KFMI(SZ:300666)2024-04-24 13:34Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares, totaling RMB 53,018,896.60, based on a share capital of 265,094,483 shares after repurchase adjustments [17]. - The company reported a total of 265,435,583 shares, with 341,100 shares repurchased, resulting in a net share capital of 265,094,483 shares [28]. - The company emphasizes a minimum cash dividend payout ratio of 20% during profit distribution due to significant capital expenditure arrangements [30]. - The company has committed to fulfilling its obligations regarding the dilution of immediate returns from stock issuance to specific investors [1]. - The company has a strong commitment to investor returns, having developed a profit distribution policy that emphasizes cash dividends and shareholder return planning [1]. Corporate Social Responsibility - The company donated a total of RMB 2.29 million to social welfare organizations in 2023, supporting public welfare initiatives [44]. Subsidiaries and Expansion - The company established a wholly-owned subsidiary, Suzhou Ruijing Precision Technology Co., Ltd., in March 2023 with a registered capital of RMB 10 million [63]. - The company set up another wholly-owned subsidiary, Harbin Jiangfeng Electronic Materials Co., Ltd., in November 2023 with a registered capital of RMB 100 million [64]. - The company has established a wholly-owned subsidiary, Ningbo Jingfeng Xincheng Semiconductor Materials Co., Ltd., with a registered capital of CNY 10 million, which was included in the consolidated financial statements from July 2023 [86]. - The company has set up new subsidiaries to expand its operational capabilities and market reach, including Tianjin Ruijing Precision Technology Co., Ltd. and Jiangsu Ruixin Heng Quartz Technology Co., Ltd. [87]. - A new wholly-owned subsidiary, KFAM CO.,LTD., was established in South Korea to expand production capacity and market reach [135]. Financial Performance - The company reported a continuous audit service period of 14 years with its domestic accounting firm, ensuring consistent oversight of financial practices [88]. - The company reported a total revenue for Q4 2023 reached CNY 749,836,159.73, marking a significant increase compared to previous quarters [116]. - The net profit attributable to shareholders for Q2 2023 was CNY 97,012,043.14, representing a substantial growth from Q1 2023 [116]. - The net cash flow from operating activities in Q3 2023 was CNY 135,723,728.84, indicating strong operational performance [116]. - The company reported a net profit of CNY 40,141,332.36 in Q3 2023, reflecting fluctuations in profitability across the quarters [116]. - The company reported a total revenue of 5,508,099 for the period, with a net profit of 602,814, representing a profit margin of approximately 10.95% [185]. Market Position and Industry Insights - Jiangfeng Electronics ranked second in the global wafer manufacturing sputtering target market in 2022 according to Frost & Sullivan report [60]. - The global semiconductor equipment precision components market size reached RMB 386.1 billion in 2022, with China's market size at RMB 114.1 billion, growing faster than the global market [61]. - The demand for tantalum targets and components has surged due to the increasing need for advanced chips, with only a few companies, including Jiangfeng Electronics, capable of producing them [77]. - The global demand for silicon carbide devices is rapidly increasing, driven by strong demand in electric vehicles and renewable energy sectors [71]. - Jiangfeng Electronics is focused on high-purity sputtering targets, which are essential for ensuring uniform film layers in flat panel display manufacturing [68]. - The company aims to become a world-class semiconductor materials enterprise, focusing on high-purity metal sputtering targets, and has established itself as a core supplier for major chip manufacturers like TSMC and SMIC [96]. Research and Development - The company has made significant investments in research and development to maintain its competitive edge in the semiconductor industry [96]. - The company has made progress in the third-generation semiconductor materials field, with its subsidiary successfully building a production line for advanced copper ceramic substrates, gaining initial market recognition [97]. - The company has developed a diversified product system centered on ultra-pure metal sputtering targets, semiconductor precision components, and key materials for third-generation semiconductors [97]. Governance and Compliance - The company has a robust governance structure in place to protect the interests of minority shareholders and ensure compliance with regulatory requirements [1]. - The company has not reported any changes in its controlling shareholder during the reporting period [191]. - The company’s actual controller, Yao Lijun, serves as the chairman and CTO, maintaining a significant role in management [191]. Shareholder and Management Activities - The company’s senior management, Ms. Yu Yongqun, acquired 10,000 shares through exercising options, holding a total of 70,000 shares at the end of the reporting period [147]. - The company’s current Vice General Manager holds 25,800 shares, with a commitment that no more than 25% of his total shares can be transferred annually during his tenure [200]. - The company’s current CFO has acquired a total of 70,000 shares, with a similar transfer restriction of 25% during her tenure [199]. - The company’s management team has actively participated in stock option exercises, with significant acquisitions in recent years [199][200]. - The company’s investment strategy includes a focus on stock options and equity incentives to align management interests with shareholder value [200]. Stock Repurchase and Equity Incentives - The company has implemented a stock repurchase plan, canceling 105,000 restricted shares as part of its equity incentive program [142]. - The company approved the release of 1,465,500 restricted shares for 295 incentive recipients on April 24, 2023, as part of the second phase of the equity incentive plan [144]. - The company’s equity incentive plan initially granted 3,106,000 restricted shares, with 146,550 shares released during the reporting period [153]. - The company’s board approved the repurchase of shares for employee stock ownership plans, with a maximum repurchase price of RMB 85 per share [172]. Strategic Investments - The company has actively engaged in strategic investments, including participating in the strategic placement of shares in Chip Alliance Integrated Circuit Manufacturing Co., Ltd. [107]. - The company has invested RMB 30 million in Guangzhou Zhongke Tongxin Semiconductor Technology Partnership and RMB 6 million to acquire a stake in Zhejiang Liufang Semiconductor Technology Co., Ltd. [100]. - The company plans to acquire a 0.2843% stake in GuoNa Semiconductor for CNY 3,613,387, enhancing its investment portfolio [122].