Suzhou Goodtech: The semiconductor industry has strong demand and the company has completed two rounds of price increases

Recently, Suzhou Gotech stated in an institutional survey that the company's continued performance growth in the first half of the year was mainly due to two reasons: on the one hand, the semiconductor industry has strong demand and products are in short supply, and it has completed two rounds of price increases; the company implemented lean management to reduce costs and increase efficiency, and management expenses were reduced; on the other hand, the new material silver paste product achieved a breakthrough in single crystal PERC, successfully entered the top five customers among battery manufacturers and gradually increased its volume.

It said that the 2020 COVID-19 pandemic accelerated the transformation of the industry. On the one hand, battery cells were concentrated in leading enterprises, and many small and medium-sized battery cell companies closed down and reduced production. On the other hand, it accelerated the transformation from multi-crystalline to monocrystalline SE PERC. This posed a great challenge to Suzhou Jingyin's business characteristics of mainly serving small and medium-sized customers and excelling in multi-crystalline. After hard work, Suzhou Jingyin made a breakthrough in monocrystalline SE PERC products in the second half of 2020, and its customer structure was also optimized. It has now entered mass production for several of the top ten battery cell customers.

In the first half of 2021, its single crystal PERC silver paste performance achieved a breakthrough. After several customers completed reliability testing, they gradually increased their sales, and silver paste sales increased by 98.67% year-on-year. And this situation is expected to continue in the second half of the year. In addition, HJT low temperature silver paste and single crystal PERC back silver will be new important growth points.

Regarding the increase in the company's inventory, Suzhou Gotech said that this part of the inventory was mainly due to the increase in the inventory of Jingyin's silver paste materials. However, this situation is not normal, because the orders placed by Jingyin's newly introduced major customers are delivered on a monthly basis, which is different from the previous short-term delivery situation, thus forming an increase in book inventory.

Regarding its shareholding subsidiary Suzhou Minghao Sensing Technology Co., Ltd., Suzhou Gotech said that Minghao's capital increase in the first half of 2021 was jointly invested by Xiaomi, SMIC and Fenhu Qinhe, and Minghao's products have been mass-produced for Xiaomi mobile phones and earphones. In the future, Suzhou Gotech will also increase cooperation with Xiaomi on packaging and testing projects for discrete devices and other products.