Financial Performance - For Q1 2025, the company reported operating revenue of approximately RMB 888 million, a decrease of about 0.54% compared to the same period last year[8]. - Net profit attributable to shareholders was approximately RMB 136 million, down 15.55% year-on-year, while net profit excluding non-recurring gains and losses was approximately RMB 133 million, a decrease of 14.21%[8]. - Total revenue for Q1 2025 was RMB 887.95 million, a slight decrease of 0.09% compared to RMB 892.74 million in Q1 2024[23]. - Operating profit for Q1 2025 was RMB 131.12 million, down 25% from RMB 174.99 million in Q1 2024[23]. - Net profit attributable to shareholders for Q1 2025 was RMB 136.18 million, a decrease of 15.5% from RMB 161.25 million in Q1 2024[23]. - The company's basic and diluted earnings per share were both RMB 0.17, a decrease of 15.00% from the previous year[7]. - The basic earnings per share for Q1 2025 was RMB 0.17, down from RMB 0.20 in Q1 2024[24]. Research and Development - The company's R&D investment totaled RMB 267 million, accounting for 30.09% of operating revenue, down 2.19 percentage points from the previous year[7]. - Research and development expenses increased to RMB 247.89 million in Q1 2025, compared to RMB 245.30 million in Q1 2024, reflecting a focus on innovation[23]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 921.82 million, an increase of 1.96% from the end of the previous year[7]. - Total assets increased to RMB 9.22 billion in Q1 2025 from RMB 9.04 billion in Q1 2024, indicating growth in the company's asset base[21]. - Total liabilities rose to RMB 2.54 billion in Q1 2025, up from RMB 2.50 billion in Q1 2024, reflecting increased borrowing[21]. Cash Flow - Cash flow from operating activities was negative at RMB -26.59 million, compared to a positive RMB 10.58 million in the same period last year[7]. - Cash flow from operating activities showed a net outflow of RMB 26.59 million in Q1 2025, contrasting with a net inflow of RMB 10.58 million in Q1 2024[26]. - The company's cash received from sales in Q1 2025 was RMB 788.16 million, an increase from RMB 751.06 million in Q1 2024[26]. - Cash inflow from investment activities totaled approximately $301.38 million, a significant increase from $161.10 million in the previous period, reflecting a growth of about 87%[27]. - Net cash outflow from investment activities was approximately -$60.01 million, improving from -$236.55 million year-over-year[27]. - Cash inflow from financing activities was $307 million, down from $445.72 million, indicating a decrease of about 31%[27]. - Net cash outflow from financing activities was -$34.19 million, compared to -$24.29 million in the previous period, showing a worsening of approximately 41%[27]. - The ending cash and cash equivalents balance was $940.71 million, an increase from $740.56 million year-over-year[27]. - Cash and cash equivalents decreased by $122.59 million during the period, compared to a decrease of $252.36 million in the previous period[27]. - Cash received from loans was $307 million, while cash paid for debt repayment was $327.1 million, indicating a net cash outflow in financing activities[27]. - The impact of exchange rate changes on cash and cash equivalents was a negative $1.80 million, slightly better than the previous year's impact of -$2.10 million[27]. Shareholder Information - The top shareholder, Hong Kong Central Clearing Limited, holds 284,225,830 shares, representing 34.60% of total shares[14]. - Shanghai Fudan Fuxin Technology Holdings Limited is the second-largest shareholder with 109,620,000 shares, accounting for 13.35%[14]. - The company has 23,460 A-share shareholders and 12 H-share shareholders as of the report date[15]. - Shanghai Zhengben Enterprise Management Consulting Partnership holds 35,682,011 shares, which are under judicial freeze[18]. - The company has a total of 6,000,000 shares held by CITIC Securities, representing 0.73% of total shares[14]. - The report indicates that there are no known relationships or concerted actions among the top shareholders, except for Shanghai Zhengben and Shanghai Nianjin[15]. Inventory and Receivables - Revenue from non-volatile memory decreased by approximately 18.82% year-on-year, impacting overall revenue[8]. - The company experienced an increase in credit impairment losses due to changes in accounts receivable and inventory aging, resulting in an increase of RMB 40.23 million in impairment losses compared to the previous year[9]. - Inventory as of March 31, 2025, stands at RMB 3,240,496,314.59, compared to RMB 3,134,456,903.75 in December 2024, indicating a growth of approximately 3.38%[20]. - Accounts receivable increased to RMB 1,660,266,121.79 from RMB 1,493,805,646.24, showing a growth of approximately 11.16%[20]. Other Financial Information - The gross profit margin for the product lines increased from 56.65% to 58.14% compared to the same period last year[8]. - The weighted average return on net assets decreased to 2.28%, down 0.71 percentage points year-on-year[7]. - The company reported a decrease in other comprehensive income, with a net amount of RMB -174.45 thousand in Q1 2025 compared to RMB 31.38 thousand in Q1 2024[24]. - The company plans to implement new accounting standards starting in 2025, which may affect the financial statements[27].

Financial Performance - The company achieved a revenue of RMB 3.59 billion for the year 2024, representing a slight year-on-year increase[7]. - Net profit attributable to shareholders decreased by 20.42% to RMB 573 million[7]. - The comprehensive gross margin for the year was 55.95%[7]. - The gross margin decreased to 55.95% due to price declines in certain product lines and adjustments in product structure[13]. - Net profit attributable to shareholders was approximately RMB 573 million, a year-on-year decrease of 20.42%[13]. - The company achieved operating revenue of approximately RMB 35.90 billion, a slight increase of 1.53% year-on-year[35]. - Net profit attributable to shareholders decreased by 20.42% to approximately RMB 5.73 billion, while net profit excluding non-recurring gains and losses was about RMB 4.64 billion, down 18.92% year-on-year[37]. - The overall gross profit margin decreased by 5.26 percentage points, resulting in a gross profit decline of approximately RMB 155.97 million[38]. Research and Development - Research and development expenditure for the year was approximately RMB 1.142 billion, focusing on domestic substitution and cutting-edge technology breakthroughs[8]. - The company invested approximately RMB 1.142 billion in R&D during the reporting period, a decrease of 4.03% year-on-year[21]. - The R&D team consisted of 1,130 personnel by the end of the year, remaining stable[21]. - The company has developed over 1,000 high-end chip testing solutions, achieving breakthroughs in high-speed wafer KGD testing and ultra-high-density wafer testing[20]. - The company is actively advancing the development and market promotion of next-generation FPGA and intelligent reconfigurable SoC products based on 1xnm FinFET technology[18]. - The company aims to enhance its competitive advantages in technology, service, quality, and brand by expanding production capacity and product application areas by 2025[68]. - The group will continue to invest in R&D to strengthen its technological capabilities and explore new technologies and methods[69]. Market Strategy and Operations - The company plans to distribute a cash dividend of RMB 0.8 per 10 shares, totaling RMB 65,714,184, pending shareholder approval[10]. - The company aims to accelerate the development and certification of automotive-grade chips to capture opportunities in smart driving and IoT applications[10]. - The company will continue to enhance cooperation with upstream and downstream partners to expand domestic and international markets[10]. - The company plans to continue expanding its product lines and markets while adjusting sales prices to maintain or increase market share[38]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[93][94][95][97][98]. - The company is committed to optimizing market strategies to improve product market share and customer loyalty[70]. Financial Position and Assets - Total assets reached approximately RMB 90.41 billion, reflecting a year-on-year growth of 7.49%, and net assets attributable to shareholders increased by 11.15% to about RMB 58.94 billion[37]. - Total assets increased to RMB 905,000.00 million in 2024, with a debt-to-equity ratio of 27.62%, down from 29.12% in 2023[56]. - Accounts receivable rose by 60.69% to RMB 149,380.56 million due to longer settlement cycles with high-reliability product customers[47]. - Fixed assets increased by 40.54% to RMB 156,767.36 million, driven by equipment purchases for expanded operations and completed factory constructions[47]. - Short-term borrowings increased by 19.91% to RMB 107,187.20 million to meet operational funding needs[50]. - Inventory at the end of the reporting period was valued at RMB 313,445.69 million, accounting for 48.36% of total current assets, with a provision for inventory impairment of RMB 43,222.38 million[62]. Governance and Management - The company is committed to enhancing its governance structure, with independent directors actively participating in audit and strategic committees[102][103]. - The board includes members with diverse backgrounds, including academia, finance, and engineering, which supports the company's strategic initiatives[99][100][102]. - The company emphasizes the importance of environmental, social, and governance (ESG) factors in its strategic planning and operations[100]. - The company has maintained a board composition that meets the requirement of at least one-third independent non-executive directors[121]. - The company has provided appropriate liability insurance for all directors to protect against losses from legal proceedings[124]. - The company has established a candidate list for potential new directors, considering both internal and external candidates[132]. Risks and Challenges - The company faced risks related to new product development and technology iteration, which could impact market share if not managed effectively[58]. - The group faces risks from changes in government subsidies and tax incentives, which could impact profitability if national policies change[64]. - The group is exposed to macroeconomic risks due to increasing uncertainties in international trade and potential trade protectionism affecting the semiconductor industry[67]. - The company has outlined its major risks and uncertainties in the management discussion and analysis section of the report[183]. Shareholder Engagement - The company encourages shareholder participation in meetings and allows shareholders holding 10% or more of shares to request special meetings[164]. - The company has maintained multiple communication channels with shareholders, including timely announcements of financial reports and significant updates[168]. - The board has the discretion to decide on the payment of dividends based on various considerations, including capital needs and overall financial status[169].

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公司研究 智能电表和存储业务需求回暖，部分产品线价格和盈利承压 ——上海复旦（1385.HK）2024 年度业绩点评 要点 事件：公司 2024 年实现营收 35.90 亿人民币，同比上升 1.53%；24Q4 实现 营收 9.1 亿人民币，同比增长 13.6%。产品需求分化，2024 年智能电表芯片 业务收入同比增长 44.9%，成业绩核心驱动力，非挥发性存储芯片业务收入 同比增长 5.94%，安全与识别芯片、FPGA 及其他芯片业务收入分别同比下降 8.31%、0.15%。利润端，2024 年产品综合毛利率 55.95%，同比下降 5.26pct， 系公司因竞争下调部分产品价格，叠加产品结构调整的不利影响；2024 年归 母净利润 5.73 亿人民币，同比下降 20.42%，对应归母净利率 16%，系毛利 率走弱叠加公司计提信用减值损失和资产减值损失增加。公司向全体股东每 10 股派发现金红利 0.8 人民币（含税），现金末期股息总额为 0.66 亿人民币 （含税），其中 2023 年末期股息为每 10 股 1 人民币，派息比率维持在 11.5%。 智能电表芯片业务需求提升，存储行业回暖助力非挥发性存储器 ...

Financial Performance - The company's operating revenue for the year ended December 31, 2024, was RMB 3,590,223,828.23, an increase from RMB 3,536,259,423.60 in 2023, representing a growth of approximately 1.5%[6] - The net profit attributable to shareholders for the year was RMB 572,595,101.31, down from RMB 719,494,375.58 in 2023, indicating a decrease of about 20.4%[6] - The company experienced a decrease in operating profit, which fell to RMB 558,939,418.86 in 2024 from RMB 751,417,053.81 in 2023, a decline of approximately 25.7%[6] - The company reported a total profit of CNY 558,893,537.63 for 2024, down from CNY 751,850,854.72 in 2023, indicating a decline of 25.7%[14] - The basic earnings per share for the year was RMB 0.70, down from RMB 0.88 in 2023, indicating a decline of about 20.5%[7] - The company achieved a revenue of approximately RMB 3.590 billion in 2024, a slight increase year-on-year[27] - Net profit attributable to shareholders was approximately RMB 573 million, a year-on-year decrease of 20.42%[27] Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 9,041,112,799.09, up from RMB 8,411,350,886.39 in 2023, marking an increase of about 7.5%[4] - The company's total liabilities increased to RMB 2,496,991,876.30 in 2024 from RMB 2,449,649,077.25 in 2023, representing a rise of approximately 1.9%[5] - The company's total equity increased to RMB 6,544,120,922.79 in 2024 from RMB 5,961,701,809.14 in 2023, reflecting a growth of about 9.8%[5] - Current assets reached RMB 6,480,978,592.52, up about 9.16% from RMB 5,937,283,670.86 in the previous year, with cash and cash equivalents increasing by approximately 8.39% to RMB 1,087,494,485.36[56] - As of December 31, 2024, the group's net assets amounted to RMB 6,544,120,922.79, representing an increase of approximately 9.77% compared to RMB 5,961,701,809.14 in 2023[56] Research and Development - Research and development expenses for the year were RMB 1,030,651,521.72, compared to RMB 1,010,597,572.06 in 2023, reflecting an increase of approximately 2.1%[6] - R&D investment for the year was approximately RMB 1.142 billion, a decrease of 4.03% year-on-year[35] - The group has 1,130 R&D personnel, maintaining stability in its workforce[35] - The group is advancing multiple projects, including the development of a new generation FPGA platform and a smart reconfigurable SoC platform[35] Revenue by Segment - The design segment generated CNY 3,457,956,337.56 in external revenue for 2024, up from CNY 3,350,877,320.55 in 2023, reflecting a growth of 3.2%[14] - The smart meter chip revenue increased significantly to CNY 396,694,720.15 in 2024, compared to CNY 273,770,814.68 in 2023, marking a growth of 45.8%[11] - The revenue from non-volatile memory reached CNY 1,135,832,442.81 in 2024, up from CNY 1,072,193,991.40 in 2023, reflecting a growth of 5.9%[11] - The security and identification product line achieved sales revenue of approximately RMB 791 million, with notable performance in wireless charging security modules[28] - Revenue from smart meter chips increased by 44.9% driven by recovering market demand and growth in shipments to white goods and automotive applications[52] Financial Management - The company plans to distribute a cash dividend of RMB 0.80 per share for 2024, totaling approximately RMB 65,714,184, which is 11.48% of the net profit attributable to shareholders[22] - The company plans to issue A-share convertible bonds to raise up to RMB 2 billion for various development projects, including next-generation FPGA platforms and new high-end security controllers[54] - The increase in financial expenses was primarily due to higher interest expenses on bank loans[51] - The capital management goal is to ensure the group's ongoing viability and maintain a healthy capital ratio, with a debt-to-equity ratio of approximately 27.62% as of December 31, 2024, down from 29.12% in 2023[60] Corporate Governance - The company confirmed compliance with the corporate governance code and all relevant guidelines for the year ending December 31, 2024[77] - The audit committee has reviewed the financial statements for the year ending December 31, 2024, ensuring compliance with applicable accounting standards and sufficient disclosure[79] - The company maintains a public float of no less than 25% of its total issued shares as of the announcement date[76] - No directors or supervisors had any significant interests in transactions that could impact the group's business during the year[72] Future Outlook - For the fiscal year 2025, the group aims to enhance its competitive advantages in technology, service, quality, and brand, while expanding production capacity and product application areas[64] - The group plans to continue investing in R&D to strengthen its technological advantages and actively monitor advanced technologies and products in international markets[64] - The group emphasizes deep market insights and aims to improve product market share through effective marketing strategies and customer relationship management[66]

Investment Rating - The report assigns a "Hold" rating to the company with a target price of HKD 16.00, indicating a potential upside of 4.9% from the current price of HKD 15.28 [2][4]. Core Views - The company is facing intense competition in the existing market, leading to pressure on various business segments and a slight decline in gross margins. The overall gross margin is expected to decrease by 5% this year [2][4]. - The company's revenue for Q3 2024 was reported at RMB 889 million, a year-on-year decline of 5.5%. The revenue breakdown includes safety and identification chips, smart meter chips, and FPGA products, with notable declines in gross margins for FPGA and other chips [2][4]. - The smart meter business saw a year-on-year growth of 28.9%, driven by increased bidding demand, with revenue reaching RMB 320 million [2][4]. - The company is actively expanding into automotive electronics and smart home sectors, with ongoing development in high-reliability embedded flash memory processes [2][4]. Financial Summary - The company reported total revenue of RMB 3,536 million for 2023, with a slight decrease from 2022. The net profit attributable to shareholders was RMB 719 million, reflecting a significant decline of 33.38% year-on-year [4]. - The earnings per share (EPS) for 2023 was RMB 0.88, down from RMB 1.32 in 2022. The projected EPS for 2024 is RMB 0.63, indicating a continued downward trend [4]. - The company’s EBITDA for 2023 was RMB 994 million, with a margin of 28.1%, down from 36.7% in 2022 [4]. - The financial outlook for the next three years anticipates a compound annual growth rate (CAGR) of 5.1% for revenue and 9.1% for net profit [2][4].

Investment Rating - The report maintains a "Buy" rating for Shanghai Fudan (1385.HK) [2][3] Core Views - The company experienced a revenue decline of 1.99% year-on-year in the first three quarters of 2024, with a total revenue of 2.684 billion RMB. However, the smart meter chip business saw a significant growth of 27% year-on-year in Q3 2024, becoming a key driver for performance [2] - The overall gross margin decreased by 9.53 percentage points year-on-year to 55.05% for the first three quarters of 2024, attributed to intense market competition and price reductions to maintain market share [2] - The net profit attributable to shareholders for the first three quarters of 2024 was 427 million RMB, down 34.3% year-on-year, with Q3 2024 net profit dropping 60.6% year-on-year to 79 million RMB [2] - The company is actively exploring new markets and applications, particularly in the security and identification chip sector, and has begun to establish overseas channels for financial card products [2] - The non-volatile memory business is expected to recover as the storage industry gradually improves, with a projected revenue increase in 2025 [2] Summary by Sections Revenue Performance - Total revenue for the first three quarters of 2024 was 2.684 billion RMB, a decrease of 1.99% year-on-year, with Q3 revenue at 890 million RMB, down 5.55% year-on-year [2] - The smart meter chip business revenue in Q3 2024 was 98 million RMB, up 27% year-on-year, driven by increased demand from grid tenders [2] Profitability - The overall gross margin for the first three quarters of 2024 was 55.05%, down 9.53 percentage points year-on-year, while Q3 gross margin was 52.15%, down 7.61 percentage points [2] - Net profit attributable to shareholders for the first three quarters was 427 million RMB, a decline of 34.3% year-on-year, with a net profit margin of 9% in Q3 2024 [2] Market Expansion - The company is expanding its market presence in the security and identification chip sector, with Q3 revenue of 206 million RMB, down 9% year-on-year due to price competition [2] - The non-volatile memory sector is anticipated to recover, with a focus on industrial and consumer-grade products [2] Future Outlook - The net profit forecasts for 2024 and 2025 have been revised down to 519 million RMB and 789 million RMB, respectively, reflecting the competitive pressures [3] - The current share price of 15.52 HKD corresponds to a P/E ratio of 22x for 2024 and 15x for 2025, with expectations of recovery in the FPGA and memory sectors [3]

Financial Performance - The company's operating revenue for the first nine months of 2024 was approximately RMB 2.684 billion, a decrease of about 1.99% compared to the same period last year[5]. - The net profit attributable to shareholders for the first nine months of 2024 was approximately RMB 427.24 million, a decrease of about 34.29% year-on-year[5]. - In Q3 2024, the company achieved operating revenue of approximately RMB 889.55 million, a decrease of 5.55% compared to the same period last year[6]. - The net profit attributable to shareholders in Q3 2024 was approximately RMB 79.15 million, a decrease of 60.60% year-on-year[6]. - The comprehensive gross profit margin for products decreased from 64.58% in the same period last year to 55.05% for the first nine months of 2024[5]. - The net profit attributable to shareholders decreased by 60.60% in the current reporting period due to intense market competition and a decline in product sales prices, leading to a decrease in overall gross margin[10]. - The basic earnings per share (EPS) fell by 60.00% in the current reporting period, reflecting the impact of increased costs on profitability[10]. - The diluted earnings per share (EPS) decreased by 58.33% in the current reporting period, indicating significant financial pressure[10]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, declined by 59.77% in the current reporting period[10]. - The total comprehensive income for the first three quarters of 2024 was RMB 410,707,235.92, significantly lower than RMB 665,640,026.72 in the previous year, indicating a decline of approximately 38.3%[19]. Expenses and Costs - Research and development expenses totaled RMB 301.68 million in Q3 2024, an increase of 4.04% year-on-year, representing 33.91% of operating revenue[3]. - Operating costs increased to RMB 2,345,249,471.94 in the first three quarters of 2024, up 15.3% from RMB 2,034,462,515.00 in the previous year[18]. - The company experienced a 34.29% decrease in net profit attributable to shareholders from the beginning of the year to the end of the reporting period, primarily due to rising expenses[10]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,083, with the largest shareholder holding 34.70% of the shares[11]. - The top ten shareholders collectively hold a significant portion of the company's equity, with the largest shareholder owning 284,196,830 shares[12]. - The company has a total of 26,069 A-share shareholders and 14 H-share shareholders as of the reporting period end[13]. - The largest shareholder, Hong Kong Central Clearing Limited, represents multiple clients holding H shares, totaling 284,207,830 shares[14]. - The shares held by Shanghai Zhengben Enterprise Management Consulting Partnership are subject to judicial freezing, affecting 35,682,011 shares[14]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 884.18 million, an increase of 5.12% compared to the end of the previous year[4]. - The equity attributable to shareholders at the end of the reporting period was RMB 570.75 million, an increase of 7.63% year-on-year[4]. - As of September 30, 2024, the company's total assets increased to RMB 8,841,772,247.60, up from RMB 8,411,350,886.39 as of December 31, 2023, representing a growth of approximately 5.1%[16][17]. - The total liabilities increased to RMB 2,500,835,885.21 as of September 30, 2024, compared to RMB 2,449,649,077.25 at the end of 2023, reflecting a growth of about 2.1%[17]. Cash Flow - The company's cash and cash equivalents decreased to RMB 723,801,076.42 from RMB 1,003,337,496.96, a decline of approximately 28.0%[16]. - Net cash flow from operating activities for the first three quarters of 2024 was RMB 115,359,903.56, a significant improvement from a net outflow of RMB 1,102,588,369.69 in the same period of 2023[22]. - Cash inflow from investment activities totaled RMB 765,352,925.37, compared to RMB 626,636,738.23 in the previous year, indicating a year-over-year increase of approximately 22%[22]. - Cash outflow for investment activities was RMB 1,271,664,515.45, up from RMB 1,005,353,116.09 in 2023, reflecting a 26.4% increase[22]. - Cash flow from financing activities generated RMB 1,072,630,696.09, compared to RMB 1,275,135,414.91 in the prior year, showing a decrease of approximately 15.9%[22]. - The ending cash and cash equivalents balance for the first three quarters of 2024 was RMB 703,756,076.42, down from RMB 727,223,855.98 in 2023[22]. - Cash inflow from sales and services received was RMB 2,337,629,763.05, slightly up from RMB 2,298,844,865.62 in the previous year[20]. - Total cash inflow from operating activities was RMB 2,421,664,219.34, compared to RMB 2,426,509,750.38 in the same period of 2023, indicating a marginal decrease[20]. - Cash outflow for purchasing goods and services was RMB 1,149,970,784.94, significantly lower than RMB 2,486,714,110.24 in the previous year, reflecting a decrease of approximately 53.8%[20]. - The company experienced a decrease in cash received from other operating activities, totaling RMB 66,335,714.58, compared to RMB 91,666,381.80 in the same period last year[20]. Future Outlook - The company is in the process of issuing convertible bonds, pending approval from the shareholders' meeting, which introduces uncertainty regarding the timing and outcome of this initiative[15].

Financial Performance - The company's operating revenue for the first half of 2024 was approximately RMB 1.79 billion, a decrease of 0.12% compared to the same period in 2023[6]. - Net profit attributable to shareholders for the first half of 2024 was approximately RMB 348.09 million, a decrease of about 22.52% year-on-year[6]. - The comprehensive gross profit margin for the first half of 2024 was 56.49%, a decrease of 10.61 percentage points year-on-year[6]. - In the first half of 2024, the company achieved operating revenue of approximately RMB 1.794 billion, remaining basically flat year-on-year[24]. - Net profit attributable to shareholders was approximately RMB 348 million, a year-on-year decrease of 22.52%[24]. - The total comprehensive income for the first half of 2024 was RMB 339.89 million, down from RMB 465.87 million in the same period of 2023[46]. - The company reported a total profit of RMB 344.11 million, a decline of 26.2% from RMB 466.54 million in the previous year[45]. - The net profit for the first half of 2024 was RMB 339,684,234.43, a decrease of approximately 26.8% compared to RMB 463,997,407.12 in the same period of 2023[149]. Cash Flow and Liquidity - The net cash flow from operating activities turned positive at approximately RMB 127.13 million, compared to a negative cash flow of RMB 1.09 billion in the same period last year[7]. - Operating cash inflow for the first half of 2024 reached RMB 1,662,628,490.28, a significant increase from RMB 1,374,897,125.25 in the same period of 2023, representing a growth of approximately 21%[48]. - Cash inflow from investment activities totaled RMB 280,950,996.16, compared to RMB 48,757,854.90 in the previous year, indicating a substantial increase[50]. - Cash outflow for investment activities was RMB 605,566,029.33, up from RMB 356,171,193.91 in the first half of 2023, reflecting increased investment efforts[50]. - The ending cash and cash equivalents balance was RMB 782,322,362.59, compared to RMB 735,798,694.21 at the end of the first half of 2023, showing a slight increase[50]. - The company's cash and cash equivalents decreased to RMB 813,008,807.03, down from RMB 1,003,337,496.96 as of December 31, 2023, representing a decrease of approximately 19%[68]. Research and Development - Research and development expenses accounted for 33.31% of operating revenue, compared to 32.74% in the previous year[6]. - The company invested RMB 598 million in R&D during the reporting period, accounting for 33.31% of total revenue, highlighting a strong commitment to innovation[18]. - R&D expenses totaled RMB 540,299,186.90 for the first half of 2024, a slight increase of 2.6% from RMB 527,603,643.01 in the same period of 2023[133]. - The company has developed a new generation of NFC technology and achieved breakthroughs in UHF RFID tag chips, enhancing its competitive edge in the security and identification chip market[13]. - The company is advancing the development of new generation FPGA and PSoC products based on 1xnm FinFET technology, targeting applications in computer vision and machine learning[12]. Market and Product Performance - The semiconductor industry showed signs of recovery, with a reported 28.9% year-on-year increase in integrated circuit product output[8]. - The sales revenue from the security and identification product line was approximately RMB 370 million, down from RMB 410 million in 2023[9]. - The non-volatile memory product line achieved sales revenue of approximately RMB 599 million, slightly up from RMB 588 million in 2023[10]. - The smart meter MCU product line achieved sales revenue of approximately RMB 212 million in the reporting period, compared to RMB 113 million in 2023, reflecting a significant growth[11]. - The FPGA product line generated sales revenue of approximately RMB 553 million, slightly down from RMB 586 million in 2023, indicating a stable market presence despite a minor decline[12]. Assets and Liabilities - The company's total assets as of June 30, 2024, were approximately RMB 86.66 billion, an increase of about 3.03% from the beginning of the reporting period[7]. - The net assets attributable to shareholders increased to approximately RMB 55.99 billion, reflecting a growth of about 5.59% from the beginning of the reporting period[7]. - The company's inventory at the end of the reporting period was valued at approximately RMB 3.23 billion, representing 52.83% of total current assets[34]. - Total liabilities as of June 30, 2024, amounted to RMB 2,425,161,836.52, a slight decrease from RMB 2,449,649,077.25 as of December 31, 2023, representing a reduction of approximately 1%[42]. - Total equity attributable to shareholders increased to RMB 5,599,365,612.23 from RMB 5,302,976,177.60, reflecting a growth of about 5.6%[42]. Risk Factors - The company faces risks related to the slowdown in the integrated circuit industry and potential impacts from international trade environments[27][28]. - The company is focusing on improving its cash flow management by reducing outstanding receivables and increasing the efficiency of collections[84]. - The company faces market risks including interest rate risk and foreign exchange risk, but the impact of foreign exchange fluctuations is considered minimal due to operations primarily in RMB[174]. Corporate Governance and Compliance - The company has established a comprehensive quality control system and has received multiple management system certifications, enhancing its market credibility[20]. - The company continues to adhere to the accounting standards set forth by the Ministry of Finance, ensuring the accuracy and completeness of its financial reporting[62]. - The company has obtained high-tech enterprise certification, allowing it to pay a reduced corporate income tax rate of 15% for 2023[67].