"Science and Technology Board Daily" August 28th News (Reporter Huang Xiumei) "Regarding the future performance outlook of the company, the fundamental favorable situation in the high-reliability integrated circuit field will remain unchanged, but in the short term, it will still be affected by adjustments in the equipment construction '14th Five-Year Plan' and user demand. At the 2024 semi-annual earnings conference held today (August 28), Hu Rui, the director, general manager, and secretary of the board of directors of Zhenhua Satellite, expressed."

Zhenhua Satellite focuses on the high-reliability integrated circuit field, with main products including series products such as signal chains and power managers, as well as high-reliability packaging and testing OEM capabilities.

The company's revenue in the first half of this year was 0.611 billion yuan, a year-on-year decrease of 5.69%; the net income attributable to the mother was 0.231 billion yuan, a year-on-year decrease of 9.84%. Regarding the reasons for the decline in performance, Hu Rui stated at the earnings conference that it was mainly due to adjustments in tax incentives and the impact of product price reductions.

At this earnings conference, when investors asked about "whether the company's product price reduction is actively exchanging price for volume or for other reasons," the relevant person from Zhenhua Satellite did not give a direct response.

The independent director Dong Yanan further stated that the company will increase R&D investment in the five major categories of amplifiers, converters, interface drivers, system packaging, and power management as well as promote the continuous development and promotion of main products such as MCU, electric machine drivers, signal conditioning circuits, RF microwave circuits, etc. "At the same time, we can provide ASIC/SIP design and development services and domestically produced system chip-level solutions to meet future high-reliability demand and volume situations."

Regarding the future business operations of Zhenhua Satellite, Hu Rui stated in response to questions from "Science and Technology Board Daily" reporters that Zhenhua Satellite will conduct related work around quality companies in the integrated circuit industry upstream and downstream using investment and acquisition capital tools at the appropriate time.

Hu Rui further stated that in the first half of this year, Zhenhua Satellite invested 71.2941 million yuan in R&D in the high-reliability integrated circuit field, with R&D investment accounting for 11.68% of total revenue, an increase of 0.23 percentage points year-on-year.

"At the same time, many research and development projects during the same period have made progress. We have launched more than 60 new products, of which 49 have been tested and supplied. The MCU product has also completed the development and wafer fabrication of the 8-inch 119nm embedded flash technology platform, and is actively promoting the productization work." Hu Rui explained specifically.

It is worth mentioning that Zhenhua Fengguang is currently focusing on the special field. At today's (August 28) earnings conference, many investors are highly concerned about "whether the company has plans to expand the civilian market."

Hu Rui responded that Zhenhua Fengguang has been continuously exploring and studying the civilian market in recent years. Progress has been made in the commercial satellite field, and more than 30 products have completed related experiments, and some products have been validated by customers.

"In addition, Zhenhua Fengguang has obtained the IATF16949:2016 automotive certification in 2023 (registration scope: design and production of single-chip analog integrated circuits), laying the foundation for the expansion of component-related business in the automotive field." Hu Rui further stated that the company will further layout the civilian market based on the development strategy and market demand at the appropriate time.