①Tianyue Advanced indicates that during the reporting period, benefiting from the continuous penetration of silicon carbide semiconductor materials in the fields of new energy vehicles and wind energy storage, the downstream application market continues to expand; ②It is widely believed in the industry that compared to mature silicon wafer manufacturing processes, silicon carbide substrates will still face challenges in terms of preparation difficulty and high cost in the short term.
On the evening of August 22, Tianyue Advanced, a leading silicon carbide substrate company, released its semi-annual report for 2024.
According to the financial report, in the first half of 2024, the company achieved operating income of 0.912 billion yuan, an increase of 108.27% compared to the same period last year; achieved a net profit of 0.102 billion yuan, an increase of 241.40% compared to the same period last year, achieving a turnaround.
Regarding the performance change, Tianyue Advanced stated that during the reporting period, benefiting from the continuous penetration of silicon carbide semiconductor materials in the fields of new energy vehicles and wind energy storage, the downstream application market continued to expand, and the demand for high-grade products from end users was strong; the company's production capacity and output of conductive products continued to increase, product delivery capability increased, and profitability improved.
In the view of industry insiders, Tianyue Advanced's performance in the past few years has experienced certain ups and downs, which is somewhat related to the company's accelerated business transformation. It has shifted from early-stage focus on the semi-insulating substrate market to accelerated layout of conductive substrates, which has helped boost the company's performance.
As of now, Tianyue Advanced has achieved mass supply of 8-inch conductive substrates and other products, with major customers including domestic and foreign clients in the fields of power electronic devices, 5G communication, and automotive electronics.
Tianyue Advanced is a leading domestic wide-bandgap semiconductor material manufacturer, mainly engaged in the research and development, production, and sales of silicon carbide semiconductor materials, which can be widely used in microwave electronics, power electronics, and other fields.
Wide-bandgap semiconductor materials, also known as third-generation semiconductor materials, have good market prospects in the fields of 5G communication, new energy vehicles, and energy storage, and are important development directions for the semiconductor industry.
The industry generally believes that, compared to mature silicon wafer manufacturing processes, silicon carbide substrates will still face challenges of high preparation difficulty and high cost in the short term. For example, the price of silicon carbide power devices is still several times higher than silicon-based devices, and downstream applications still need to balance the high price of silicon carbide devices with the relationship between the comprehensive cost reduction due to the superior performance of silicon carbide devices.
Tianyue Advanced stated that silicon carbide substrates are the core link in the industry chain. If the company and industry enterprises cannot continuously reduce the cost of silicon carbide substrates, it may lead to the overall industry not meeting expectations, which will have an adverse impact on the company's operations.
In terms of profitability, in the first half of 2024, the company's comprehensive gross margin was 23.01%, an increase of 11.7 percentage points compared to the same period last year. Its comprehensive gross margin is affected by factors such as production costs, product selling prices, and product structure.
In terms of research and development expenses, during the reporting period, Tianyue Advanced's research and development expenses amounted to 56.2098 million yuan, accounting for 6.16% of revenue, a decrease of 37.41% year-on-year. The company stated that this was mainly due to the higher net new product development expenses in the same period last year, leading to a decrease in the current period's net amount.
Recently, on the investor interaction platform, some investors expressed concern about the future progress of Tianyue Advanced's innovative products: "The fourth-generation semiconductor materials have come out, does it overlap with the company's use of third-generation materials? Does the company have plans for fourth-generation materials and response strategies?"
Tianyue Advanced responded by saying:" The company continues to layout forward-looking technological innovation, including in the fourth-generation semiconductors such as diamond substrates, which is also the direction of the company's technological innovation. Overall, the current global fourth-generation semiconductor materials are still in the development stage."