Oriental Semi(688261)2024-08-29 10:54Financial Performance - The company's revenue for the reporting period decreased compared to the same period in 2023 due to a decline in product sales prices and gross margins [3]. - The company's revenue for the first half of 2024 was ¥419,534,397.10, a decrease of 21.30% compared to ¥533,077,050.64 in the same period last year [16]. - Net profit attributable to shareholders was ¥16,941,427.14, down 83.08% from ¥100,135,576.33 year-on-year [16]. - Net profit excluding non-recurring gains and losses was ¥1,662,716.79, a significant decline of 98.20% from ¥92,388,920.18 in the previous year [16]. - The net cash flow from operating activities was -¥24,368,076.81, compared to ¥7,609,884.60 in the same period last year, representing a decrease of 420.22% [16]. - The weighted average return on equity decreased to 0.59%, down 2.90 percentage points from the previous year [17]. - The company's operating revenue for Q2 2024 was 246.43 million yuan, an increase of 42.35% compared to Q1 2024, while net profit attributable to shareholders reached 12.65 million yuan, up 194.53% quarter-on-quarter [19]. - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management [137]. Research and Development - The company maintained a proactive approach to R&D investment, impacting operating performance due to ongoing expenditures on materials, employee compensation, and development platforms [3]. - The company's R&D expenditure as a percentage of operating revenue increased to 9.24%, up 1.84 percentage points from the previous year [17]. - R&D investment continues to grow, with an increase in the number of R&D personnel, patents, and new product developments, alongside improvements in the digital management systems enhancing R&D efficiency and product quality control [52]. - The company has established a strong R&D team with core technology personnel having over ten years of experience in the power semiconductor field, ensuring leading product performance domestically and internationally [70]. - The company is focusing on the development of new products and technologies, particularly in the semiconductor sector, including innovations in IGBT and MOSFET devices [9]. Market and Competitive Position - The company is exploring market expansion opportunities and potential mergers and acquisitions to enhance its competitive position in the semiconductor industry [10]. - The report indicates a strategic shift towards vertical integration in semiconductor manufacturing, aiming to improve efficiency and reduce costs [11]. - The company has become a leading domestic high-performance power semiconductor manufacturer, leveraging years of technological advantages and deep integration within the industry chain [28]. - The company is actively optimizing its product mix strategy and upgrading its process platforms [3]. - The company is focusing on high-performance power device R&D and sales, specializing in industrial and automotive applications, with a complete experience from patent to mass production [37]. Product Development and Innovations - The company is committed to maintaining high standards in product quality and performance, particularly in power semiconductor applications [12]. - The company's TGBT products, based on the innovative Tri-gate IGBT structure, possess the technological capability to surpass the current seventh-generation IGBT chips [28]. - The company's SiC MOSFET products have achieved mass production, with the first and second generation 605V and 1200V SiC MOSFETs passing reliability tests and gradually entering the market [29]. - The company has developed various TGBT devices based on proprietary technology, including 650V, 1200V, and 1350V platforms, which have entered multiple leading customers in applications such as photovoltaic inverters and energy storage [37]. - The company has successfully upgraded the performance of the 25V-150V series in the medium and low voltage shielded gate MOSFETs, enhancing device capabilities [51]. Governance and Compliance - The board of directors confirmed the authenticity, accuracy, and completeness of the semi-annual report [4]. - There were no significant governance issues or non-operational fund occupation by controlling shareholders [5]. - The company has not disclosed any special arrangements regarding corporate governance [5]. - The company has committed to fair and reasonable pricing for any unavoidable related party transactions [168]. - The company has ensured compliance with its internal regulations regarding related party transactions and decision-making processes [168]. Risks and Challenges - The company faces operational pressures and risks of performance decline if market competition intensifies, macroeconomic conditions worsen, or if it fails to expand its customer base effectively [3]. - The company faces risks from high competition in the power semiconductor industry, with a relatively low market share in high-performance industrial and automotive applications [90]. - The company relies on a concentrated supplier base for wafer manufacturing, which poses risks if there are capacity constraints in the wafer foundry industry [91]. - The company is expanding its operational scale, which may lead to increased management complexity and internal control challenges [93]. Future Outlook - The company provided guidance for the second half of 2024, expecting revenue to grow by an additional 20% [137]. - New product launches are anticipated to contribute an estimated 200 million allocated for potential deals [135]. - The company plans to gradually reduce its stock holdings after the lock-up period, adhering to relevant laws and regulations regarding shareholder reductions [139].