“Last year was a year of rapid development for the company. We not only maintained the leading position in the small-size fields such as advanced packaging and compound semiconductors, but also made significant progress in the related product industry in the field of front wafer manufacturing.” Kingsemi Co.Ltd(688037) chairman and President Zong Runfu told the reporter of science and Innovation Board daily at the 2021 annual performance briefing held on the 18th.
Zong Runfu said that the front gluing and developing equipment produced by Kingsemi Co.Ltd(688037) in 2021 has won a number of front large customer orders and applications, and has realized the small batch Chinese market in this field among them, the offline gluing developer has achieved mass sales, the i-line gluing developer has passed the verification of some customers and entered the stage of mass production and sales, and the KrF gluing developer has passed the acceptance of customers’ ATP.
In the field of front-end physical cleaning, the company’s front-end spin scrubber cleaning machine equipment was gradually increased in 2021 after passing the verification of some key customers in China the previous year, and received repeated batch orders from many Fab manufacturers in China, such as Semiconductor Manufacturing International Corporation(688981) , Shanghai Huali, Wuhan Xinxin, Xiamen Shilan Jike and so on.
Zong Runfu further disclosed to the reporter of the science and Innovation Board daily that the company has full orders on hand, and the newly signed orders continue to maintain high-speed growth in 2022. “From the situation of signing orders in the first quarter of this year, the company’s products in the front field have begun to increase in large quantities. In the structure of new orders signed this year, the proportion of front products has increased significantly.”
Kingsemi Co.Ltd(688037) did not continue to disclose the latest order data, but the contract liabilities and inventory data in the recent stage reflect the pre-sale situation of customers. By the end of March 2022, the company’s contractual liabilities amounted to RMB 434 million, with a year-on-year increase of 169% and a month on month increase of 23%, accounting for 52% of the revenue in 2021; The inventory amount was 1.082 billion yuan, a year-on-year increase of 103% and a month on month increase of 16.1%.
In terms of the capacity utilization rate of previous products, the reporter of science and Innovation Board daily noted that Kingsemi Co.Ltd(688037) was in the full production stage in the second half of last year. The utilization rate of the company’s development equipment before January 2029 and January 2029 is 29.00% and 135.00% respectively.
In response, Zong Runfu replied that the high-end wafer processing equipment (phase I) had been put into use successively in the first quarter of 2022 and is currently in the stage of capacity climbing, which can greatly alleviate the capacity pressure caused by order growth. The fixed increase plan, which takes the high-end wafer processing equipment (phase II) as one of the raised investment projects, also obtained the registration approval of the CSRC on March 22, 2022 (small K note: the above two projects mainly produce the previous products)
Kingsemi Co.Ltd(688037) vice president and Secretary Li Fengli told the scidev.net daily that the issuance stage is being prepared and the issuance will be started according to the market and stock price. “According to the construction needs of the fixed increase project, the company will invest some of its own funds in advance, and replace it according to the regulations after the fund-raising is in place.”
However, from the perspective of gross profit margin, Kingsemi Co.Ltd(688037) has fluctuated since 2021, and the overall gross profit margin has declined in recent three years. By the end of 2021, the company’s gross profit margin was 38.08%, a year-on-year decrease of 4.5 percentage points.
“as the previous track is currently in the stage of market development, the gross profit margin level has not been completely stable. In addition, there is tension in some supply chains in 2021, and the gross profit margin level of the company fluctuates.” Zong Runfu responded that with the standardization and finalization of the company’s previous gluing and developing equipment, the scale effect brought by mass production in the future, and the continuous promotion of the domestic market of parts, the company’s gross profit margin level will be repaired in the future
From the perspective of product line, the gross profit margin of gluing and developing equipment and monolithic wet equipment in lithography process decreased by 4.98 and 3.18 percentage points respectively year-on-year. In terms of sales area, the gross profit margin of Hong Kong, Macao and Taiwan decreased by 15.15 percentage points year-on-year to 27.49%, but the revenue of sales amount in this area accounted for 2.67%.
