Securities code: Hc Semitek Corporation(300323) securities abbreviation: Hc Semitek Corporation(300323) Announcement No.: 2022019 Hc Semitek Corporation(300323) 2021 annual report summary
1、 Important tips
(1) The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the information contained in this report does not contain any false records, misleading statements or major omissions, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
(2) The summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC.
(3) All directors have attended the meeting of the board of directors to consider this report.
(4) Guo Jin, the person in charge of the company, Zhou Jianhui, the person in charge of accounting, and Li Xuhui, the person in charge of the accounting organization (Accounting Supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in the annual report.
(5) Any content in this report involving future plans, performance forecasts and other aspects does not constitute the company’s commitment to any investors and related persons. Investors and related persons should maintain sufficient risk awareness and understand the differences between plans, forecasts and commitments.
(6) The audit opinion of Rongcheng Certified Public Accountants (special general partnership) on the company’s financial report this year is: standard unqualified opinion.
Change of accounting firm during the reporting period: no change. The accounting firm of the company this year is Rongcheng accounting firm (special general partnership).
Tips on non-standard audit opinions
□ applicable √ not applicable
(7) The company was not profitable at the time of listing and is not profitable at present
□ applicable √ not applicable
(8) The profit distribution plan of ordinary shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors
√ applicable □ not applicable
The company plans not to distribute cash dividends, bonus shares or increase share capital with provident fund.
(9) Profit distribution plan for preferred shares in the reporting period adopted by the board of directors
□ applicable √ not applicable
2、 Basic information of the company 1. Company profile
Stock abbreviation Hc Semitek Corporation(300323) stock code Hc Semitek Corporation(300323)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Hu zhengran (on behalf of pedestrian): Zhang Xiaoxue
Office address: No. 8, Binhu Road, Donghu Development Zone, Wuhan
Fax: 02781929003
Tel: 02781929003
E-mail [email protected]. [email protected].
2. Introduction to main business or products during the reporting period
(I) main business development
1. Main business
The company is the world’s leading supplier of LED chips and advanced semiconductor solutions. Its main business is the R & D, production and sales of LED chips, LED epitaxial chips, sapphire substrates and third-generation semiconductor compound Gan power electronic devices. The company pays attention to independent R & D, adheres to the two wheel drive concept of technological innovation and fine management, increases R & D investment, promotes development with technology, seeks benefits from management, forces the high-end market and improves enterprise value.
During the reporting period, the company was customer-centered and market-oriented, adhered to the open attitude of win-win industrial cooperation and coordinated development, implemented high-end market strategic decisions, continued to optimize product structure and customer structure, and increased the operating revenue of high-end products such as high-efficiency lighting and mini / micro led new display. At the same time, the company benefited from the improvement of industry development, corporate technology, capacity yield and corporate governance, and its profitability was significantly improved, The ability to resist risks has been enhanced.
2. Main products and uses
The company’s main products are led chip and epitaxial chip products, sapphire products and Gan power electronic device products.
(1) LED chip and epitaxial chip products
The company’s LED chip products are widely used in TV, computer, mobile phone and other consumer electronics, indoor and outdoor display, automotive LED and all kinds of lighting, UV, infrared and other markets. With the improvement of mini / micro LED technology, the rapid development of 5g + 8K ultra-high definition display market and the continuous expansion of high-end lighting market demand, the application fields of the company’s products continue to expand, including mini led ultra-high definition display, micro led wearable devices and large screen display, conference and cinema multi-functional display, government traffic command center, medium and large-size consumer electronics, high-end backlight, intelligent lighting, vehicle led and plant lighting, Ultraviolet disinfection and sterilization, infrared induction, etc.
LED epitaxial chip has high technical content, which has the greatest impact on the yield, photoelectric performance and quality of the final LED chip products. While ensuring their own use, the company’s epitaxial chip products are also actively expanding the market, mainly as raw materials for chip enterprises with demand for high-quality LED epitaxial chips at home and abroad, as well as basic materials for cutting-edge technology development of institutions such as academies of Sciences.
(2) Sapphire products
Sapphire material has stable chemical properties, high hardness, excellent light transmittance, thermal conductivity and electrical insulation. It is a very important basic material in modern industry. In addition to being widely used in the field of cutting-edge science and technology, sapphire material plays an extremely important role in precision machinery, optical communication, microelectronics, optoelectronics, especially LED industry. The company’s Sapphire products include 2-8-inch crystal rods, substrate chips and various optical application products. At present, it is mainly used in the fields of LED chip substrate materials, consumer electronics products and window materials of intelligent wearable products.
(3) Gan power electronics products
Since its establishment, the company has focused on the technical research and development of Gan materials in the LED field, and officially entered the field of Gan power electronic devices in 2020. Its products will be mainly oriented to the fields of mobile consumer electronic terminal fast charger, other power supply equipment, cloud computing big data server center, communication and automobile applications.
(II) discussion and analysis of the company’s operation
The company has deeply integrated industrial chain resources, actively explored the high-end market, formed patents and proprietary technologies around core technologies, innovated and upgraded management, and implemented operation management and special management of product lines. The company’s main business is mainly R & D, production and sales of LED substrates, epitaxial films and chips. The company is the first tier supplier in the LED chip industry, and sapphire substrates maintain the leading supplier position in the Chinese market.
1. R & D mode
R & D is one of the company’s core competitiveness. Since its establishment in 2005, the company has been committed to independent innovation, attracting and cultivating all kinds of professional and technical talents in an all-round way through its mode of “engineer culture + returned doctor + senior industry insiders”. At present, there are more than ten high-quality R & D and innovation centers at home and abroad.
Technology and product research and development are mainly divided into short-term market-oriented product development and medium and long-term forward-looking technology research and development. Distinguishing these two different types of R & D will help the company allocate resources reasonably. While ensuring that existing products and alternative products meet the market demand in the next few quarters, it can also invest enough R & D resources to develop and reserve new technologies, so as to escort the company’s future new products and industry-leading position.
On the one hand, the company strengthens the improvement of existing product performance, technology cost reduction and the use experience of end customers to maintain market competitive advantage; On the other hand, continue to invest in the research and development of next-generation technologies and new products, and make sufficient and mature technical reserves for the future market in advance. These new technologies include micro LED chip manufacturing process and related transfer technology, UV LED, compound semiconductor power devices and other future strategic R & D projects; At present, the company has formed a cooperation mechanism with upstream and downstream Chinese enterprises, universities, scientific research institutes and other institutions, established the third generation semiconductor materials and devices Key Laboratory in Zhejiang Province, and the academician workstation of Yiwu production base led by Professor Ye Zhizhen, academician of Chinese Academy of Sciences, has been recognized as the semiconductor new materials and Devices Research Institute of Zhejiang provincial enterprise research institute, Together with Zhuhai HUAFA real Industry Research Institute Co., Ltd., Zhuhai HUAFA Huacan Advanced Semiconductor Research Institute was established. Facing the future, the company will actively layout high-end product technology and market-oriented application, and form a large competitive advantage through technological innovation. 2. Production mode
The company’s production revolves around three important production links: sapphire substrate, LED epitaxial chip and LED chip. The production base of sapphire substrate is Yunnan sapphire, a wholly-owned subsidiary. The production of LED epitaxial chips and LED chips is carried out in Zhangjiagang and Yiwu. Sapphire substrate is an important raw material of LED epitaxial chip, which provides stable supply guarantee and effective cost control for the company’s chip production.
LED chips are semi standardized products. Different customers have different requirements for chip wavelength and other specifications and parameters according to different application fields. However, within a certain range of differences, products with different specifications can replace each other. Based on this feature, the company produces and sells as many general-purpose products as possible to improve operation efficiency, reduce inventory scale, and achieve lower cost and better supply flexibility.
The company establishes a customer demand-oriented system, in which the person in charge of sales and product line management is responsible for market prediction, and the operation and production department plans and implements production scheduling. The final revenue and profit and loss will also be closely linked to the manager’s performance. Specifically, the company formulates the production plan according to the communication between sales and product lines and customers, as well as the judgment of the company on each market segment, so as to meet the needs of customers and establish safety inventory at the same time; Formulate monthly production scheduling plan, form rolling production plans for multiple months, and regularly adjust the production plan according to the changes of customer demand and output during the implementation of the plan, so as to improve the production and sales rate of products and maintain a healthy inventory of raw materials, semi-finished products and finished products.
With the transformation of the company’s product structure to high-end, the company’s increasingly sophisticated quality system further meets the increasing quality needs of customers. The company follows the comprehensive quality management norms from the warehousing detection of raw materials to the manufacturing process, and then to the quality inspection before delivery, and always adheres to the production concept of “quality first”. In terms of quality assurance, the quality department has independent and objective veto power to ensure the company’s quality reputation in customers and the industry. The company has passed the audit of Sony GP. In 2021, Hc Semitek Corporation(300323) Zhejiang subsidiary and Suzhou subsidiary iatf169492016 and iso9 Dongrui Food Group Co.Ltd(001201) 5 successfully passed the supervision and audit of the third-party audit organization SGS, and ISO 45 Dongrui Food Group Co.Ltd(001201) 8 and ISO 14 Dongrui Food Group Co.Ltd(001201) 5 successfully passed the certificate renewal audit.
3. Marketing model
The company has established a sound product management and sales system, and formulated and implemented the company’s overall sales strategy according to the market demand and business plan. The company mainly adopts the direct selling mode to directly serve the mainstream LED packaging manufacturers and terminal application manufacturers at home and abroad.
The company’s product line management center is responsible for product planning and market promotion. Through research and analysis of the overall demand trend of the market, the development trend and strategic planning of strategic customers, combined with regular visits and exchanges with customers, it forms a product strategy, covering new product planning, promotion, iteration of new and old products and the whole life cycle management of products. The product line management team is responsible for the profit and loss of the whole life cycle of products. With the continuous improvement of the company’s technical level and product series, the company meets the needs of customers with high-quality products, leading technical support and strategic cooperation, achieves strategic win-win with customers, and improves the sales share of Chinese and foreign markets.
(III) main performance drivers
During the reporting period, the company achieved an operating revenue of 3156244200 yuan, an increase of 19.37% over the same period of last year; The net profit attributable to the shareholders of the listed company was 936236 million yuan, an increase of 753839 million yuan over the same period last year. The total assets are 11685127500 yuan, and the asset liability ratio is 44.99%; The net assets attributable to shareholders of listed companies were 6427598000 yuan, an increase of 1.89% over the same period of last year. Compared with 2020, the overall operation level of the company has been greatly improved and the company’s performance has improved.
Key performance drivers are:
The company’s LED chip sales revenue increased significantly, superimposed on the rapid growth of the company’s high light efficiency lighting, backlight, display and mini led business. During the reporting period, the company’s gross profit margin improved significantly, of which the comprehensive gross profit margin was 8.77%, an increase of 4.56 percentage points over the same period of last year, of which the gross profit margin of LED chip increased by 4.89 percentage points year-on-year, and the gross profit margin of LED substrate increased by 17.99 percentage points year-on-year, The company uses the product line management mode to optimize the product structure, focus on market segments, improve the proportion of high gross profit products, maximize the production efficiency and scale effect of the company, and reduce the possible inventory risk, so as to improve the inventory turnover rate and capital utilization rate and further improve the profitability of the company.
From the demand side, in 2021, the LED industry ushered in a new round of upward boom. Affected by the normalization of the epidemic and the “housing economy”, the terminal demand was spawned, and the market recovered significantly. The company seizes market opportunities, actively develops high-end lighting market and specialized niche market segments with high gross profit margin, and improves product gross profit margin. During the reporting period, in the lighting market
