Zhonghuan Semiconductor's revenue in 2020 was 19 billion yuan, and the progress of Jiangsu semiconductor silicon wafer base was slightly slow

On March 11, Zhonghuan Semiconductor released its 2020 annual report stating that the company achieved operating income of 19.06 billion yuan, a year-on-year increase of 12.8%; net profit of 1.48 billion yuan, a year-on-year increase of 17.0%; net profit attributable to shareholders of listed companies was 1.09 billion yuan, an increase of 20.5% over the same period last year.

中环股份表示，影响公司报告期业绩的主要因素有：（1）2020年公司所处光伏新能源行业及半导体行业市场景气度显著提升，光伏新增装机需求持续增加，半导体产业加速向中国区转移，公司综合竞争优势进一步凸显，市场占有率提升；（2）光伏材料围绕理论产能提升、产品质量升级和产品成本下降的研发创新成果显著，技术进步提升原有光伏材料产能的贡献占比近20%，产品入档率上升，优化公司产能结构、降低单位投资成本，但创新集中于Q4显现，作用于业绩的时间较少；（3）天津DW智慧工厂光伏晶片人均劳动生产效率上升300%以上，制造效率进一步提升；（4）2020年下半年，G12产业链上下游扩张超出预期，生态加速成熟，公司原G12产能扩张计划过于谨慎，成为产业瓶颈。

In terms of semiconductor materials, during the reporting period, sales of semiconductor silicon wafers increased by 38.74% over last year, production increased by 37.65% over last year, and inventory increased by 19.37% over last year, mainly due to the company's semiconductor material large-size silicon wafer production capacity increase and increased sales scale; semiconductor silicon wafers include the conversion of some semiconductor silicon rod products for export.

In 2020, the semiconductor industry entered a new round of upward cycle, and the industry's overall production capacity began a new round of expansion. Due to the impact of the COVID-19 pandemic on the global economy, semiconductor products of all categories have shown regional supply and demand imbalances. Benefiting from the effective control of the epidemic in my country and the development opportunities brought about by the rapid recovery of the domestic economy and production, China's semiconductor industry has made great progress; but at the same time, affected by the global epidemic, the progress of the company's new project in Jiangsu did not meet expectations during the reporting period, which greatly affected the company's production and sales balance and was in a state of supply exceeding demand for a long time.

During the reporting period, the company's 12-inch wafers achieved major breakthroughs in key technologies and product performance and quality, and have been mass-produced and supplied to major domestic digital logic chip and memory chip manufacturers; the traditional silicon wafer (5-inch, 6-inch, and 8-inch) business for power semiconductor products has grown steadily and is supplied to domestic and international users. In 2020, the company's silicon wafer shipment area increased by more than 30% year-on-year.

Zhonghuan Semiconductor plans to put into production the Fab2 crystal growth factory of Zhonghuan's leading Inner Mongolia base, further expand the capacity of 8-inch power semiconductor products at the Tianjin base, and start the second phase of the 8-12-inch project at the Jiangsu base in 2021, so as to expand its market share in this field.

In terms of semiconductor devices, based on the fact that the company's 5-inch GPP chips with independent intellectual property rights have been recognized by the market, the company will supplement bottleneck production capacity and expand production and sales in 2021; the 6-inch power chips will use the existing factory buildings to fill in the gaps and expand production capacity to achieve the scale rationalization of the 6-inch power chip production line. On this basis, the company plans to reorganize the semiconductor power device business, and will actively explore and implement related semiconductor packaging industries that are suitable for the company's capabilities and future development prospects.