Core Viewpoint - Huahai Qingsi plans to expand its wafer regeneration capacity by constructing a new project in Kunshan, Jiangsu, with a total planned capacity of 400,000 pieces per month, aiming to seize the opportunity of accelerated expansion in wafer factories [2] Group 1: Investment and Expansion Plans - The company intends to invest no more than 500 million yuan in the first phase of the expansion, which will have a capacity of 200,000 pieces per month [2] - The funding for the project will come from the company's own and self-raised funds, with a construction period expected to be no more than 18 months [2] Group 2: Financial Performance - For 2024, the company anticipates a revenue growth of 35.82% year-on-year, reaching 3.406 billion yuan, and a net profit growth of 41.4%, amounting to 1.023 billion yuan [2] - The company's net profit excluding non-recurring items is expected to grow by 40.79% to 856 million yuan [2] Group 3: Industry Context and Demand - The integrated circuit industry is a strategic sector for national economic and social development, supported by a series of government policies aimed at enhancing innovation capabilities and international competitiveness [2] - The demand for wafer regeneration is increasing due to the accelerated expansion of domestic 12-inch wafer factories, which require higher processing standards for new production lines [3] Group 4: Technological Advantages - The company has established itself as a professional foundry for wafer regeneration, leveraging its proprietary chemical mechanical polishing (CMP) and cleaning equipment to meet downstream customer needs [3] - The wafer regeneration process involves multiple steps, including film removal, coarse polishing, fine polishing, cleaning, and inspection, with CMP and cleaning technologies being core to this process [3][4] Group 5: Customer Relationships and Market Synergy - The company's customer base for wafer regeneration primarily consists of integrated circuit manufacturers, which overlaps significantly with its existing equipment business [4] - Strong cooperation with domestic integrated circuit manufacturers and recognition of the company's equipment products provide a solid foundation for expanding the wafer regeneration business [4]

Core Insights - In 2024, companies on the Sci-Tech Innovation Board are accelerating the gathering of innovative elements, enhancing innovation momentum, and helping China gain a competitive edge in global technology [1] - Over 80% of Sci-Tech Innovation Board companies focus on import substitution and self-control, with more than 380 companies achieving international advanced levels in over 850 products or technologies [1] Group 1: Innovation and R&D - Since its establishment, the Sci-Tech Innovation Board has maintained a "hard technology" positioning, with high R&D investment and output being a notable characteristic [2] - In the previous year, total R&D investment reached 168.08 billion yuan, exceeding 2.5 times the net profit, with a year-on-year growth of 6.4% and a compound annual growth rate of 10.7% over the last three years [2] - The median R&D investment as a percentage of operating income is 12.6%, leading all A-share sectors, with 107 companies maintaining an R&D intensity exceeding 20% for three consecutive years [2] Group 2: Technology Transfer and Market Impact - Sci-Tech Innovation Board biopharmaceutical companies have pushed 27 domestically developed innovative Class I drugs to market, filling domestic treatment gaps in key areas such as oncology and rare diseases [3] - Medical device companies have achieved over 1,000 Class III medical device product registrations, while semiconductor equipment companies have shipped over 16,000 units in 2024, driving a 39% year-on-year revenue growth [3] Group 3: Domestic Innovation and Global Reach - Companies on the Sci-Tech Innovation Board are accelerating the resolution of technical challenges through independent R&D and industrial mergers, aiming for self-control [4] - For instance, Huahai Qingke has successfully filled domestic gaps in chemical mechanical polishing equipment and has made significant progress in commercializing low-energy high-current ion implantation equipment [4] - Over 60 companies have launched globally innovative products, leading to breakthroughs in fields such as medical equipment and third-generation semiconductors [4] Group 4: Smart and High-End Manufacturing - Companies are deeply involved in artificial intelligence and smart manufacturing, playing a crucial role in upgrading traditional industries [6] - For example, Kede CNC's high-end CNC machine tools have been applied in over 1,300 units in aerospace and aviation sectors, while Iron Construction Heavy Industry has developed over 100 major equipment pieces for significant domestic and international projects [6] - Companies like Hongsoft Technology and Kingsoft Office are embedding AI technology into various sectors, enhancing operational efficiency and driving digital transformation [7]