highrollerbonusesforpokerplayers| Leonwei benefits from domestic substitution and accelerates the growth of compound RF chips

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Ruan Runsheng, a reporter from the Securities Times

Semiconductor wafer head enterprise Lion Micro (605358) held a performance presentation on May 7th. Company executives told the Securities Times that the company has made an early layout of the production capacity of semiconductor silicon wafers, semiconductor power device chips and compound semiconductor RF chips, and is expected to pick up with the recovery of the economy. all three business sectors have growth momentum. Among them, the compound semiconductor RF chip business benefits from the acceleration of domestic substitution and other factors to achieve volume growth. In addition, Lionwei is implementing the unified management of various business sectors, and there are no plans for a spin-off listing.

In 2023, Lionwei achieved operating income of nearly 2.7 billion yuan, down 7% from the same period last year.Highrollerbonusesforpokerplayers.7%; realized net profit of 65.75 million yuan, down 90% from the same period last year; basic earnings per share of 0.1 yuan; and in the first quarter of 2024, the company realized net profit of-63.15 million yuan.

Overall, the cost pressure brought about by capacity expansion, periodic losses from the acquisition of Jiaxing Jin Ruihong, product price reduction leading to a sharp decline in gross profit margin and a reduction in fair value changes have become important factors dragging down Lion's performance. In the first quarter of this year, although the semiconductor industry market began to recover, sales orders increased, and sales of main products increased significantly, due to the low sales unit price and the conversion of new production lines last year, the corresponding fixed costs increased significantly compared with the same period last year, resulting in a larger decline in comprehensive gross profit margin and an increase in inventory impairment.

At this performance meeting, on the specific price inflection point of the semiconductor wafer industry, Lion Weibo executives told the Securities Times that current orders for 6-inch 8-inch wafers are full, and shipments of 12-inch wafers have increased significantly compared with the same period last year. The inflection point of semiconductor wafer price recovery is affected by many factors, such as macroeconomic growth, wafer supply and demand, customer orders and so on.

In addition, Jiaxing Jin Ruihong as the main performance "blood loss point", the company executives told the Securities Times that the subsidiary is currently in the capacity climbing stage, when to reverse losses is affected by capacity, shipments, product prices and other factors.

In the recent institutional research, company executives said that if monthly shipments reach 100000 positive films, Jiaxing base monomer is expected to break even. According to the annual report, the company's 12-inch silicon polishing wafer expansion project at Jiaxing base is proceeding as planned and is expected to reach a production capacity of 150000 wafers per month by the end of 2024.

Lionwei is also promoting the construction of new production capacity in other production bases. Among them, the Quzhou base with an annual production capacity of 6 million 6-inch 8-inch silicon polishing wafers is in steady progress, and the transfer of 8-inch 250000 silicon wafers per month is expected to be completed in September 2024; the Quzhou base annual output of 1.8 million 12-inch silicon epitaxial wafers is under construction. The Haining base has an annual production capacity of 360000 pieces of 6-inch microwave RF chips and devices, which is expected to be completed and put into commercial operation in the fourth quarter of 2024.

In the field of semiconductor wafers, Lion's 12-inch products have covered more than 14nm technology node logic circuits and memory circuits. In the first quarter of this year, the company's wafer business gradually recovered. during the reporting period, the company sold 3.1118 million 6-inch wafers, an increase of 45.47% over the same period last year and 14.44% month-on-month growth of 171400 12-inch wafers, up 71.62% from a year earlier.

In terms of business, Lion Micro compound RF chip sales increased significantly. Last year, the business's operating revenue increased nearly 1.71 times year-on-year to 137 million yuan, with sales of 17900 pieces, an increase of 141% over the same period last year, a record high. Sales reached 9000 in the first quarter of this year, up 388% from a year earlier.

Lion micro executives told reporters that the company's compound RF chip products benefited from a complete breakthrough in product technology, customer verification was smooth, RF chip verification progress has basically covered domestic mainstream mobile phone chip design customers, domestic replacement acceleration; multi-specification, small batch, multi-purpose, high value-added special-purpose products continue to release, low-orbit satellite customers have passed the verification and began to ship in large quantities. Therefore, there has been a substantial increase in the total number of customers, orders, capacity utilization, shipments, sales and so on.

Last year, Lionwei also became the first manufacturer in the industry to mass-produce two-dimensional addressable lidar VCSEL chips. As to whether the company's mass-produced VCSEL chips are used in the field of optical communications, Lion Weibo executives responded that the downstream of the company's products will eventually be widely used in 5G communications, smart phones, computers, automotive industry, consumer electronics, photovoltaic industry, low-orbit satellite, smart grid, medical electronics, artificial intelligence, Internet of things and other terminal applications.