On September 24th, in the performance conference held by Fu Chuang Precision today, the company's Chairman Zheng Guangwen stated, "In the first half of this year, the company continued to advance domestic and foreign production capacity construction. The capacity of the Nantong plant in China has gradually been released in the first half of this year, showing initial scale effects, which contributed to the revenue; the overseas factories are currently under construction as planned."

In the first half of 2024, benefiting from the strong growth in demand in the domestic semiconductor market and the recovery of the foreign semiconductor market, Fu Chuang Precision achieved revenue of 1.506 billion yuan, an 81.80% increase from the same period last year.

From a regional perspective, the mainland China market has been the main source of growth for Fu Chuang Precision this year. According to Zheng Guangwen, the company's revenue from the mainland China region in the first half of the year increased by 106.57% year-on-year, accounting for 75.04% of the total revenue; revenue from outside the mainland increased by 24.26% year-on-year, accounting for 24.96% of the total revenue.

Zheng Guangwen stated that the company's current orders are relatively sufficient, the operating conditions are stable, and production is progressing steadily and orderly, "existing production capacity can effectively meet customer order delivery requirements."

It is understood that as the main production and operation location of Fu Chuang Precision, the Shenyang factory's production capacity is close to saturation. The company is currently continuously expanding production capacity to meet the increasing demand in the component market.

At today's earnings conference, Zheng Guangwen further introduced the latest situation of the company's production capacity construction. Zheng Guangwen stated that in the first half of this year, with the gradual release of capacity in Nantong, there was a corresponding contribution to the company's revenue; at the same time, the new factories in Singapore and the USA are currently under planned construction in an orderly manner, "the construction of overseas factories will help enhance the company's cooperative relationships with overseas major customers." Zheng Guangwen also stated that specific investment progress and fund arrangements will be determined according to specific circumstances, without affecting the normal operation of the company's existing business.

In July of this year, Fu Chuang Precision announced its intention to acquire 100% equity of Beijing Yisheng Precision Semiconductor Co., Ltd. (referred to as "Yisheng Precision").

Yisheng Precision is a company that provides non-metallic components consumables based on silicon, silicon carbide, and quartz, as well as metal components consumables based on materials such as aluminum, and also offers maintenance services for core components of wafer fabs. Yisheng Precision has currently obtained advanced process certification from mainstream 12-inch wafer fab customers in China, achieved mass production and delivery, and also has business dealings with Fuchuang Precision.

Another important identity of Yisheng Precision is a offshore company controlled by Chairman Zheng Guangwen of Fuchuang Precision. Zheng Guangwen holds 68.04% of the equity of the target to be acquired. The transaction amount for this acquisition case is expected to be no more than 0.8 billion yuan.

Regarding the latest progress of this acquisition, Zheng Guangwen responded to questions from reporters of 'Star Daily' by stating that the acquisition is currently under discussion with multiple parties, further due diligence and evaluation are needed, and the transaction still requires compliance with relevant decision-making procedures of the board of directors and shareholders' meeting as per regulations.

Today (September 24), the China Securities Regulatory Commission formulated the '6 Provisions' policy guidelines for industrial integration of listed companies, indicating strong support for listed companies to transform and upgrade towards new quality production factors, engage in cross-industry mergers and acquisitions based on transformation and upgrading objectives, as well as acquisitions of non-profitable assets that help fill gaps, strengthen chains, and enhance key technological levels.

As for whether this acquisition will enhance the original business technology added value of Fuchuang Precision, Zheng Guangwen mentioned that in terms of business synergy, the company currently focuses on the R&D and manufacturing of metal components, and through acquiring Yisheng Precision, it will possess a variety of non-metallic semiconductor component products, technical reserves, and will be able to provide integrated component solutions for downstream domestic and foreign semiconductor equipment manufacturers, enhancing overall service capabilities; meanwhile, through this transaction, Fuchuang Precision will be one of the few semiconductor component companies in China with independent research and development and product manufacturing capabilities for silicon carbide components, the company's technical capabilities will be supplemented, and market competitiveness will be further enhanced.

In terms of R&D progress, in the first half of this year, Fuchuang Precision has been optimizing its process routes, advancing the development of high-performance coating processes and core functional components, with products applying 'plasma spray fluorocarbon coating technology' and 'nanofilm technology' achieving mass production in the first half of this year, and supplying to top domestic customers.

Zheng Guangwen stated that in the future, the company will continue to expand the categories of precision semiconductor device components in the 7-nanometer process based on its existing foundation and advantages, and accelerate the development of semiconductor device precision components for 5-nanometer and more advanced process processes.