On the evening of April 14, Hubei Dinglong Co.Ltd(300054) disclosed the annual report of 2021. The company achieved an annual operating revenue of 2.355 billion yuan, a year-on-year increase of 29.67%; The net profit attributable to the shareholders of the listed company was 213 million yuan, a year-on-year increase of 233.50%; The net profit after deducting non recurring profits and losses was 206 million yuan, a year-on-year increase of 175.62%. According to the annual report, it is mainly due to the substantial growth of the company’s CMP polishing pad business over the same period of last year and the steady growth of printing and copying general consumables business.
According to the forecast of the first quarter report disclosed by the company on the same day, the profit in the first quarter of this year is expected to be 65 million yuan to 75 million yuan, a year-on-year increase of 73% to 99.8%.
The annual report shows that in 2021, the company’s polishing pad products achieved a sales revenue of 302 million yuan, an increase of 284% over the same period of the previous year, turning losses into profits for the first time. It is disclosed that the total annual production capacity of polishing hard pads phase I and phase II is increased to 300000 pieces per year. At present, the utilization rate of production capacity of phase II is climbing; The self built capacity of 200000 pieces of soft cushion series and 300000 pieces of hard cushion raw materials of polishing pad phase III factory (Qianjiang) is currently in the process of internal decoration and equipment installation. It is expected to complete the equipment installation in the summer of 2022 and enter the stage of equipment linkage and trial production.
The annual report also shows that the development and verification of the company’s polishing liquid products have been rapidly promoted, breakthroughs have been made in key products, the upstream core raw materials are independently controllable, the construction of 5000t annual production capacity in Wuhan in phase I has been completed, waiting for large-scale production, and the phase II production line is under preparation as planned. Among them, a polishing liquid product in oxide process has obtained a small order, and a polishing liquid product in Al process has passed the customer verification in the 28nm technology node HKMG process and entered the ton level procurement stage.
According to the annual report of the cleaning fluid section, the CMP cleaning fluid in the Cu process has achieved a breakthrough and has been verified by three mainstream customers in China. Another three customers have entered the stage of large-scale verification, with good results feedback and small orders.
Continuous R & D has laid a solid foundation for business development. The annual report also shows that the R & D investment in Hubei Dinglong Co.Ltd(300054) 2021 was RMB 284 million, accounting for 12.06% of the company’s total revenue in that year, a significant increase of 52.33% over 2020. According to statistics, the company has invested 639 million yuan in R & D in recent three years, accounting for 12% of the company’s total operating revenue in recent three years.
At the same time with the annual report, Hubei Dinglong Co.Ltd(300054) announced a new investment plan. The company plans to invest 750-1 billion yuan in two phases to build a new project in Hubei Xiantao Industrial Park: an annual output expansion project of 20000 tons of polishing fluid for integrated circuit CMP (constructed in two phases), an annual output expansion project of 10000 tons of cleaning fluid for integrated circuit CMP, an annual output industrialization project of 1000 tons of PSPI for OLED The industrialization project of OLED packaging material ink with an annual output of 600 tons, as well as the industrialization of grinding particles for the third generation semiconductor, high-purity grinding particles for integrated circuit CMP, and other key materials for photoelectric semiconductor flexible display.
