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on the morning of september 23,jiangfeng electronics(300666.sz) issued an announcement regarding recent market rumors, stating that the company has reported the creation and dissemination of the above-mentioned false information to the fengshan police station of the yuyao public security bureau and the case has been filed.

recently, there was a rumor circulating in the market that "as of september 2024, yao lijun, the founder and major shareholder of jiangfeng electronics, is under investigation by the china securities regulatory commission for suspected financial problems." this rumor also caused jiangfeng electronics' stock price to hit a new low last week, with a weekly decline of about 10%.

a reporter from china business news called jiangfeng electronics on the 23rd to verify the matter."yao lijun comes to work every day. it was only recently that some individual investors frequently called the company and alerted the company to the rumors on the internet."he also said that the overall demand in the industry is good this year, the company's order volume is also good, and production and operations are currently normal.

received case filing notice

according to the analysis, the earliest time when this rumor was leaked was around the middle of last week, and the publishing platform was concentrated onoriental fortunestock bar,flushetc. at present, many rumor posts have been deleted.regarding the progress of the report, jiangfeng electronics stated that the company has received the "notice of administrative case filing" issued by fengshan police station of yuyao public security bureau.

under the negative influence of this rumor, jiangfeng electronics' stock price fell to a new low. on september 19, jiangfeng electronics' stock price fell by more than 7%, the largest single-day drop this year; on september 20, the company's stock price continued to fall by 3.13%, hitting the lowest level since the end of april this year.that evening, jiangfeng electronics issued a statement saying that after verification, yao lijun had not been investigated by the china securities regulatory commission and the company's production and operations were normal.

public information shows that yao lijun once worked for honeywell, a fortune 500 company, as the ceo of the japanese production base of honeywell's electronic materials department. in 2004, he became the president of honeywell's electronic materials division in greater china. in 2005, yao lijun led a number of overseas doctors to return to china to start a business, specializing in ultra-large-scalesemiconductor chipresearch, production and sales of ultra-high purity metal materials and sputtering targets for manufacturing.

target materials are key raw materials in thin film preparation technology, and semiconductors are also the field with the highest requirements for the composition, structure and performance of target materials. domestic semiconductor sputtering target materials started late and had a weak foundation. jiangfeng electronics was one of the earliest companies engaged in research on this product, and it did not achieve profitability until the eighth year of its establishment.

in 2017, jiangfeng electronics was listed on the growth enterprise market. currently, the company mainly focuses on the research, development, production and sales of ultra-high purity metal sputtering targets and semiconductor precision components. among them, semiconductor sputtering target products cover advanced processes, mature processes and special processes, and have been suppliedtsmc、smic(688981.sh), sk hynix, umc and other world-renowned chip manufacturers.

the interim report shows that yao lijun serves as the controlling shareholder, actual controller, chairman and chief technology officer of jiangfeng electronics. as of the end of the second quarter, yao lijun directly held 56.7657 million shares of the listed company, accounting for 21.39% of the total share capital, with a shareholding value of approximately 2.5 billion yuan, of which 42.5876 million shares were restricted shares. as of september 20, yao lijun held 30.4412 million shares in pledge status, accounting for 53.63% of his shares.

the second quarter's performance hit a new high, but the gross profit margin still needs to be repaired

since 2024, global semiconductor demand has continued to recover, driving the recovery of profitability in all links of the industrial chain. jiangfeng electronics' ultra-high purity metal sputtering targets are mainly used in the two links of "wafer manufacturing" and "chip packaging". they are characterized by multiple varieties, high thresholds, and customized research and development, and have strict standards for metal material purity, internal microstructure, and processing accuracy.

according to a research report by kaiyuan securities, the global target material competition landscape is dominated by american and japanese companies, with representative companies such as nippon mining and metals,honeywell, tosoh, praxair and other manufacturers entered this field earlier and hold about 80% of the market share. in the domestic market, domestic and foreign capital present a 50-50 competition pattern, with jiangfeng electronics,youyan new materialsdomestic capital represented by (600206.sh) occupies 48% of the domestic market share, breaking the long-term monopoly of american and japanese companies in this field.

against the backdrop of a recovery in industry business climate, incremental demand for parts produced by newly purchased equipment at semiconductor wafer fabs, and increased utilization of wafer manufacturing capacity, jiangfeng electronics reversed last year's profit decline in the first half of the year, but its net profit margin is still at its lowest point in the past two years.

the interim report shows that jiangfeng electronics achieved operating income of 1.627 billion yuan, a year-on-year increase of 35.91%, and realized a net profit of 161 million yuan attributable to the parent company, a year-on-year increase of 5.32%. the net profit attributable to the parent company after deducting non-recurring items was 169 million yuan, a year-on-year increase of 73.49%. looking at the second quarter alone, the company achieved revenue of 855 million yuan, of which the precision parts business increased by 96.14% year-on-year, and the second quarter alone achieved 224 million yuan, a record high.

in terms of products, ultra-high purity targets are the main source of revenue for jiangfeng electronics. during the reporting period, this business achieved operating revenue of 1.069 billion yuan, accounting for 65.7% of total revenue. the revenue scale increased by 37.33% year-on-year, and the gross profit margin was 30.33%. precision components achieved operating revenue of 398 million yuan, a year-on-year increase of 96.14%.

jiangfeng electronics' revenue in the first half of the year has exceeded the same period in 2022 (when the global semiconductor boom was at its peak), but its net sales margin has not yet recovered effectively, at only 7.83%, a decrease of 3.88 percentage points from the same period last year, and 13.77% in the same period of 2022.

the increase in operating costs, sales expenses and other expenses is the main reason for jiangfeng electronics' low net profit margin. in the first half of the year, jiangfeng electronics' sales expenses increased by 32.37% year-on-year to 48.9958 million yuan, mainly due to the company's increased market development; financial expenses were 1.8 million yuan, a year-on-year increase of 106.24%, mainly due to the impact of loan interest expenses and exchange gains and losses. in addition, jiangfeng electronics' borrowings are also rising. as of the end of the first half of the year, jiangfeng electronics' short-term loans were 317 million yuan, the highest level since the third quarter of 2022. non-current liabilities due within one year were 322 million yuan and long-term loans were 1.11 billion yuan. both indicators are the highest level since listing.

as of the close of september 23, jiangfeng electronics' share price was 44 yuan, up 0.18%, with a total market value of 11.7 billion yuan. the share price has fallen by about 25% this year.