①The company's gmc can be used for hbm packaging. The related products have been verified by customers and are currently in the sample stage. ②The company's capacitive materials have been widely applied, and the materials for photovoltaic module packaging have formed a small amount of sales. The clear mold materials and lubricant materials for semiconductor packaging are expected to be put into production in the third quarter.
On August 21, Huahaicheng Technology disclosed its 2024 semi-annual report.
During the reporting period, the company achieved revenue of approximately 0.155 billion yuan, a year-on-year increase of 23.03%; the net profit attributable to the parent company was approximately 24.8944 million yuan, a year-on-year increase of 105.87%; the non-net profit was 23.7654 million yuan, a year-on-year increase of 118.56%.
In terms of quarterly performance, the company achieved operating income of 82.92 million yuan in the second quarter, a year-on-year increase of 15.35%; realized net profit attributable to the parent company of 12.12 million yuan, a year-on-year increase of 52.75%, a slight decrease compared to the previous quarter.
Regarding the business situation, Huahaicheng Technology stated that with the gradual recovery of the terminal consumer electronics market and the demand driving factors in the fields of artificial intelligence, automotive, and high-performance computers, the semiconductor material industry has resumed growth. The capacity utilization rate of the company's downstream customers has increased, and the company's order scheduling has become more reasonable, further optimizing the product structure.
Huahaicheng Technology's main business is the research and industrialization of semiconductor packaging materials, including epoxy encapsulation materials and electronic adhesives, which are applied in semiconductor packaging and board-level assembly.
The company has more than 200 products in the EMG100-900 series, EMS100-700 series, EMO series, etc. for epoxy encapsulation materials. Liquid electronic adhesives include HHCK-31 series, HHCK-61 series, HHCK-69 series, etc., mainly used in wafer-level packaging, bottom filling, chip bonding, PCB module assembly, and various structural bonding in semiconductor IC packaging.
It is worth mentioning that Huahaichengke stated in the financial report that it continues to invest in research and development of granular (GMC) and liquid encapsulant (LMC) usable in the HBM field. According to the company's latest institutional research meeting minutes, the company's GMC can be used in HBM packaging. The related products have been validated by customers and are currently in the sampling phase.
In terms of advanced packaging business, the company has developed high-end packaging materials that can be applied in BGA, SiP, FOWLP/FOPLP, and other advanced packaging fields. Currently, they are still in the stage of customer evaluation and verification, with no large-scale production yet. Huahaichengke admits that it will take some time for this material to be widely recognized by chip design companies and packaging manufacturers and to achieve industrialization.
It is reported that the volume of revenue from the company's advanced packaging products is influenced by various factors, including the willingness of chip design manufacturers, customer trial and error costs, and the industry's economic conditions. Huahaichengke stated that the overall technological level currently lags behind major foreign manufacturers, especially in the field of high-end product validation and application, with relatively fewer opportunities, posing risks of untimely research and progress not meeting expectations.
In terms of production capacity, the company revealed that during the reporting period, it partially upgraded its existing production lines, improved operating efficiency, and optimized production line configurations. The company's fundraising project, the "High-Density Integrated Circuits and System-Level Module Encapsulation Epoxy Encapsulant Project," has made smooth progress, and the main construction has been nearly completed.
In terms of market development, the company's capacitor materials have been widely applied, with materials used in photovoltaic module packaging generating some sales. Clean mold materials for semiconductor packaging and mold release materials are expected to start production in the third quarter.
During the reporting period, Huahaichengke invested 12.3391 million yuan in research and development, a year-on-year increase of 13.11%, accounting for 7.94% of total revenue. It is reported that the company has completed the transformation of the pilot non-ferrous production line, added ball mills, high mixers, post mixers, magnetic separators for pilot production, and improved the control systems for raw material storage and semi-finished product storage for pilot production. With increasing demand for automotive-grade epoxy sealant materials, the company is further developing sulfur-free epoxy sealant products.