JCET(SH:600584)2025-08-21 15:05Summary of Longji Technology Conference Call Company Overview - Company: Longji Technology - Industry: Semiconductor and Advanced Packaging Key Financial Metrics - Revenue: - H1 2025 revenue reached 18.61 billion CNY, a year-on-year increase of 20.1%, marking a historical high [2] - Q2 2025 revenue was 9.27 billion CNY, up 7.2% year-on-year, also a historical single-quarter high [2] - Net Profit: - Net profit attributable to shareholders was 470 million CNY, a decline of 24% year-on-year, primarily due to increased operational costs from new production bases and rising R&D expenses [4][15] - Gross Margin: - Average gross margin for H1 2025 was 13.5%, a slight increase of 0.1 percentage points year-on-year [12] - Capital Expenditure: - The company maintains a capital expenditure plan of 8.5 billion CNY for the year, focusing on advanced packaging projects and technology breakthroughs [4][30] Business Performance - Advanced Packaging: - Advanced packaging business grew by 22% year-on-year, with wafer-level packaging growth close to 30% [2][5] - Traditional packaging revenue increased by 18% [5] - Automotive Sector: - Revenue from the automotive sector increased by 34% year-on-year, indicating strong growth in this area [2][5] - Industrial Products: - Revenue from industrial products grew by 39% [2] - Computing Electronics: - Revenue from computing electronics surged by 72% [2] - Storage Business: - Storage revenue increased by over 150%, with its revenue share approaching the mid-teens percentage [6] Market Dynamics - Global Semiconductor Market: - The semiconductor industry is experiencing a structural recovery, driven by strong demand for high-end chips due to AI and infrastructure needs [3] - Capacity Utilization: - Average capacity utilization reached around 70% in Q2 2025, with some production lines nearing full capacity [12][19] - International Trade: - The company is expanding domestic capacity and initiating overseas production to meet both domestic and international market demands [4][10] Strategic Initiatives - Automotive Electronics: - A new factory in Shanghai focused on automotive electronics is expected to commence mass production by the end of 2025, aiming for automotive electronics to account for over 20% of total revenue [2][8][23] - Technological Innovations: - Innovations in power devices, including advancements in silicon carbide technology, are being pursued to enhance market applications [7] - Response to External Environment: - The company is adapting to changes in international trade and market conditions by increasing production capacity and launching new products [10][29] Future Outlook - Market Trends: - The company anticipates continued growth in AI computing, communication, and automotive electronics markets, with a focus on advanced packaging technologies [17] - Profitability Challenges: - Despite a decline in profits, the company is optimistic about future growth driven by technological advancements and increased product introductions [24][25] - Investment Plans: - The company plans to maintain investment levels in advanced packaging and automotive electronics, with expectations of continued strong demand in these sectors [30] Additional Insights - Shareholder Support: - Major shareholder China Resources Group is providing strategic management tools and resources to support Longji Technology's growth [18] - Pricing Strategy: - The company has implemented a pricing adjustment mechanism to manage cost pressures while maintaining competitiveness [22] This summary encapsulates the key points from the Longji Technology conference call, highlighting the company's financial performance, market dynamics, strategic initiatives, and future outlook.