[CHINA NEWS] The dark secret of PECVD Maori

On January 10th, Shanghai Prostitution (688082) released an IR activity record format. Through a conference call in December 2022, we plan to accept research from various institutions such as AEZ Capital, Essence Securities, and Gopher Assets.

Regarding market coverage in 2023, Shengmei Shanghai said in an institutional survey: The company hopes to validate the process in parallel in 2023, working with multiple devices and customers. Check the progress of cooperation with customers. If the cooperation goes well, we hope to cover 30% to 50% and continue to develop.

In terms of R&D spending, Shengmei Shanghai revealed in its research institute that the proportion of R&D spending in 2022 will be between 14% and 16%, and this proportion will continue in the future. And the principle of continuing R&D at low cost is a long-term process. And while the R&D ratio is constant, the absolute value of R&D capital gradually increases later. And the company's research and development costs are relatively economical. This is primarily due to the reduced time from device research and development to customer validation. Research and development costs will be lower. The key to reducing R&D costs is to review and launch products as quickly as possible.

Regarding the gross profit margin of equipment, Shengmei Shanghai suggested that the research institute's research suggests that PECVD has different prices and different gross margins. At this stage and in the future, it's still between 40% and 45%, and further technological and customer awareness improvements could increase the range to 45%-50%.