“目前公司采取了大宗采购议价、技术降本、自动化生产等措施应对，取得一定成效。”于杰补充说道，① The current sales of the company's integrated circuit sector are mainly composed of UV films, solid crystal materials, thermal conductive materials, and other chip packaging materials. ② Jie Haihua stated that the localization rate of semiconductor materials is still at a low level, with huge potential, and many products are in the certification and expansion stage, expecting a steady growth trend this year.
According to the Star Daily on December 9 (reporter Wu Xuguang), with intensified industry competition and pressured product prices, how companies in the new energy fund industry chain find new growth points has become a general focus of market attention.
During the earnings conference held today (December 9) for the third quarter of 2024, Yu Jie, the deputy general manager, board of directors secretary, and financial director of Debang Technology, candidly stated that in the field of new energy power batteries, as the domestic new energy vehicle market shifts from policy-driven to market-driven, the intense market competition has compressed the industry's profit margins, leading to an overall downward trend in profitability in recent years, with price reduction pressure transmitted throughout the entire supply chain system.
"Currently, the company has adopted measures such as bulk purchasing and negotiating prices, reducing technology costs, and automated production to respond, achieving certain results." Yu Jie added that Debang Technology's dual-component polyurethane encapsulation materials for power batteries have already been supplied in bulk to leading customers in the power battery sector.
Debang Technology mainly engages in the research and industrialization of high-end electronic packaging materials, with products including integrated circuit packaging materials, smart terminal packaging materials, new energy application materials, and sse high-end equipment manufacturing 60 index application materials, which are used in various packaging process stages such as wafer processing, chip-level packaging, and system integration packaging.
In the first three quarters of this year, Debang Technology's revenue increased without net income growth. During the reporting period, the company achieved revenue of 0.784 billion yuan, a year-on-year increase of 20.48%; net income attributable to the parent company was 0.06 billion yuan, a year-on-year decrease of 28.03%. Among them, in the third quarter, the company achieved revenue of 0.321 billion yuan, a year-on-year increase of 25.37%; net income attributable to the parent company was 0.027 billion yuan, a year-on-year decrease of 20.28%.
Debang Technology's director and general manager Chen Tianan stated that although the profit side faced certain challenges in the first three quarters, the company is actively expanding its customer base to increase new profit growth points.
Chen Tianan further stated that during the reporting period, the integrated circuit and smart terminal sectors of Debang Technology had relatively high growth rates, with an increase in their revenue proportion; the revenue share of the new energy sector decreased year-on-year, but in absolute numbers, it remains the highest.
In the company's integrated circuit field, the chairman of Debang Technology, Jie Haihua, stated that the current sales of the integrated circuit sector are primarily composed of UV films, adhesive materials, thermal conductive materials, and other chip packaging materials.
Reporters from the Star Daily noted that DAF films and CDAF films are mainly used in advanced packaging processes such as multidimensional and stacked packaging for integrated circuit chips, applicable to storage, logic, and other high-performance chips.
At the earnings conference, Chen Tianan stated while introducing the current overall recovery situation of integrated circuits that since 2024, the global semiconductor market has continued the upward momentum from the second half of 2023, entering a strong recovery phase. Particularly in the areas of integrated circuit design, innovative materials, and revolutionary innovations in devices, the computing power of chips has significantly improved, a trend that brings new development opportunities for integrated circuit packaging materials.
Regarding the localization level of Debang Technology's chip-level packaging materials, Jie Haihua mentioned, "Currently, the domestic production rate of semiconductor materials is still at a relatively low level, with huge potential. Many products are in the certification and expansion stage. It is expected that this year will see steady growth, and with the rollout of new projects, the growth rate is expected to gradually accelerate, significantly increasing the sector's scale."
Discussing the latest business progress in the integrated circuit field, Tang Yun introduced that Debang Technology has already advanced the introduction of several chip-level packaging materials with clients. Currently, DAF films have achieved mass production and shipment with some clients; CDAF films, AD adhesives, and Underfill materials have achieved small batch deliveries with some clients; TIM1 materials have passed validation by some clients and are being advanced for product introduction.
"Because the downstream customers of the aforementioned products are different, and the application stages vary, it is currently impossible to predict the volume scaling timeline and sequence," Tang Yun added.
