Fuchuang Precision (688409) disclosed its 2024 annual performance report on the evening of February 27th. At the end of the reporting period, the company achieved a total operating revenue of 3.042 billion yuan, a year-on-year increase of 47.24%; Achieve a net profit of 198 million yuan, a year-on-year increase of 17.62%; Achieved a non deductible net profit of 172 million yuan, a year-on-year increase of 98.61%.

Fuchuang Precision is a leading enterprise in precision semiconductor equipment components in China. Its main products include process components, structural components, module products, and gas pipelines, covering core equipment such as etching, thin film deposition, photolithography and coating development, chemical mechanical polishing, ion implantation, etc. in integrated circuit manufacturing. Some of its products have been applied to the front-end equipment of 7-nanometer processes.

Fuchuang Precision achieved a year-on-year increase of 47.24% in total operating revenue in 2024, mainly benefiting from the rapid growth of the domestic semiconductor market and the recovery of the overseas semiconductor market. The company's market share in key customers at home and abroad has further increased, and the gradual increase in advanced process products has driven the growth of revenue scale. The non recurring net profit increased by 98.61% year-on-year, mainly due to the rapid growth of operating income, the manifestation of economies of scale, the dilution of fixed costs, and the continuous improvement of profitability.

In 2024, benefiting from the recovery of the global semiconductor industry, the performance of Fuchuang Precision Semiconductor sector is particularly outstanding, with a year-on-year growth of over 50%. As a leading enterprise in the field of semiconductor equipment components in China, Fuchuang Precision has deepened its major customer strategy, increased its market share in key customers, and achieved a year-on-year growth of over 80% in domestic key customer revenue. Fuchuang Precision continues to increase investment in overseas markets, successfully expanding into international top customers and achieving breakthroughs in small batch orders during the reporting period. Advanced process products have also steadily obtained mass production orders from customers, driving a year-on-year growth of over 40% in revenue for key overseas customers. Overall, Fuchuang Precision has further enhanced its competitiveness in domestic and international markets by focusing on key customer strategies and accelerating overseas layout, resulting in sustained growth in business scale. Especially the breakthrough in overseas markets reflects the full recognition of the company's product quality and performance by international customers, and gradually deepens the cooperation stickiness between the company and international customers.

According to the guidance of overseas equipment leaders such as ASML and LAM, 2024 will be a transitional year for global equipment prosperity. With the recovery of industry prosperity and the growth of AI demand, the industry will also experience strong growth in 2025.

In 2024, while the production scale of Fuchuang Precision continues to expand, the company also continues to strengthen management in internal cost control, successfully diluting fixed expenses such as depreciation of machinery and equipment, achieving efficient reduction of unit production costs, gradually demonstrating economies of scale, and providing higher profitability support for later capacity ramp up and product volume expansion.

It is worth noting that Fuchuang Precision will continue to promote the "Service to Major Customers Strategy" in 2024, further consolidating its cooperative relationships with domestic and foreign major customers by optimizing customer structure and improving service quality. This strategy not only significantly enhances the company's competitiveness in the market, but also brings sustained and stable sources of orders and revenue growth to the company. Fuchuang Precision's products have entered the supply chain systems of multiple leading global semiconductor equipment manufacturers, including North Huachuang, Zhongwei Company, Tuojing Technology, Huahai Qingke, Xinyuan Micro, Kaishitong and other mainstream local semiconductor equipment manufacturers.

New technologies and new business models have become important driving forces for the development of Fuchuang Precision's performance. It is reported that the rapid expansion of Fuchuang Precision's business is due to strong support from research and development investment. Currently, the company is continuously increasing the development of advanced process products and technologies. During the reporting period, some new products have successfully transformed from research and development to mass production. At the same time, in order to better cope with the impact of industrial fluctuations, the company actively promotes the optimization and reserve of supply chain structure, and at the same time, puts overseas factories into operation and introduces technical talents to ensure the stability of long-term production and mass production.