Financial Performance - For the six months ended June 30, 2024, the company reported operating revenue of approximately RMB 1.794 billion, a decrease of 0.12% compared to the same period last year[4]. - Net profit attributable to shareholders was approximately RMB 348.09 million, a decrease of about 22.52% year-on-year[4]. - The comprehensive gross profit margin was 56.49%, down by 10.61 percentage points year-on-year[4]. - The company achieved a revenue of approximately RMB 1.794 billion in the first half of 2024, which is essentially flat year-on-year[24]. - Net profit for the first half of 2024 was RMB 339,684,234.43, down from RMB 463,997,407.12 in the same period of 2023, reflecting a decline of approximately 26.8%[48]. - Operating revenue for the first half of 2024 was RMB 1,794,095,311.26, a slight decrease from RMB 1,796,229,282.46 in the previous year, showing a marginal decline of 0.1%[48]. - Total comprehensive income attributable to shareholders of the parent company for the first half of 2024 was RMB 348,298,848.81, compared to RMB 451,147,814.32 in the previous year, reflecting a decline of about 22.8%[49]. 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[5]. - The net assets attributable to shareholders were approximately RMB 55.99 billion, an increase of about 5.59% from the beginning of the reporting period[5]. - As of June 30, 2024, total current assets increased to RMB 5,806,256,554.81, up from RMB 5,551,115,336.70 as of December 31, 2023, representing a growth of approximately 4.6%[45]. - The company's inventory at the end of the reporting period was valued at approximately RMB 3,231.74 million, representing 52.83% of total current assets[35]. - The total liabilities decreased to RMB 2,425,161,836.52 from RMB 2,449,649,077.25, a reduction of 1.00%[43]. - The company's cash and cash equivalents decreased to RMB 813,008,807.03 from RMB 1,003,337,496.96, a decline of 18.99%[42]. Research and Development - Research and development expenses accounted for 33.31% of operating revenue, compared to 32.74% in the previous year[4]. - The company invested RMB 598 million in R&D during the reporting period, accounting for 33.31% of total revenue, indicating a strong commitment to innovation[18]. - The company has established a multi-level R&D system, accumulating rich industry experience and key technologies across various product lines, including security chips and non-volatile memory[18]. - 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]. Sales and Revenue Breakdown - The sales revenue of the security and identification product line was approximately RMB 370 million, down from RMB 410 million in the previous year[9]. - The non-volatile memory product line achieved sales revenue of approximately RMB 599 million, up from RMB 588 million in the previous year[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 increase[11]. - The FPGA product line generated sales revenue of approximately RMB 553 million, slightly down from RMB 586 million in 2023[12]. - The company’s testing services, primarily through its subsidiary, generated revenue of approximately RMB 130 million, with consolidated revenue of about RMB 58 million after offsets[27]. Cash Flow and Financial Health - The company generated a net cash flow from operating activities of approximately RMB 127.12 million, turning positive from a negative cash flow in the previous year[5]. - The net cash flow from operating activities turned positive at RMB 12,712.92 million, a significant improvement from a negative RMB 109,043.92 million in the previous year[38]. - Total cash inflow from operating activities increased to RMB 1,662,628,490.28, compared to RMB 1,374,897,125.25 in the previous year, reflecting a growth of approximately 20.9%[51]. - Cash outflow for purchasing goods and services decreased to RMB 746,651,031.68 from RMB 1,769,894,205.02, indicating a reduction of about 57.8%[51]. Market and Competitive Position - The semiconductor industry showed signs of recovery, with integrated circuit product output increasing by 28.9% year-on-year[8]. - The company is actively expanding into international markets, with subsidiaries established in the US, Singapore, Hong Kong, and Taiwan to enhance its global influence[21]. - The company is focusing on new product development, including next-generation FPGA platforms and applications in the renewable energy sector[27]. Risk Management - The company faced risks related to high supplier concentration and fluctuations in raw material prices, which could directly impact profitability[32]. - The company assesses credit risk significantly increased if overdue days exceed 30 days, indicating a proactive approach to risk management[164]. - The company’s market risk exposure is primarily related to interest rate and foreign exchange fluctuations, with a focus on maintaining an appropriate mix of fixed and floating rate financial instruments[169]. Corporate Governance and Compliance - The financial statements are prepared in accordance with the accounting standards set by the Ministry of Finance, ensuring compliance and transparency[60]. - The company maintains a corporate income tax rate of 15%, which is favorable for its profitability outlook[65]. - The company obtained high-tech enterprise certification, allowing a reduced corporate income tax rate of 15% for 2023[66].

| A 股证券代码：688385 | 证券简称：复旦微电 | 公告编号：2024-052 | | --- | --- | --- | | 港股证券代码：01385 | 证券简称：上海复旦 | | 上海复旦微电子集团股份有限公司 根据中国证券监督管理委员会于 2021 年 6 月 1 日出具的《关于同意上海复 旦微电子集团股份有限公司首次公开发行股票注册的批复》（证监许可〔2021〕 1874 号），同意公司首次公开发行股票的注册申请。公司本次向社会公开发行 人民币普通股 12,000.00 万股，每股发行价格为人民币 6.23 元，募集资金总额 为人民币 74,760.00 万元；扣除发行费用后实际募集资金净额为人民币 68,028.28 万元。天健会计师事务所（特殊普通合伙）于 2021 年 7 月 30 日对本 次发行的资金到位情况进行了审验，并出具了天健验〔2021〕6-70 号《验资报 告》。 为规范公司募集资金管理和使用，保护投资者权益，公司设立了相关募集 资金专项账户。募集资金到账后，已全部存放于募集资金专项账户内，本公司 已与保荐人中信建投证券股份有限公司及存放募集资金的商业银行签订了《募 集资 ...

一、本次募集资金基本情况 根据中国证券监督管理委员会于 2021 年 6 月 1 日出具的《关于同意上海复 旦微电子集团股份有限公司首次公开发行股票注册的批复》（证监许可〔2021〕 1874 号），同意公司首次公开发行股票的注册申请。公司本次向社会公开发行人 民币普通股 12,000.00 万股，每股发行价格为人民币 6.23 元，募集资金总额为人 民币 74,760.00 万元；扣除发行费用后实际募集资金净额为人民币 68,028.28 万 元。天健会计师事务所（特殊普通合伙）于 2021 年 7 月 30 日对本次发行的资金 到位情况进行了审验，并出具了天健验〔2021〕6-70 号《验资报告》。 为规范公司募集资金管理和使用，保护投资者权益，公司设立了相关募集资 金专项账户。募集资金到账后，已全部存放于募集资金专项账户内，公司已与保 荐人中信建投证券股份有限公司及存放募集资金的商业银行签订了《募集资金专 户存储三方监管协议》。《募集资金专户存储三方监管协议》对发行人、保荐人及 存放募集资金的商业银行的相关责任和义务进行了详细约定。详细情况请参见公 司已于 2021 年 8 月 3 日披露于上海证券交易 ...

| A 股证券代码：688385 | 证券简称：复旦微电 | 公告编号：2024-054 | | --- | --- | --- | | 港股证券代码：01385 | 证券简称：上海复旦 | | 上海复旦微电子集团股份有限公司 2024 年半年度募集资金存放与实际使用情况 专项报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 一、募集资金基本情况 （一）募集资金金额和资金到账时间 经中国证券监督管理委员会于2021年6月1日出具的《关于同意上海复旦微电子集团股 份有限公司首次公开发行股票注册的批复》（证监许可〔2021〕1874号）核准同意，上海 复旦微电子集团股份有限公司（以下简称"本公司"）于中国境内首次公开发行A股，并于 发行完成后在上海证券交易所上市。本公司本次向社会公开发行人民币普通股12,000.00万 股，每股面值人民币0.1元，每股发行价格为人民币6.23元，募集资金总额为人民币 747,600,000.00元，扣除不含税发行费用后实际募集资金净额为人民币680,282,781.80 元。 经天健会计师 ...

Financial Performance - The company reported a significant increase in revenue for the first half of 2024, achieving a total of 1.2 billion RMB, representing a 25% year-over-year growth[1]. - The company reported a revenue of approximately CNY 1.79 billion for the first half of 2024, a decrease of 0.12% compared to the same period last year[15]. - Net profit attributable to shareholders was approximately CNY 348.09 million, down 22.52% year-on-year[15]. - The gross profit margin decreased by 10.61 percentage points to 56.49% compared to the previous year[17]. - The net cash flow from operating activities turned positive at approximately CNY 127.13 million, compared to a negative cash flow in the previous year[17]. - The company achieved a total R&D investment of CNY 59,768.73 million, representing a 1.62% increase compared to the previous year[27]. - The company reported a total comprehensive income of CNY 339,891,123.81 for the first half of 2024[124]. - The net profit for the first half of 2024 was approximately ¥339.68 million, down from ¥463.99 million in the same period of 2023, reflecting a decrease of about 26.7%[113]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[1]. - New product launches are expected to contribute an additional 300 million RMB in revenue, with a focus on advanced integrated circuits and semiconductor technologies[1]. - The company is actively expanding into new markets, including wireless charging and automotive sectors, with successful product launches[43]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the semiconductor industry[1]. - A new strategic partnership was announced with a leading technology firm, expected to enhance product offerings and market reach[1]. Research and Development - Research and development investments increased by 30% to 150 million RMB, aimed at enhancing product innovation and technology advancements[1]. - Research and development expenses accounted for 33.31% of revenue, an increase of 0.57 percentage points year-on-year[16]. - The company has established a multi-level R&D system, focusing on integrated circuit design and development, with a diverse product line[40]. - R&D personnel increased to 1,123, representing 55.76% of the total workforce, with total R&D compensation reaching 38,205.14 million[38]. - The company is advancing the development of next-generation FPGA and PSoC products based on 1xnm FinFET technology for various high-performance applications[22]. Product Lines and Innovations - The company's security and identification product line has expanded into new application areas, achieving recognition for new products such as ultra-high frequency EPC tags and anti-counterfeiting security chips[21]. - The non-volatile memory product line has seen growth in shipment volume and sales, with a focus on high-performance industrial and automotive products[21]. - The smart meter product line includes a range of MCU chips, with embedded storage capacities from 64KB to 1MB, widely used in smart metering applications[21]. - The company is a leading player in the FPGA field, having developed billion-gate FPGAs and heterogeneous programmable SoC chips, targeting applications in AI and 5G communications[22]. - The company has completed ISO26262 certification for multiple products, enhancing its market competitiveness in automotive applications[32]. Financial Position and Assets - Total assets as of June 30, 2024, were approximately CNY 8.67 billion, an increase of 3.03% from the beginning of the period[17]. - Net assets attributable to shareholders increased by 5.59% to approximately CNY 5.60 billion[17]. - The company's accounts receivable reached approximately 140,271.64 million RMB, accounting for 85.34% of total revenue, highlighting potential risks related to collection[46]. - Inventory at the end of the reporting period was valued at approximately 323,174.30 million RMB, which is 52.83% of total current assets, with a provision for inventory impairment of about 27,154.77 million RMB, or 7.75% of the inventory value[47]. - The company's long-term borrowings decreased by 32.74% to approximately 35,651.55 million RMB, reflecting a shift of some long-term debt to current liabilities[50]. Risks and Challenges - The company has identified key risk factors, including supply chain disruptions and market volatility, which may impact future performance[1]. - The company faces risks related to high supplier concentration and fluctuations in raw material prices, which could directly impact profitability[45]. - The decline in net profit was primarily due to decreased product sales prices and adjustments in product mix[17]. Corporate Governance and Compliance - The board confirmed that there are no significant governance issues affecting the integrity of the financial report[1]. - The company confirmed compliance with the conditions for issuance and listing, with no significant facts concealed or false information fabricated in the prospectus[72]. - The company has committed to ensuring that any share transfers by core technical personnel do not exceed 25% of their total holdings during the first four years post-IPO[80]. Environmental and Social Responsibility - The company has established an environmental protection mechanism[67]. - The company implemented carbon reduction measures, achieving a reduction of 20.59 tons of CO2 equivalent emissions[68]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[67].

上海复旦微电子集团股份有限公司 | A | 股证券代码：688385 | 证券简称：复旦微电 公告编号：2024-049 | | --- | --- | --- | | H | 股证券代码: 01385 | 证券简称：上海复旦 | （四） 表决方式是否符合《公司法》及公司章程的规定，大会主持情况等。 2024 年第二次临时股东大会决议公告 本公司董事会及全体董事保证公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 本次会议是否有被否决议案：无 一、 会议召开和出席情况 （三） 出席会议的普通股股东、特别表决权股东、恢复表决权的优先股股东及 其持有表决权数量的情况： | 1、出席会议的股东和代理人人数 | 221 | | --- | --- | | 普通股股东人数 | 221 | | 其中：A 股股东人数 | 220 | | 境外上市外资股股东人数 | 1 | | 2、出席会议的股东所持有的表决权数量 | 269,415,362 | | 普通股股东所持有表决权数量 | 269,415,362 | | 其中：A 股股东所持有表决权数量 | ...

Financial Performance - The company's revenue for Q1 2024 was approximately 892.74 million RMB, representing a year-on-year increase of 10.30%[6] - The net profit attributable to shareholders for Q1 2024 was approximately 161.25 million RMB, a decrease of 14.35% compared to the same period last year[6] - The gross margin for the product lines in Q1 2024 was 56.65%, down from 66.77% in the same period last year, but up by 6.98 percentage points from Q4 2023[7] - The company reported a diluted earnings per share of 0.20 RMB, a decrease of 13.04% compared to the same period last year[6] - The company's operating profit for Q1 2024 was approximately ¥174.99 million, a decrease from ¥208.31 million in Q1 2023, representing a decline of about 16.0%[21] - Net profit for Q1 2024 was approximately ¥158.35 million, down from ¥194.53 million in Q1 2023, reflecting a decrease of around 18.6%[21] - Basic and diluted earnings per share for Q1 2024 were both ¥0.20, compared to ¥0.23 in Q1 2023, indicating a decline of approximately 13.0%[23] - The company reported a total comprehensive income attributable to the parent company of approximately ¥161.28 million in Q1 2024, down from ¥188.27 million in Q1 2023, reflecting a decrease of about 14.4%[21] Research and Development - The R&D expenditure for Q1 2024 totaled approximately 288.20 million RMB, accounting for 32.28% of the revenue, a decrease of 3.17 percentage points year-on-year[6] - The company plans to continue investing in R&D to enhance product offerings and meet diverse application needs, with R&D expenses increasing by approximately 25.96 million RMB year-on-year[7] - Research and development expenses increased to ¥245,299,852.18 in Q1 2024, compared to ¥219,344,606.32 in Q1 2023, reflecting a growth of 11.8%[20] Assets and Liabilities - The total assets at the end of Q1 2024 were approximately 8.50 billion RMB, an increase of 1.01% from the end of the previous year[6] - Non-current assets totaled ¥2,599,423,185.88, an increase from ¥2,474,067,215.53 in the previous year[19] - Total liabilities amounted to ¥2,360,948,827.13, down from ¥2,449,649,077.25 in the previous year, indicating a decrease of 3.6%[19] - The company's total assets increased to ¥8,495,933,812.48 from ¥8,411,350,886.39, representing a growth of 1.0%[19] - The company’s total equity increased to ¥6,134,984,985.35 from ¥5,961,701,809.14, reflecting a growth of 2.9%[19] Cash Flow - The cash flow from operating activities for Q1 2024 was approximately 10.58 million RMB, with no year-on-year comparison available[4] - Cash flow from operating activities for Q1 2024 was ¥10.58 million, a significant improvement from a negative cash flow of ¥524.98 million in Q1 2023[25] - Total cash inflow from operating activities in Q1 2024 was approximately ¥775.99 million, compared to ¥641.00 million in Q1 2023, marking an increase of about 20.9%[24] - Cash outflow from operating activities in Q1 2024 was approximately ¥765.41 million, down from ¥1.17 billion in Q1 2023, showing a reduction of about 34.3%[25] - Cash flow from investing activities in Q1 2024 was negative at approximately -¥236.55 million, an improvement from -¥294.34 million in Q1 2023[25] - Cash flow from financing activities in Q1 2024 was negative at approximately -¥24.29 million, compared to a positive cash flow of ¥323.23 million in Q1 2023[25] - The ending cash and cash equivalents balance for Q1 2024 was approximately ¥740.56 million, an increase from ¥622.26 million at the end of Q1 2023[25] Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders is 27,057, with the largest shareholder holding 34.7% of shares[11] - The top ten shareholders hold a combined total of 55.5% of the shares, indicating a significant concentration of ownership[12] - The total number of A-share shareholders is 27,043, while H-share shareholders number 14[13] - The company has 39,182,011 shares under judicial freeze, which may impact liquidity and shareholder rights[13] Inventory and Receivables - The company’s inventory stands at approximately ¥3.21 billion, showing a slight increase from ¥3.18 billion[17] - Accounts receivable increased to approximately ¥1.19 billion, up from ¥929.62 million, reflecting a growth of about 27.8% year-over-year[17] - The total current assets amount to approximately ¥5.90 billion, slightly down from ¥5.94 billion, indicating a decrease of about 0.7%[17] Market and Future Plans - The company experienced a significant increase in revenue from smart meter chips, which grew by 95.74% year-on-year, totaling approximately 92 million RMB[7] - Revenue from the FPGA and other products increased by 23.25% year-on-year, reaching approximately 281 million RMB[7] - The company plans to expand its market presence and invest in new technologies, although specific figures were not disclosed in this report[20] - The company is in the process of applying for the issuance of convertible bonds, pending approval from the China Securities Regulatory Commission[16] Operating Costs - Total operating costs for Q1 2024 were ¥739,701,625.41, up 26.7% from ¥583,615,423.54 in Q1 2023[20]

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].