on the evening of August 18, shilanwei (600460) announced the 2023 semi-annual report. In the first half of 2023, the company's total operating income was 4.476 billion yuan, an increase of 6.95 over the same period in 2022; the non-net profit of the parent deduction was 0.163 billion yuan, a decrease of 67.66 percent year-on-year, and the net profit of the parent was -41.22 million yuan. The company continued to maintain a high intensity of R & D investment. In the first half of the year, the company's R & D investment totaled 0.369 billion yuan, accounting for 8.24 of revenue.

the company said that the main reason for the loss in performance was the decline in the stock prices of Yu Neng Technology (688348) and Anlu Technology (688107) among other non-current financial assets held by the company, resulting in net after-tax income of -0.225 billion yuan from changes in fair value.

The announcement shows that due to the decline in consumer electronics demand in the first quarter and the intensified competition for LED chips, some chip shipments have decreased and prices have fallen, which has put pressure on the company's sales and profit growth. Since the second quarter, the company has stepped up its promotion efforts in high-threshold markets such as large-scale white goods, communications, industry, new energy and automobiles, actively grabbing market orders and adjusting product structure, promoting a 17% month-on-month increase in revenue in the second quarter.

the company said that in the first half of 2023, nearly 70% of the company's sales revenue of circuit and device products came from high threshold markets such as large white power, communication, industry, new energy and automobile. At present, under the background of continuous support of national policies, rapid development of downstream electric vehicles, new energy and other industries, and obvious acceleration of domestic chip substitution process, Shilan Microelectronics has ushered in a new stage of rapid development. The company will continue to promote the production of devices and circuits that meet the requirements of vehicle grade and industrial grade, and continue to promote the rapid growth of overall revenue and the improvement of operating efficiency.

Integrated circuit products grow by 16.5 IPM modules outshine others

In the first half of 2023, the company's integrated circuit operating income was 1.576 billion yuan, an increase of 16.49 over the same period last year. Among them, IPM modules, DC-DC circuits, LED lighting and low-voltage motor drive circuits, 32-bit MCU circuits, fast charging circuits and other products have significantly accelerated shipments.

In the first half of 2023, the operating income of the company's IPM module reached 0.94 billion yuan, an increase of more than 42% over the same period last year. At present, the company's IPM module has been widely used in downstream home appliances, industrial and automotive customers on the inverter products. In the first half of 2023, many mainstream domestic white power machine manufacturers used more than 53 million Shilan IPM modules on white power machines such as variable frequency air conditioners, an increase of 51% over the same period last year. The company's use of IPM modules in industrial and automotive applications has reached 5.6 million and 600000 respectively.

During the reporting period, the company's operating income from PoE (Power over Ethernet) chips achieved rapid growth. The company's overall PoE solution is leading in China and can meet the needs of security, WLAN, Internet of Things and other fields. The company's 32-bit MCU circuit products show a rapid growth trend. The company launched a general-purpose high-performance controller product based on the M0 core with larger capacity Flash and more pins to meet the needs of high-performance control in many fields such as smart home appliances, servo frequency conversion, industrial automation, photovoltaic inverter, etc. The company's electronic control and master control products have formed a series of products, and the company's power devices, IPM modules to form a product group, to provide customers with one-stop service, can significantly enhance the value of a single machine.

In addition, the company's MEMS sensor product revenue was 0.127 billion yuan, a year-on-year decrease of 17%, mainly due to the slowdown in downstream market demand for smart phones and tablet computers. In the first half of this year, the company's domestic market share of acceleration sensors remained above 20%. The company's six-axis inertial sensor (IMU) has been sold in batches and has been verified by a domestic brand mobile phone manufacturer. MEMS sensor products will also accelerate the expansion of white power, industry, automotive and other fields, and shipments are expected to grow rapidly.

Discrete Device Revenue Steady Product Upgrade Capacity Building Steady Progress

in the first half of 2023, the operating income of the company's discrete device products was 2.308 billion yuan, an increase of 1.42 over the same period last year. The operating income of IGBT (including IGBT devices and PIM modules) has reached 0.59 billion yuan, an increase of more than 300 over the same period last year. In addition to accelerating the expansion of large-scale white power and industrial control markets, the company's discrete devices and high-power modules have begun to accelerate their entry into electric vehicles, new energy and other markets.

during the reporting period, the main motor drive module for electric vehicles based on the V-generation IGBT and FRD chips independently developed by the company has been supplied in batches to many domestic and foreign customers such as BYD, Geely, zero-run automobile, Huichuan technology, etc. IGBT devices (single tube) and MOSFET devices (single tube) used by the company for automobiles have been shipped in large quantities, the company's IGBT devices (single tube), inverter control modules, and SiC MOS devices for photovoltaics are also shipped in bulk. Based on the company's independent research and development of the second generation SiC-MOSFET chip production of electric vehicle main motor drive module, has passed some customer tests, and strive to achieve mass production and delivery in the third quarter of this year.

During the reporting period, the construction of the Company's automotive-grade IGBT chips, SiC-MOSFET chips and automotive-grade power module (PIM) capacity progressed smoothly.

in terms of chip production capacity, shilanjixin company's "annual output of 360000 12-inch chip production line project" has some equipment to the factory and put into production. The company will also continue to accelerate the production of advanced silicon power semiconductor devices (IGBT, fast recovery diode, super junction MOSFET, high density low voltage trench gate MOSFET, etc.) to 12 inch production line. The company has increased its efforts to adjust its product structure and accelerate the output and volume of automotive-grade IGBT chips, super-junction MOSFETs and high-performance low-voltage separation gate MOSFET chips. As of the end of June, the company has a monthly production capacity of 20000 IGBT chips. Shilanming gallium has formed a monthly production capacity of 3000 6-inch SiC chips, and is expected to form a monthly production capacity of 6000 6-inch SiC chips (SiC MOSFET and SiC SBD) by the end of 2023.

Packaging capacity building, during the reporting period, Chengdu Shilan Phase II plant has been partially put into production and has the packaging capacity to produce 170000 automotive-grade power modules per month; and plans to continue to increase production equipment investment in the second half of the year to further expand the packaging capacity of automotive-grade and industrial-grade power modules.

LED Product continues to optimize structure

in the first half of 2023, the operating income of the company's light-emitting diode products (including the LED chips of shilanming core company, shilanming gallium company and the LED color screen pixel tubes of Meikale photoelectric company) was 0.314 billion yuan, down 13.6 from the same period last year. Due to intensified market competition, the price of the company's LED chips decreased by 10%-15% compared with the end of last year, resulting in large operating losses from Shilan Mingxin and Shilan Mingga.

in this regard, the company in accelerating the introduction of mini-display chip new products, solid color screen chip market share at the same time, accelerate the plant lighting chip, automotive lighting chip, high-end optocoupler chip, high-power lighting chip, security lighting chip and other new products on the volume. In the second quarter, the company's LED chip production line capacity utilization rate has risen to about 90%, and LED chip sales have also increased to a certain extent compared with the same period last year.

in the future, taking the LED chip quantity of Xiamen shilan Ming gallium as an opportunity, we will continue to deepen our cultivation and layout on LED RGB color screen chips, plant lighting chips, high-end automotive lighting chips and other characteristic chips, and actively expand the market. Continue to promote the construction of Shilan "Meikale" high-end LED finished product brand, actively expand high-end customers at home and abroad, expand production capacity and expand new high-end application markets.