HMT(SH:603306)2023-05-05 08:12Group 1: Financial Performance - The company's revenue for Q1 2023 was approximately 420 million, representing a year-on-year growth of 22% [3] - The net profit attributable to the parent company was about 28.7 million, a decline of 52% year-on-year [3] - The non-recurring net profit was 24.11 million, down 13% compared to the previous year [3] Group 2: Factors Affecting Profit - The decline in net profit was attributed to three main factors: 1. Absence of significant subsidies in Q1 2023, compared to 39.56 million in the same period last year [3] 2. Increased employee numbers during the traditional off-season, leading to higher labor costs [3] 3. Rising raw material costs due to previous procurement price increases, despite a decrease in prices in Q1 2023 [3] Group 3: Market Outlook - The company anticipates a recovery in gross margin in Q2 2023, driven by improved capacity utilization and lower raw material prices [4] - The automotive passive safety sector is projected to achieve a revenue target of 2 billion for the year, with faster growth expected in Q2 due to a low base from the previous year [4] Group 4: Cost Management - The stock option incentive expenses are expected to decrease significantly from nearly 80 million last year to around 23 million this year, with quarterly breakdowns provided [4] - The company is actively switching to domestic suppliers, resulting in a decline in procurement costs in Q1 2023 [4] Group 5: Product Development - The company is making progress in high-end photoresist products, with multiple orders received from mainstream 12-inch wafer manufacturers [5] - There is an ongoing effort to accelerate client certifications and order additions for photoresist products [5]