Summary of Key Points from the Conference Call of Kaide Quartz Company Overview - Kaide Quartz's semiconductor business accounts for over 95% of its revenue, while the photovoltaic business contributes less than 5% [2][5][3] - The company focuses on expanding its semiconductor operations through acquisitions and joint ventures, such as the acquisition of Shenyang Kaide Xinbei and the establishment of Kaimei Quartz [2][6] Core Business Developments - The company is accelerating the localization of 12-inch high-end quartz products, with the Yizhuang new factory focusing on 8-12 inch high-end products currently in the ramp-up phase [2][7] - The new production line at Shenyang Kaide Xinbei is expected to begin trial production by the end of 2025, with a semiconductor precision component R&D and production base project planned for completion in 2025 and capacity release in 2026 [2][7] Market Dynamics - Prices for semiconductor-grade quartz remain stable, with high customization and minimal impact from fluctuations in the photovoltaic industry [8] - The imposition of tariffs has had a negligible effect on the company, with no disruptions in raw material supply [8] Competitive Landscape - The domestic high-end 8-12 inch quartz product market is still dominated by foreign companies, indicating a need for increased localization [2][9] - Kaide Quartz has achieved 12-inch certification from major clients like SMIC and North Huachuang, providing a first-mover advantage, although scaling production will take time [2][10] Production Capacity and Financials - The Yizhuang factory has a designed full capacity of 500 million yuan, with projected revenue of approximately 20 million yuan in the first half of 2024 [4][15] - Currently, high-end products account for about 20% of the company's revenue, with plans to increase this proportion through new production lines focused on 8 and 12-inch products [17] Future Directions - The company aims to continue the certification of 12-inch high-end products and expand into new markets, including further certifications [7] - Kaide Quartz is also exploring opportunities in the photovoltaic sector but prioritizes semiconductor-related products due to market saturation in the former [21] Product Development and Certification - The certification process for products is lengthy and depends on client machine scheduling, with past certifications taking about 18 months [11] - The company is currently focused on developing 12-inch related products, which are crucial for future growth and localization efforts [24] Revenue Structure and Client Base - The revenue structure is heavily weighted towards semiconductor products, with ongoing efforts to secure more clients and increase order volumes from existing customers like SMIC and Changjiang Storage [14][18] Conclusion - Kaide Quartz is strategically positioned in the semiconductor market with a focus on high-end quartz products, aiming to enhance its production capabilities and market share while navigating the competitive landscape and potential market fluctuations.