Sun Lang said that from the order income perspective, the company has completed last year's order volume in the first half of this year; some practitioners told the 'Science and Technology Innovation Board Daily' reporter that the recent downstream customer expansion of the company also reflects its optimistic expectations for market demand.
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On January 25-26, 2024, China Securities Regulatory Commission held the 2024 System Work Conference and emphasized that it should highlight the concept of investor orientation. To help investors better understand the real development situation and value of the enterprise, further protect the legitimate rights and interests of investors, etc., Caijing.com and 'Science and Technology Innovation Board Daily' jointly created the 'Shareholders Meeting in Perspective' column.
The 'Shareholders Meeting in Perspective' column is reported on site, focusing on the core management of the chairman of the listed company and others at the shareholders meeting, focusing on the long-term strategy, major decisions, and operational policies of the enterprise, aiming to enhance the image of the enterprise in the capital market, optimize investor relations management, and improve the governance and development of the listed company.
This issue's company:
Beijing Huafeng Test & Control Technology
Company profile
As one of the earliest enterprises to enter the semiconductor testing equipment industry in China, Huafeng Test & Control Technology has been deeply rooted in the industry for nearly 30 years, always focusing on the field of analog and mixed signal testing equipment.
Company Highlights
In the field of wide-bandgap semiconductor testing, Huafeng Test & Control Technology has made significant progress in mass production testing technology, realized wafer-level multi-site parallel testing, solved industry difficulties in testing of multiple GaN wafers, and has been successfully mass-produced. The company has achieved localization substitution in the semiconductor partial testing field and has become the largest domestic supplier of semiconductor automated testing equipment.
Business model
The company is specialized in the research and development, production and sales of semiconductor automated testing systems, providing high-quality and efficient semiconductor automated testing systems and accessories to customers in the fields of integrated circuit design, IDM, wafer manufacturing, packaging and testing, and obtaining revenue and profits.
On July 11th, 2024, Huafeng Test & Control Technology's first extraordinary shareholders meeting of 2024 was held at the company's Beijing headquarters.
The meeting adopted the resolutions such as 'Proposal for the 2024 Restricted Stock Incentive Plan (Draft) and its summary.'
According to the company's latest 2024 Restricted Stock Incentive Plan, it agrees that the grant date of this incentive plan is July 8, 2024, and agrees to grant 0.219 million restricted stocks to 19 incentive objects at a grant price of 56.00 yuan/share.
The 'Science and Technology Innovation Board Daily' reporter noticed that as of the close of July 8, the stock price of Huafeng Test & Control Technology was 87.97 yuan/share, while the exercise price of the stock options was 56.00 yuan/share. The specific assessment target is: from 2024 to 2026, taking the main business income of 2023 as the base, the company completes the compound growth rate of revenue income by 20%.
"We have confidence in achieving the challenging goals of the stock-based incentive plan." Regarding the stock-based incentive plan, Sun Lang, chairman of the company, told the shareholders on the scene that by giving rights and obligations to incentive objects, the company can retain a group of core backbone and talents.
"From the perspective of order income, the company has completed the order volume of last year in the first half of this year." Sun Lang said that on the one hand, the company's testing machine products have expanded from traditional analog to SoC, mixed signal and power fields. In terms of product performance and market share, they are in a leading position among similar products; on the other hand, the company's main business belongs to the manufacturing of dedicated equipment for semiconductor materials, serving most of the industry links from design to package testing of the semiconductor industry. "From the end of 2023, the (industry) is in the stage of rebounding from the 'trough.'"
Some practitioners told the 'Science and Technology Innovation Board Daily' reporter that the recent downstream customer expansion of the company reflects its optimistic expectations for market demand.
The above practitioners pointed out that, taking JCET Group Co., Ltd. and Tianshui Huatian Technology and other integrated circuit manufacturers as examples, with the recovery of downstream consumer purchasing power, the demand for the semiconductor market continues to grow, especially in the subdivided links such as integrated circuit design, wafer manufacturing, packaging and testing, etc. "In general, in order to meet market demand, semiconductor testing equipment companies such as Huafeng Test & Control Technology need to increase production capacity to increase supply."
In terms of product expansion, a spokesperson from Beijing Huafeng Test & Control Technology (华峰测控) told reporters from the Star Market Daily that the company has launched a new generation of testing system, STS8600, which is aimed at the field of system-on-a-chip (SoC) testing in 2023. It is mainly used in the testing of large-scale SoC chips. "Currently, this product is still in the research and development stage and customer verification stage, and is expected to achieve volume production in 2025."
"The company's product strategy is to sell one generation and develop the next one. For example: after the STS8200 product formed stable revenue, we began to develop the next generation of STS8300 products, and so on," said a spokesperson from the company.
Regarding the source of product revenue, a spokesperson from Beijing Huafeng Test & Control Technology (华峰测控) stated that the STS8200 and STS8300 platforms are currently the main source of revenue for the company, covering testing from analog to mixed-signal chips, from wide-bandgap semiconductors to power modules. Among them, the STS8200 has a higher revenue share, and the revenue share of STS8300 products accounts for about 20% of total revenue.
However, from the perspective of the main driving force of Beijing Huafeng Test & Control Technology's (华峰测控) orders, the domestic market is currently the main battlefield for the company's revenue, and the revenue share of the overseas market is relatively low.
According to data from reporters of the Star Market Daily, from 2020 to 2023, the proportion of revenue from the overseas market of Beijing Huafeng Test & Control Technology (华峰测控) was 14.20%, 7.74%, 11.11% and 12.73% respectively, showing an obvious trend of ups and downs.
"Compared with the domestic market, the overseas market has a relatively slower start-up speed, mainly because the products tested in the overseas market are more advanced, such as testing third-generation semiconductors such as silicon carbide, which requires verification for 3 months to 1 year, or even longer, before mass production can be carried out," said a Beijing Huafeng Test & Control Technology (华峰测控) spokesperson. "Although strict customer certification makes it difficult for new-entered companies to obtain orders, downstream customers will not easily change once they are selected. This can also explain the reason why the company's downstream large customers have been relatively stable."
In terms of the overseas market, Beijing Huafeng Test & Control Technology's (华峰测控) core markets include the United States, Japan, Malaysia, etc. "Last year, the company implemented the construction of an overseas production center in Malaysia. Currently, the factory of Beijing Huafeng Test & Control Technology in Penang, Malaysia has been officially put into use."
"The reason why the overseas production center is located in Malaysia is also to respond to the overseas business needs of downstream customers, such as downstream customers such as Infineon and Tianshui Huatian Technology, which are power semiconductor plants that have settled in the region," said a spokesperson from Beijing Huafeng Test & Control Technology (华峰测控). "As the market improves and the business climate continues to rebound, overseas markets represented by Southeast Asia will contribute to orders one after another."