赛晶科技（580 HK） | 2025 年 4 月 29 日 香港股市 | 电子行业 两大业务迎来双线高速增长期 输配电领域，特高压工程项目即将大量启动，对赛晶主打产品大功率 IGBT、阳极饱和电 抗器等需求大幅上升；柔性输电工程的启动带动高价值产品直流支撑电容器、在线监测 等新产品的需求提升；以及多种类型新能源输电工程启动也有助于产品结构改善。在 IGBT 领域，随着新产品落地，并逐步进入客户供应链，有望驱动收入和盈利。 赛晶科技(580 HK) 净利润强劲增长；输配电业务进入放量周期 FY24 毛利率稳中有升，净利润超预期 盈利预测与估值 赛晶科技 FY24 实现总收入 16.1 亿元（人民币，下同），同比增加 52.7%。由于较高毛利 率的电网输电的元器件业务占比提升，公司整体毛利率稳中有升，同比扩张 0.5 百分点。 得益于有效的费用控制，期内销售和行政费用占收入比从 2023 年 21.1%下降至 16.5%， 叠加较低的有效税率，公司实现净利润同比大幅增长 225.0%至 1 亿元，略高于先前预 期。 我们预计公司 FY25E/FY26E/FY27E 收入分别为 20.1 亿/25.2 亿/33. ...

Financial Performance - The company's revenue for 2024 was approximately RMB 1,610.2 million, representing a growth of about 52.7% compared to the previous year[5]. - Profit attributable to the parent company was approximately RMB 102.5 million, an increase of approximately 225.4% year-on-year[5]. - Basic earnings per share were approximately RMB 6.39, reflecting a growth of about 229.4% compared to last year[5]. - Domestic market revenue reached RMB 1,520.03 million in 2024, up from RMB 987.07 million in 2023, with an average gross margin of 31.5%[15]. - The gross profit rose by about 55.2% to RMB 520,700 thousand in 2024, with the gross margin improving from 31.8% to 32.3%[33]. - The pre-tax profit surged by approximately 160% to RMB 122,200 thousand in 2024, primarily due to increased revenue[40]. - Revenue from self-developed power semiconductors in 2024 was approximately RMB 59.1 million, a decrease of about 27.0% compared to the previous year, but expected to rebound significantly in the second half of 2024 with a growth of approximately 30.0% year-on-year[11]. Revenue Breakdown - Revenue from conventional DC transmission and flexible transmission segments reached approximately RMB 647.9 million, marking a growth of about 156.7%[5]. - The revenue from the power distribution sector increased by 95% to RMB 812.02 million in 2024, driven by significant growth in conventional and flexible DC transmission[19]. - Revenue from flexible transmission technology surged by 371% to RMB 280.89 million in 2024, reflecting strong demand for new energy power transmission solutions[20]. - The electrification transportation sector saw a revenue decline of approximately 14% in 2024, with electric vehicle revenue dropping by 78%[22]. - The revenue for the industrial and other sectors reached RMB 658,567 thousand in 2024, a 22% increase from RMB 513,294 thousand in 2023[23]. - Revenue from the industrial control segment grew by approximately 14% to RMB 379,818 thousand in 2024, while the new energy generation and storage segment saw a 52% increase to RMB 273,558 thousand[24]. Market Development and Customer Base - The company is expanding its customer base by increasing market development efforts in the power semiconductor sector[9]. - In 2024, the number of signed customers increased significantly, with chip customers rising from 3 at the end of 2023 to 14, and module customers increasing from 18 to 46[11]. - The construction of high-voltage direct current projects is accelerating, with several key projects entering the initiation phase, providing broader market opportunities for the company[7]. Research and Development - The company has developed a new DC support capacitor that is the first in China to pass all IEC tests, successfully applied in a major project[8]. - The company launched several new products in 2024, including a 1200V SiC MOSFET chip with a resistivity as low as 13 milliohms, achieving international leading standards[10]. - The company aims to leverage high-quality domestic products to drive rapid business growth in the power semiconductor industry, which is transitioning to high-quality development[12]. - The company is committed to enhancing R&D team construction and product innovation to support comprehensive business development and achieve corporate growth objectives[13]. - The company is focused on continuous technological innovation and talent acquisition to drive energy technology upgrades[76]. Governance and Corporate Structure - The company has a strong governance structure with experienced independent directors overseeing key committees, enhancing strategic decision-making and compliance[67]. - The board of directors consists of three executive directors and four independent non-executive directors, with independent directors making up approximately 50% of the board during the fiscal year[79]. - The company emphasizes the importance of corporate governance and has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the fiscal year ending December 31, 2024[75]. - The company has established a comprehensive and fair regulatory framework to manage employee behavior and enhance corporate culture[77]. - The board has established four committees to oversee various aspects of the group's affairs, enhancing governance and management communication[89]. Financial Management and Risks - The company faces market interest rate risks related to floating-rate bank borrowings, with actual interest rates and repayment terms disclosed in the financial statements[123]. - The company has established forward currency contracts with reputable banks to manage foreign exchange risks arising from procurement in non-functional currencies[124]. - The company has a credit risk management policy that involves trading only with recognized and reputable third parties, with ongoing monitoring of receivables[125]. - The company utilizes a revolving working capital plan to monitor liquidity risks, balancing funding continuity and flexibility[126]. - The company has established a whistleblowing policy to report any misconduct related to the group, and all directors and employees received anti-corruption training during the year[110]. Shareholder Information - The company reported a proposed final dividend of HKD 0.01 per share for the year ending December 31, 2024, compared to zero in 2023[128]. - The company has terminated its 2010 share option plan, which allowed for the issuance of options to eligible participants, with a maximum of 136,604,000 shares potentially issuable under the plan[135]. - The 2020 share option plan allows for the issuance of up to 163,083,100 shares, equivalent to 10% of the total issued shares as of the approval date[139]. - The total number of unexercised stock options as of December 31, 2024, is projected to be 93,383,100 if the proposed grant is approved[148]. Employee and Workforce Management - The company employed a total of 977 staff, with a gender ratio of approximately 6:4 (male to female), indicating a commitment to gender diversity in the workforce[114]. - The group has maintained good relationships with employees, customers, and suppliers, ensuring fair treatment and regular reviews of compensation and benefits[190]. - The company has complied with relevant laws and regulations in the Cayman Islands, China, and Hong Kong as of December 31, 2024[192]. Audit and Compliance - The audit committee held 3 meetings during the year, reviewing internal control procedures and the annual performance, confirming compliance with accounting standards[91]. - The independent auditor's report confirms that the financial statements present a true and fair view of the group's financial performance and position[196]. - The financial statements were prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[196].

Market Overview - The A-share market experienced a shift in focus, with the tourism sector showing strength while technology stocks continued to adjust [1][12] - The Shanghai Composite Index rose by 0.15%, the Shenzhen Component increased by 0.07%, and the ChiNext Index saw a slight gain of 0.01% [1] Individual Stocks - The deep-sea technology stock Kunbo Precision Engineering surged over 9% near the market close, while Haiyang Wang hit the daily limit, marking its sixth consecutive trading day of gains [2] - Wolong Electric (600580) saw a significant afternoon rally, closing at the daily limit with a total trading volume of 6.343 billion yuan, the highest in the A-share market [2] - Wolong Electric announced a strategic investment agreement with Shanghai Zhiyuan New Technology Co., becoming a strategic shareholder in the robotics innovation firm [2] Sector Performance - The tourism and hotel sector showed notable strength, with stocks like Zhangjiajie and Emei Mountain A hitting the daily limit [4] - Data indicated a 75% year-on-year increase in search interest for traditional cultural experiences related to the Qingming Festival, with bookings for immersive experiences nearly doubling [6] Banking Sector - The banking sector was active, with notable gains from banks such as Bank of Communications, which rose over 3% [8] - Bank of Communications reported a net profit of 93.586 billion yuan for 2024, a year-on-year increase of 0.93%, and plans to distribute cash dividends totaling 14.63 billion yuan [10] Technology Sector - The technology sector continued to face adjustments, with the brain-computer interface sector dropping over 3% and other tech-related concepts declining by more than 1% [12] - Analysts attribute the adjustments to technical pressures, small-cap stock corrections, and profit-taking [12]

Financial Performance - Revenue increased by approximately 52.7% to approximately RMB 1,610.2 million[3] - Gross profit increased by approximately 55.2% to approximately RMB 520.7 million, with a gross margin rising from approximately 31.8% to approximately 32.3%[3] - Profit attributable to equity holders of the parent was approximately RMB 102.5 million, with earnings per share of approximately RMB 6.39 (basic and diluted)[3] - Total comprehensive income for the year amounted to RMB 84.2 million, compared to RMB 18.8 million in the previous year[6] - The company reported a pre-tax profit of RMB 149,499,000 for 2024, up from RMB 124,115,000 in 2023, indicating improved profitability[26] - The pre-tax profit for the group in 2024 was RMB 122,185,000, compared to RMB 46,970,000 in 2023, representing a significant increase of 160.5%[34] - Net profit attributable to equity holders increased by approximately 225.4% from RMB 31.5 million for the year ended December 31, 2023, to approximately RMB 102.5 million for the year ending December 31, 2024, primarily due to increased revenue[90] Assets and Liabilities - Non-current assets totaled RMB 1,012.7 million, an increase from RMB 844.0 million in the previous year[8] - Current assets amounted to RMB 2,022.2 million, compared to RMB 1,993.4 million in the previous year[8] - Current liabilities increased to RMB 935.1 million from RMB 691.7 million in the previous year[9] - Net assets rose to RMB 1,996.0 million from RMB 1,921.7 million in the previous year[9] - Trade receivables increased to RMB 922,229,000 in 2024 from RMB 741,768,000 in 2023, reflecting a growth of 24.4%[40] - The total accounts receivable as of December 31, 2024, was RMB 961,069,000, up from RMB 787,071,000 in 2023[47] - Inventory increased by approximately 26.1% from RMB 229.9 million as of December 31, 2023, to approximately RMB 289.9 million as of December 31, 2024, primarily due to increased stock at year-end[91] Revenue Breakdown - Revenue from the sale of power electronic devices for 2024 reached RMB 1,610,209,000, a 52.5% increase from RMB 1,054,702,000 in 2023[21] - Revenue from conventional direct current transmission increased by about 90% compared to 2023[62] - Revenue from flexible transmission increased by approximately 371% compared to 2023[63] - In the electrified transportation sector, revenue decreased by about 14%, with electric vehicle revenue dropping by approximately 78%[65][66] - Revenue in the industrial and other sectors grew by 22%, with new energy generation and storage revenue increasing by about 52%[68][69] - The company's foreign market revenue reached approximately RMB 90,179 thousand, a growth of about 33% compared to 2023[71] Expenses and Costs - The cost of goods sold for 2024 was RMB 1,089,538,000, compared to RMB 719,174,000 in 2023, reflecting a significant increase in sales costs[26] - Financing costs rose to RMB 17,973,000 in 2024 from RMB 11,044,000 in 2023, driven by increased interest on bank loans and other borrowings[30] - Sales and distribution expenses increased by approximately 25.3% from RMB 84.6 million for the year ended December 31, 2023, to approximately RMB 106.0 million for the year ending December 31, 2024, primarily due to increased market expansion costs and the number of sales personnel[82] - Administrative expenses rose by approximately 15.6% from RMB 138.4 million for the year ended December 31, 2023, to approximately RMB 160.0 million for the year ending December 31, 2024, mainly due to increased business volume and management personnel[83] - R&D costs increased by approximately 21.0% from RMB 113.6 million for the year ended December 31, 2023, to approximately RMB 137.5 million for the year ending December 31, 2024, primarily due to increased R&D investments[84] Taxation - The effective corporate tax rate remains at 25% for 2024, with certain subsidiaries qualifying for a reduced rate of 15%[31] - Total tax expenses for the year 2024 amounted to RMB 36,741,000, an increase of 66.9% compared to RMB 22,008,000 in 2023[32] Shareholder Information - The company proposed a final dividend of HKD 0.01 per share for the year, totaling RMB 14,766,000, compared to no dividend in 2023[36] - The total number of shares repurchased in 2024 was 28,530,000, with the highest repurchase price reaching HKD 1.35 per share in October[106] - The board has proposed a final dividend of HKD 0.01 per share for the year ending December 31, 2024, compared to no dividend in 2023[114] - The annual general meeting is scheduled for June 6, 2025, to approve the proposed dividend and other matters[115] Corporate Governance - The company emphasizes adherence to corporate governance practices, having complied with the applicable code provisions for the year ending December 31, 2024[110] - The audit committee has reviewed the financial statements for the year ending December 31, 2024, ensuring compliance with accounting principles and internal controls[113] Future Outlook - The company aims to strengthen its R&D team and innovate technologies and products to seize opportunities in the energy technology revolution, focusing on sectors like DC transmission, electric vehicles, and renewable energy generation[104] - The company has initiated multiple projects in 2024, including the Saudi Central-South ±500 kV flexible direct current transmission project and the Gansu-Zhejiang ±800 kV ultra-high voltage flexible direct current transmission project[63]

Investment Rating - The report does not provide a specific investment rating for the company [11] Core Insights - The company is expected to see a significant revenue increase of over 50% year-on-year in FY24, reaching approximately 1.6 billion RMB, primarily driven by the launch of conventional and flexible direct current transmission projects [1] - The power transmission and distribution business is the main revenue contributor, accounting for about 55% of total revenue [1] - The company anticipates a net profit of around 100 million RMB in 2024, representing a year-on-year growth of over 200% [3] - The company aims for a revenue target of 2 billion RMB in 2025, reflecting a 25% year-on-year increase [3] Financial Summary - FY23 revenue was 1.055 billion RMB, with a growth rate of 14.9% compared to FY22 [5] - The company achieved a net profit of 31.5 million RMB in FY23, with a growth rate of 31.5% [5] - The projected P/E ratio for 2024 is approximately 20.7 times, compared to 34.5 times for a domestic peer [3] - The company’s gross profit margin improved to 31.8% in FY23 from 28.5% in FY22 [9] Business Segments - The IGBT business achieved sales revenue of 81 million RMB in 2023, marking a year-on-year increase of 105% [2] - The company expects its self-developed power semiconductor business to generate approximately 150 million RMB in revenue by 2025, accounting for 7.5% of total revenue [2] - The company holds a near 100% market share in the anode saturation reactor segment and over 10% in the power capacitor market [1]

Investment Rating - The report sets a target price of HKD 8.80 for the company [1]. Core Viewpoints - The company is positioned as a key supplier of core components in the power transmission and distribution, new energy, and industrial sectors, with a focus on IGBT and IGBT modules [1][3]. - The company has made significant strides in domestic IGBT production, aiming to reduce reliance on foreign suppliers and enhance its market position [3][44]. - The company is expected to benefit from the ongoing development of high-voltage direct current (HVDC) projects and the increasing demand for self-developed IGBT products in various sectors [4][59]. Summary by Sections Company Background - The company was established in 2000 and has evolved into a leading supplier of power electronic devices and systems, focusing on IGBT technology since 2019 [14][15]. - It has become a major supplier for HVDC projects in China, participating in nearly all domestic HVDC projects [2][24]. Business Segments - The company’s products are categorized into power semiconductors and supporting devices, with significant applications in HVDC, flexible DC transmission, and industrial sectors [20][26]. - In 2023, the revenue breakdown was 39.5% from power transmission, 5.4% from electrified transportation, and 48.7% from industrial applications [52]. IGBT Development - The company focuses on developing IGBT products with voltage ratings between 1200V and 1700V, utilizing domestic technology to achieve local substitution [3][44]. - The company has launched several IGBT modules and is expected to introduce third-generation power semiconductors in the first half of 2024 [4][45]. Financial Performance - In 2023, the company reported total revenue of CNY 1.06 billion, with a significant increase in gross margin in the power transmission segment, reaching 48% [52][53]. - The company aims for revenue targets of CNY 1.6 billion and CNY 2 billion for 2024 and 2025, respectively, with expected net profits of CNY 70-80 million in 2024 [4][59]. Market Outlook - The company is well-positioned to benefit from the national grid's planning and the growing demand for self-developed IGBT products in the renewable energy and electric vehicle sectors [4][59]. - The IGBT market is projected to grow significantly, with China being the largest consumer of power semiconductors, accounting for 30%-40% of the global market [34][40].

Financial Performance - In the first half of 2024, the company's revenue reached approximately RMB 655.8 million, representing a growth of about 42.7% compared to the same period in 2023[4] - The gross profit margin improved to approximately 35.8%, an increase of about 8.8 percentage points year-on-year[4] - The net profit attributable to the parent company turned from a loss to a profit, amounting to approximately RMB 33.7 million[4] - Total revenue for the group increased by approximately 42.7% to about RMB 655,800,000 in the first half of 2024, up from approximately RMB 459,500,000 in the same period of 2023[29] - Gross profit rose by approximately 89% to RMB 234,800,000, with the gross margin increasing from 27.0% to 35.8%[31] - The company reported a profit before tax of RMB 36,349 thousand, compared to a loss of RMB 4,970 thousand in the previous year[71] - Net profit for the period was RMB 20,933 thousand, a significant recovery from a loss of RMB 13,382 thousand in the prior year[71] - The company reported a net profit of RMB 33,722 thousand for the period, which is a significant recovery from a loss of RMB 12,788 thousand in the previous period[76] Revenue Breakdown - The company reported significant growth in its conventional DC transmission and flexible transmission projects, generating revenue of approximately RMB 280 million, a substantial increase of about 186% year-on-year[5] - The revenue from the power distribution sector in the first half of 2024 was RMB 358.1 million, a 105% increase from RMB 175.1 million in the same period of 2023[15] - The revenue from conventional DC transmission increased by approximately 177% to RMB 146.9 million in the first half of 2024, compared to RMB 53.0 million in the same period of 2023[15] - The revenue from flexible transmission increased by approximately 196% to RMB 132.9 million in the first half of 2024, compared to RMB 44.9 million in the same period of 2023[17] - The revenue from the domestic market in the first half of 2024 was RMB 617.0 million, with a gross margin of 35.1%, compared to RMB 439.5 million and a gross margin of 26.8% in the same period of 2023[10] - The revenue from the foreign market in the first half of 2024 was RMB 38.7 million, an increase of approximately 94% compared to RMB 19.9 million in the same period of 2023[10] Market Position and Development - The company is positioned to benefit from the rapid development of the conventional DC transmission industry, with plans for new projects both domestically and internationally[5] - The company has developed a new flexible DC transmission capacitor that passed national-level certification in January 2024, which is expected to contribute to future revenue growth[5] - The company is the leading supplier of high-power insulated gate bipolar transistors (IGBT) for flexible DC transmission in China, enhancing its competitive position in the market[5] - The company aims to achieve a total sales revenue of RMB 1.6 billion in 2024, supported by the expected increase in demand for high-quality new energy development and large-scale equipment upgrades[8] Costs and Expenses - Research and development costs increased by approximately 30.9% to RMB 67,800,000, primarily due to higher expenses related to in-house IGBT development[35] - The company experienced a significant increase in financing costs, rising by approximately 112.5% to RMB 8,500,000 due to interest accruals from a repurchase agreement[37] - The group's income tax expense increased by approximately 83.3% from about RMB 8.4 million for the six months ended June 30, 2023, to about RMB 15.4 million for the six months ending June 30, 2024, mainly due to increased profits from businesses outside of self-produced IGBT[39] Shareholder Information - As of June 30, 2024, the company has repurchased a total of 18,244,000 shares at an approximate total cost of HKD 21,130,266[50] - The company does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[56] - The company aims to improve the market price per share and enhance investor confidence through share repurchases[52] Financial Position - Total assets as of June 30, 2024, amounted to RMB 2,128,748 thousand, slightly down from RMB 2,145,798 thousand at the end of 2023[73] - Current assets totaled RMB 1,935,025 thousand, a decrease from RMB 1,993,430 thousand at the end of 2023[73] - The company's cash and cash equivalents were RMB 463,093 thousand, down from RMB 799,300 thousand at the end of 2023[73] - The net asset value increased to RMB 1,931,090 thousand from RMB 1,921,661 thousand at the end of 2023[75] - The total issued capital as of June 30, 2024, was RMB 139,885 thousand, showing a slight increase from RMB 139,768 thousand at the beginning of the year[76] Cash Flow and Investments - The net cash flow used in operating activities for the six months ended June 30, 2024, was RMB (231,324) thousand, compared to RMB (98,652) thousand for the same period in 2023[78] - The cash flow used in investing activities amounted to RMB (84,118) thousand, slightly increased from RMB (80,298) thousand in the previous year[78] - The company reported a financing cash flow net outflow of RMB (19,124) thousand, a significant decrease from an inflow of RMB 88,775 thousand in the prior year[78] Corporate Governance - The company emphasizes good corporate governance practices to enhance accountability and transparency[53] - The company’s board confirms compliance with the standard code for securities transactions by directors during the six months ended June 30, 2024[54]

Financial Performance - Revenue increased by approximately 42.7% to about RMB 655.8 million[2] - Gross profit rose by approximately 89.0% to about RMB 234.8 million[2] - Gross margin improved from approximately 27.0% to about 35.8%[2] - Profit attributable to equity holders of the parent was approximately RMB 33.7 million[3] - Basic and diluted earnings per share were approximately RMB 2.09[3] - The company reported a pre-tax profit of RMB 36.3 million, compared to a loss of RMB 4.97 million in the previous year[2] - Other income for the six months ended June 30, 2024, totaled RMB 33,013 thousand, up from RMB 19,380 thousand in 2023, reflecting a growth of approximately 70.3%[10] - The company reported revenue from customer contracts for the sale of electronic power components of RMB 655,758 thousand for the six months ended June 30, 2024, compared to RMB 459,480 thousand for the same period in 2023, representing an increase of approximately 42.6%[9] - The company’s depreciation expense for property, plant, and equipment was RMB 21,413 thousand for the six months ended June 30, 2024, compared to RMB 19,756 thousand in 2023, reflecting an increase of about 8.4%[12] - The company reported a total tax expense of RMB 15,416,000 for the six months ended June 30, 2024, compared to RMB 8,412,000 in the same period of 2023[15] - Net profit margin improved from approximately -1.3% to 5.1%, with net profit attributable to shareholders increasing by approximately 652.5% from RMB -6.1 million to RMB 33.7 million[52] Assets and Liabilities - Total non-current assets amounted to RMB 965.9 million, up from RMB 844.0 million[4] - Current assets totaled RMB 1,935.0 million, compared to RMB 1,993.4 million[4] - Net assets increased to RMB 1,931.1 million from RMB 1,921.7 million[5] - Trade receivables as of June 30, 2024, amounted to RMB 911,349,000, an increase of 25.3% from RMB 727,260,000 as of December 31, 2023[19] - The total trade payables as of June 30, 2024, were RMB 371,911,000, up from RMB 301,529,000 as of December 31, 2023, reflecting a 23.3% increase[21] - Inventory increased by approximately 38.4% from RMB 229.9 million to RMB 318.2 million, primarily due to increased stockpiling[53] - Trade receivables and notes increased by approximately 31.9% from RMB 814.6 million to RMB 1,074.5 million, mainly due to increased revenue[54] Revenue Breakdown - Revenue from conventional direct current transmission increased by approximately 177% year-on-year, driven by the delivery of products for three ultra-high voltage projects[27] - Revenue from flexible transmission increased by approximately 196% year-on-year, attributed to the delivery of products for the German BorWin6 offshore wind flexible direct current transmission project[28] - Revenue from the electrified transportation sector decreased by approximately 15% year-on-year, with electric vehicle revenue dropping by 81%[30][33] - Revenue from the industrial and other sectors remained stable, with a slight increase of 0.1% year-on-year, while revenue from electrical equipment grew by 6%[36] - Revenue from international markets surged by approximately 94% year-on-year, reaching RMB 38.7 million, driven by increased sales from foreign subsidiaries[38] Research and Development - Research and development costs increased to RMB 67.8 million from RMB 51.8 million[2] - The company completed the R&D of SiC MOSFET chips, achieving a resistance of 13 milliohms, and plans to launch them by the end of August[40] - The flexible direct current support capacitors successfully passed national-level new product technical appraisal and achieved 100% domestic substitution[41] - R&D costs increased by approximately 30.9% from RMB 51.8 million for the six months ended June 30, 2023, to RMB 67.8 million for the six months ending June 30, 2024, primarily due to increased R&D costs for self-produced IGBTs[47] Costs and Expenses - The company's pre-tax profit for the six months ended June 30, 2024, was impacted by a cost of sold inventory amounting to RMB 420,321 thousand, compared to RMB 332,338 thousand in 2023, indicating an increase of about 26.4%[12] - Total financing costs for the six months ended June 30, 2024, were RMB 8,541 thousand, significantly higher than RMB 4,045 thousand in 2023, marking an increase of approximately 111.9%[13] - Sales and distribution costs increased by approximately 28.1% year-on-year, primarily due to increased marketing expenses for self-produced IGBT products[45] - Other expenses and losses surged by approximately 6,125.0% from RMB 0.4 million to RMB 24.9 million, mainly due to foreign exchange losses and forward contract losses[48] - Financing costs rose by approximately 112.5% from RMB 4.0 million to RMB 8.5 million, primarily due to interest accruals related to a repurchase agreement signed on July 27, 2023[49] - Income tax expenses increased by approximately 83.3% from RMB 8.4 million to RMB 15.4 million, mainly due to increased profits from businesses outside of self-produced IGBT operations[51] Corporate Governance and Future Plans - The company aims for sales revenue to reach RMB 1.6 billion in 2024, driven by enhanced operational management and marketing efforts[62] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22] - The company adheres to corporate governance practices, ensuring accountability and transparency, and has complied with all applicable code provisions[66] - The board confirmed that all directors complied with the standard code of conduct for securities transactions during the reporting period[67] - The audit committee reviewed the financial statements and confirmed no significant changes in business development or financial status since the last annual report[68] - A performance announcement web conference is scheduled for August 22, 2024, to discuss the interim results with shareholders and potential investors[70] Shareholder Information - The company did not declare any dividends for the six months ended June 30, 2024, consistent with the same period in 2023[16] - As of June 30, 2024, the company has issued 1,604,912,000 shares and repurchased 18,244,000 shares at a total cost of approximately HKD 21,130,266[63][64] - The share repurchase aimed to enhance the market price per share and improve investor confidence[64] - No significant acquisitions or disposals occurred during the six months ending June 30, 2024[65]

Revenue Growth and Market Performance - In 2023, the sales volume of IGBT modules reached approximately 170,000 units, generating revenue of about RMB 814 million, representing a year-on-year growth of approximately 105%[8] - Revenue from high-end application markets, including renewable energy generation, energy storage, and electric vehicles, accounted for 90% of total revenue[8] - The company achieved approximately RMB 676 million in revenue from marine solid-state DC circuit breakers, marking a year-on-year increase of about 80%[8] - The revenue from the power distribution sector was RMB 416,381,000 in 2023, a 29% increase from RMB 322,671,000 in 2022, with a gross margin of 48%[18] - The revenue from the electrified transportation sector decreased by 29% to RMB 57,392,000 in 2023, down from RMB 80,721,000 in 2022[24] - The company’s revenue from the international market was RMB 67,635,000 in 2023, with a gross margin of 38%, compared to RMB 37,487,000 and a gross margin of 53% in 2022[19] - The revenue from the flexible direct current transmission sector grew by 20% in 2023, driven by orders for specific projects[22] - In 2023, the revenue from the industrial and other sectors reached RMB 513,294 thousand, an increase of 8% compared to RMB 476,901 thousand in 2022[30] - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[89] Product Development and Innovation - New products, such as the smart grid online monitoring system, have been successfully applied in multiple UHV projects and have contributed to revenue growth[9] - The company launched several new products, including 1700V IGBT and FRD chips, and plans to introduce multiple series of 1200V and 1700V chips and modules in 2024[12] - The company is focusing on the development of power semiconductors and related devices critical to the construction of a new power system[7] - The company has established deep technical cooperation with Wuhan University to develop series products for the wind power sector[9] - The company successfully passed national-level new product technical appraisal in January 2024, laying a solid foundation for mass domestic substitution[9] - The company aims to enhance sales in the electric vehicle sector by advancing customer validation for new IGBT modules and SiC modules in 2024[28] Financial Performance and Profitability - The gross profit rose by approximately 28.3% to RMB 335.5 million in 2023, compared to RMB 261.4 million in 2022, primarily due to increased revenue and a higher proportion of high-margin products[42] - The company's gross margin improved from approximately 28.5% in 2022 to about 31.8% in 2023, mainly due to an increase in the proportion of high-margin products[46] - Net profit attributable to the parent company increased by approximately 31.3% from RMB 24.0 million for the year ended December 31, 2022, to approximately RMB 31.5 million for the year ended December 31, 2023, primarily due to revenue growth[56] - The pre-tax profit increased by approximately 20.8% to RMB 47.0 million in 2023, compared to RMB 38.9 million in 2022, primarily due to increased revenue[54] - The company reported a net profit margin of 25%, reflecting improved operational efficiency compared to 20% in the previous year[89] Expenses and Investments - Research and development costs increased by approximately 26.1% to RMB 113.6 million in 2023, up from RMB 90.1 million in 2022, driven by the development of self-produced IGBT and energy storage products[49] - The company’s administrative expenses rose by approximately 18.9% to RMB 138.4 million in 2023, up from RMB 116.4 million in 2022, mainly due to increased asset depreciation and personnel costs[48] - The company is investing in R&D, allocating $50 million towards the development of new technologies aimed at enhancing user experience[89] Corporate Governance and Strategic Direction - The company emphasizes its mission of "driving green energy development through technological innovation" and aims to become a leading supplier of power semiconductor devices and system solutions internationally[105] - The board of directors consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of necessary skills and experience for effective leadership and independent decision-making[108] - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with applicable provisions for the year ending December 31, 2023[104] - The company focuses on two main business areas: power semiconductors and advanced power electronics technology, contributing to the continuous upgrade of energy technology and promoting green energy development[111] Market Expansion and Future Outlook - The company is expanding its overseas business, particularly in the electrification of ships, achieving breakthroughs in domestic and international markets[9] - Market expansion plans include entering two new international markets by the end of the year, which is expected to increase market share by 5%[89] - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $300 million earmarked for potential deals[89] - A new marketing strategy has been implemented, focusing on digital channels, which is projected to increase customer engagement by 30%[89] Financial Position and Ratios - Cash and cash equivalents increased by approximately 29.2% from RMB 618.8 million as of December 31, 2022, to approximately RMB 799.3 million as of December 31, 2023, mainly due to investments from investors in a subsidiary[62] - Interest-bearing bank and other borrowings increased by approximately 162.1% from RMB 146.0 million as of December 31, 2022, to approximately RMB 382.7 million as of December 31, 2023, primarily due to capital structure adjustments[62] - The current ratio decreased from approximately 4.3 as of December 31, 2022, to approximately 2.9 as of December 31, 2023, mainly due to increased bank borrowings[62] - The debt-to-equity ratio increased from approximately 7.6% as of December 31, 2022, to approximately 19.9% as of December 31, 2023, primarily due to capital structure adjustments[63] Other Financial Metrics - The total tax expense for the year was RMB 22,008,000, compared to RMB 15,859,000 in the previous year, indicating an increase of approximately 38.5%[200] - The company recognized a deferred tax asset of RMB 29,224,000 due to unrecognized tax losses, which includes RMB 20,938,000 from mainland China[177] - The company incurred non-deductible expenses totaling RMB 7,298,000, with RMB 4,639,000 from mainland China and RMB 2,608,000 from Hong Kong[177]

Investment Rating - The report maintains a "Buy" rating for the company [5][14]. Core Views - The company has shown strong performance in its revenue and profit growth, with a 2023 revenue of 1.055 billion RMB, a year-on-year increase of 14.92%, and a net profit of 32 million RMB, up 31.52% [24][26]. - The semiconductor business, particularly in IGBT and SiC products, is expected to drive significant revenue growth, with a 105% increase in sales revenue to 81.45 million RMB in 2023 [26]. - The company is set to benefit from the acceleration of multiple ultra-high voltage direct current (UHVDC) projects, which will positively impact its revenue and performance from 2024 onwards [14][24]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.055 billion RMB, with a gross margin of 31.8%, an increase of 3.3 percentage points year-on-year [24]. - The net profit for 2023 was 32 million RMB, reflecting a growth of 31.52% [24]. Revenue Forecast - The company forecasts revenues of 1.593 billion RMB, 2.009 billion RMB, and 2.393 billion RMB for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 51%, 26%, and 19% [14][15]. - The expected net profits for the same years are 87 million RMB, 202 million RMB, and 243 million RMB, with growth rates of 174%, 134%, and 20% [14][15]. Market Position and Growth Drivers - The company is positioned to benefit from the increasing demand for clean energy transmission, particularly in wind, solar, and hydropower sectors [13][14]. - The introduction of new semiconductor products and the expansion of its customer base in high-demand sectors such as renewable energy and electric vehicles are key growth drivers [26]. Valuation Metrics - As of March 28, 2024, the stock price is 1.19 HKD, with corresponding price-to-sales (P/S) ratios of 1.21, 0.96, and 0.81 for the years 2024, 2025, and 2026, respectively [14][15]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.05 RMB, 0.12 RMB, and 0.15 RMB [14][15].