Recently, Jiang Feng Electronics stated that it plans to invest in the establishment of a wholly-owned Sun company and the construction of a Korean production base in South Korea, with a total investment of no more than 0.35 billion yuan. The company's main business is the research and development, production and sales of ultra-high purity metal sputtering targets and semiconductor precision parts. The products are mainly used in the physical vapor deposition process of ultra-large scale integrated circuit chips, flat panel displays, and solar cell manufacturing.

Source: Photograph Network

The proportion of overseas sales is high, and it is planned to build a production base in South Korea

on July 31, 2023, Ningbo jiangfeng electronic materials co., ltd. (securities abbreviation: jiangfeng electronics; Securities code: 300666.SZ) announced that in order to seize market opportunities, further develop overseas markets and enhance international competitiveness, the company decided that its wholly-owned subsidiary jiangfeng electronic materials (hong kong) co., ltd. (hereinafter referred to as "hong kong jiangfeng) would invest and set up KFAMCO.,LTD.(tentative name) in south Korea, the total investment for the construction of a production base in South Korea shall not exceed RMB 0.35 billion yuan.

The company said that the business scope of the Korean production base includes the production, sales and service of electronic special materials. This time, it is planned to invest and set up a wholly-owned Sun company in South Korea to build a production base in South Korea, which will help the company to further develop overseas markets and improve the market share and international competitiveness of the company's products.

the overseas market is an important source of income for the company. in 2022, the company's export income was 1.264 billion billion yuan, accounting for 54.4 of the company's operating income in the current period, up 40% year on year. In addition, from 2019 to 2021, the Company's foreign sales accounted for 71.55 percent, 66.38 percent and 56.65 percent, respectively.

According to the annual report, Jiangfeng Electronics' main business is the research and development, production and sales of ultra-high purity metal sputtering targets and semiconductor precision parts. Among them, ultra-high purity sputtering targets include aluminum target, titanium target, tantalum target, copper target and various ultra-high purity metal alloy targets, etc. The target material is the key material for manufacturing chip interconnection wires. These products are mainly used in physical vapor deposition (PVD) process for manufacturing ultra-large scale integrated circuit chips, flat panel displays and solar cells to prepare electronic thin film materials; semiconductor precision parts include precision parts processed from various materials such as metals, ceramics, resins, etc. They are mainly used in the machines of semiconductor chips and flat panel display production lines, covering application fields such as PVD, CVD, etching, ion implantation and industrial robots. The products are mainly sold to wafer manufacturers as consumables for equipment use or to equipment manufacturers for equipment production.

after several years of development, the company said that it has become a high-purity sputtering target supplier for well-known domestic and foreign manufacturers such as SMIC (688981.SH), TSMC, SK Hynix, BOE (000725.SZ), Sun Power, etc. Its business scope covers semiconductor, flat panel display and solar cell fields.

Company Performance Continues to Rise

According to Jiangfeng Electronics, after several years of technological accumulation, the company has established a relatively complete R & D system, with strong technology and product innovation capabilities, filling the gap in domestic high-purity sputtering target products, and gradually Growing into a leader in the domestic high-purity sputtering target industry, it can compete with multinational companies in the global market. The company has formed a diversified product research and development system with high-purity sputtering targets for semiconductor chips as the core, liquid crystal displays, sputtering targets for solar cells, and semiconductor precision parts.

By the end of 2022, the company and its subsidiaries had obtained 602 domestic valid authorized patents, including 368 invention patents and 234 utility models. In addition, the company has obtained 2 Korean invention patents and 1 Japanese invention patent.

according to the disclosure, the company actively improves the sales service network and guarantee base, serves customers nearby, continuously tracks customer needs, provides on-site PM, product surveying and mapping, reverse development and docking services, interacts closely with customers, wins the trust of customers, strengthens market penetration, expands market share, and steadily increases the sales scale. In 2022, the company's ultra-high purity target sales revenue of 1.611 billion yuan, up 36.40 percent year-on-year.

In addition, in the field of semiconductor precision parts, the company has achieved rapid growth in the semiconductor precision parts business. The company promotes the production capacity construction of Yuyao, Shanghai and other bases, and the parts business will achieve sales of 0.358 billion billion yuan in 2022, up 94.51 year on year

On the whole, the company's performance shows a rapid upward trend.

From 2019 to 2021, the company achieved operating income of 0.825 billion yuan, 1.167 billion yuan, and 1.594 billion yuan respectively, and achieved net profits of 64.186 million yuan, 0.147 billion yuan, and 0.107 billion yuan; in 2022, the company achieved operating income of 2.324 billion billion yuan, a year-on-year increase 45.80%; realized net profit of 0.265 billion billion yuan, a year-on-year increase of 148.72%; realized non-net profit of 0.218 billion billion yuan, a year-on-year increase of 186.50%.

In the first quarter of 2023, the company achieved operating income of 0.565 billion yuan, up 15.37 percent from the same period last year, and achieved net profit of 55.9767 million yuan, up 67.38 percent from the same period last year.

In addition, in the first half of 2023, thanks to actively expanding global market share, strengthening the technical service support system, improving the research and development capabilities of new products and new technologies, and gaining customer recognition, operating income may continue to grow. The company expects to achieve operating income of about 1.197 billion yuan in the first half of 2023, an increase of about 10.20 percent over the same period last year.

Layout of the third-generation semiconductor key materials

Jiangfeng Electronics continues to innovate in technology and actively lays out key materials for third-generation semiconductors. For a long time, the substrate materials for the application of the third generation power semiconductor modules have relied on the monopoly supply of foreign countries (Germany, Japan, South Korea, etc.). With the rapid development of new energy vehicles, rail transit, UHV, 5G communications and other emerging fields, there is an urgent need to solve the domestic supply problem of substrate materials. The company timely cut into the field of copper-coated ceramic substrates and laid out the third generation semiconductor sealing materials.

The company, through its holding subsidiary Ningbo Jiangfeng Tongxin Semiconductor Materials Co., Ltd., is engaged in the research and development and production of core raw materials related to third-generation semiconductor chip modules and high-power semiconductor modules, and has mastered the production process of copper-clad ceramic substrates DBC and AMB, and its main products are high-end copper-clad ceramic substrates. It has built and completed the first domestic third-generation semiconductor power device module core material manufacturing production line with the world's advanced level and independent design, and plans to build a domestic copper-clad with independent intellectual property rights, advanced process technology, complete material specifications, and production line automation Large-scale production base for ceramic substrates.