Technology and Product Development - The company's facial recognition technology has obtained the highest level of security certification from Google for 3D facial recognition anti-spoofing safety[4] - The company has achieved ASIL-D level certification for its driver monitoring products, supporting high-precision detection in 14 regions[4] - The company has completed the productization of 3D gesture technology based on TOF and achieved mass production[5] - The company's ADAS technology has achieved L0 to L2 functions including AEB, LCC, and ACC, with the visual perception algorithm engine ready for mass production[6] - The company has obtained ISO 26262:2018 ASIL D level certification for its automotive functional safety management system[24] - The company has developed a driver health monitoring product based on DMS and OMS cameras, and has completed the development of a driver meditation mode to alleviate driving fatigue, with ongoing optimization of the experience and effects[45] - The company achieved visual facial capture technology for virtual digital humans, applicable in VR/MR/AR headsets[66] - The company's VisDrive® in-vehicle visual software solution continued to iterate, supporting both passenger and commercial vehicles[145][152] - The company's DMS solution passed EU regulatory certification tests (DDAW) and achieved full marks in E-NCAP tests, aiding global automotive clients in regulatory compliance[160] - The company's AITrak solution for commercial vehicles completed functional debugging to meet the upcoming national standard GB/T 41796-2022[149] - The company launched innovative solutions for smartphones, including single-camera cinematic mode, astrophotography, and lens distortion correction, which achieved mass production and continued shipments[150] - The company completed productization of child detection, child seat detection, and seatbelt detection solutions based on OMS cameras, improving passenger position recognition accuracy[153] - The company developed a smart tailgate product based on AVM rear cameras, offering a cost-effective software alternative for automakers[154] - The company has developed core technologies such as facial analysis, gesture recognition, and 3D AR animation, applicable to smartphones, smart cockpits, and wearable devices[177] - The company provides 3D and AR visual solutions for various types of cameras, including single-camera, multi-camera, TOF, and structured light, achieving over 95% accuracy in human analysis, face recognition, and gesture recognition technologies[178] - The company has developed depth acquisition and optimization solutions based on dual-camera, multi-camera, TOF, and structured light, as well as a single-camera depth acquisition engine, which are core to upper-level logic applications[178] - The company's SLAM technology enables environment map construction, 3D modeling of objects, and real-time display with reduced latency, supporting applications in VR/MR/AR and smart driving[178] - The company's Body Clone technology has expanded from mobile platforms to smart cockpit applications, improving 3D posture reconstruction and body tilt prediction in vehicle scenarios[184] - The company's behavior recognition technology has increased the accuracy of action recognition and expanded the types of supported actions, enhancing in-cabin behavior analysis[184] - The company's human detection solution has improved detection rates in vehicle scenarios, especially in cases of large occlusions, with an overall mAP increase of 1% to 94%[184] - The company's advanced driver assistance system (ADAS) supports L2 and above driving assistance systems for passenger and commercial vehicles, as well as alarm prompt products[183] - The company's image enhancement technologies, including super-resolution, image repair, and video quality enhancement, are applied across mobile, automotive, and computing platforms[183] - The company's 3D reconstruction and AR animation technologies are utilized in mobile devices, VR/MR/AR platforms, and video streaming, supporting solutions like 3D scanning and smart beauty[183] - The company's smartphone visual solutions have reached advanced levels both domestically and internationally, with most new technologies being leading in their initial release cycles, meeting the algorithm requirements for most visual-related technologies and applications in mid-to-high-end smartphones[186] - The company's smartphone visual solutions are used in most flagship models of mainstream smartphone brands, excluding Apple[186] - The company possesses multiple original core technologies, including facial analysis and recognition, human body analysis and beautification, pet analysis, behavior analysis, gesture recognition, image quality analysis, high dynamic range (HDR), and low-light image enhancement[186] - The facial detection algorithm has been optimized for large poses and low-light conditions, improving recall rates by 1.7% on internal general test sets and by 8% on sub-pose test sets[191] - The facial detection algorithm supports the detection of small faces as per group standards, achieving a recall rate of 95% on internal test datasets and supporting 4-camera 30fps frame rates on mainstream vehicle platforms[191] - The 2D Face ID technology has improved FRR by 5% in both regular and mask-wearing scenarios, and by 3% in scenarios involving beauty filters and makeup[191] - The RGB/IR cross-recognition in vehicle scenarios has improved FRR by 6%, achieving a seamless recognition effect without user cooperation[191] - The 3D Face ID technology has been adapted for vehicle-grade cameras and deployed in some vehicle models, meeting higher security requirements for facial recognition[191] - The pet body detection technology has improved mAP by approximately 1.5% while maintaining the same parameter and computational load, supporting the enhancement of pet scene effects in products like Bokeh[200] - The company has developed a pet eye detection and tracking technology that can accurately locate and track pet eye regions in real-time, providing strong support for pet-related product applications[200] Financial Performance - The company's operating cash flow decreased by 76.60% to 44.63 million yuan, mainly due to reduced sales collections and increased employee compensation expenses[16] - The company's investment cash flow increased by 410.71% to 773.99 million yuan, primarily due to the maturity of structured deposits purchased with idle funds[17] - Revenue for 2022 was RMB 531.65 million, a decrease of 7.22% year-over-year[65] - Net profit attributable to shareholders was RMB 57.80 million, a decrease of 58.95% year-over-year[65] - The company plans to distribute a cash dividend of RMB 50.15 million, representing 86.76% of the 2022 net profit[69] - The company received RMB 5.52 million in government subsidies in 2022, a decrease from RMB 10.84 million in 2021[62] - Sales expenses decreased by 4.66% to RMB 89,186,470.89 compared to the previous year[114] - Management expenses increased by 19.90% to RMB 70,652,949.34 compared to the previous year[114] - R&D expenses increased by 6.50% to RMB 287,868,528.05 compared to the previous year[114] - Financial expenses showed a significant change due to increased interest income, resulting in a negative value of RMB -19,832,437.29[114] - Net cash flow from operating activities decreased by 76.60% compared to the previous year, primarily due to reduced sales collections and increased employee-related expenses[116] - Revenue for 2022 decreased by 7.22% to 531,648,526.82 RMB compared to 2021[119] - Net profit attributable to shareholders dropped by 58.95% to 57,797,302.49 RMB in 2022[119] - R&D investment as a percentage of revenue increased by 6.98 percentage points to 54.15% in 2022[121] - Basic earnings per share decreased by 60% to 0.14 RMB in 2022[121] - Weighted average return on equity decreased by 3.11 percentage points to 2.26% in 2022[121] - Revenue from mobile intelligent terminal visual solutions decreased by 11.49% to 473,304,500 RMB in 2022[121] - Net cash flow from operating activities decreased by 76.60% to 44,630,176.92 RMB in 2022[119] - Total assets increased by 2.45% to 2,982,674,093.89 RMB at the end of 2022[119] - Non-recurring gains and losses amounted to 51,008,144.09 RMB in 2022[125] - Software VAT refunds totaled 13,743,910.82 RMB in 2022[125] - The company's intelligent driving vision solutions achieved revenue of 44.4181 million yuan in 2022, a year-on-year increase of 121.16%[134] - Global smartphone shipments in 2022 were approximately 1.23 billion units, the worst annual performance since 2013, leading to an 11.49% decline in the company's mobile intelligent terminal visual solutions revenue to 473.3045 million yuan[141] Corporate Governance and Compliance - The company has implemented strict technical confidentiality measures and quality control measures, including signing confidentiality and non-compete agreements with all employees, establishing a comprehensive source code management system, and continuously increasing R&D investment to reduce the risk of technical leakage[26] - The company has established a comprehensive vulnerability management system to strictly control access to vulnerability information and ensure its security[26] - The company has set up a patent reward management system to encourage employee invention and innovation, and to protect employee R&D achievements[34] - The company has held 3 performance briefings in 2022, on May 10, September 3, and November 11, as disclosed on the Shanghai Stock Exchange website[30] - The company has strengthened communication with investors through various channels, including releasing announcements, holding regular performance briefings, responding to investor inquiries, and organizing events such as "I am a shareholder - small and medium investors visit ArcSoft"[31] - The company strictly adheres to its information disclosure management system and related requirements to ensure the legality, compliance, authenticity, accuracy, completeness, and timeliness of information disclosure, treating all shareholders and investors fairly[33] - The company has established a comprehensive internal confidentiality system, applied for patents and software copyright protection, and assigned multiple personnel to key positions to minimize the impact of individual employee turnover on operations[26] - The company has obtained ISO/IEC 27001:2013 and ISO/IEC 27701:2019 certifications, enhancing its information security management system[79] - The company held 4 general meetings of shareholders during the reporting period, with multiple institutional investors participating in voting[80] - The actual controller, Hui Deng, has committed to not transferring or entrusting others to manage the shares held before the IPO for 36 months after the company's listing[83] - The company has established a comprehensive information security system, including four functional units: security compliance, basic security, application security, and data security[79] - The company has established a comprehensive internal control system and corporate governance structure, revising internal control regulations in accordance with the latest regulatory requirements to enhance management capabilities and operational levels[164] Market and Customer Engagement - The company has secured multiple platform-level projects with automakers such as Great Wall, Geely, and Dongfeng Nissan, and has expanded its customer base and cooperation depth[8] - The company's sales model includes direct sales to manufacturers of smartphones, smart cars, laptops, smart homes, smart retail, and AIoT devices with cameras[3] - The company's revenue model includes fixed fee and per-unit fee structures for computer vision algorithm software[4] - The company's smart car pre-installed business, initiated in 2018, has started contributing to per-unit revenue[64] - The company specializes in computer vision, providing algorithm licensing and system solutions, with major clients including Samsung, Xiaomi, OPPO, Vivo, Honor, and Moto[165] - The company offers a wide range of visual AI algorithm products for smartphones, including single/dual/multi-camera imaging, 3D modeling, AR/VR, and facial recognition[165] - For other mobile smart devices, the company provides solutions to enhance video conferencing experiences on laptops and VR/MR/AR wearable devices, focusing on image quality, privacy, and user interaction[166] - The global VR/AR device market is expected to grow by 31.5% in 2023, with shipments projected to reach 35.1 million units by 2026[169] - The company is a leading provider of computer vision AI solutions, with a strong presence in the smartphone market and expanding into the smart driving sector[172] - The company has established long-term partnerships with major chip companies like Qualcomm and MediaTek, optimizing algorithms for CPU, GPU, DSP, and NPU units to enhance compatibility with mobile chips[180] Human Resources and Innovation - The company has 141 employees holding shares, accounting for 17.56% of the total employees, with a total shareholding of 5.11 million shares, representing 12.59% of the total share capital[24] - The company has a robust talent development mechanism, focusing on recruiting experienced professionals and fresh graduates from top universities to strengthen its R&D capabilities[162] - The company actively promotes a culture of innovation through various training programs, technical competitions, and internal knowledge-sharing activities[162] - The company has issued patent rewards covering a total of 117 person-times since the implementation of the "Patent Reward Management System"[79] Operational and Strategic Initiatives - The company's procurement includes network infrastructure, R&D equipment, and fees for overseas sales consulting services[5] - The company's R&D process involves 9 steps, from demand acquisition to large-scale promotion[49] - The company developed new solutions for VR/MR/AR headsets, including low-latency rendering and video see-through solutions, enhancing user experience in virtual and mixed reality environments[144] - The company emphasizes edge computing and low-resource embedded platform development, optimizing performance and power consumption for mobile terminal applications[170] - The company's stock is listed on the Shanghai Stock Exchange's STAR Market under the ticker symbol 688088[117] - The company's registered address was changed to No. 392, Binxing Road, Changhe Street, Binjiang District, Hangzhou, Zhejiang Province in July 2022[109] - The company's legal representative is Hui Deng (邓晖)[109] - The company's website is www.arcsoft.com.cn[109] - The company's email for investor relations is invest@arcsoft.com[109]

Financial Performance - The company's operating revenue for Q1 2023 was RMB 161,433,392.43, representing an increase of 18.31% compared to RMB 136,446,700.41 in the same period last year[3] - Net profit attributable to shareholders was RMB 28,186,177.99, up 14.11% from RMB 24,530,014.32 year-on-year[3] - The net profit after deducting non-recurring gains and losses increased by 67.36%, reaching RMB 24,441,716.76 compared to RMB 14,433,762.71 in the previous year[3] - Basic and diluted earnings per share were both RMB 0.07, reflecting a growth of 16.67% from RMB 0.06 in the same period last year[4] - The total profit for Q1 2023 was CNY 332.77 million, compared to CNY 294.76 million in the same period last year, marking an increase of 12.88%[38] - Net profit for Q1 2023 was CNY 281.14 million, an increase from CNY 243.75 million in Q1 2022, reflecting a growth of 15.06%[38] Cash Flow - The net cash flow from operating activities surged to RMB 102,275,742.03, a significant increase of 1,653.06% from RMB 5,834,115.52 in the same period last year[3] - The company's cash flow from operating activities was CNY 280.95 million in Q1 2023, up from CNY 129.29 million in Q1 2022[39] - The company received CNY 16,122,827.29 in cash related to operating activities, an increase from CNY 7,607,726.65 in the previous period[57] - The cash outflow from operating activities was CNY 205,810,058.43, compared to CNY 131,691,557.37 in the previous period[57] Research and Development - Research and development expenses totaled RMB 79,854,546.64, which is 18.86% higher than RMB 67,182,564.80 in the previous year, accounting for 49.47% of operating revenue[4] - R&D expenses increased to RMB 79,854,546.64 in Q1 2023, compared to RMB 67,182,564.80 in Q1 2022[35] Assets and Liabilities - Total assets at the end of the reporting period were RMB 3,005,089,802.64, a 0.52% increase from RMB 2,982,674,093.89 at the end of the previous year[4] - The total liabilities as of March 31, 2023, were RMB 396,779,560.27, down from RMB 410,250,597.90 at the end of 2022[36] - The total equity attributable to shareholders of the parent company increased to CNY 2,608,054,156.03 from CNY 2,579,022,814.44, reflecting a growth of approximately 1.1%[51] - The total liabilities and equity amounted to CNY 3,005,089,802.64, up from CNY 2,989,603,256.60[51] Shareholder Information - The number of common shareholders at the end of the reporting period was 17,908[22] - The top shareholder, Hongrun Capital Management Co., Ltd., holds 118,698,800 shares, representing 29.24% of total shares[22] Other Income and Gains - The company received a software VAT refund of RMB 11,012,694.67, which is a significant increase compared to RMB 62.54 million in the same period last year[16] - The company reported a total of RMB 3,744,461.23 in non-recurring gains and losses, primarily due to investment income from structured deposits[6] - The company’s other comprehensive income after tax for Q1 2023 was CNY 1.16 million, down from CNY 2.33 million in Q1 2022[38] Investment Activities - Cash inflows from investment activities totaled CNY 443,200,656.42, down from CNY 1,219,189,564.42 in the previous period[57] - The net cash flow from investment activities was CNY 83,939,155.45, a decrease from CNY 617,325,071.44 year-over-year[57] Equity and Financial Assets - The company’s financial assets at fair value decreased to CNY 275.70 million from CNY 421.30 million year-on-year[49] - The company’s long-term equity investments decreased to CNY 33.86 million from CNY 38.35 million year-on-year[49] Miscellaneous - The company signed a software licensing agreement amendment in April 2023, with a contract value of USD 45,790,000[29] - The company did not report any net profit from the merged entity prior to the merger, consistent with the previous period[55] - The company reported a decrease in minority shareholders' equity from CNY 329,844.26 to CNY 256,086.34[51]

编号：2022-004 特定对象调研 □分析师会议 □媒体采访 业绩说明会 投资者关 系活动类 别 □新闻发布会 □路演活动 现场参观 一对一沟通 其他 电话会议 参与单位 名称及人 员姓名 90 家机构，共 119 人（详见附件《与会人员清单》） 第一部分、公司经营情况说明 （一）公司基本财务信息 新冠疫情持续两年多，给全球经济都造成了巨大的影响，行业终端需求萎 缩，芯片短缺，供应链供给不足。面对各种外部的不确定性因素，公司在做好 疫情防控常态化管理的同时，聚焦自身技术和产品市场竞争力的提升，持续加 大研发技术投入，保障关键业务的开展和经营战略的实施。 2021 年：公司全年实现营业收入 5.73 亿元，同比下降 16.12%；归母净利 润 1.41 亿元，同比下降 44.01%；归母扣非净利润 9,658.97 万元，同比下降 50.83%。 2022 年第一季度：公司营业收入 1.36 亿，同比下降 9.39%；归母净利润 2,453.00 万元，同比下降 55.86%；归母扣非净利润 1,443.38 万元，同比下降 66.32%。 （二）公司主要业务情况 业务模块调整情况：2021 年，公司根据市场 ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥128,539,818.93, a decrease of 11.91% compared to the same period last year[6] - The net profit attributable to shareholders for Q3 2022 was -¥2,464,825.96, representing a decline of 106.75% year-over-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was -¥7,239,729.80, down 128.70% from the previous year[6] - The basic earnings per share for Q3 2022 was -¥0.01, a decrease of 111.11% compared to the same period last year[9] - The net profit attributable to shareholders for the year-to-date period was ¥53,265,295.75, down 56.47% year-over-year[6] - Total revenue for the first three quarters of 2022 was CNY 390,770,285.39, a decrease of 12.5% compared to CNY 446,553,450.50 in the same period of 2021[39] - The net profit for the third quarter of 2022 was CNY 52,583,717.65, a decrease of 56.3% compared to CNY 120,574,036.91 in the same period of 2021[41] - The total comprehensive income for the third quarter of 2022 was CNY 116,075,159.62, slightly up from CNY 115,249,847.02 year-over-year[44] - Basic and diluted earnings per share for the third quarter of 2022 were both CNY 0.13, down from CNY 0.30 in the previous year[44] Expenses and Costs - Research and development expenses totaled ¥77,054,371.53 in Q3 2022, accounting for 59.95% of operating revenue, an increase of 12.45 percentage points year-over-year[9] - Total operating costs for the first three quarters of 2022 were CNY 342,531,124.29, slightly down from CNY 347,696,245.95 in 2021, indicating a cost management improvement[39] - Research and development expenses for the first three quarters of 2022 amounted to CNY 199,409,271.42, a decrease of 1.4% from CNY 202,835,637.97 in the previous year[39] Assets and Liabilities - The total assets at the end of Q3 2022 were ¥2,902,683,426.76, a slight decrease of 0.30% from the end of the previous year[9] - Cash and cash equivalents increased to CNY 1,462,561,238.22 as of September 30, 2022, compared to CNY 871,969,351.16 at the end of 2021, reflecting improved liquidity[30] - Total current assets decreased to CNY 2,267,012,163.24 from CNY 2,422,647,756.86 at the end of 2021, indicating a reduction in asset base[34] - The total liabilities decreased to CNY 343,133,826.26 from CNY 369,098,226.15, indicating a reduction in financial leverage[35] - The total equity attributable to shareholders increased to CNY 2,559,254,112.42 from CNY 2,542,131,065.82, reflecting retained earnings growth[35] Cash Flow - The cash flow from operating activities for the year-to-date period decreased by 61.82% due to reduced sales collections[15] - Cash flow from operating activities generated a net inflow of CNY 47,330,737.37, a significant decrease from CNY 123,977,440.99 in the same quarter of 2021[48] - Cash inflow from investment activities totaled CNY 2,468,165,832.16, compared to CNY 3,972,362,974.21 in the previous year[48] - The net cash flow from investment activities was CNY 569,886,826.89, an increase from CNY 244,777,896.98 year-over-year[48] - The net cash flow from financing activities was negative at CNY -86,671,281.70, improving from CNY -322,971,122.29 in the same quarter of 2021[48] - The cash and cash equivalents at the end of the period stood at CNY 1,462,561,238.22, up from CNY 921,987,752.11 year-over-year[51] Business Development and Strategy - The company plans to increase recruitment in the intelligent driving sector to support its business development[15] - The company is focusing on market expansion and new product development to drive future growth, with ongoing investments in technology[39] - The company plans to enhance operational efficiency and reduce costs further in the upcoming quarters to improve profitability[39] Shareholder Information - The total number of common shareholders at the end of the reporting period is 17,800[16] - The largest shareholder, Hongrun Capital Management Co., Ltd., holds 118,698,800 shares, accounting for 29.24% of total shares[16] - The second-largest shareholder, Nanjing Ruilian Emerging Industry Investment Fund, holds 61,658,064 shares, representing 15.19% of total shares[16] Product and Market Updates - The company's revenue from mobile intelligent terminal visual solutions for the first three quarters of 2022 is 350.44 million RMB, a year-on-year decrease of 15.94%[26] - Revenue from intelligent driving visual solutions for the same period is 30.19 million RMB, an increase of 1,316.40 million RMB year-on-year[26] - The company has established new mass production projects with several automotive manufacturers, including Chery and Great Wall, since July 2022[26] - The company has launched multiple models equipped with its onboard visual solutions, including models from Dongfeng and SAIC Motor[26] Legal Matters - The company is currently involved in a lawsuit related to its subsidiary, ArcSoft Inc., which is in the pre-trial investigation stage[26] Agreements and Plans - A software licensing agreement worth 220 million RMB was signed with a specific client, which is currently in normal execution[26] - The company has terminated its 2020 restricted stock incentive plan as of July 2022[28]

Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2022, representing a year-over-year increase of 15%[16]. - The company has provided a revenue guidance of RMB 1.2 billion for the full year 2022, which reflects an expected growth of 20% compared to 2021[16]. - The company's operating revenue for the first half of 2022 was ¥262,230,466.46, a decrease of 12.78% compared to ¥300,641,487.90 in the same period last year[23]. - The net profit attributable to shareholders for the same period was ¥55,730,121.71, down 35.06% from ¥85,818,186.63 year-on-year[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥17,794,559.24, a decline of 74.26% compared to ¥69,140,339.66 in the previous year[23]. - The net cash flow from operating activities was ¥82,191,104.63, a decrease of 6.52% from ¥87,920,242.05 in the same period last year[23]. - The gross margin for the first half of 2022 was reported at 45%, a slight decrease from 48% in the previous year due to increased production costs[16]. - The company achieved a total revenue of 262.23 million yuan in the first half of 2022, a decrease of 12.78% year-on-year[69]. - Net profit attributable to shareholders was 55.73 million yuan, down 35.06% year-on-year[102]. User and Market Growth - User data indicates that the active user base has grown to 10 million, up from 8 million in the same period last year, marking a 25% increase[16]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share in the region by 2025[16]. - Revenue from smart driving and other IoT visual solutions increased to 26.41 million yuan, a significant rise of 1,336.82%[69]. - Revenue from mobile intelligent terminal visual solutions was 229.16 million yuan, making up 87.39% of the company's total revenue, highlighting the concentration in the smartphone market[89]. Research and Development - Research and development expenses increased by 10% to RMB 50 million, focusing on enhancing AI and computer vision technologies[16]. - The company's R&D expenditure accounted for 46.66% of operating revenue, an increase of 2.25 percentage points compared to 44.41% in the previous year[23]. - Research and development expenses totaled approximately ¥122.35 million, a decrease of 8.36% compared to the previous year, while the ratio of R&D expenses to operating income increased by 2.25 percentage points to 46.66%[54]. - The company has a total of 228 patents, including 211 invention patents, with an increase of 13 invention patents and 8 software copyrights during the reporting period[52]. - The company has developed core technologies applicable to various smart devices, achieving over 95% accuracy and millisecond-level real-time performance in key areas such as human analysis and gesture recognition[49]. Strategic Initiatives - New product launches include an advanced AI-driven image processing software, which is expected to contribute an additional RMB 100 million in revenue by the end of 2022[16]. - The company has completed a strategic acquisition of a smaller tech firm for RMB 200 million to bolster its capabilities in augmented reality[16]. - The company plans to invest RMB 300 million in new technology infrastructure over the next two years to support its growth strategy[16]. - The company has established partnerships with multiple automotive manufacturers, including Great Wall, Changan, and Geely, for its vehicle vision solutions, with some models already in mass production[76]. Risks and Challenges - The management highlighted potential risks including market competition and regulatory changes that could impact future performance[16]. - The company faces risks related to rapid technological upgrades and market competition, which could impact its market share and operational performance if not managed effectively[79][80]. - The company faces risks from potential declines in smartphone shipments and changes in major clients' business strategies, which could adversely affect procurement demand[92]. - The company is experiencing increased competition for talent in the visual AI industry, which could impact its ability to recruit and retain essential personnel[87]. Financial Position and Investments - The company's total assets at the end of the reporting period were ¥2,889,754,552.69, down 0.74% from ¥2,911,291,507.76 at the end of the previous year[23]. - The company held cash and cash equivalents of 1.47 billion yuan, representing 50.76% of total assets, an increase of 68.23% from the previous year[111]. - The total amount of funds raised by the company was ¥1,328,480,000.00, with a net amount after deducting issuance costs of ¥1,254,859,239.89[191]. - The total committed investment amount for the raised funds was ¥1,131,532,800.00, which remains unchanged[191]. Corporate Governance and Compliance - The company has not faced any administrative penalties due to environmental issues during the reporting period[135]. - The company has not engaged in any significant related party transactions during the reporting period[184]. - The company has no significant litigation or arbitration matters during the reporting period[179]. - The company has not reported any measures taken to reduce carbon emissions during the reporting period[135].

Financial Performance - The company's revenue for 2021 was approximately ¥573 million, a decrease of 16.12% compared to ¥683 million in 2020[27]. - Net profit attributable to shareholders for 2021 was approximately ¥141 million, down 44.01% from ¥251 million in 2020[27]. - The net cash flow from operating activities increased by 49.19% to approximately ¥191 million in 2021, compared to ¥128 million in 2020[27]. - The total assets at the end of 2021 were approximately ¥2.911 billion, a decrease of 3.20% from ¥3.007 billion at the end of 2020[27]. - The net assets attributable to shareholders decreased by 5.67% to approximately ¥2.542 billion at the end of 2021, compared to ¥2.695 billion at the end of 2020[27]. - Basic earnings per share for 2021 were ¥0.35, a decrease of 43.55% from ¥0.62 in 2020[28]. - Diluted earnings per share for 2021 were also ¥0.35, reflecting the same decrease of 43.55% from ¥0.62 in 2020[28]. - The company achieved operating revenue of 573.02 million yuan, a decrease of 16.12% compared to the same period last year[147]. - The net profit attributable to shareholders was 140.79 million yuan, down 44.01% year-on-year[147]. - The revenue from mobile intelligent terminal visual solutions was 534.74 million yuan, a decline of 10.73% year-on-year[152]. - Revenue from intelligent driving visual solutions was 20.08 million yuan, a significant decrease of 69.54% compared to the previous year[152]. - The company's operating costs were 466.83 million yuan, down 34.49% year-on-year, primarily due to reduced revenue from intelligent driving visual solutions[152]. Dividend Distribution - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares, totaling approximately 80,234,080.00 RMB, which accounts for 56.99% of the net profit attributable to shareholders for 2021[6]. Research and Development - The company is focusing on the development of AI and IoT technologies to enhance its product offerings[20]. - The company plans to continue investing in research and development to maintain its competitive edge in the technology sector[20]. - The company's R&D expenses increased by 4.17% year-on-year to CNY 27,028.84 million, with R&D investment accounting for 47.17% of operating revenue, an increase of 9.19 percentage points[32]. - The total R&D investment for the year is approximately ¥270.29 million, representing a 4.17% increase from the previous year[112]. - R&D investment accounts for 47.17% of the company's operating revenue, up from 37.98% in the previous year, indicating a 9.19% increase[112]. - The company has maintained a research and development investment ratio of over 34% of revenue for three consecutive years, with a total R&D investment of 726 million yuan[197]. - The company is committed to developing innovative solutions for smart photography and intelligent driving, positioning itself as a leader in the AI-driven technology sector[92]. Market Challenges and Risks - The company has outlined potential risks in its operations, which investors should be aware of when considering future investments[7]. - The company is facing challenges due to changes in the global smartphone market and a decline in shipment volumes from existing customers[31]. - The overall market environment has led to increased industry concentration in the consumer electronics sector[31]. - The company faces risks from intensified market competition, which could lead to declining gross margins and market share if it fails to maintain product leadership[126]. - There is a risk of core technology leakage despite strict confidentiality measures, which could undermine the company's competitive edge[127]. - The company’s financial performance may be adversely affected by short-term fluctuations due to increased costs and potential reductions in client orders amid international trade tensions[134]. - The company is sensitive to macroeconomic changes, which could impact client demand and procurement needs if economic conditions worsen[137]. Corporate Governance and Compliance - The board of directors has confirmed the authenticity and completeness of the annual report, ensuring no significant omissions or misleading statements[4]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[10]. - There are no violations of decision-making procedures regarding external guarantees[10]. - The company has not disclosed any special arrangements for corporate governance[10]. - The report includes a standard unqualified audit opinion from the accounting firm, ensuring the reliability of the financial statements[5]. Technology and Innovation - The company is actively developing new visual AI solutions for AR/VR devices, focusing on perception, interaction, and visual presentation[59]. - The company has developed innovative technologies such as 3D AR animation and optical under-screen fingerprint technology, enhancing user experience and device integration[25][26]. - The company has established long-term partnerships with major mobile chip companies like Qualcomm and MediaTek, enhancing the adaptability of its visual AI technology[82]. - The company has developed a comprehensive visual AI technology system, including facial analysis, gesture recognition, and image enhancement technologies applicable across various smart devices[87]. - The company’s visual AI technologies are utilized in flagship models of major smartphone brands, excluding Apple, showcasing widespread market adoption[90]. User Engagement and Market Expansion - The company registered over 330,000 users on its visual AI open platform by the end of the reporting period[50]. - The company is expanding its market presence in the intelligent driving sector, offering eleven types of solutions for both in-cabin and advanced driving assistance systems[60]. - The company has established front-end projects with multiple automakers, including Great Wall and Changan, indicating expansion into the smart driving sector[128]. - The company aims to enhance its overall product strategy by focusing on customer needs and expanding one-stop product solutions[198]. Investment and Financial Position - The company made equity investments totaling ¥12,826.52 million during the reporting period, representing a year-on-year growth of 463.49%[182]. - The total amount of major sales contracts fulfilled was ¥128.33 million, with ¥73.33 million fulfilled in the current reporting period[157]. - The company holds trading financial assets with a balance of ¥1,355,567,295.85, including principal amounts and fair value changes[188]. - Cash and cash equivalents at the end of the period amounted to ¥871,969,351.16, representing 29.95% of total assets, a decrease of 8.61% compared to the previous period[176].

Financial Performance - The company's operating revenue for Q1 2022 was ¥136,446,700.41, representing a decrease of 9.39% compared to the same period last year[6]. - Net profit attributable to shareholders was ¥24,530,014.32, down 55.86% year-on-year[6]. - The net profit after deducting non-recurring gains and losses was ¥14,433,762.71, a decline of 66.32% compared to the previous year[6]. - Basic and diluted earnings per share were both ¥0.06, down 57.14% year-on-year[6]. - Total revenue for Q1 2022 was $136.45 million, a decrease of 9.4% from $150.59 million in Q1 2021[37]. - Operating profit for Q1 2022 was $29.47 million, down 52.6% from $62.18 million in Q1 2021[37]. - Net profit for the current period is $24,203,875.85, a decrease of 56% compared to $54,934,325.12 in the previous period[39]. - The total comprehensive income for the current period is $26,539,375.34, down from $57,687,458.89, reflecting a decline of approximately 54%[39]. - Basic and diluted earnings per share are both $0.06, compared to $0.14 in the previous period, indicating a 57% decrease[39]. Cash Flow and Assets - The net cash flow from operating activities was ¥5,834,115.52, reflecting a significant decrease of 95.43%[6]. - Cash flow from operating activities generated a net amount of $5,834,115.52, significantly lower than $127,775,783.06 from the previous year[43]. - The company's cash and cash equivalents as of March 31, 2022, amounted to RMB 1,489,006,310.65, an increase from RMB 871,969,351.16 as of December 31, 2021, representing a growth of approximately 70.7%[28]. - The ending cash and cash equivalents balance is $1,489,006,310.65, up from $1,027,311,617.29, reflecting an increase of about 45%[44]. - Cash inflow from investment activities totaled $1,219,189,564.42, compared to $1,390,961,922.80 in the previous year, showing a decrease of about 12%[43]. - Cash outflow for investment activities was $601,864,492.98, down from $1,360,362,676.62, indicating a reduction of approximately 56%[44]. Expenses and Liabilities - Total operating costs increased to $116.12 million, up from $107.47 million in the same period last year, representing an increase of 8.5%[37]. - Research and development expenses totaled ¥67,182,564.80, accounting for 49.24% of operating revenue, an increase of 5.14 percentage points[9]. - Research and development expenses were $67.18 million, slightly up from $66.41 million in Q1 2021[37]. - The company's total liabilities decreased to $345.09 million from $369.10 million, a reduction of 6.5%[33]. - The company reported a tax expense of $5,272,440.98, down from $7,131,460.22, indicating a reduction of about 26%[39]. Equity and Investments - The total equity attributable to shareholders was ¥2,571,713,121.56, up 1.16% from the previous year-end[9]. - The company's total assets amounted to $2.92 billion, a slight increase from $2.91 billion[33]. - The company's long-term equity investments increased to RMB 39,189,489.14 as of March 31, 2022, compared to RMB 38,564,883.59 as of December 31, 2021, reflecting a growth of approximately 1.6%[28]. - The company's other equity instrument investments rose to RMB 82,435,713.68 as of March 31, 2022, up from RMB 62,769,011.26 as of December 31, 2021, indicating an increase of about 31.4%[28]. - The company's equity attributable to shareholders rose to $2.57 billion, up from $2.54 billion, an increase of 1.7%[33]. Shareholder Information - The top ten unrestricted shareholders hold a total of 61,658,064 shares, with the largest shareholder being Nanjing Ruilian Emerging Industry Investment Fund Partnership, holding 61,658,064 shares[20]. - The company has not disclosed whether the top shareholders participate in margin trading or securities lending activities[20]. - As of the end of the reporting period, the company has repurchased 4,829,600 shares through its dedicated repurchase account[19]. Legal and Other Matters - The company is currently involved in a lawsuit with uncertain outcomes, which includes its wholly-owned subsidiary ArcSoft Inc. and its actual controller Hui Deng[23]. - The company has invalidated a total of 1,472,000 restricted stock units due to performance criteria not being met and the departure of certain incentive recipients[25]. - The company signed a software licensing agreement amendment in March 2020, with a contract value of RMB 220 million, which is currently in normal performance status[24]. Non-Recurring Gains - The company reported non-recurring gains of ¥10,096,251.61, primarily from investment income and government subsidies[11].

Financial Performance - Q3 2021 revenue was CNY 145,911,962.60, a decrease of 20.80% year-over-year [5]. - Net profit attributable to shareholders was CNY 36,536,679.58, down 60.02% compared to the same period last year [5]. - Basic and diluted earnings per share were both CNY 0.09, reflecting a decline of 60.87% from the previous year [7]. - Total operating revenue for the first three quarters of 2021 was CNY 446,553,450.50, a decrease of 10.7% compared to CNY 500,297,291.80 in the same period of 2020 [40]. - Net profit for the first three quarters of 2021 was CNY 120,574,036.91, down 42.5% from CNY 209,828,217.45 in the same period of 2020 [42]. - The total comprehensive income for the third quarter was CNY 115,249,847.02, down from CNY 203,265,761.09 in the same period of 2020 [45]. Research and Development - R&D expenses totaled CNY 69,314,967.58, an increase of 25.55% year-over-year, representing 47.50% of revenue [7]. - Research and development expenses rose significantly to CNY 202,835,637.97, an increase of 23.2% from CNY 164,549,825.76 in the previous year [40]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,865,993,222.67, a decrease of 4.70% from the end of the previous year [7]. - The company's current assets totaled CNY 2,450,921,257.95, down from CNY 2,821,176,682.88 in the previous year, indicating a decline of approximately 13.1% [31]. - Total liabilities reached CNY 337,146,777.52, compared to CNY 312,438,047.44 in the previous year, marking an increase of about 7.9% [36]. - The company's equity attributable to shareholders was CNY 2,527,954,278.83, down from CNY 2,694,956,073.63, indicating a decrease of approximately 6.2% [36]. - The total assets, calculated as the sum of total liabilities and total equity, were 3,007,394,121.07, a slight decrease from 3,034,721,642.13 [55]. Cash Flow - Cash flow from operating activities for the year-to-date was CNY 123,977,440.99, an increase of 4.06% [5]. - Cash inflow from operating activities totaled CNY 538,478,232.59, an increase from CNY 506,607,510.93 in the same period of 2020 [46]. - The net cash flow from operating activities was $123,977,440.99, an increase from $119,145,812.43 in the previous period, reflecting a growth of approximately 3.2% [48]. - Cash outflow from financing activities was $329,850,514.99, compared to $43,416,792.13 in the previous period, showing a significant increase in cash outflows [48]. Market and Business Impact - The company experienced a significant decline in revenue from its smartphone vision solutions and intelligent driving businesses due to market fluctuations and chip shortages [14]. - The global smartphone shipment volume decreased by 6% in Q3 2021 due to the impact of the pandemic and chip shortages [23]. - The company has increased investment in technology and talent for smart driving, with new projects involving multiple automakers including Great Wall and SAIC [23]. Shareholder Information - The company has a total of 15,392 common shareholders at the end of the reporting period [15]. - The largest shareholder, Hongrun Capital Management Co., Ltd., holds 118,698,800 shares, accounting for 29.24% of the total shares [15]. Legal Matters - The company is currently involved in a lawsuit related to its subsidiary, ArcSoft Inc., which is in the pre-trial motion stage [27]. - The company is involved in a legal dispute with Spreadtrum Communications (Shanghai) Co., Ltd. regarding a software copyright licensing contract, which is currently under court review [28]. Other Financial Metrics - Non-recurring gains and losses for the reporting period amounted to CNY 11,306,869.77 [11]. - The company reported investment income of CNY 38,694,894.31, up from CNY 23,476,141.96 year-over-year [40]. - Other income decreased to CNY 19,308,754.47 from CNY 24,668,424.81 in the previous year [40]. - The company experienced a net loss from fair value changes of CNY -3,794,878.27, compared to a gain of CNY 9,019,099.90 in the previous year [40].

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-over-year increase of 25%[17] - The company's operating revenue for the first half of the year was CNY 300,641,487.90, a decrease of 4.88% compared to the same period last year[24] - Net profit attributable to shareholders was CNY 85,818,186.63, down 27.55% year-on-year[24] - The company reported a revenue of 300,641,500 CNY for the reporting period, a year-on-year decrease of 4.88%, and a net profit attributable to shareholders of 85,818,200 CNY, down 27.55% year-on-year[78] - The net cash flow from operating activities increased by 58.45% to CNY 87,920,242.05, primarily due to increased sales collections[27] User Growth - User data showed a growth in active users, reaching 15 million by the end of June 2021, up from 12 million in the same period last year, indicating a 25% increase[17] - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[193] Research and Development - Investment in R&D increased by 15% year-over-year, totaling RMB 180 million, focusing on AI and computer vision technologies[17] - Research and development expenses amounted to CNY 13,352.07 million, representing a 22.11% increase compared to the previous year[24] - The proportion of R&D investment to operating revenue increased to 44.41%, up 9.82 percentage points year-on-year[24] - The company increased its R&D investment to CNY 133,520,670.39, a 22.11% increase from CNY 109,341,660.27 in the previous period[68] - The company added 13 new invention patents and 5 software copyrights during the reporting period, bringing the total to 188 patents (177 invention patents) and 117 software copyrights[67] Market Expansion - The company expects to achieve a revenue growth target of 30% for the full year 2021, driven by new product launches and market expansion strategies[17] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[17] - The company is actively pursuing market expansion strategies, targeting a 15% increase in market share in the next fiscal year[197] Product Development - A new product line in augmented reality (AR) is set to launch in Q4 2021, with projected sales of RMB 300 million in the first year[17] - The company has launched new products in the smartphone-related technology sector, achieving sales and continuous updates, with a focus on enhancing camera features and algorithms[71] - The company has developed advanced 3D reconstruction technology for mobile devices, enabling high-precision facial and body modeling, with real-time scene reconstruction capabilities[16] Technology and Innovation - The company is a leading provider of computer vision solutions, focusing on the smartphone and smart driving sectors, with a strong emphasis on technological innovation[46] - The company has developed a comprehensive computer vision technology system, achieving over 95% accuracy in technologies such as human analysis and facial recognition[52] - The company’s visual solutions for smart driving include technologies for detecting driver fatigue, distraction, and dangerous actions, as well as facial recognition and interaction systems[47] Risks and Challenges - The company has identified potential risks related to supply chain disruptions, which could impact future revenue growth[17] - The company faces risks related to rapid technological upgrades and increasing market competition, which could impact its market share and operational performance if not addressed[94][95] - The company may face risks from macroeconomic factors, including a slowdown in global economic growth and changes in consumer demand for smartphones[106] Shareholder Commitments - The board has approved a share buyback program of up to RMB 200 million to enhance shareholder value[17] - The company has committed to minimizing investor losses and has proposed new commitments to protect shareholder interests[192] - The company will ensure compliance with legal and regulatory requirements in all share reduction activities[171] Strategic Partnerships - The company has formed strategic partnerships with major industry players, ensuring rapid response to technical demands and maintaining a leading position in the industry[76] - The company is deepening collaborations with major chip manufacturers like Qualcomm and MediaTek to enhance the adaptability of its visual AI algorithms[88] Financial Health - The company's total assets at the end of the reporting period were CNY 2,964,544,968.74, a decrease of 1.42% from the end of the previous year[24] - The company's total assets included cash and cash equivalents of 1.14 billion yuan, representing 38.39% of total assets, up 19.27% from the previous year[125] - The company reported a significant increase in investment income of 47.85% to 26.24 million yuan, attributed to effective cash management[121]

Dividend and Share Capital - The company plans to distribute a cash dividend of 2.60 RMB per 10 shares, totaling approximately 105.44 million RMB, which accounts for 41.93% of the net profit attributable to shareholders for 2020[7]. - The total share capital as of April 23, 2021, is 406 million shares, with 447,873 shares in the repurchase account not participating in the dividend distribution[7]. - The company has not indicated any changes in its total share capital that would affect the dividend distribution prior to the record date[7]. Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the fiscal year, representing a 20% year-over-year growth[26]. - The company's operating revenue for 2020 was ¥683.19 million, representing a year-on-year increase of 21.03% compared to ¥564.48 million in 2019[34]. - Net profit attributable to shareholders for 2020 was ¥251.46 million, up 19.53% from ¥210.37 million in 2019[34]. - The net profit after deducting non-recurring gains and losses was ¥196.42 million, an increase of 18.15% from ¥166.25 million in 2019[34]. - The net cash flow from operating activities decreased by 38.80% to ¥127.87 million, down from ¥208.94 million in the previous year[37]. - The weighted average return on equity decreased by 2.97 percentage points to 9.70% in 2020, down from 12.67% in 2019[38]. Research and Development - The company is investing 200 million CNY in R&D for new technologies, particularly in computer vision and biometric systems[26]. - Research and development expenses accounted for 37.98% of operating revenue, an increase of 3.23 percentage points from 34.75% in 2019[36]. - The company increased its R&D investment by 32.28% year-on-year, totaling approximately ¥259.47 million in the current year compared to ¥196.16 million in the previous year[143]. - The total number of patents increased by 53 during the reporting period, with 21 invention patents granted, bringing the cumulative total to 164[142]. - The company has established a core R&D team with a high proportion of master's and doctoral degree holders, enhancing its competitive advantage in technology[159]. Market Expansion and Product Development - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[26]. - New product launches are expected to contribute an additional 300 million CNY in revenue, with a focus on AI and IoT technologies[26]. - The company is expanding its product offerings from the smartphone sector to the automotive and AIoT industries, leveraging its existing technology and brand advantages[164]. - The company has developed three market-ready optical under-display fingerprint products, with an investment of ¥1.52 million this period and a total of ¥2.67 million to date[152]. Technology and Innovation - The company’s main business focuses on computer vision technology, providing algorithm licensing and system solutions, with major clients including Samsung, Huawei, Xiaomi, OPPO, and vivo[53]. - The company has developed a comprehensive product line for smartphone visual algorithms, including features such as depth camera shooting, 3D modeling, and AR/VR applications[53]. - The company is committed to continuous research and development in computer vision, aiming to maintain its position as a leading AI enterprise globally[53]. - The company has developed a smart optical super zoom solution featuring a periscope long-focus camera with continuous zoom capabilities[62]. - The company has upgraded its facial recognition technology to enhance security and user experience, including the ability to distinguish between live individuals and images[71]. Strategic Acquisitions and Partnerships - A strategic acquisition of a smaller tech firm was completed, expected to enhance the company's capabilities in AR and VR technologies[26]. - The company has established long-term partnerships with major players in the industry, ensuring rapid response to customer technical demands[163]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the report's section on risk factors[5]. - The rapid technological iteration cycle in the smartphone market is approximately 1-2 years, posing a risk of falling behind if the company fails to update its technology timely[188]. - The company faces risks related to core technology leakage despite having a strict confidentiality system in place[192]. - The company must continuously attract and retain high-level talent to support its growth in the competitive computer vision industry[199]. - The company’s management capabilities must adapt to the rapid expansion of its business scale and new industry challenges[200]. Customer and Revenue Insights - The top five customers contributed 383.55 million yuan in sales, accounting for 56.14% of the total annual sales[194]. - The company’s revenue from the intelligent driving business reached 65.93 million yuan in 2020, representing a year-on-year growth of 310.61%[193].