Jiwei Network News (Text/Chen Wei) On December 14, 2021, Anhui Fullerde Science and Technology Development Co., Ltd. (hereinafter referred to as "Fuller") commented on the Shenzhen Stock Exchange's "supplementary explanation of the reasons and rationality of the cost composition of semiconductor equipment cleaning services and display panel equipment cleaning services in 2018, the proportion of direct materials in 2018 is significantly lower than that of other periods, and the proportion of manufacturing expenses is significantly higher than that of other periods." "I replied to the inquiry.
(1) Details of the cost of semiconductor equipment cleaning services and display panel equipment cleaning services in 2018
From the above table, it can be seen that in 2018, the cost composition of semiconductor equipment cleaning services and display panel equipment cleaning services is relatively low, and the proportion of manufacturing costs is relatively high, mainly because Anhui Fullerde has not yet been put into production in 2018, and the business scale of other companies is relatively small, with less material input and low saturation of production line cleaning, but the amount of depreciation and amortization is relatively large, thus affecting its overall cost composition.
(2) Details of the cost of semiconductor equipment cleaning services and display panel equipment cleaning services in 2019
From the above table, it can be seen that compared with the cost composition of semiconductor equipment cleaning services and display panel equipment cleaning services in 2018, the proportion of manufacturing expenses decreased in 2019, and the proportion of direct materials increased more, mainly because Anhui Fullard began to put into production in 2019, the initial production capacity was insufficient, the unit cleaning equipment consumed more materials, and the initial disposable material investment was more; at the same time, after Sichuan Fullard Phase II began production in 2019, the business scale gradually increased, and the proportion of direct materials increased. The proportion of manufacturing expenses has declined.
(3) Details of the cost composition of semiconductor equipment cleaning services and display panel equipment cleaning services in 2020 and January-June 2021
From the above table, it can be seen that from 2020 to June 2021, the company's business scale gradually increased, the cost structure of semiconductor equipment cleaning services and display panel equipment cleaning services tended to be stable, and due to the company's implementation of the new revenue standard, the transportation costs in the sales expenses were adjusted to operating cost accounting, so the proportion of manufacturing expenses increased compared with 2019, affecting its overall cost composition.
In summary, the company's main business costs during the reporting period consisted of direct materials, direct labor and manufacturing expenses. With the expansion of the company's business scale, the cost of various types of main business shows an upward trend year by year, which is consistent with the growth of main business income, and the cost structure tends to be stable. In the cost composition of semiconductor equipment cleaning services and display panel equipment cleaning services, the proportion of direct materials in 2018 is significantly lower than that of other phases, and the proportion of manufacturing expenses is significantly higher than that of other phases, mainly due to the small business volume in the early stage of the company's development and the impact of the new production line has not yet been put into production, which is reasonable and in line with the actual production and operation of the company.
(Proofreading/Andy)