[77]. - The company has established a supplier management system to ensure the quality and supply capability of raw materials, with a focus on maintaining relationships with qualified suppliers[56]. - The company has maintained a stable production of large-diameter silicon materials, with production capacity steadily expanding[69]. Financial Management and Governance - The company will not distribute dividends or increase capital reserves for 2023, prioritizing long-term shareholder interests[14]. - The company has established a governance structure with clear responsibilities among the shareholders' meeting, board of directors, supervisory board, and management, ensuring effective operation[155]. - The company held two shareholders' meetings during the reporting period, adhering to legal requirements and ensuring the protection of minority shareholders' rights[159]. - The company plans to issue shares to specific targets and has outlined a three-year dividend return plan for shareholders from 2023 to 2025[157]. - The total pre-tax remuneration for the board members and senior management in the reporting period amounted to CNY 548.57 million[161]. Risks and Challenges - The company faces risks related to customer concentration, with major clients including Mitsubishi Materials and SK Chemicals[102]. - The company is exposed to raw material price fluctuations, which significantly impact its profit margins[102]. - The company faces significant financial risks due to high initial capital expenditures and low capacity utilization, leading to potential inventory write-downs[106]. - The company is exposed to foreign exchange risks due to transactions in USD and JPY, which may affect financial stability[106]. - The company's performance is highly correlated with the semiconductor industry cycle, facing potential business volatility during downturns[104].