Thinkon Semi(SH:688233)2024-05-10 11:01Financial Performance - In 2023, the company faced a net loss of RMB -69.11 million, marking its first loss since establishment[14]. - The company's operating revenue for 2023 was ¥135,033,152.23, a decrease of 74.96% compared to ¥539,236,503.68 in 2022[31]. - Revenue excluding non-main business income was ¥129,443,827.09, down 74.25% from ¥502,659,382.34 in the previous year[31]. - The net profit attributable to shareholders of the listed company was -69.11 million yuan in 2023, 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 were both -0.43 yuan in 2023, a decrease of 143.43% year-on-year[33]. - The weighted average return on equity was -4.31% in 2023, a decrease of 15.15 percentage points compared to the previous year[33]. - The company reported a total revenue of 135.03 million yuan in 2023, a decrease of 74.96% year-on-year, primarily due to a significant reduction in orders from downstream customers in the semiconductor industry[34]. - The company reported a stoppage loss of 38.79 million RMB, attributed to the need for maintaining production levels for customer certification[128]. Profit Distribution and Shareholder Returns - The company will not distribute profits or issue cash dividends for the year 2023, prioritizing long-term shareholder interests[14]. - The company plans to issue shares through a simplified procedure to specific targets, which may dilute immediate returns[163]. - The company has proposed a three-year dividend return plan for shareholders covering 2023 to 2025[163]. - The company plans to prioritize cash dividends when the net profit is positive, with a minimum distribution of 10% of distributable profits[197]. - In mature stages without major capital expenditure, cash dividends should constitute at least 80% of profit distribution[197]. - The company retains undistributed profits primarily for investment in its main business operations[198]. Market and Industry Trends - The semiconductor industry is experiencing a downturn, impacting the revenue from the main large-diameter silicon material business[9]. - The global semiconductor market size in 2023 was $520 billion, a year-on-year decline of 9.4%, influenced by high interest rates and geopolitical conflicts[44]. - The global semiconductor industry faces risks and opportunities due to intensified competition and export controls, particularly affecting Chinese clients' access to advanced equipment[77]. - The domestic silicon component market is estimated to have a market size of 1.8 billion RMB per year, with a demand for customized silicon components at 1.5 billion RMB and OEM silicon components at 300 million RMB[52]. - The global semiconductor market is expected to see structural changes, with demand for advanced logic chips and AI applications driving growth in 2024[70]. 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 invested 22.47 million yuan in R&D, leading to the acquisition of 4 core technologies and 23 patents during the reporting period[48][49]. - The company has developed multiple core technologies to control the flatness of silicon wafers, continuously improving yield rates to meet downstream customer demands[67]. - The company has made significant advancements in the precision etching and cleaning processes for silicon components, improving yield rates[96]. - The company has developed a "silicon component precision etching and cleaning technology" to meet customer demands for product cleanliness[80]. Production Capacity and Operations - Significant investments are being made in chip production capacity, driven by the demand for computing power and data[8]. - 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 achieved a production capacity of 50,000 pieces per month for its silicon wafer processing equipment and aims to reach 100,000 pieces per month with newly installed equipment[157]. - The company is focusing on enhancing communication with suppliers to improve product research and testing efficiency, ensuring a stable supply of equipment and materials[108]. Customer Engagement and Market Strategy - The company is actively engaging with downstream customers to strengthen its position in the large-diameter silicon material market[9]. - The company plans to focus on expanding its market presence and enhancing its product offerings in response to the current industry challenges[34]. - The company is expanding its market presence by strengthening relationships with existing customers while actively seeking new clients in the domestic semiconductor industry[110]. - The company aims to expand production capacity to meet the growing domestic demand for semiconductor materials, particularly focusing on large-diameter silicon materials and silicon components[156]. Risks and Challenges - The company is facing risks related to customer concentration, with major clients located in Japan, Korea, and the United States[103]. - The company is exposed to raw material price fluctuation risks, which could adversely affect profitability if prices rise significantly[104]. - The company’s performance is significantly influenced by the cyclical nature of the semiconductor industry, with potential for business volatility during downturns[105]. - The company faces financial risks due to high capital expenditures in the semiconductor business and low capacity utilization[112]. Corporate Governance and Management - The company held two shareholder meetings during the reporting period, with all resolutions passed and no proposals rejected[165]. - The total pre-tax remuneration for senior management during the reporting period amounted to 548.57 million yuan[167]. - The company has established a compensation and assessment committee to review and approve remuneration plans for directors and senior management[175]. - The company has not faced any penalties from securities regulatory agencies in the past three years[177]. - The company has consistently maintained attendance at board meetings, with all directors present at the required meetings[179].