SUZHOU GOOD-ARK(SZ:002079) Zheng Quan Zhi Xing·2025-07-07 16:23Core Viewpoint - Suzhou Gude Electronic Co., Ltd. is responding to the inquiry letter from the Shenzhen Stock Exchange regarding its application for a specific stock issuance, addressing various operational and financial aspects of the company, particularly in the semiconductor and photovoltaic silver paste industries. Group 1: Financial Performance - The company reported a continuous increase in operating revenue, but a decline in overall gross margin, attributed to various factors including raw material price fluctuations and market competition [2][3][4]. - The gross margin for integrated circuit packaging and testing products has been negative since 2023, raising concerns about the sustainability of this segment [2][3]. - The company’s trading financial assets were valued at 217.19 million yuan, with long-term equity investments at 262.39 million yuan, indicating a significant investment strategy [1]. Group 2: Industry Context - The semiconductor industry has seen a compound annual growth rate (CAGR) of 10.68% from 2019 to 2023, driven by demand in various sectors including IoT, renewable energy, and consumer electronics [8][9]. - The photovoltaic silver paste market is expanding, with global demand for solar cell paste projected to grow from 2,990 tons in 2020 to 7,724 tons by 2024 [18][19]. - The company holds a 9.80% market share in the global photovoltaic silver paste market, ranking third among competitors [20]. Group 3: Raw Material and Pricing Dynamics - Key raw materials for the company include silver powder, silver ingots, and chips, with silver powder accounting for 78.36% of total procurement in recent periods [10][11]. - The procurement price of silver powder has increased by 7.08% recently, reflecting market trends, while chip prices have decreased due to industry capacity expansion [12][13]. - The company has established a robust supplier management system to ensure stable supply and price control of raw materials [15]. Group 4: Customer and Supplier Relationships - The company’s top five customers and suppliers have a concentration level that aligns with industry norms, indicating stable cooperation without significant dependency risks [2][3]. - The company’s semiconductor products are widely used in automotive electronics, industrial control, and consumer electronics, showcasing a diverse application landscape [16][17]. Group 5: Competitive Positioning - The company has over 30 years of experience in semiconductor manufacturing and is recognized as a leading player in the power semiconductor sector in China [19]. - The company’s market position is strengthened by its technological advancements and the ability to respond quickly to market demands, particularly in the photovoltaic sector [20].