Financial Performance - The company's operating revenue for Q1 2024 was approximately RMB 892.74 million, representing a year-on-year increase of 10.30%[8] - Net profit attributable to shareholders was approximately RMB 161.25 million, a decrease of 14.35% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 154.99 million, down 13.93% year-on-year[8] - The overall gross profit margin for products decreased from 66.77% in the same period last year to 56.65%[8] - The basic earnings per share for the reporting period was RMB 0.20, a decrease of 13.04% year-on-year[5] - Net profit for Q1 2024 was RMB 158.35 million, a decrease of 18.6% from RMB 194.53 million in Q1 2023[20] Research and Development - Research and development expenses totaled approximately RMB 245.30 million, an increase of about RMB 25.96 million compared to the same period last year[10] - Research and development expenses were not reported for Q1 2024, compared to RMB 219.34 million in Q1 2023[20] Assets and Equity - Total assets at the end of the reporting period were RMB 849,593.38 million, an increase of 1.01% from the end of the previous year[7] - Equity attributable to shareholders at the end of the reporting period was RMB 547,916.09 million, up 3.32% from the end of the previous year[7] - The company’s total equity increased to RMB 6.13 billion from RMB 5.96 billion, reflecting a growth of 2.9%[19] Shareholder Information - The total number of common shareholders at the end of the reporting period was 27,057, with the top ten shareholders holding a combined 34.70% of shares[13] - Hong Kong Central Clearing (Agent) Limited holds 284,196,830 shares, representing 34.70% of total shares[14] - Shanghai Fudan Fuxin Technology Holdings Limited and Shanghai Zhengben Enterprise Management Consulting Partnership hold 13.38% and 13.03% of shares, respectively[13] - The number of A-share shareholders was 27,043, while H-share shareholders totaled 14[15] - The top ten shareholders include various institutional investors, with the largest being Hong Kong Central Clearing[14] - The total shares held by the top ten unrestricted shareholders amount to 284,196,830[14] - The report indicates that 39,182,011 shares held by Shanghai Zhengben are under judicial freeze[15] - The company has seen changes in the lending of shares due to margin trading activities among major shareholders[16] - The total number of shares held by the top ten unrestricted shareholders represents a significant portion of the company's equity structure[14] Cash Flow and Investments - In Q1 2024, cash inflow from operating activities was RMB 775,994,096.96, an increase of 21% compared to RMB 641,002,729.28 in Q1 2023[22] - The net cash flow from operating activities was RMB 10,580,615.27, a significant improvement from a net outflow of RMB 524,983,561.92 in the same period last year[22] - Cash outflow for purchasing fixed assets and other long-term assets was RMB 132,650,890.15, down 48% from RMB 253,469,972.83 in Q1 2023[23] - Cash inflow from investment activities totaled RMB 161,100,016.13, compared to RMB 225,683,029.78 in Q1 2023, reflecting a decrease of 29%[23] - The net cash flow from investment activities was negative at RMB -236,550,874.02, an improvement from RMB -294,342,943.05 in the previous year[23] - Cash inflow from financing activities was RMB 445,717,254.60, up 35% from RMB 330,563,472.36 in Q1 2023[23] - The net cash flow from financing activities was negative at RMB -24,290,369.20, contrasting with a positive net flow of RMB 323,231,185.34 in Q1 2023[23] - The ending cash and cash equivalents balance was RMB 740,560,120.10, an increase from RMB 622,264,887.86 at the end of Q1 2023[23] - The company received RMB 10,683,118.07 in tax refunds, slightly up from RMB 9,696,496.64 in Q1 2023[22] - The total cash outflow for operating activities was RMB 765,413,481.69, down 34% from RMB 1,165,986,291.20 in Q1 2023[22] Segment Performance - The revenue from the smart meter chip segment increased by 95.74% year-on-year, reaching approximately RMB 92 million[8] Liabilities - The total liabilities decreased to RMB 2.36 billion from RMB 2.45 billion, a reduction of 3.6%[19]

Financial Performance - The company achieved a revenue of RMB 3.536 billion for the year 2023, which is approximately flat year-on-year[9]. - Net profit attributable to shareholders decreased by 33.18% to RMB 719 million[9]. - The overall gross margin for the reporting period was 61.21%[9]. - Operating revenue for 2023 was RMB 353,625.94 million, a slight decrease of 0.07% compared to RMB 353,890.89 million in 2022[32]. - Operating revenue for 2023 was approximately RMB 3.54 billion, a slight decrease of 0.1% compared to RMB 3.54 billion in 2022[184]. - Net profit for 2023 was CNY 748.86 million, down 33% from CNY 1.12 billion in 2022[184]. - The company reported a significant increase in financial expenses, totaling CNY 15.70 million in 2023 compared to a financial income of CNY 7.75 million in 2022[184]. - The total comprehensive income for 2023 was CNY 751.30 million, down from CNY 1.12 billion in 2022[186]. - The company reported a significant increase in other income, which rose to RMB 145.59 million in 2023 from RMB 88.90 million in 2022, an increase of 63.73%[197]. Research and Development - Research and development expenditure reached RMB 1.19 billion, an increase of 34.25% year-on-year[10]. - The company invested approximately RMB 1.19 billion in R&D, representing a year-on-year increase of 34.25%, and expanded its R&D personnel from 885 to 1,178[21]. - The company is focusing on five key R&D projects with significant market potential, which received high recognition from shareholders[11]. - The company is advancing the development of new-generation FPGA platforms and intelligent reconfigurable SoC platforms as part of its long-term strategic planning[21]. - Research and development expenses during the reporting period amount to approximately RMB 1.19 billion, representing 33.64% of total operating revenue[43]. Market and Industry Conditions - The semiconductor industry is currently in a downturn, impacting sales in consumer electronics and power electronics sectors[9]. - The company remains committed to long-term development strategies despite macroeconomic challenges[11]. - The non-volatile memory product line reported revenue of approximately RMB 1.072 billion, facing significant market pressure due to declining consumer demand[15]. - The company is strategically targeting the renewable energy sector with new product developments in electric vehicle charging and photovoltaic applications[18]. Operational Metrics - The company employed a total of 2,045 staff by the end of 2023, with 1,178 in R&D, adding 293 new R&D personnel compared to 2022[9]. - The company’s subsidiary, Hualing, has developed advanced testing solutions for AI chips and high-performance computing chips, contributing to its technological capabilities[19]. - The company is engaged in the design, development, and testing of ultra-large-scale integrated circuits, with product lines including security and identification chips, non-volatile memory, smart meter chips, FPGA chips, and integrated circuit testing services[22]. - The security and identification product line generated sales revenue of approximately RMB 863 million, with efforts to expand into overseas markets[14]. Financial Position and Cash Flow - The company reported a net cash flow from operating activities of RMB (70,816.66) million, a significant decline from RMB 32,128.55 million in the previous year[34]. - Inventory increased by 24.27% to RMB 317,737.06 million, driven by proactive measures to ensure continuous supply and seize market opportunities[35]. - The company reported a significant increase in accounts receivable, which rose to approximately RMB 929.62 million from RMB 730.20 million, a growth of 27.3%[180]. - The company’s cash and cash equivalents decreased to approximately ¥1.00 billion from ¥1.19 billion, a decline of 15.7%[180]. Governance and Compliance - The company emphasizes the importance of rigorous risk management practices to mitigate operational risks[38]. - The board of directors believes that the company has complied with all corporate governance code provisions during the year ending December 31, 2023[73]. - The company has established a systematic training management process, evaluating training effectiveness through exams and performance assessments[57]. - The company has a commitment to transparency, integrity, and accountability in its operations[71]. Shareholder Engagement and Dividends - The board proposed a cash dividend of RMB 1 per 10 shares, totaling RMB 81,906,040, subject to shareholder approval[11]. - The company maintains a dividend policy to distribute at least 10% of the annual distributable profits, subject to various financial and operational considerations[106]. - The company has established multiple communication channels with shareholders to ensure effective engagement and transparency[105]. Future Outlook - The company plans to issue A-share convertible bonds to raise up to RMB 200,000 million for various development projects, including next-generation FPGA platforms and intelligent SoC platforms[50]. - The company aims to enhance its competitive advantages in technology, service, quality, and brand while expanding production capacity and product application areas in 2024[48]. - The company plans to continue focusing on market expansion and new product development in the upcoming fiscal year[188].

Financial Performance - The company has not achieved profitability since its listing, indicating ongoing challenges in financial performance [3]. - The company's operating revenue for 2023 was CNY 353,625.94 million, a slight decrease of 0.07% compared to CNY 353,890.89 million in 2022 [22]. - The net profit attributable to shareholders for 2023 was CNY 71,949.44 million, representing a significant decline of 33.18% from CNY 107,684.33 million in the previous year [22]. - The net profit after deducting non-recurring gains and losses was CNY 57,249.22 million, down 43.84% from CNY 101,940.55 million in 2022 [22]. - The basic earnings per share for 2023 were CNY 0.88, a decrease of 33.33% from CNY 1.32 in 2022 [23]. - The comprehensive gross profit margin decreased by 3.46 percentage points compared to the previous year due to price impacts on certain product lines [24]. - The gross profit margin declined to 61.21% due to downward pressure on certain product lines [32]. - The company reported a significant decrease in sales and gross margin for smart meter chips, attributed to market demand decline [87]. Cash Flow and Investments - The net cash flow from operating activities was negative at CNY -70,816.66 million, compared to CNY 32,128.55 million in 2022 [22]. - The company reported a net cash flow from operating activities of RMB 39.44 million in Q4 2023, following negative cash flows in the first three quarters [26]. - Investment cash flow was negative at RMB -73,159.68 million, mainly due to expansion of production scale by a subsidiary [100]. - Financing cash flow increased by 159.67% to RMB 131,027.07 million, driven by increased bank loans to meet operational funding needs [100]. Research and Development - The R&D expenditure accounted for 33.64% of operating revenue, an increase of 8.60 percentage points from 25.04% in 2022 [23]. - R&D investment for the year was approximately CNY 1.190 billion, an increase of 34.25% year-on-year, with R&D personnel rising from 885 to 1,178 [33]. - The company is focusing on new product development, including next-generation FPGA platforms and intelligent reconfigurable SoC platforms [33]. - R&D expenses reached 1.19 billion RMB, representing 33.64% of total revenue, indicating a strong commitment to innovation [73]. Market and Product Development - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [22]. - The company is focusing on developing high-capacity, high-reliability storage products to meet market demands in various sectors [113]. - The company is actively expanding its product lineup in key industries such as public utilities, smart home appliances, automotive electronics, and industrial control [54]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% growth in that region [126]. Governance and Shareholder Matters - The board of directors has fully attended the meetings, ensuring governance integrity [7]. - The company held its 2022 Annual General Meeting on June 2, 2023, where all resolutions were passed, including the approval of the 2022 financial statements [117]. - The company plans to issue A-share convertible bonds, with details on the issuance scale and terms to be determined [120]. - The company has established several specialized committees under the board, including the audit committee and the strategic and investment committee [149]. Risks and Challenges - The company has disclosed potential risks in its management discussion and analysis section, urging investors to review these factors [3]. - The company faces risks related to new product development and talent retention in a competitive market [75][76]. - The overall gross margin is under pressure due to changes in supply-demand dynamics in the consumer electronics sector [77]. Social Responsibility and Sustainability - The company is committed to improving its ESG management level and promoting sustainable development practices [113]. - The company contributed approximately 8.4 million CNY to support the "Hearing-impaired Children's Choir Project" in 2023, benefiting the health and growth of hearing-impaired children [182]. - The company has implemented carbon reduction measures, achieving a reduction of 147 tons of CO2 equivalent by upgrading the laboratory air conditioning system [176]. Employee and Management - The total number of employees in the company is 2,045, with 1,514 in the parent company and 531 in major subsidiaries [155]. - The company has established a competitive compensation and benefits policy, including salaries, bonuses, and various types of leave [156]. - The company has a systematic training management process, implementing both external and internal training programs [157]. - The company has established a performance evaluation mechanism for senior management, linking salary to performance assessment results [168].

Financial Performance - The company's total revenue for 2023 was RMB 3,536,259,423.60, a slight decrease of 0.04% compared to RMB 3,538,908,884.94 in 2022[4] - Net profit attributable to shareholders for 2023 was RMB 719,494,375.58, down 33.2% from RMB 1,076,843,340.68 in 2022[4] - Total comprehensive income for the year 2023 was RMB 751,297,956.63, a decrease from RMB 1,120,440,199.87 in 2022, reflecting a decline of approximately 33%[5] - Basic earnings per share (EPS) for 2023 was RMB 0.88, down from RMB 1.32 in 2022, representing a decrease of about 33.33%[5] - The company reported a profit total of RMB 751,850,854.72 for 2023, down from RMB 1,121,671,536.82 in 2022, a decrease of about 33%[10] - The company achieved operating revenue of approximately RMB 3.536 billion, remaining essentially flat year-on-year, while net profit attributable to shareholders decreased by 33.18% to approximately RMB 719 million[44] Assets and Liabilities - The company's total assets as of December 31, 2023, reached RMB 8,411,350,886.39, up 37.5% from RMB 6,110,888,054.09 in 2022[3] - Current assets totaled RMB 5,937,283,670.86, an increase of 37.2% compared to RMB 4,327,100,944.42 in 2022[2] - Total liabilities rose to RMB 2,449,649,077.25, a substantial increase of 156.1% from RMB 957,718,676.14 in 2022[3] - The total accounts receivable balance as of December 31, 2023, is RMB 953,432,976.35, with a bad debt provision of RMB 23,813,666.81, representing 2.50% of the total[15] - The accounts payable as of 2023 is RMB 235,756,887.78, an increase from RMB 201,182,480.44 in 2022[15] - The company had bank borrowings of RMB 1.436 billion as of December 31, 2023, a significant increase from RMB 50 million in 2022[47] Research and Development - Research and development expenses increased significantly to RMB 1,010,597,572.06, representing a rise of 37.4% from RMB 735,419,692.61 in the previous year[4] - The company invested approximately RMB 1.19 billion in R&D for the year, representing a year-on-year increase of 34.25%[31] - The number of R&D personnel increased from 885 at the end of last year to 1,178, enhancing the R&D capabilities[31] - The company has developed 10GHz high-speed wafer KGD testing and high-density wafer testing methods with over 10,000 pins, which have been put into mass production[29] - The company is actively developing testing solutions for AI chips, high-performance computing chips, and automotive-grade chips[29] - The comprehensive gross margin decreased to 61.21% due to the downward pressure on certain product lines[23] Revenue Breakdown - Revenue from external transactions in 2023 was RMB 3,536,259,423.60, slightly down from RMB 3,538,908,884.94 in 2022, indicating a marginal decline of 0.07%[8] - Revenue from non-volatile memory in 2023 increased to RMB 1,072,193,991.40 from RMB 940,310,039.15 in 2022, marking an increase of approximately 14%[8] - Revenue from smart meter chips decreased significantly from RMB 594,579,681.69 in 2022 to RMB 273,770,814.68 in 2023, a decline of about 54%[8] - The sales revenue from the non-volatile memory product line was approximately RMB 1.072 billion in 2023[26] - The sales revenue from the smart meter chip product line was approximately RMB 274 million in 2023[27] Future Plans and Strategies - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[4] - The company is focusing on expanding its product lines and entering new markets, particularly in the fields of electric vehicles and renewable energy[28] - The company is applying to issue A-share convertible bonds to raise up to RMB 2 billion for various development projects, including next-generation FPGA platforms and IoT chip development[46] - The group aims to enhance its competitive advantages in technology, service, quality, and brand in 2024, with plans to expand capacity and product application areas[53] - The group will continue to invest in R&D and strengthen its technological advantages through partnerships and innovation, focusing on cross-domain integrated innovation[53] Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 1.00 per share, totaling RMB 81,906,040.00, which is 11.38% of the net profit attributable to shareholders for 2023[18] - The board proposed a final dividend of RMB 1.00 per 10 shares for the year ending December 31, 2023, totaling an expected cash distribution of RMB 81,906,040.00, down from RMB 110,248,627.50 in 2022[54] - The average weighted number of ordinary shares outstanding for the company was 816,735,532 in 2023[22] Compliance and Governance - The audit committee has reviewed the financial statements for the year ending December 31, 2023, confirming compliance with applicable accounting standards and sufficient disclosure[62] - The consolidated financial statements for the year ending December 31, 2023, have been verified by Ernst & Young Hua Ming LLP, confirming consistency with the reported figures[63] - The announcement does not constitute an audit under the standards set by the Hong Kong Institute of Certified Public Accountants, indicating no certification has been issued[63] - The board of directors includes executive directors Jiang Guoxing, Shi Lei, and Yu Jun, along with non-executive and independent non-executive directors[63]

Financial Performance - In Q3 2023, the company reported revenue of approximately CNY 9.42 billion, a decrease of 6.00% compared to the same period last year[5]. - The net profit attributable to shareholders in Q3 2023 was approximately CNY 2.01 billion, down 38.88% year-on-year[5]. - For the first nine months of 2023, the company achieved a total revenue of approximately CNY 27.38 billion, an increase of 1.25% year-on-year[4]. - The net profit attributable to shareholders for the first nine months was approximately CNY 6.50 billion, a decrease of 24.33% compared to the previous year[4]. - The gross profit margin for the product lines decreased from 65.03% to 64.58% in the first nine months of 2023[5]. - The weighted average return on equity decreased by 10.84 percentage points to 13.33% year-on-year[4]. - The basic and diluted earnings per share decreased by 37.50% and 40.00%, respectively, due to the decline in net profit[10]. - Total comprehensive income for Q3 2023 was CNY 665,640,026.72, a decrease of 25.3% from CNY 890,600,254.80 in Q3 2022[22]. - Basic earnings per share for Q3 2023 was CNY 0.80, down from CNY 1.05 in Q3 2022, representing a decline of 23.8%[22]. - Net profit for Q3 2023 was ¥663,928,750.13, down from ¥886,969,151.29 in Q3 2022, representing a decrease of approximately 25.2%[21]. Research and Development - R&D expenses for the first three quarters of 2023 amounted to approximately CNY 75.78 million, an increase of CNY 19.79 million year-on-year[6]. - R&D investment increased by 31.56% year-to-date, reflecting the company's commitment to enhancing new product and technology development[10]. - Research and development expenses rose to ¥757,831,871.78, compared to ¥559,903,315.37 in the previous year, indicating a year-over-year increase of about 35.4%[20]. - The company plans to continue investing in R&D to enhance product offerings and meet diverse application needs[6]. Cash Flow and Liquidity - The company’s cash flow from operating activities was negative at CNY -110.26 million for the year-to-date[3]. - Cash inflow from operating activities totaled CNY 2,426,509,750.38 in the first three quarters of 2023, down 8.7% from CNY 2,659,392,884.90 in 2022[23]. - Cash outflow from operating activities increased to CNY 3,529,098,120.07 in 2023, up 47.4% from CNY 2,393,087,377.26 in 2022[24]. - Net cash flow from operating activities for the first three quarters of 2023 was CNY -1,102,588,369.69, compared to CNY 266,305,507.64 in the same period of 2022[24]. - Net cash flow from investing activities was CNY -378,716,377.86 for the first three quarters of 2023, compared to CNY -200,777,339.26 in 2022[24]. - Net cash flow from financing activities for Q3 2023 was CNY 1,096,739,899.23, significantly higher than CNY 394,337,344.77 in Q3 2022[25]. - The ending balance of cash and cash equivalents as of Q3 2023 was CNY 727,223,855.98, down from CNY 875,584,047.61 at the end of Q3 2022[25]. - The company received CNY 35,998,502.96 in tax refunds during the first three quarters of 2023, compared to CNY 18,008,270.96 in the same period of 2022[23]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 813.39 billion, representing a 33.10% increase from the previous year[4]. - The total assets at the end of the reporting period increased by 33.10%, primarily due to expanded production scale and increased inventory[10]. - Current liabilities totaled ¥1,706,350,802.93, significantly higher than ¥903,876,332.57 in the previous year, marking an increase of about 88.8%[19]. - The company's equity attributable to shareholders increased to ¥5,161,926,253.88 from ¥4,531,230,351.61, showing a growth of approximately 13.9%[19]. - Inventory increased to approximately 3.15 billion RMB, up from 1.48 billion RMB in the previous year[17]. - Accounts receivable rose to approximately 1.13 billion RMB, compared to 730.20 million RMB at the end of the previous year[17]. - The company reported a decrease in asset impairment losses to ¥75,329,023.42 from ¥87,679,395.66 in the previous year, indicating improved asset management[21]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 20,310, with the largest shareholder holding 34.80% of the shares[13]. - The company is in the process of issuing convertible bonds, pending approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission[15].

Financial Performance - For the first nine months of 2023, the company achieved operating revenue of approximately RMB 2.738 billion, an increase of about 1.25% year-on-year[6]. - The net profit attributable to shareholders for the same period was approximately RMB 650 million, a decrease of about 24.33% year-on-year[6]. - In Q3 2023, the company reported operating revenue of approximately RMB 942 million, a decrease of about 6.00% compared to the same period last year[7]. - The net profit attributable to shareholders in Q3 2023 was approximately RMB 201 million, a decrease of about 38.88% year-on-year[7]. - Operating profit for the first three quarters of 2023 was RMB 664.79 million, down from RMB 888.92 million in the same period of 2022, indicating a decline of approximately 25.3%[19]. - The company's revenue for the first three quarters of 2023 was approximately RMB 2.30 billion, a decrease of 12.24% compared to RMB 2.62 billion in the same period of 2022[21]. - The company incurred a loss of approximately RMB 1.10 billion in the first three quarters of 2023, compared to a profit of RMB 266.31 million in the same period of 2022[21]. Research and Development - R&D expenses for the first nine months of 2023 amounted to approximately RMB 757.83 million, an increase of about RMB 197.93 million compared to the same period last year[9]. - The company’s R&D investment accounted for 30.79% of operating revenue, an increase of 3.96 percentage points year-on-year[4]. - R&D investment increased by 31.56% in the first nine months, driven by the need to enhance core competitiveness through new product and technology development[11]. - Research and development expenses increased to RMB 757.83 million in the first three quarters of 2023, up from RMB 559.90 million in the same period of 2022, marking an increase of approximately 35.4%[19]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 813.39 million, an increase of 33.10% compared to the end of the previous year[5]. - Total assets increased to RMB 8.13 billion from RMB 6.11 billion as of December 31, 2022, representing a growth of approximately 33.2%[17]. - The total liabilities increased to RMB 2.34 billion as of September 30, 2023, from RMB 957.72 million as of December 31, 2022, representing an increase of about 144.5%[18]. - Inventory levels rose significantly to RMB 3.15 billion as of September 30, 2023, compared to RMB 1.48 billion at the end of 2022, reflecting an increase of approximately 112.5%[17]. Earnings Per Share - Basic earnings per share decreased by 37.50% in Q3, mainly due to the drop in net profit[11]. - The company’s basic earnings per share for the first three quarters of 2023 were RMB 0.80, down from RMB 1.05 in the same period of 2022, a decrease of approximately 23.8%[20]. - Diluted earnings per share fell by 40.00% in Q3[11]. Cash Flow - The company's cash and cash equivalents decreased to RMB 737.28 million as of September 30, 2023, from RMB 1.19 billion as of December 31, 2022, a decline of about 38.0%[17]. - The total cash and cash equivalents at the end of the third quarter of 2023 was RMB 727.22 million, down from RMB 875.58 million at the end of the same period in 2022[23]. - The net cash flow from investment activities for the first three quarters of 2023 was negative RMB 378.72 million, compared to negative RMB 200.78 million in the same period of 2022[23]. - The cash flow from operating activities showed a decrease, with a net cash outflow of RMB 393.06 million in 2023 compared to an inflow of RMB 459.83 million in 2022[23]. - The net cash flow from financing activities for the first three quarters of 2023 was RMB 1.10 billion, an increase from RMB 394.34 million in the same period of 2022[23]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,310, with the largest shareholder holding 34.80% of shares[12]. - The top ten shareholders collectively hold significant stakes, with the largest shareholder holding 284,197,980 shares[13]. Future Plans - The company plans to continue launching new products and expanding its customer base to address the challenges posed by insufficient demand in certain sectors[8]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[19]. - The company is advancing the issuance of convertible bonds, pending approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission[16]. Accounting Standards - The company has implemented new accounting standards starting in 2023, which may affect the financial statements[23].

Incentive Plans - The company granted 1,066,000 restricted shares under the 2021 A-share incentive plan on October 28, 2022, with performance assessment requirements for the years 2022 to 2024[3] - The 2018 equity incentive plan expired on February 13, 2022, and no domestic shares were granted under this plan in the 2022 fiscal year[7] Performance Assessment Requirements - The first vesting period requires a revenue increase of over 65% compared to 2020, and a gross profit increase of over 65% compared to 2020[4] - The second vesting period requires a revenue increase of over 90% compared to 2020, and a gross profit increase of over 90% compared to 2020[5] - The third vesting period requires a revenue increase of over 120% compared to 2020, and a gross profit increase of over 120% compared to 2020[5] - The personal performance assessment for incentive targets is categorized as "Qualified" or "Unqualified," with corresponding share allocation coefficients of 100% and 0% respectively[6] Financial Management - The company plans to utilize the remaining unspent funds from the 2022 fiscal year according to the previously disclosed usage plan and expected timeline[8]

Financial Performance - The company reported a revenue of RMB 1.796 billion for the first half of 2023, representing a year-on-year increase of 5.52%[9]. - Net profit attributable to shareholders was RMB 449.27 million, a decrease of approximately 15.32% compared to the same period last year[9]. - The gross profit margin improved to 67.10%, an increase of 2.10 percentage points year-on-year[9]. - The company’s basic earnings per share were RMB 0.55, down from RMB 0.65 in the same period last year[9]. - The company reported a total profit of RMB 466,539,593.35 for H1 2023, with an applicable tax expense calculated at RMB 46,653,959.34[158]. - The company’s net profit for H1 2023 was RMB 463,997,407.12, down from RMB 541,557,299.92 in H1 2022, representing a decline of 14.3%[162]. - The total comprehensive income for the first half of 2023 is RMB 465,874,450.72, compared to RMB 434,508,249.93 for the same period in 2022, indicating an increase of about 7.2%[69]. Research and Development - Research and development expenses amounted to RMB 588 million, a significant increase of 47.54% compared to the previous year[10]. - R&D investment reached RMB 588.14 million, accounting for 32.74% of operating revenue, which is a 47.54% increase compared to the previous year[29]. - The company has established a multi-level R&D system, with R&D investment at a high level of 32.74% of revenue, ensuring sustained competitiveness in the market[23]. - The company is actively developing high-performance industrial and automotive-grade products in the non-volatile memory sector to enhance competitiveness[19]. - The smart meter MCU technology has advanced with the development of embedded flash memory technology and low-power clock technology, with ongoing productization efforts[20]. Product Lines and Sales - The company’s sales revenue from the security and identification product line was approximately RMB 410 million, down from RMB 461 million in the previous year[13]. - The non-volatile memory product line achieved sales revenue of approximately RMB 588 million in the reporting period, up from RMB 487 million in 2022, reflecting a growth of 20.7%[14]. - The smart meter chip product line generated sales revenue of approximately RMB 113 million, a decrease from RMB 276 million in 2022, indicating a decline of 59.0%[16]. - The FPGA and other products line reported sales revenue of approximately RMB 586 million, an increase from RMB 378 million in 2022, representing a growth of 55.1%[17]. - The company continues to focus on expanding its product lines, particularly in high-reliability products and new applications[10]. Financial Position - The total assets of the company reached RMB 78.43 billion, reflecting a growth of approximately 28.35% since the beginning of the reporting period[9]. - The net assets attributable to shareholders increased to RMB 49.32 billion, up about 8.83% from the start of the reporting period[9]. - The company's total current assets increased to RMB 5,687,882,418.09 as of June 30, 2023, compared to RMB 4,327,100,944.42 on December 31, 2022, reflecting a growth of approximately 31.5%[53]. - The company's inventory at the end of the reporting period was valued at approximately RMB 2.85 billion, representing 50.08% of total current assets[39]. - The total liabilities increased to RMB 1,758,520,203.60 as of June 30, 2023, from RMB 903,876,332.57 at the end of 2022, showing a growth of approximately 94.5%[53]. Cash Flow and Financing - Cash flow from operating activities showed a net outflow of RMB 109,043.92 million, compared to a net inflow of RMB 32,910.72 million in the previous year[42]. - The company raised a total of RMB 540 million by issuing 40 million shares at RMB 13.50 each, with a net amount of RMB 507.6 million allocated for integrated circuit testing industrialization and R&D center construction by September 30, 2023[48]. - The company reported a significant increase in financial expenses by 82.74%, amounting to RMB (786.30) million, compared to RMB (430.28) million in the previous year[42]. - The company recorded a credit impairment loss of RMB (1,343.88) million, a 142.35% increase from RMB (554.53) million in the previous year[42]. - The company reported a net cash flow from financing activities of RMB 1,014,850,889.73, a turnaround from a net outflow of RMB 82,381,852.95 in the prior year[62]. Market and Industry Conditions - The semiconductor industry is experiencing a downturn, with a reported 3.0% decline in integrated circuit production in China for the first half of 2023[11]. - The company faces risks related to the slowdown in the integrated circuit industry growth, which could adversely affect its performance[32]. - The company is focusing on enhancing its technology and product reserves in preparation for industry recovery, particularly in automotive and smart home applications[16]. Related Party Transactions - The company recognized related party service income from Fudan University amounting to RMB 61,320.75, an increase from RMB 46,226.42 in the same period last year, representing a growth of approximately 32.5%[194]. - Sales to Shanghai Fudan Communication Co., Ltd. reached RMB 114,889,504.57, up from RMB 80,789,693.88, indicating a growth of about 42.1% year-over-year[194]. - The company has contract liabilities with Fudan University amounting to RMB 23,400.00, unchanged from the previous period[200].

Financial Performance - For the six months ended June 30, 2023, the company reported operating revenue of RMB 1.796 billion, an increase of 5.52% compared to the same period last year[4]. - The net profit attributable to shareholders was RMB 449.27 million, a decrease of approximately 15.32% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 415.00 million, down approximately 20.03% from the previous year[4]. - The comprehensive gross profit margin improved to 67.10%, an increase of 2.10 percentage points year-on-year[4]. - The group achieved a revenue of approximately RMB 1.796 billion in the first half of 2023, an increase of 5.52% compared to the same period last year[27]. - The net profit attributable to the parent company was approximately RMB 449 million, a decrease of 15.32% year-on-year[27]. - The company reported a gross profit margin of approximately 27.0% for the first half of 2023, compared to 33.0% in the same period of 2022[56]. - The total comprehensive income for the first half of 2023 is RMB 434,508,249.93, compared to a total of RMB 520,595,705.21 for the same period in 2022, indicating a decrease of about 16.5%[66]. Assets and Liabilities - The company's total assets as of June 30, 2023, were approximately RMB 78.43 billion, an increase of about 28.35% from the beginning of the reporting period[4]. - The total liabilities as of June 30, 2023, are RMB 2,275,203,690.15, compared to RMB 957,718,676.14 as of December 31, 2022, representing an increase of approximately 137.5%[53]. - The total equity attributable to shareholders as of June 30, 2023, is RMB 4,931,523,515.75, up from RMB 4,531,230,351.61 as of December 31, 2022, reflecting an increase of approximately 8.8%[53]. - The company's inventory at the end of the reporting period was valued at approximately RMB 2,848.25 million, representing 50.08% of total current assets[37]. - The total current assets as of June 30, 2023, amount to RMB 5,687,882,418.09, an increase from RMB 4,327,100,944.42 as of December 31, 2022, reflecting a growth of approximately 31.5%[52]. Research and Development - Research and development expenses for the first half of 2023 amounted to approximately RMB 588 million, a 47.54% increase compared to the same period last year[5]. - The group has established a multi-level R&D system, with a strong focus on product design and technology reserves for future market trends[21]. - The company continues to invest in R&D, talent development, and quality services to solidify its operational foundation and competitive advantages in the integrated circuit design sector[20]. - R&D investment during the reporting period was approximately RMB 588 million, accounting for 32.74% of the operating revenue[38]. Product Performance - The company maintained a strong product line, particularly in FPGA and non-volatile memory products, contributing to revenue growth[5]. - The sales revenue of the storage product line reached approximately RMB 588 million, an increase from RMB 487 million in 2022, reflecting a growth despite industry downturns[11]. - The FPGA product line achieved sales revenue of approximately RMB 586 million, up from RMB 378 million in 2022, showcasing strong market demand and technological advancements[14]. - The smart meter product line generated sales revenue of approximately RMB 113 million, down from RMB 276 million in 2022, indicating a need for strategic adjustments in this segment[12]. Market and Industry Trends - The semiconductor industry is currently in a downward cycle, but signs of recovery are emerging, particularly in high-end manufacturing and technology applications[7]. - The company is actively expanding its product applications in new areas, including anti-counterfeiting and automotive electronics, which have gained customer recognition[9]. - The company is actively developing high-performance industrial and automotive-grade products, enhancing its competitive edge in the storage product sector[16]. Cash Flow and Financing - Cash flow from operating activities showed a significant decline, with a net outflow of RMB 109,043.92 million compared to a net inflow of RMB 32,910.72 million in the previous year[40]. - The company raised a total of RMB 540 million from a public offering, with a net amount of RMB 507.6 million available for investment in integrated circuit testing and R&D projects[46]. - The company’s cash and cash equivalents decreased by 33.86% to RMB 78,757.69 million from RMB 119,082.83 million at the end of 2022[43]. Risk Factors - The company faces risks related to the slowdown in the integrated circuit industry and potential impacts from international trade environments[30][31]. - The company assesses credit risk on each balance sheet date, considering quantitative and qualitative analyses, external credit ratings, and forward-looking information[172]. - Significant increase in credit risk is determined by factors such as a rise in default probability exceeding a certain percentage and adverse changes in the debtor's financial condition[172]. Corporate Governance and Compliance - The financial statements have been prepared based on the going concern assumption, indicating no significant doubts about the company's ability to continue operations for the next 12 months[69]. - The company has implemented specific accounting policies and estimates tailored to its operational characteristics, particularly in areas such as financial instrument impairment and revenue recognition[70]. - The company holds a high-tech enterprise certificate valid for three years, allowing it to pay corporate income tax at a reduced rate of 15%[75].

Financial Performance - The company reported a significant increase in revenue for the first half of 2023, achieving a total of 1.2 billion CNY, representing a year-on-year growth of 25%[1]. - The company's operating revenue for the first half of 2023 was CNY 179,622.93 million, representing a 5.52% increase compared to CNY 170,233.34 million in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2023 was CNY 44,927.08 million, a decrease of 15.32% from CNY 53,053.15 million year-on-year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 41,499.14 million, down 20.03% from CNY 51,894.80 million in the previous year[17]. - The basic earnings per share for the first half of 2023 was CNY 0.55, a decrease of 15.38% from CNY 0.65 in the same period last year[18]. - The comprehensive gross profit margin increased by 2.10 percentage points year-on-year, with gross profit rising by 98.86 million yuan compared to the same period last year[19]. - The company achieved a revenue of 458,025.68 million RMB, with a gross profit of 58,814.38 million RMB, and a net profit of 180,538.97 million RMB for the first half of 2023[36]. - The total operating revenue for the first half of 2023 was CNY 1,796,229,282.46, an increase from CNY 1,702,333,354.86 in the same period of 2022, representing a growth of approximately 5.5%[102]. Research and Development - The company is investing in R&D, allocating 15% of its revenue to develop new technologies and enhance existing product lines[1]. - The research and development expenditure accounted for 32.74% of operating revenue, an increase of 9.32 percentage points compared to 23.42% in the previous year[18]. - Research and development investment for the first half of the year was approximately 588 million yuan, an increase of 47.54% year-on-year[19]. - The number of R&D personnel increased to 964, accounting for 53.59% of the total workforce, with an average salary of 34,000 RMB, up from 31,270 RMB in the previous year[37]. - The company has received 12 new invention patents and 1 utility model patent during the reporting period, increasing its total to 233 invention patents[27]. - The company is focusing on enhancing its testing capabilities for high-end chip products, particularly in the fields of 5G communication, artificial intelligence, and the Internet of Things[34]. Market Expansion and Product Development - User data indicates a growing customer base, with active users increasing by 15% to reach 500,000 by the end of June 2023[1]. - New product launches are expected to contribute to growth, with two major products set to be released in Q3 2023, targeting a market share increase of 10%[1]. - Market expansion plans include entering two new international markets by the end of 2023, aiming for a 5% increase in overall market share[1]. - The company is actively expanding new application areas for its security and identification products, gaining customer recognition for new products such as ultra-high frequency EPC tags and anti-counterfeiting security chips[22]. - The company launched multiple new products in the smart meter and automotive sectors, preparing for industry recovery[23]. - The company is developing new products including a next-generation smart meter chip based on 55nm embedded flash technology, which has completed sample testing and is preparing for reliability assessment[34]. Financial Health and Risks - The company has maintained a strong balance sheet, with a current ratio of 2.5, indicating good short-term financial health[1]. - The net cash flow from operating activities was negative at CNY -109,043.92 million, compared to CNY 32,910.72 million in the same period last year[17]. - The company is facing risks related to the slowdown in the integrated circuit industry, which could adversely affect its performance[43]. - The company has a high concentration of suppliers, which poses risks related to raw material price fluctuations and supply chain stability[43]. - Cash and cash equivalents decreased by 33.86% to 78,757.69 million RMB, accounting for 10.04% of total assets[47]. - Accounts receivable increased by 73.88% to 126,965.82 million RMB, representing 16.19% of total assets due to longer collection cycles from high-reliability customers[47]. Corporate Governance and Compliance - No significant non-operational fund occupation by controlling shareholders has been reported, ensuring financial integrity[1]. - The company has committed to ensuring independence in assets, business, personnel, finance, and organization from its controlling shareholders[73]. - The company has not reported any major related party transactions that are not related to daily operations during the reporting period[74]. - The company confirms that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[129]. - The company has not faced any penalties or corrective actions related to legal violations by its directors, supervisors, senior management, or controlling shareholders during the reporting period[74]. Environmental Responsibility - The company is committed to fulfilling its environmental responsibilities and has established mechanisms for environmental protection[61]. - The company adopted energy-saving modifications in production processes, resulting in a reduction of carbon emissions by 31.46 tons[63]. - The company invested RMB 510,800 in environmental protection during the reporting period[61]. Shareholder Information - The company held its 2022 Annual General Meeting on June 2, 2023, where all proposed resolutions were approved, including the financial settlement report for 2022[57]. - The company did not distribute profits or increase capital reserves for the 2022 fiscal year[59]. - The company has a lock-up period for shares held by major shareholders, lasting 36 months from the date of listing, with specific conditions for share transfers[65]. - The company will actively cooperate with the issuer's announcement and information disclosure when reducing its holdings[67].