On September 7, 2021, Watt Gas (688268) issued an announcement saying: CITIC will conduct a survey of Cheng Wei, Luo Siwei and Liu on September 6, 2021 by Zhang Suihua, the company's director and deputy general manager, and Wan Lingzhi, secretary of the board of directors. Securities Assistant Sun Qiong is in charge of reception.

The main contents of this survey are as follows:
General Manager Wan introduces the situation of the company and submits an analytical semi-annual report.
2. Question and answer session:
1. What are the main core technologies of the company? What are the advantages of the company compared with other companies? Answer: the company's main core technologies are: purification, mixing, cylinder treatment, testing. There are three aspects of advantages: first, the first is the first advantage of technological research and development. Special gas has been developed since 2000, and special gas has been formally established as the research and development direction in 2005. At present, special gas has been deeply cultivated for more than ten years, and some products have been developed and imported substitution has been realized. The second is the advantage of rich product categories, at present, there are more than a dozen series, and there are many manufacturing links that can be supplied to the IC factory, such as etching, cleaning, epitaxy, film deposition, ion implantation, doping, etc.; third, customer advantage (brand advantage), the company covers 80% of the domestic 8-inch factory.
2. When was the earliest start of the company's purification technology? How long did it take the company's products to "cut into" ASML? Answer: in early 2000, TDK in Japan built a 4-inch production line in China, which needed a lot of cleaning gas. The cost from Japan was very high, so I found the company. The company combined with previous experience accumulation and exploration to develop a high-purity carbon dioxide and supply. This is the earliest formation of purification technology. It is easy to say, but the process also takes a long time to break through. It took almost three years to enter the ASML certification before and after the certification was passed.
3. What is the proportion of advanced and mature products produced by the company? A: most of the company's products are supplied to mature processes, and about 10 products are supplied to advanced processes. It is now 90:10 as a share of revenue.
4. Is there a "ceiling" in the special gas market? A: the global market for electronic semiconductor gas is about 30 billion, and it will continue to increase. At present, the company's share is less than 2%, and there is still a lot of room for breakthrough.
5. Has the company cooperated with overseas giants, buying or selling from them? A: overseas gas giants have purchased special gas from companies, such as French liquid Air, Linde, Japanese Acid, and so on.
6. Is there a risk of price fluctuations in the company's products? Answer: the price of raw materials fluctuates greatly, and there will be, but the company is mainly based on special gas, and the company has a lot of special gas products, so it involves a lot of raw materials, individual fluctuations, because the share of individual products is not very large, so it has little impact on the gross profit of the company as a whole. This is also where the company is more competitive, indicating that gross profit and net profit are unlikely to rise and fall sharply.
7. What is the competitiveness of lithography? A: the company's lithography gas has passed the ASML certification, and the company is the only gas company in China. This year, one has also passed the Japanese GIGAPHOTOR certification, and the other three are also certified. In the first half of 2021, sales of lithography increased by more than 70% compared with the same period last year.
8. Which of the company's products need to be expanded? Answer: the company will plan the company's production capacity according to the downstream demand, such as fluorocarbon, carbon and oxygen need to expand production is obvious.
9. See that the company has announced that it is going to do ethylsilane this product, what links are mainly used in this product, and how much capacity will there be in the future? How much is the output value? Answer: ethyl silane products are mainly film-sinking gases. The design capacity of this project is 15 years. At current prices, the terminal is about 20 million per ton.
10. How long does it take for the company to introduce a new product? A: at present, it takes about 6 months to 1 year for the company to introduce mature products into existing semiconductor customers, and it takes more than 1 year to introduce new products. If you have never entered the field of integrated circuits, it will take a long time to enter. It took more than 4 years for the company's products to be used by Taiwan Semiconductor Manufacturing Co Ltd.
What kind of company does the company belong to compared with other gas companies? A: the company is a special gas company, which accounts for about 57% of the special gas business in the first half of the year. The company is committed to the localization of special gas, and is also the promoter of the localization of special gas.
12. What are the main reasons for the sudden drop of more than ten points in the company's gross margin in the first half of 2021? Answer: mainly to implement the new accounting standards, the freight is included in the cost, in fact, the impact is not great, almost a point.
13. What is the proportion of each product in the semiconductor gas market, and what are the links involved in the company's products? A: according to TECHCET statistics, silane accounts for about 22% of the semiconductor gas market, nitrogen trifluoride accounts for about 13%, ion implantation gas accounts for about 10%, fluorocarbon accounts for about 6%, tungsten hexafluoride accounts for about 4%, laughing gas accounts for about 4%, germanane accounts for about 3%, high purity ammonia accounts for about 3% and other gases. The company's products include etching, cleaning, epitaxy, vapor deposition / film formation, ion implantation, lithography and so on.

Main business of Walter Gas: projects that can only be operated with approval, holding valid permits to engage in the research and development, production, sale and transportation of various industrial gases, medical gases, standard gases, special gases, mixed gases, food additive gases, gas extinguishing agents, electronic gases, electronic chemicals, foaming agents Sales: gas related equipment and spare parts, gas packaging, gas cylinders, medical equipment, fire fighting equipment and equipment, mechanical equipment, mechanical castings, hardware and building materials, metal materials, welding appliances and welding materials, chemical raw materials and products (except dangerous chemicals), plastic products, rubber products, household appliances, office supplies, daily necessities, toys, kitchen utensils Provide technical consultation, technical support services, pre-sales and after-sales services; engaged in gas-related application technology development, software system development, technical consulting, technical services and technology transfer, gas testing, cylinder inspection; engaged in the construction of gas-related projects and projects; engaged in design and development, manufacturing, processing, installation and maintenance of gas-related equipment and parts and providing related services Car leasing, other machinery and equipment leasing, factory leasing, market information consultation; goods import and export, technology import and export; general freight, dangerous goods transport[Category 2, category 3, category 8]. (for projects that must be approved according to law, business activities can only be carried out after being approved by the relevant departments.)

According to the 2021 report of Walter Gas, the company's main income was 647 million yuan, up 53.4% from the same period last year; the net profit from the home was 65.8676 million yuan, up 53.79% from the same period last year; deducting 58.4819 million yuan from non-net profit, up 44.74% from the same period last year; debt ratio 17.29%, investment income 4.5011 million yuan, financial expenses 2.975 million yuan, gross profit margin 24.46%.