In the 2023 fiscal year, the company increased R&D investment, served customers with differentiated product advantages, continuously produced and innovated semiconductor cleaning equipment, completed the development of LPCVD equipment, scaled and sold solar wet cleaning equipment, and delivered copper plating equipment to customers. The new signed orders for the above products and equipment delivery have significantly increased.

Productive Tech's fiscal year 2023 performance report shows that the company achieved sales revenue of 0.54 billion Hong Kong dollars, of which 71% was revenue from semiconductor and solar equipment. According to the company's introduction at the performance exchange meeting, the newly signed order value during the period was 0.51 billion Hong Kong dollars, a year-on-year increase of 70%; the new equipment delivery amount was 0.35 billion Hong Kong dollars, a significant increase of 202%.

"Due to the immature domestication of the semiconductor equipment business, our company successfully realized innovative and differentiated product advantages. The new signed orders for the 2023 fiscal year reached 0.13 billion Hong Kong dollars, and the new equipment delivery amount was 73 million Hong Kong dollars. As of the end of the fiscal year, the unconfirmed revenue for the semiconductor equipment in-hand orders amounted to 0.22 billion Hong Kong dollars, an increase of 109% from the previous fiscal year, of which 12-inch equipment accounted for 81%." The company introduced.

It is reported that in the semiconductor equipment industry where Productive Tech is located, due to the deepening influence of geopolitical factors, domestic equipment substitution is developing rapidly, and it has now reached an important node of breaking through domestically made high-end and advanced process equipment. The company strives to seize the domestication opportunity, create equipment products with differentiated technology and high productivity, invest 0.15 billion Hong Kong dollars in R&D expenses in the 2023 fiscal year, a 123% increase from the previous fiscal year, and the proportion of R&D personnel to equipment business personnel has reached 33%, with a total of 76 patents applied for. The company's core technology team has international top factory work experience, and the semiconductor work experience averages more than 20 years. The investment in the above research and development has enabled the company to have the industry-leading new product development and iterative upgrade capability.

From the company's semiconductor equipment business perspective, the company mainly has two types of products: semiconductor chemical cleaning equipment and LPCVD equipment.

As for semiconductor cleaning equipment, with the development of process technology, the complexity of chip structure continues to increase, and the performance requirements and process steps of semiconductor cleaning are increasing. Productive Tech's mass-produced CUBE/QUADRA single-chip cleaning equipment mainly focuses on the back-side cleaning process of 6-12 inch wafers. With advanced Bernoulli transmission and edge control technology, it has achieved product performance that is completely comparable to international manufacturers and has significant advantages in mass production capacity. Therefore, it is steadily pushing for domestic substitution. The company has obtained four different new customers in the 2023 fiscal year, and the cumulative customers have reached seven. Regarding the OCTOPUS single-chip cleaning equipment specifically used on 12-inch production lines, the company stated that in addition to covering cleaning processes such as Bulk, Solvent, and BSC, it has made important breakthroughs in high-temperature SPM processes and is expected to become a heavyweight product that breaks the monopoly of Japanese manufacturers. At present, OCTOPUS equipment has been successfully delivered to the second customer, and has received purchase intentions from multiple customers. In addition, the company has also developed slot-type cleaning equipment for 12-inch wafer production lines, which can achieve advanced surface metal pollution control, have more flexible configurations, higher production capacity, and will be completed in 2024.

"Due to the excellent performance of the company's semiconductor equipment, CUBE and OCTOPUS equipment won the Best Application Award and Innovative Product Award of the Chinese semiconductor market from 2023 to 2024," the company introduced.

In addition to semiconductor cleaning equipment, the company has also started researching and developing LPCVD equipment for 12-inch advanced processes such as logic and storage chips since 2022, signed cooperation agreements with top customers, and has completed the development of multiple models to cover key film deposition processes such as ALD-SiN/Poly/LP-SiN, and launched the initiative to challenge the market led by international manufacturers, with a total value of about 10 billion RMB. The series of equipment is expected to be delivered in 2024.

On the other hand, solar equipment still plays a cornerstone role in Productive Tech's business. In the 2023 fiscal year, the new signed order for solar equipment business was 0.38 billion Hong Kong dollars, and the new equipment delivery amount was 0.28 billion Hong Kong dollars. As of the end of the fiscal year, the unconfirmed revenue for the in-hand orders amounted to 0.33 billion Hong Kong dollars, an increase of 80% from the previous fiscal year.

At the performance exchange meeting, the company stated that despite the short-term adjustment pressure faced by the entire photovoltaic industry on solar energy equipment, the company has achieved the above results through the application of semiconductor equipment design concepts to solar energy equipment and innovative iteration of products. For example, the industry's first "high productivity slot-type cleaning equipment + double-layer chain-type cleaning equipment," has signed more than ten wet-process equipment line sales orders with customers in the 2023 fiscal year by achieving cost-performance advantages such as single-machine production capacity breakthroughs of 1GW; while the jointly developed solar copper plating equipment with head customers has also been successfully delivered and is undergoing industrial validation.

Since the establishment of the semiconductor and solar energy equipment business in 2022, the company has delivered a cumulative total of 124 units of equipment with a total equipment value of 0.53 billion Hong Kong dollars, and now it can achieve full-scale delivery of mass production projects within 90 days after receiving an order. The company summarized the current status of its core business: "We now have a rich pipeline of orders in shipping and acceptance, and the group has ample funds and stable traditional oil and gas business receipts. We will accurately grasp the opportunities of the times and the market, and continue to build a first-class equipment provider in the industry with technical research and development and product capabilities."