On January 10, Cade quartz (835179, NQ) participated in the first issuance and examination meeting of Beijing stock exchange in 2022.
Kaide quartz is a quartz glass products processing enterprise. Its main business is the R & D, production and sales of quartz glass products such as quartz instruments, quartz pipes and quartz boats. As the production consumables of downstream enterprises, the company’s products are widely used in the field of semiconductor integrated circuit chips, photovoltaic Cecep Solar Energy Co.Ltd(000591) industry and other fields.
The prospectus (last draft) mentioned that in January 2020, Cade quartz passed the certification of Semiconductor Manufacturing International Corporation(688981) 12 inch parts quartz crystal boat, but the company has not formed batch supply during the reporting period. The customer verification cycle of high-end products is long, and Cade quartz still sells medium and low-end products. From 2018 to 2020, the middle and low-end products of Cade quartz accounted for 85.83%, 87.92% and 90.34% respectively, and the middle and low-end products accounted for 89.24% in the first half of 2021.
It is worth mentioning that the project to be invested by Cade quartz is the industrialization project of high-end quartz products.
Naura Technology Group Co.Ltd(002371) stable key customer
Cade quartz has long served customers such as semiconductor equipment manufacturing enterprise Naura Technology Group Co.Ltd(002371) , photovoltaic equipment manufacturing enterprise Shenzhen S.C New Energy Technology Corporation(300724) , power semiconductor device manufacturing enterprise Jilin Sino-Microelectronics Co.Ltd(600360) , and has long provided products for scientific research institutes such as Kunming Institute of physics and the 11th and 13th research institutes of China Electronics Technology Corporation.
From 2018 to 2020 and the first half of 2021, the revenue of Cade quartz was 111 million yuan, 155 million yuan, 164 million yuan and 78.5122 million yuan respectively, and the net profit was 21.4097 million yuan, 32.4604 million yuan, 34.4474 million yuan and 15.5329 million yuan respectively. Among them, the revenue of quartz products for semiconductor integrated circuit chips accounted for 76.80%, 51.86%, 55.77% and 67.20% respectively, and the revenue of quartz products for photovoltaic Cecep Solar Energy Co.Ltd(000591) industry accounted for 22.82%, 47.85%, 43.41% and 32.16% respectively.
Cade quartz said that at present, the company has entered the procurement system of several listed companies. From 2018 to 2020 and the first half of 2021, the contributions of customers of listed companies or their subsidiaries in the company’s reporting period were 42.71%, 51.19%, 57.02% and 35.22% respectively. Among them, Naura Technology Group Co.Ltd(002371) accounted for 15.48%, 30.65%, 30.83% and 25.40% of its revenue respectively, ranking the first largest customer in recent years.
it is proposed to expand high-end quartz products
It is worth mentioning that from 2018 to 2020, the middle and low-end products of Cade quartz accounted for 85.83%, 87.92% and 90.34% respectively, and the middle and low-end products accounted for 89.24% in the first half of 2021. The projects to be invested in this fund-raising are mainly high-end quartz products industrialization projects, with a total investment of 500 million yuan and a planned investment of 270 million yuan.
According to the observation of the reporter of the daily economic news, the market of quartz glass products industry is relatively subdivided. There is little technical difference between middle and low-end product manufacturers, and the competition is fierce. Especially for quartz products used in light source industry and photovoltaic industry, the overall threshold is low. Quartz products for semiconductors have a high threshold and usually need to pass the product certification of end customers. Among them, quartz glass products are used for 4-inch, 6-inch and other medium and low-end semiconductor chip production lines. Because the drawing processing difficulty of such products is relatively small, the quality of products mainly depends on the stability of product quality. Downstream manufacturers tend to cooperate with quartz glass products enterprises that have been established for a long time and have a good reputation in the industry. 8-inch, 12 inch and other high-end quartz products have a high threshold, and most of them are monopolized by foreign enterprises or foreign-funded enterprises. At present, most of China’s Quartz manufacturers prepare the production and manufacturing technology of medium and low-end quartz products, and relatively few high-end products are involved.
The prospectus (last draft) mentioned that in January 2020, Cade quartz passed the certification of Semiconductor Manufacturing International Corporation(688981) 12 inch parts quartz crystal boat, but the company has not formed batch supply during the reporting period. Semiconductor Manufacturing International Corporation(688981) downstream applications are mainly communication products, consumer goods, automobile industry and computers. At present, the cooperation between the company and Semiconductor Manufacturing International Corporation(688981) is mainly to provide samples, which still needs a certain process of market cultivation and customer order transformation. It is expected that the cycle of mass supply will be long.
After the completion of the fund-raising investment project, it is expected to form an annual production capacity of 10700 high-end quartz products. Cade quartz also said that if there are adverse changes in the macroeconomic or industrial environment, or the growth of the downstream market slows down, the company will face the risk that the new capacity cannot be fully digested.
