“Science and Technology Innovation Board Daily”, March 27 (Reporter Huang Xiumei) High Test Co., Ltd. released its 2023 annual report on the evening of March 26. During the reporting period, the company achieved revenue of 6.184 billion yuan, an increase of 73.19%; realized net profit to mother of 1,461 billion yuan, an increase of 85.28% over the previous year; and realized deducted non-net profit of 1.44 billion yuan, an increase of 91.32% over the previous year.

In 2023, Gaotsu Co., Ltd. invested a total of 389 million yuan in R&D expenses, an increase of 72.61% over the previous year; total R&D investment accounted for 6.29% of revenue, a decrease of 0.02 percentage points.

Regarding the reason for the increase in performance, Gaosec Co., Ltd. stated in its annual report that global and domestic demand for new PV installations will continue to be strong in 2023. The company took advantage of the closed-loop advantage of “cutting equipment+cutting consumables+cutting process” technology. The four major sectors of photovoltaic equipment, diamond wire, silicon wafer cutting and processing services, innovative business equipment and consumables all maintained continuous development and achieved good profitability.

The four major business segments maintain good profits

Specifically, in 2023, equipment orders for Gaoshe Co., Ltd. increased dramatically and large-scale product delivery was achieved. The company's photovoltaic cutting equipment products achieved revenue of 2.88 billion yuan throughout the year, an increase of 95.16% over the previous year. By the end of 2023, the company's orders for photovoltaic cutting equipment products totaled 2.26 billion yuan (tax included), an increase of 53.32% over the previous year.

During the same period, the production capacity and shipment volume of King Kong Wire of Gaosec Co., Ltd. increased dramatically, and almost achieved full production and sales. The company's annual production of King Kong wire in 2023 was about 56 million kilometers, an increase of 65.57% year on year. Annual sales volume (excluding personal use) was about 38 million kilometers, an increase of 51.08% year on year.

At the same time, the company's silicon wafer cutting and processing service business achieved revenue of 1.72 billion yuan in 2023, an increase of 84.99% over the previous year.

Gaosec Co., Ltd.'s innovative business segment mainly focuses on semiconductors, sapphires, magnetic materials and silicon carbide. Orders have grown steadily, and performance has also achieved significant growth. In 2023, the company's innovative business achieved revenue of 250 million yuan, an increase of 60.71% over the previous year. By the end of 2023, the total amount of in-hand orders for its innovative business equipment products was 100 million yuan (tax included), an increase of 36.99% over the previous year.

Diamond wire and slice production capacity may continue to expand

Looking back at 2023, there was strong demand for new installations in the photovoltaic industry. In terms of installed capacity, the world added more than 390 GW of PV installed capacity, a record high; 216.88 GW of new PV installations were added domestically, ranking first in the world in terms of both new and cumulative installed capacity.

In the same period, the scale of many major industrial chains in China's photovoltaic industry continued to expand, and the production of polysilicon, silicon wafers, cells, and modules all increased by more than 64% year on year. Among them, polysilicon production reached 1.43 million tons, up 66.9% year on year; silicon wafer production was about 622 GW, up 67.5% year on year; cell production was about 545 GW, up 64.9% year on year; and module production reached 499 GW, up 69.3% year on year.

“However, while the photovoltaic industry is developing rapidly, it is also characterized by phased overcapacity, downward price fluctuations in the industrial chain, rapid iteration of old and new technologies, and declining profitability of the industry. The photovoltaic industry is facing new difficulties and challenges, and competition is more intense.” Gaosec Co., Ltd. also confessed in its annual report.

In terms of production capacity, Gaosec may continue to expand its production capacity for diamond wire and slicing this year. Specifically, in terms of King Kong wire, by the end of 2023, Gaosec Co., Ltd. had an annual production capacity of about 60 million kilometers/year. In November of last year, in response to an investor survey, Gaosec Co., Ltd. stated, “In 2024, the company's production capacity of King Kong Wire will reach 100 million KM/year.”

In terms of slicing, Gaoshe Co., Ltd. has a total planned production capacity of 102 GW, with a production capacity of 38 GW at the end of 2023. Currently, the company's Yibin Phase 1 of 25 GW is under construction and is expected to be put into operation in the first half of 2024.

Regarding the business layout outlook, on February 7 this year, Gaotsu Co., Ltd. stated on the investor interactive platform that the company's equipment orders mainly came from the expansion of new production capacity in the silicon wafer sector and replacement of old production capacity stocks. It is expected that demand for replacement of old production capacity stocks and overseas demand may increase in 2024.

On the same night (March 26), Gaosec Co., Ltd. also issued the “Notice on the 2023 Annual Profit Distribution and Capital Transfer Capital Transfer and High Transfer Plan”. Based on the total share capital on the implementation of equity distribution, the company plans to pay a cash dividend of 4.50 yuan (tax included) for every 10 shares to all shareholders, and increase 6 shares for every 10 shares using capital reserve to all shareholders without bonus shares.