Financial Performance - InnoScience reported a revenue increase of 25% year-over-year, reaching RMB 1.5 billion for the fiscal year 2024[8]. - The company projects a revenue growth of 20% for the next fiscal year, targeting RMB 1.8 billion[8]. - The company's sales revenue reached RMB 828.5 million, representing a year-on-year growth of 39.8%[15]. - The total revenue of the group increased by 39.8% from RMB 592.7 million in 2023 to RMB 828.5 million in 2024, driven by increased product sales due to market demand[37]. - Revenue from the sale of GaN discrete devices and integrated circuits increased by 87.8% from RMB 192.1 million in 2023 to RMB 360.8 million in 2024, reflecting market penetration in expanding application scenarios[40]. - Overseas sales revenue reached RMB 126.4 million, marking a year-on-year increase of 118.1%[16]. - The gross margin improved to 40%, up from 35% in the previous year, reflecting operational efficiencies[8]. - The gross loss margin improved significantly from -61.1% in 2023 to -19.5% in 2024, an increase of 41.6 percentage points[15]. - Other net income rose by 11.2% from RMB 65.0 million in 2023 to RMB 72.2 million in 2024, mainly due to increased government subsidies and foreign exchange gains[41]. Market Expansion and Product Development - The user base expanded by 30%, with active users now totaling 2 million[8]. - New product launches contributed to a 15% increase in market share within the semiconductor sector[8]. - The company launched over 50 new products during the reporting period, with 471 customer integrations[16]. - The company expanded its product applications in consumer electronics, achieving a 48.0% increase in revenue from this segment[15]. - The company has developed a full range of GaN solutions for data centers and home appliances, gaining wide recognition from major customers[34]. - The company plans to expand its market presence in Southeast Asia, aiming for a 10% market penetration by 2025[8]. - The company is the first in the world to mass-produce 8-inch wafers for GaN, leveraging multi-domain technological advantages and industry chain collaboration to achieve strong sales growth[21]. Research and Development - Research and development expenses increased by 10%, totaling RMB 200 million, focusing on advanced semiconductor technologies[8]. - R&D investment accounted for 38.99% of revenue in 2024, with a total of 422 patents granted, covering the entire voltage spectrum from 15V to 1,200V[19]. - The newly developed 3.0 generation process platform increased the output of single-chip wafers by over 30%, enhancing key performance indicators of the chips[19]. - R&D costs decreased by 7.4% from RMB 348.7 million in 2023 to RMB 323.0 million in 2024, attributed to lower unit costs and optimized team structure[44]. Corporate Governance and Management - The company has established a comprehensive internal management system for human resources, including recruitment, training, and internal referrals[73]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[111]. - The board consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors[113]. - The company has established mechanisms to ensure the independence of the board and to avoid conflicts of interest in decision-making[117]. - The company has adopted a corporate governance code and has complied with all provisions since its listing up to December 31, 2024[111]. Financial Position and Investments - The total loans and borrowings decreased from RMB 2,054.6 million in 2023 to RMB 1,923.9 million in 2024[48]. - The current ratio improved from 1.2 times in 2023 to 2.5 times in 2024, mainly due to increased cash reserves from global fundraising[50]. - Capital expenditures for the year amounted to RMB 171.8 million, down from RMB 331.3 million in 2023, primarily for the construction of R&D facilities[58]. - The company has no significant future investment or capital asset plans disclosed beyond those in the prospectus as of December 31, 2024[61]. Shareholder Relations and Equity - The company has established a shareholder communication policy to enhance investor relations and ensure timely and accurate information disclosure[139]. - Shareholders holding more than 10% of shares can request the board to convene an extraordinary general meeting[137]. - The company has established multiple channels for shareholder communication, including a dedicated investor relations section on its website[140]. - The company has not declared or paid any dividends for the year ending December 31, 2024[166]. Risk Management - The company has established a robust risk management and internal control system to ensure compliance and operational efficiency[142]. - The board is responsible for reviewing the adequacy and effectiveness of the risk management and internal control systems at least annually[143]. - Compliance risk management procedures are in place to effectively identify and manage compliance risks, ensuring operations adhere to applicable laws and regulations[145]. Leadership and Board Composition - Dr. Weiwei Luo, the founder and executive director, has been with the group since July 2017 and is responsible for overall business development and strategic planning[74]. - The company has a diverse board with members possessing expertise in finance, law, and semiconductor technology, enhancing its strategic capabilities[86]. - The leadership team is focused on driving business growth and innovation in semiconductor technology and financial management[75][77][82].

近期，全球领先的功率半导体技术企业英诺赛科发布自愿性公告，公司已与全球最大半导体企业之一的 意法半导体签署了一项基于氮化镓功率技术开发与制造的联合开发协议，根据联合开发协议，英诺赛科 可使用意法半导体在中国以外地区的制造产能生产其氮化镓晶圆，意法半导体也可利用英诺赛科在中国 的制造产能生产其自有的氮化镓晶圆。 事实上，英诺赛科自成立以来便展现出了其全球化视野的远见卓识。除了在苏州和珠海建立稳固的生产 基地外，还积极在硅谷、首尔、比利时等全球科技创新高地设立子公司，构建起覆盖全球的研发、生产 和销售网络。 近年来，英诺赛科在国际上的影响力逐步扩大，凭借700多项专利筑牢技术护城河，在全球氮化镓功率 半导体市场斩获超1/3份额，与约140家国内外客户携手，产品涉足涵盖新能源、汽车、数据中心等多领 域。 此次合作，双方将有望通过技术产能互补共享优化资源配置，实现在全球市场的快速扩张。英诺赛科也 将进一步巩固在全球氮化镓市场的行业地位，提升市场知名度，为其全球市场拓展提供有力支撑，助力 实现业务的全球化布局与可持续发展。 据了解，随着AI技术和新能源汽车的蓬勃发展，带来对电源管理、智能感知、精细控制更高的市场需 求。 ...

Summary of InnoSilicon Conference Call Company Overview - **Company**: InnoSilicon - **Industry**: Gallium Nitride (GaN) Semiconductor Technology Key Points Industry and Technology Insights - **GaN Advantages**: GaN technology is revolutionizing power semiconductor materials with high efficiency, high frequency, and high power density, making it suitable for modern applications in AI, electric vehicles, and data centers [3][4][13] - **Comparison with SiC**: GaN outperforms Silicon (Si) and Silicon Carbide (SiC) in applications below 1,200 volts, particularly in mobile fast charging and electric vehicles [3][4] - **Market Demand**: Over 90% of global power demand is below 1,200 volts, where GaN shows significant advantages [4] Financial Performance - **2024 Revenue**: InnoSilicon's total revenue reached 828 million yuan, with wafer and discrete device revenue growing 60% year-over-year to 644 million yuan [3][7] - **Future Projections**: The company anticipates that non-consumer business segments, driven by AI data centers and electric vehicles, will exceed 60% of total revenue by 2026, enhancing profitability [3][8] Market Expansion - **Consumer Electronics**: GaN chargers and adapters have surpassed 50% market penetration, with expansion into home appliances expected to drive significant growth in 2025-2026 [3][9] - **Automotive and Server Markets**: Key growth drivers for GaN include automotive electronics and server markets, with applications in onboard charging systems and data center efficiency improvements [3][10] Production and Capacity - **Current Production**: InnoSilicon has several GaN products in mass production, including automotive radar and charging systems [3][14] - **Capacity Goals**: The company aims to reach a production capacity of 20,000-22,000 wafers by the end of 2025, with plans for full capacity at the Suzhou plant (65,000-70,000 wafers) by late 2027 to early 2028 [20][23] Financial Outlook - **Profitability Timeline**: InnoSilicon expects to achieve gross profit by 2025 and net profit by the second half of 2026 [22][29] - **Utilization Rates**: The production capacity utilization rate is projected to be around 70% in 2024, increasing to 75%-80% in 2025 [21][23] Strategic Model - **IDM Model**: The company employs an Integrated Device Manufacturer (IDM) model, allowing for optimized design and manufacturing processes, crucial for GaN technology [19] Challenges and Future Development - **Scaling Production**: The company is focused on scaling production and building an ecosystem around GaN technology, including drivers and controllers [5][28] - **Market Competition**: The GaN industry has a higher technical barrier compared to SiC, leading to a more concentrated market with fewer competitors [6] Emerging Applications - **Robotics**: GaN is expected to play a significant role in robotics, particularly in joint drive motors and power supplies, with a vast market potential as humanoid robots become more prevalent [17][18] Conclusion - **Future Growth**: InnoSilicon is positioned for rapid growth in the semiconductor industry, driven by advancements in AI, electric vehicles, and robotics, with a strong focus on GaN technology [29]

Core Viewpoint - Innosilicon, a leading third-generation semiconductor company in China, reported a significant improvement in its financial performance for the fiscal year 2024, with a sales revenue of 828.5 million, representing a 39.8% increase from 2023, and a substantial reduction in overall gross loss margin from -61.6% to -19.5% [1] Group 1: Financial Performance - Innosilicon achieved a sales revenue of 828.5 million in 2024, marking a 39.8% growth compared to 2023 [1] - The overall gross loss margin improved significantly from -61.6% in 2023 to -19.5% in 2024, an increase of 42.1 percentage points [1][3] Group 2: IDM Model and Technological Innovation - Innosilicon's rise is attributed to its disruptive innovation in the IDM (Integrated Device Manufacturing) model, establishing the world's first 8-inch silicon-based gallium nitride production line [2] - The company has achieved a wafer production capacity of 13,000 pieces per month, with a manufacturing yield exceeding 95%, ensuring lower production costs and higher product quality [2][3] Group 3: Competitive Advantage and Market Position - Innosilicon is positioned as a leader in the consumer electronics market, benefiting from the explosive growth in emerging industries such as AI computing, electric vehicles, and robotics [5] - The company has developed a strong customer base across various sectors, including power semiconductor manufacturers, automotive OEM suppliers, and renewable energy companies, enhancing its supply chain capabilities [8] Group 4: Future Outlook - The global gallium nitride power semiconductor market is projected to reach 50.1 billion RMB by 2028, with Innosilicon poised to capitalize on this growth [7] - Innosilicon is expected to enter a "blowout period" in 2025, driven by increasing demand for AI computing and electric vehicles, as well as its ongoing product innovations [6][7]

Core Insights - InnoLux (02577) reported strong revenue growth for the fiscal year 2024, achieving sales of 828 million RMB, a year-on-year increase of 39.8% as the first IDM company to mass-produce 8-inch GaN wafers globally [1] Group 1: Revenue Growth - The company's revenue from consumer electronics grew by 48.0%, expanding its GaN chip applications into various segments such as smartphones, laptops, TVs, air conditioners, audio systems, and kitchen appliances [1] - The automotive electronics sector saw a remarkable growth in chip deliveries, with a year-on-year increase of 986.7% [1] - Revenue from AI and data center applications surged, with chip deliveries increasing by 669.8% due to the mass production of GaN products for 48V to 12V power conversion [1] Group 2: Manufacturing Efficiency - The overall yield rate for the company reached 95% in 2024, with unit manufacturing costs decreasing by nearly 40%, enhancing profitability [1] - The company delivered a total of 660 million chips during the reporting period, with annual shipment volumes showing exponential growth [3] Group 3: International Market Expansion - The overseas sales revenue reached 126.4 million RMB, reflecting a significant year-on-year growth of 118.1% [2]

Financial Performance - The company's sales revenue reached RMB 828.5 million, representing a year-on-year growth of 39.8%[5] - The company's total revenue increased by 39.8% from RMB 592.7 million in 2023 to RMB 828.5 million in 2024, driven by strong market demand and growth in overseas markets[28] - Revenue from the sale of GaN discrete devices and integrated circuits surged by 87.8% from RMB 192.1 million in 2023 to RMB 360.8 million in 2024[32] - Total revenue from customer contracts for 2024 was RMB 828,459,000, compared to RMB 592,717,000 in 2023, reflecting a growth of 40.0%[58] - Revenue from mainland China increased to RMB 702,073,000 in 2024, up from RMB 534,764,000 in 2023, marking a rise of 31.3%[63] Cost and Expenses - Sales cost rose by 3.7% from RMB 954.8 million in 2023 to RMB 989.9 million in 2024, with unit production costs decreasing due to production scale effects and process optimization[29] - Gross loss decreased by 55.4% from RMB 362.1 million in 2023 to RMB 161.4 million in 2024, resulting in a gross loss margin reduction from 61.1% to 19.5%[30] - Administrative expenses rose by 82.6% from RMB 247.1 million in 2023 to RMB 451.2 million in 2024, primarily due to increased employee costs and legal service fees[34] - R&D costs decreased by 7.4% from RMB 348.7 million in 2023 to RMB 323.0 million in 2024, attributed to lower unit costs and optimized team structure[35] - Financial costs dropped by 29.3% from RMB 118.9 million in 2023 to RMB 84.1 million in 2024, due to reduced interest from loan repayments and lower market interest rates[36] Profitability - The company reported a pre-tax loss of RMB 1,045,342,000 for 2024, slightly improved from a loss of RMB 1,101,932,000 in 2023[70] - The company's net loss for the year decreased by 5.1% from RMB 1,101.9 million in 2023 to RMB 1,045.7 million in 2024[37] - The operating loss for the year ended December 31, 2024, was RMB 961.277 million, compared to an operating loss of RMB 983.020 million in 2023[49] Liquidity and Capital Structure - Cash and cash equivalents increased significantly from RMB 329.0 million in 2023 to RMB 1,525.0 million in 2024, reflecting improved liquidity[38] - The current ratio increased from 1.2x as of December 31, 2023, to 2.5x as of December 31, 2024, primarily due to increased cash and cash equivalents from global fundraising[41] - The quick ratio rose from 0.8x as of December 31, 2023, to 2.0x as of December 31, 2024, also driven by the increase in cash and cash equivalents from global fundraising[42] - The net debt ratio decreased from 87.9% as of December 31, 2023, to 13.4% as of December 31, 2024, due to increases in cash and cash equivalents and total equity[43] Production and Operations - The overall yield rate reached 95% in 2024, with unit manufacturing costs decreasing by nearly 40%[9] - The company is the first in the world to mass-produce 8-inch GaN wafers, enhancing its competitive edge in the market[10] - The company established a leading mature process technology platform, achieving over 30% improvement in wafer output efficiency with the new 3.0 generation process technology[18] - The overall yield rate exceeded 95% in 2024, supported by enhanced process stability and defect control measures[20] - Cumulative chip deliveries in renewable energy and industrial applications reached 33.0 million units by the end of 2024, showcasing the company's strong capabilities in this area[16] Product Development and Innovation - The company launched over 50 new products during the reporting period, with 471 customer integrations[9] - The company has developed a new generation of 700V GaN devices, expected to start mass production in 2025, which will significantly reduce switching losses[12] - The introduction of the 100V automotive-grade device enhances the performance of lidar systems, meeting the growing demands of automotive applications[14] - The company accelerated the replacement of traditional silicon-based markets with third-generation semiconductors, achieving breakthroughs in multiple fields driven by structural demand changes[16] - In the automotive electronics sector, the company has developed automotive-grade GaN chips, enhancing overall vehicle efficiency and reducing manufacturing costs, with multiple domestic and international OEMs adopting these solutions[16] Market and Sales - Overseas sales revenue reached RMB 126.4 million, marking a year-on-year growth of 118.1%[9] - The company’s overseas market sales revenue reached RMB 126.4 million, accounting for 15.3% of total revenue, with a year-on-year growth of 118.1%[22] - The company delivered server power chips to multiple global manufacturers and launched 650V and 100V GaN power devices, significantly improving power density and efficiency in data centers[16] Human Resources - The company employed 1,147 staff as of December 31, 2024, with a focus on enhancing human resource management through various recruitment and training programs[48] - Employee costs decreased to RMB 590,715,000 in 2024 from RMB 582,878,000 in 2023, showing a slight increase of 1.4%[65] Corporate Governance - The company has confirmed compliance with all applicable corporate governance codes during the reporting period[90] - The company has established an audit committee consisting of three independent non-executive directors to review the audited consolidated financial statements for the year ending December 31, 2024[94] Future Outlook - The company plans to utilize 60% of the net proceeds from the IPO, amounting to approximately HKD 781.48 million, to expand its 8-inch GaN wafer production capacity from 12,500 wafers per month to 70,000 wafers per month over the next five years[91] - The company aims to allocate 20% of the net proceeds, approximately HKD 260.49 million, for research and development to enhance the penetration of GaN products in end markets such as consumer electronics and automotive electronics by 2029[91]