Securities code: Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) securities abbreviation: Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) investor relations activity record No.: 2022001
Investor relations □ specific object research □ analyst meeting
Activity category □ media interview √ performance briefing
□ press conference □ Roadshow
□ site visit □ others (please specify other activities in words)
Activity name: 2021 annual online performance briefing
Time: May 20, 2022
Location value online (www.ir-online. Com. CN.)
The listed company receives Mr. Wang Fuxiang, the chairman, Mr. Wang Su, the general manager, Mr. Li Hao, the Secretary of the board of directors, Ms. Zhou Hongxiao, the chief financial officer, Mr. Xu Ding, the independent director and Mr. Liu Guangfu, the sponsor representative.
At the meeting, Ms. Zhou Hongxiao, the company’s chief financial officer, made a presentation on the company’s development, performance review and key project construction in 2021 and the first quarter of 2022. Then, the company’s chairman, general manager, Secretary of the board of directors, chief financial officer and independent directors answered the questions of investors respectively. The main contents are as follows:
1. The company currently has a lot of cash on hand. What is the strategic layout of the company?
Dear investors: Hello! At present, what the company has in hand is not cash, but financial assets or securities and stocks that can be realized at any time, and the amount is large. It is an important resource for the company’s future development and plays an important role in the future strategic layout of the company’s investor relations. With regard to the future development strategy, the company will, as always, focus on Technology in its activities, always face the needs of China’s industry, always aim at the cutting-edge technologies of the industry, adhere to the principle of no introduction, continuous R & D and innovation, break through the monopoly of foreign technology, fill the technological gap in China, and strive to provide key process materials and services for China’s integrated circuit industry, Become a leader in China’s local semiconductor material industry. In the future, the company will always maintain its leading technology and industry position, and strive to build the company into a high-quality supplier and application technology service provider with full coverage of four key process chemical materials and technologies: electroplating, cleaning, lithography and grinding. All funds and other resources of the company should be invested in and serve the main business of the company, constantly consolidate and expand the technology and market advantages accumulated over the years, continue to increase R & D investment, and do not give up any investment opportunity that is conducive to realizing the autonomy and controllability of the national integrated circuit supply chain and bringing performance growth to the company. On this premise, we will also appropriately expand into the pan semiconductor field and invest in some enterprises or material projects related to the company’s business, so as to lay a solid foundation for the company’s long-term development in the future. Finally, when the company’s capital resources allow, give due consideration to making some industry-related fund or financial investments, increase the company’s business scope and profit growth point, and provide better investment returns for the majority of investors. thank you!
2. Can you introduce the research and development progress of ARF photoresist in detail?
Dear investors: Hello! The research and development of photoresist ARF and arf-i of the company is progressing smoothly. Two series of test products have been formed, and the samples have been entered into the client for testing. As the test takes a long time, there will be no sales in the near future, but the overall technical indicators of the products are quite good. We are also confident in this aspect. thank you!
3. KrF photoresist of the company has passed the customer’s certification. Can you introduce the customer’s field and process in detail? What is the company’s expected sales this year?
Dear investors: Hello! In 2021, the company completed the R & D, verification and sales of several KrF photoresist products. The orders include large and small customers such as China’s mainstream head chip manufacturing companies, covering aluminum wire process and copper wire process, which are used for the production of logic, analog and other chips. As customers are cautious about the use of photoresist, which is still used in small quantities, the sales volume may not be large this year, but the consumption may increase more next year, and there is more room for follow-up growth. We can look forward to it. thank you!
4. How does the company plan and arrange the R & D Progress of EUV photoresist?
Dear investors: Hello! The company is determined to invest in photoresist R & D and has made a comprehensive layout. In addition to the ARF and KrF photoresists introduced above, the preliminary basic research and development of EUV photoresist has been started, mainly including the basic theory, formation mechanism, performance observation, formula screening, preparation method and other basic research and development of EUV photoresist. thank you!
5. What is the market share of copper sulfate electroplating solution and cleaning solution in China?
Dear investors: Hello! According to semi’s public data and client market share, the company’s revenue of electroplating solution and cleaning solution in 2021 is about 250 million, accounting for about 12% – 15% of China’s market scale of 1.5-2 billion. thank you!
6. Does the company have a plan to reduce National Silicon Industry Group Co.Ltd(688126) shares?
Dear investors: Hello! The company will reduce its National Silicon Industry Group Co.Ltd(688126) shares at an appropriate time according to the capital demand and stock price trend. At present, there is no specific reduction plan. You can pay attention to the dynamics of our company in the future. thank you!
7. The performance of China’s semiconductor enterprises generally rose sharply. Does the company’s performance and gross profit reach the industry average?
Dear investors: Hello! The company’s performance is largely affected by factors such as the rise in the price of raw materials, large R & D investment and changes in the fair value of some financial assets. Especially since the second half of 2021, due to the rise of raw material prices, the gross profit of products has decreased. However, with the increase of product sales and the adjustment of selling price, the gross profit margin will gradually stabilize or increase, making the gross profit and profit level of the company’s products in the normal industry level range. thank you!
8. What is the scale of the 420 million electronic materials revenue disclosed in the company’s annual report according to the product structure? What is the growth rate compared with last year and the same period of the previous year?
Dear investors: Hello! In 2021, the company’s semiconductor revenue was a little more than 500 million yuan, including about 170 million of chemical materials for semiconductor packaging, about 250 million of ultra pure chemical materials such as electroplating solution and cleaning solution for wafer manufacturing, and about 60 million of supporting semiconductor equipment. Other revenue came from supporting businesses such as self-made products, spare parts and dicing knives.
The growth rate of ultra pure chemical materials in wafer manufacturing process is relatively fast, and the annual growth rate is basically maintained at more than 60%. thank you!
9. is there any specific requirements for the classification of semiconductor industry income in the performance appraisal target of equity incentive of the company? And what are the reasons for using income rather than profit as the assessment target?
Dear investors: Hello! The company’s equity incentive plan is mainly formulated for the backbone and core employees of the company, including R & D personnel, marketing personnel and management personnel. At present, there is a shortage of talents in the whole semiconductor industry. The company has developed for a long time and trained many excellent talents. Most of the core employees have worked in the company for many years, whether in production, R & D or market. In the context of the current rapid development of the industry, it is also necessary to link the income of core employees with the development of the company, stimulate employees’ work enthusiasm, encourage employees to grow together with the company, and cultivate and reserve talents for the long-term development of the company. In the internal assessment scheme of the equity incentive plan, there are specific requirements for the breakdown of indicators in the semiconductor business. With regard to the use of revenue assessment indicators, we mainly consider that China’s semiconductor industry is currently in the stage of accelerating domestic substitution, and the improvement of scale and market share is the focus of the company’s recent work. After careful consideration, on the premise of complying with the provisions of relevant laws and regulations, we mainly choose revenue as the assessment indicator and profit as the internal control assessment indicator. thank you!
10. The latest progress and expansion level of Hefei base. When is the first and second phase mass production expected? Dear investors: Hello! Hefei is an important new production base of the company, which is constructed in two phases. Phase I civil engineering has been completed. At present, the construction of clean house and electromechanical engineering is under way. It is planned to carry out equipment installation and commissioning in the second half of the year and enter the stage of trial production at the end of the year. The approved capacity of phase I is 17000 tons, and it will have mass production capacity next year, but when it reaches the mass production scale depends on the progress of product testing and verification at the client. Phase II is in its infancy and is in the process of project design and various reporting and approval links in the early stage of project construction. It is expected that the company’s production capacity can meet the demand of phase I and phase II after the completion of phase I and phase II in the future. thank you!
11. Has the expansion of the company’s Shanghai factory been completed? At what stage, how is the progress of environmental impact assessment and safety assessment?
Dear investors: Hello! The expansion project of the company’s Shanghai plant has been completed, and the environmental impact assessment and safety assessment acceptance of the project have been completed. thank you!
12. What are the impacts of the epidemic on the company’s production and operation? Q2 chain change?
Dear investors: Hello! The epidemic has a certain impact on the overall business of the company. The production of chemical products in semiconductor business has not stopped, and the production of equipment products has been stopped for more than a month. At present, production has just resumed. It has a great impact on logistics, logistics support and R & D. from March to may, the cost of logistics and transportation will increase significantly. This situation is expected to continue for some time. R & D has been suspended for more than a month and is now gradually recovering. During the epidemic period, the company implemented closed-loop management to ensure the smooth resumption of work and production. In the second quarter, the semiconductor chemical materials business will continue to maintain rapid growth, showing an upward trend month on month and year on year. The coating business was less affected by the epidemic, but the demand in the market slowed down, which had a certain impact on the subsequent sales growth. thank you!
13. Positioning of the company for coating business
Dear investors: Hello! Fluorocarbon coating is an important material business segment of the company, which has maintained stable growth for many years. Next, the company will consider giving more resource investment and attention to the coating business, and the new development plan will start to move forward steadily. thank you!
14. The company’s fluorocarbon coating has a high year-on-year growth rate. What are the reasons and the company’s outlook for the growth rate of fluorocarbon coating this year?
Dear investors: Hello! The fluorocarbon coating business grew rapidly last year, and the revenue increased by more than 40%, which was mainly affected by two factors: first, the continuous increase of market demand increased the sales volume of coating products; Second, with the rise in the price of fluorocarbon coating raw material resin, the company raised the sales price of corresponding products. This year, the above two influencing factors are still, the product sales volume will continue to increase, the business scale will continue to expand, and the operating revenue is expected to continue to increase. thank you!
15. The latest development of the company’s grinding fluid? Composition of the company’s grinding fluid R & D team?
Dear investors: Hello! Since its establishment, the company has specialized in functional chemical materials for formula semiconductor processes, and has made many breakthroughs and industry advantages in the field of chip packaging and wafer manufacturing. Abrasive fluid is one of the four key process materials for integrated circuits that we need to overcome. Chemical materials of process formula type have commonality in basic principle and production quality control, so the R & D Progress of the whole grinding fluid of the company is relatively fast. In more than three years, we have successfully developed several products, built two production lines and obtained small batch orders. It may grow rapidly next year. We can look forward to it. In terms of team, the company has developed for more than 20 years and cultivated a number of teams with technical ability. At the same time, we have also hired foreign experts and obtained the cooperation of partners, strengthened our R & D work and helped us improve our R & D ability and application service level. thank you!
16. What are the driving forces for the future growth of the company?
Dear investors: Hello! In the future, with the continuous improvement of the process, the technical requirements of customers for formula process chemical materials are also increasing, and the future development trend of the company’s electroplating solution and cleaning solution is relatively clear; The company has been deeply engaged in semiconductor process chemical materials for more than 20 years and has accumulated profound R & D skills in the field of formula chemical materials. In the future, with the rapid development of the semiconductor industry, the company will have more and more product sequences and more development space in the future. thank you!
17. With regard to the new repurchase plan recently announced by the company, would you like to know the progress of the repurchase plan and the reasons for repurchase pricing?
Dear investors: Hello! The company’s repurchase is mainly to prepare for our subsequent equity incentive and employee stock ownership plan. Recently, affected by the epidemic, the company spent more time in performing the repurchase business process and going through the repurchase business procedures with relevant institutions, and the progress was delayed. In addition, the company still has an arrangement and scheduling process for the funds to be used, so the company has not started to repurchase at present, and will start at an appropriate time in the future. As for the repurchase pricing, when the company determined the repurchase plan, it was at a time when the secondary market was in a downward trend
Based on the actual situation, the current repurchase price is determined after appropriately reserving the price space and taking compliance with the requirements of relevant laws and regulations and operability as the main consideration. thank you!
18. Progress of cooperation between the company and Hynix? Has the second phase of national IC industry fund been connected with the company?
Dear investors: Hello! The cooperation between the company and Hynix was carried out earlier and became
