Wuxi Taiji Industry Limited Corporation(600667) (600667) recently obtained the first engineering order in 2022 and disclosed the performance express. Sitting on the semiconductor sealing and testing and engineering service business, Wuxi Taiji Industry Limited Corporation(600667) in 2021, the operating revenue exceeded 20 billion yuan, but the year-on-year growth of net profit slowed down.
During the reporting period, Wuxi Taiji Industry Limited Corporation(600667) achieved a total operating income of 24.267 billion yuan, a year-on-year increase of about 36%, a net profit of about 900 million yuan, a year-on-year increase of 8.21%, a net profit of 885 million yuan after deduction, a year-on-year increase of 14.15%, and a basic earnings per share of 0.43 yuan.
Wuxi Taiji Industry Limited Corporation(600667) said that by continuously promoting multi-dimensional breakthroughs in technological innovation, product upgrading, market development and customer optimization, the continuous optimization of operation was realized, various production and operation objectives in the reporting period were well completed, and the financial situation was stable and good.
In terms of business, the semiconductor sealing and testing business of Wuxi Taiji Industry Limited Corporation(600667) is mainly carried out by trust subsidiaries Haitai semiconductor and Taiji semiconductor, in which Haitai semiconductor mainly provides post process services for DRAM products of SK Hynix; In addition, the electronic high-tech engineering technology service business is concentrated in the subsidiary 11 science and technology, and the business mode is to undertake the engineering consulting, design, supervision, project management and general contracting business of electronic high-tech engineering construction projects. In addition, 11 technology also has significant business competitive advantages in high-end manufacturing, data center, biomedicine and health care, municipal and road and bridge, logistics and civil construction, electric power, comprehensive industry and other fields. The company is also involved in the investment and operation of photovoltaic power plants.
As the EPC leader of semiconductor engineering, Wuxi Taiji Industry Limited Corporation(600667) on February 14, it was disclosed that it won the first engineering order in 2022, involving the factory process support system project of SMIC Shaoxing phase II wafer manufacturing project (phase I) pre won by subsidiary No. 11 technology, with a bid winning price of 1.229 billion yuan. No. 11 technology was the first candidate for the project. Last July, 11th technology also won the EPC contract for SMIC Shaoxing electronic information supporting industrial park, with a bid price of 1.661 billion yuan.
In terms of photovoltaic business, in November last year, the subsidiary 11th technology signed the strategic cooperation framework agreement with Shirui energy technology on the 160mw distributed photovoltaic project in Panzhihua, Sichuan and the 120mW distributed photovoltaic project in Dezhou, Shandong. The total amount of the project is expected to be about 1.008 billion yuan.
However, the reporter noted that Wuxi Taiji Industry Limited Corporation(600667) last year, the scale of revenue expanded, but the growth rate of net profit slowed down. In contrast, in 2020, the company’s net profit reached 833 million yuan, a year-on-year increase of nearly 34%; In addition, the company’s operating cash flow is under pressure.
In the first three quarters of last year, the net cash flow from Wuxi Taiji Industry Limited Corporation(600667) operating activities decreased by 148% year-on-year. For this change, the company said that it was mainly due to the centralized commencement of several large general contracting projects of subsidiary No. 11 technology. Affected by the settlement cycle of contract project funds, the year-on-year increase of payments to suppliers and subcontractors was greater than the year-on-year increase of project collection; The growth of the company’s personnel scale leads to the increase of employee compensation paid.
In addition, Wuxi Taiji Industry Limited Corporation(600667) improves the efficiency of capital recovery by transferring the receivables of Haitai semiconductor.
On December 18 last year, Wuxi Taiji Industry Limited Corporation(600667) subsidiary Haitai semiconductor plans to transfer the accounts receivable of no more than 90 million US dollars formed in business operation to Wuxi Branch of China Construction Bank. This part of the accounts receivable corresponds to the accounts receivable of SK Hynix Co., Ltd. expected to be formed by Haitai semiconductor in November and December 2021, Haitai semiconductor paid a buyout fee of about 36800 US dollars to Wuxi Branch of China Construction Bank.
Wuxi Taiji Industry Limited Corporation(600667) said that the sale of accounts receivable can shorten the collection time of accounts receivable of Haitai semiconductor, accelerate the capital turnover, reduce the balance of accounts receivable, optimize the asset liability structure and operating cash flow of Haitai semiconductor, which is conducive to the normal production and operation of Haitai semiconductor and the new investment and technology upgrading investment in 2022.
In terms of market performance, since August last year, under the background of the overall correction of the semiconductor sector, Wuxi Taiji Industry Limited Corporation(600667) share price has continued to decline, with a cumulative decline of 22%. In January, Zhao Zhenyuan, chairman of Wuxi Taiji Industry Limited Corporation(600667) disclosed the reduction plan. For personal capital needs, he plans to reduce a total of no more than 7.647 million shares of the company through centralized bidding in the next six months, and no more than 0.3631% of the total share capital.
