KINGSEMI(SH:688037) Ju Chao Zi Xun·2025-11-24 12:42Core Viewpoint - The company, ChipSource Micro, reported a decline in revenue and net profit for the first three quarters of 2025, attributing the downturn to several factors including slow client acceptance and delays in equipment delivery [1][3]. Business Overview - ChipSource Micro specializes in the research, production, and sales of semiconductor equipment, with headquarters in Shenyang and subsidiaries in Japan, Shanghai, and Guangzhou [1]. - The company has established four main business segments: front-end coating and developing, front-end cleaning, advanced packaging, and core components, having delivered over 2,000 sets of equipment [1]. Product Layout - The main products include front-end coating and developing equipment, front-end physical and chemical cleaning equipment, and advanced packaging devices [3]. - The front-end coating and developing machines, along with front-end physical cleaning machines, have secured orders from leading domestic clients in logic and memory sectors [3]. - The front-end chemical cleaning machines have received formal and validation orders from several major clients, while advanced packaging equipment has been widely adopted by top-tier manufacturers such as TSMC and others [3]. Financial Performance - For the first three quarters, the company reported a revenue of 990 million yuan, a year-on-year decrease of 10%, and a net profit attributable to shareholders of -10.05 million yuan [3]. - The revenue decline is attributed to three main reasons: low maturity of front-end Track products, delayed acceptance of large orders from strategic clients, and the time lag between signing and revenue recognition for new products [3]. Cash Flow Analysis - The net cash flow from operating activities for the first three quarters was -230 million yuan, primarily due to increased procurement costs for materials and higher employee compensation from staff expansion [4]. - Despite the negative cash flow, the company indicated that the overall operating cash flow remains healthy, with contract liabilities growing nearly 80% compared to the end of the previous year, reflecting increased orders and customer prepayments [4]. Future Development Plans - Following the acquisition by Northern Huachuang in June 2025, the company aims to enhance management, resource allocation, and product planning [4]. - The focus will be on achieving rapid breakthroughs in front-end Track products and increasing the market penetration of new front-end chemical cleaning products while maintaining a leading position in advanced packaging [4]. - The company plans to optimize the design of front-end coating and developing equipment, enhance reliability, and research new high-capacity technologies, while also advancing the development of high-end packaging equipment [4].