Thinkon Semi(SH:688233)2022-11-17 14:40Group 1: Company Overview - The company, Shen Gong Co., Ltd., focuses on three main business areas: large-diameter silicon materials, silicon components, and semiconductor large-size silicon wafers [2][3]. Group 2: Production and Capacity Expansion - The production of large-diameter silicon materials is stable, with capacity expansion ongoing according to customer orders and industry demand [3]. - The company is enhancing production efficiency through process improvements and equipment upgrades to control costs [3]. - The 8-inch silicon wafer production is in the testing phase, with successful evaluations from domestic clients [4]. Group 3: Market Demand and Challenges - The demand for silicon components is increasing, driven by domestic integrated circuit manufacturers, leading to more evaluation opportunities and stable order volumes [3][4]. - Global semiconductor equipment manufacturers are facing supply bottlenecks, which may impact the delivery of the company's products [4]. Group 4: Response to Raw Material Price Increases - In Q2 2022, the price of polysilicon raw materials continued to rise due to various factors, including domestic COVID-19 impacts and increased demand in the photovoltaic sector [5]. - The company is implementing several strategies to mitigate cost pressures from rising polysilicon prices, including expanding supply channels and adjusting product structures towards higher-margin products [5]. Group 5: Impact of Domestic COVID-19 - The company’s production has not been directly affected by domestic COVID-19 outbreaks, as its production bases are in regions with minimal local cases [4]. - The overseas market demand remains strong, and shipping operations at Dalian Port are functioning well, ensuring stable sales [4].