Securities code: Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) securities abbreviation: Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661)
Record of investor relations activities
No.: 2022002
□ specific object research □ analyst meeting
□ media interview √ performance briefing
Category of investor relations activities □ press conference □ Roadshow
□ site visit
√ others (teleconference)
The names of participating units and personnel are detailed in the annex
Time: March 31, 2022
Place: meeting room of Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) company
Chairman: Luo Xingshun
Secretary of the board of directors: Zhao Chuan
Name of receptionist of listed company: Chief Financial Officer: Jiang Xiaoyan
Research and Development Director: Qian Xiaochen
General manager of probe business department: Liu Zhiwei
Mr. Zhao Chuan, Secretary of the board of directors, introduced the basic situation of the company to you. Then Suzhou Uigreen Micro&Nano Technologies Co.Ltd(688661) attended the meeting and the senior management team made further exchanges on the issues concerned by investors. The main contents are as follows:
Q1: the company will introduce its future development strategy, such as its medium and long-term vision. What kind of enterprise will it become and what is its strategic positioning? Then how about the synergy of these two businesses at present?
A1 (chairman Luo Xingshun):
Based on our current sophisticated parts and components and testing related businesses, in fact, in the past, the main content of our most investor relations activities began with these micro structural parts, and then we gradually laid out to MEMS. With our grasp of market opportunities, our understanding of customer needs, and the support and incentive of our own technology, we introduced and began to develop related fields of test probes.
So, in the past, why did we layout these two areas like this? First, we have certain synergy in the market. Customers are generally in one industry, category or field, but they are applied in different points. Second, based on our own technology accumulation, we quickly develop chip testing related products on the basis of MEMS fine parts and components, and quickly push them to the market, which has been recognized by some top customers in the world. Then there must be synergy. If there is no synergy, let me give you an example. If we start from scratch and you do one thing, you can’t turn up several times in a short day or two. Then there is the synergy of market and technology in one day. This is the first point.
I think it’s a good question to ask about how to position the enterprise or how to develop the enterprise in the future. It’s a question I think every day. If you look at what a person looked like in the past, then there are basically a number of what he will look like in the future. So it is the same for an enterprise. In the future, our enterprise will follow our original intention to develop these micron, submicron and nano manufacturing processes in the field of micro precision manufacturing, and develop different application fields with relevance and diversity. In the past, from MEMS to semiconductor testing, we should also get through the testing link. From basic testing to back-end ft testing, we should not only get through the application field, but also get through the whole supply chain. This is the first.
Second, we will develop other fields related to micro precision, such as medical treatment, such as some other subdivided industries of semiconductor. In fact, it will never change. We will focus on the subdivided fields of different market applications, and then develop along our technology. However, we will not do some particularly large-scale business with wide opening and closing in the field of market applications, but we will aim at different subdivided fields.
In the end, we still want to be one that speaks of China, the world, or has a certain influence in the field of precision manufacturing.
Q2: the business of semiconductor test probe may also be a direction of great concern in the secondary market. In this direction, the company’s current plans include talent planning, future capacity planning, and whether there are any new developments in the development of some new customers to share with you? Because the coincidence with our traditional business in downstream customers may be relatively low, can you share with us a plan and way of market development in the future?
A2 (chairman Luo Xingshun):
Not only the semiconductor related testing and related businesses, our whole company is looking for the best talents in different fields all over the world, but also trying to attract the best talents. Talents are the first place of the company. Second, we have laid out some talent strategies in the past. Internationally, including your announcement, you can see that we also have some layout about talents, technology and market in Japan. At the same time, we have this global international talent layout in Singapore and the United States. At the same time, in China, we are also looking for the top talents in the market. At the same time, we have also adopted self-cultivation of young people through interaction with colleges and universities and sending our young people to study.
The market expansion dimension just mentioned is based on the fact that NVIDIA has successfully become our official customer last year.
Therefore, based on the successful cases of NVIDIA, our other major customers have begun to arrange some verification. Therefore, this year, the company will import at least 1 ~ 2 international chip giant customers like NVIDIA. Basically, there will be 4 ~ 6 customers with influential, high-quality and business volume expectations in China.
As for the production capacity, we can basically achieve 3.5 million pieces / month at the end of last year. Now, according to the overall capacity planning of this year, we will basically control the basic capacity planning of no less than 5 million pieces / month by the end of this year.
Q3: communication and cooperation between the company and chip manufacturers, including what kind of industrial chain relationship is it with the packaging and testing factory?
A3 (Zhao Chuan, Secretary of the board of directors):
Based on the overall situation of a global chip industry chain, the global chip giants still have a great influence on the whole chip industry. Now, for chip testing, we mainly use the test end, that is, the sealed test factory. However, similar to global chip design manufacturers, they are now divided into two categories: NVIDIA and Qualcomm. NVIDIA has its own sealing and testing factory. Once you enter, it can use the needle independently in its laboratory link and its final sealing and testing link. But in fact, once Qualcomm and Broadcom enter its system, even if it does not have a sealing and testing factory, it will guide the downstream sealing and testing factory to take the needle from the company. Basically, influential chip design manufacturers have an absolute say in the middle and high-end chip test probes. This is the current situation of the market.
Q4: in the whole process of downstream customer development, for the company, is the brand manufacturer of this chip design a customer directly developed by the company? Isn’t the cooperation and promotion of the sealing and testing factory the focus of the company?
A4 (Zhao Chuan, Secretary of the board of directors):
These are two dimensions, but we are now based on a successful case of NVIDIA. Now let’s look at our immediate market strategy, focusing on chip design manufacturers, which is the most effective and beneficial to our market development dimension in the medium and short term. It’s not that the sealing and testing factory has no business order, and the sealing and testing factory also has business orders, but this is a short-term and medium-term market strategy problem.
Q5: will chip design companies dominate the probe purchase of chip design manufacturers or in-vitro collaborative packaging and testing factories? Or as long as the seal test manufacturer makes its own decision?
A5 (Liu Zhiwei, general manager of probe business unit):
Basically, like a chip in the middle and high end of the world, the final test is based on the absolute influence of the chip design manufacturer.
Q6: is it convenient to share NVIDIA’s development history with you? How long does it take to complete the verification process on the time node?
A6 (chairman Luo Xingshun):
As for the development of customers, there is actually no fixed model, that is, different people reach one thing, especially in the sales link, so the development cycle basically has a roughly time frame.
For such large companies with international top brands in the world, they may have a relatively perfect and harsh test on your design ability and quality certification cycle, as well as the whole quality system of the factory, so it may take 2-3 years. Therefore, from our public information, we can see that we are involved in some large international companies, In the end, we will have a certain time to form this kind of batch sales. For some small and medium-sized sealing and testing plants, they may be a little faster, some may be a few weeks.
Q7: I noticed that the company’s R & D investment increased by 98% in 2021, almost doubling. I also want to ask what breakthroughs the company’s R & D investment has made in what fields? What is the future R & D investment plan?
A7 (Qian Xiaochen, R & D director):
The company has 16 R & D projects in 2021, including MEMS parts and some structural parts, and then focuses on semiconductor test probes. There are several new structures. There are 16 projects in total, with a total of 28 million yuan. As of 2022, 10 of these 16 projects have been closed, 6 of which will continue to 2022, and then add another 10 R & D projects, which are also two fixed increase projects in the field of semiconductor testing, and then some do some small parts and components around. Therefore, there are also 16 projects in 2022. Q8: how does the price rise of raw materials affect the company’s cost side or gross profit margin?
A8 (Zhao Chuan, Secretary of the board of directors):
It is true that the price rise of bulk products has been effectively fermented in the whole market link recently, but as a pure manufacturing enterprise, it is certainly unreasonable to say that it will not be affected at all. But we are absolutely not a raw material oriented enterprise. We are a technology R & D driven enterprise. Basically, you should have seen our chip probe. Some sizes can basically reach 1 / 3 of the diameter of hair, so we really need the whole raw material now, but it is very small.
The previous companies have also communicated with investors. Recently, the nickel price fluctuates greatly, but we counted the whole 21 years last year, and our whole demand is almost 2 million yuan. On the whole, the whole bulk price increase guided by raw materials has a little impact on us, but compared with this, it affects our harvest to our customers, including an upgrade of some of our products, This effect can be completely hedged.
Another point is that we have also made some internal actions. In addition to the upgrading of products, we have also made further improvements in the internal efficiency and yield, the improvement of management and manufacturing system, and introduced digitization to reduce the production efficiency or cost, improve the efficiency, and eliminate these effects as much as possible, so we maintain a relatively high gross profit margin. From the data of the past year, we have basically achieved it.
Generally speaking, it is to improve internal efficiency, subsidize the development of new products and technologies, expand new market demand, and maximize the best opportunity for sustainable development.
Q9: I’d like to ask how the strategic cooperation with Goertek Inc(002241) has affected the company’s performance and what is its strategic significance for the company’s future?
A9 (chairman Luo Xingshun):
This project does have a certain strategic significance, but we do not make any evaluation on the company’s performance and for the time being. I only speak from a strategic sense. This is actually under the background of the current international situation, including geopolitics, including covid-19 and Global trade protectionism. Then this is the senior management of goer microelectronics. They have a strategic vision, They believe that if we want to make some relevant competitive enterprises in China as value chain alliances in its supply chain, then we can form a mutual resource integration, especially the integration of development technology resources, so as to enhance the global competitiveness of the alliance of Chinese enterprises, so this is the original intention and background.
Then it will be of great help to us. Goethe has a larger volume than us. It is a very top leading enterprise in China. So we have strategic cooperation with it, especially in the future in the research and development of new products. Of course, we have worked with it for more than ten years
