Earnings and Profitability - Basic earnings per share increased by 25.00% to 0.05 yuan per share compared to the same period last year[13] - Diluted earnings per share increased by 25.00% to 0.05 yuan per share compared to the same period last year[13] - Net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, increased by 92.82% compared to the same period last year[13] - Net profit attributable to shareholders of the listed company increased by 28.79% year-on-year to 14.01 million yuan[23] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses increased by 92.82% year-on-year to 10.47 million yuan[23] - Net profit for the period increased to 14,011,227.81 RMB, up from 10,879,126.35 RMB in the previous period[180] - Net profit attributable to the parent company's owners for the current period was 14,011,227.81, down from 39,842,614.80 in the previous year[124] R&D and Innovation - R&D investment accounted for 21.63% of operating income, an increase of 1.89 percentage points compared to the same period last year[13] - R&D expenses increased by 6.38 million yuan compared to the same period last year[13] - Total investment in R&D projects reached 3.185 billion yuan, with cumulative investment of 2.329 billion yuan, accounting for 73.1% of the total investment[16] - The fifth-generation IoT camera chip project has entered the tape-out verification stage, with a total investment of 998.19 million yuan and a cumulative investment of 672.38 million yuan[16] - The fourth-generation IoT camera chip project has entered the mass production stage, with a total investment of 847.53 million yuan and a cumulative investment of 625.04 million yuan[16] - The second-generation BLE application processor chip project has entered the trial production stage, with a total investment of 1.058 billion yuan and a cumulative investment of 806.31 million yuan[16] - R&D expenses increased by 14.17% to RMB 51.41 million, accounting for 21.63% of total revenue, up 1.89 percentage points year-over-year[43] - The company has over 75% self-developed IP for its main chip products, with more than 60 types of circuit design IP cores[45] - In H1 2023, the company filed 13 new patents, including 12 invention patents, and was granted 12 invention patents, bringing the total to 340 authorized patents[47] - The number of R&D personnel increased to 229, accounting for 64.69% of the total workforce, with a total R&D payroll of RMB 37.32 million[50] - The company successfully achieved mass production in 3 out of 4 full-mask tape-out projects, demonstrating strong chip design capabilities[51] - R&D expenses for the current period increased to 51,405,108.21 from 45,024,699.12 in the previous year, driven by higher employee compensation and depreciation[133] - The company has begun R&D on 12nm FinFET process technology to close the gap with international leaders[85] Financial Performance and Expenses - Financial expenses decreased by 3.70 million yuan due to exchange rate fluctuations and interest income[13] - Credit impairment losses and asset impairment losses decreased by 5.26 million yuan compared to the same period last year[13] - Revenue for the first half of 2023 increased by 4.21% year-on-year to 237.7 million yuan[23] - Total assets increased by 115.40% compared to the end of the previous year, reaching 1.695 billion yuan[23] - Net assets attributable to shareholders of the listed company increased by 161.98% compared to the end of the previous year, reaching 1.519 billion yuan[23] - Non-recurring gains and losses totaled 3,543,804.39, including government subsidies of 3,796,135.98 and investment management gains of 171,701.34[26] - Financial expenses decreased significantly by 201.22% due to increased exchange gains and interest income[110] - Operating cash flow turned positive at 13.21 million yuan, compared to -25.21 million yuan in the same period last year[110] - The company's monetary funds increased by 674.44% to 105.84093 billion yuan, primarily due to the receipt of funds from the initial public offering[112] - Accounts receivable decreased by 3.02% to 12.96518 billion yuan, mainly due to the recovery of receivables within the credit period[112] - Prepaid expenses decreased by 61.04% to 1.04163 billion yuan, as the prepaid material payments from the previous year were received and reduced[112] - Inventory increased by 2.04% to 18.6445 billion yuan, maintaining a certain level of stock for management purposes[112] - Fixed assets remained stable at 19.6853 billion yuan, with a slight decrease of 0.03%[112] - Construction in progress increased by 7.60% to 1.11062 billion yuan, due to the purchase of new photomasks and the completion of photomask projects[112] - Intangible assets increased by 9.68% to 3.13074 billion yuan, driven by the addition of IP licenses and software products[112] - Deferred tax assets increased by 28.68% to 2.75491 billion yuan, due to the adjustment of R&D expense deduction policy to 100%[112] - Short-term borrowings decreased by 23.59% to 4.70495 billion yuan, as the company repaid maturing loans and did not take on new borrowings[112] - The company issued 98 million new shares at a price of 10.68 yuan per share, raising a total of 1.04664 billion yuan, with a net amount of 924.95895073 billion yuan after deducting related expenses[118][120] - Adjusted pre-tax undistributed profit at the end of the previous period was 97,549,134.29, compared to 61,842,852.82 in the previous year[124] - Total operating revenue for the current period was 237,701,982.16, with operating costs of 168,067,561.12, compared to 228,093,999.80 and 159,117,602.63 respectively in the previous year[126] - Government subsidies decreased to 3,904,649.46 from 6,295,960.78 in the previous year[135] - Credit impairment losses for the current period were 210,890.93, compared to -577,909.33 in the previous year[138] - Asset impairment losses for the current period were -63,196.30, an improvement from -4,538,794.17 in the previous year[140] - Restricted assets at the end of the reporting period totaled 165,742,693.56, primarily due to mortgage loans[145] - The company's financial assets measured at fair value had an initial amount of 8,000,000 RMB, with a purchase amount of 33,000,000 RMB and an ending balance of 38,000,000 RMB, resulting in a fair value change of 3,000,000 RMB[146] - The company's deferred tax expense for the current period is -6,139,348.79 RMB, compared to -3,947,386.63 RMB in the previous period[169] - Total profit for the period is 7,871,879.02 RMB, with a calculated income tax expense of 1,180,781.86 RMB based on the statutory tax rate[171] - R&D tax deductions have a significant impact, reducing income tax expense by 7,234,832.14 RMB[171] - Government subsidies received during the period amount to 3,606,000.00 RMB, a decrease from 6,117,220.00 RMB in the previous period[172] - Total cash received from other operating activities is 4,891,970.98 RMB, including 1,096,640.26 RMB from deposit interest income[172] - Total cash paid for other operating activities is 9,045,265.74 RMB, with management expenses accounting for 7,889,958.00 RMB[174] - The company received 26,119,976.82 RMB from pending issuance expenses in the raised funds[175] - Total cash paid for financing activities is 10,036,123.71 RMB, including 9,442,047.16 RMB for IPO intermediary fees[178] - The company's total non-operating income for the period is 36,000.00 RMB, primarily from penalty income[171] - Non-operating expenses for the period total 57,634.04 RMB, mainly from fixed asset disposal losses[171] - Cash and cash equivalents increased significantly to 931,074,862.40 RMB, compared to a decrease of 51,183,602.43 RMB in the previous period[181] - The company's cash balance at the end of the period was 1,058,409,322.67 RMB, a substantial increase from 127,334,460.27 RMB at the beginning of the period[183] - Fixed assets and intangible assets totaling 165,742,693.56 RMB are restricted due to loan collateral[184] - The company received government subsidies totaling 3,796,135.98 RMB, primarily for technology and innovation projects[187] Market and Industry Trends - Sales in the lightweight computing and binocular camera application segments showed significant growth compared to the first half of last year[14] - The company operates in the integrated circuit design industry, which is a key area supported by national policies, with a focus on IoT smart hardware SoC chips[29] - Global SoC chip market size reached 163.8 billion USD in 2022, projected to grow to 260 billion USD by 2028[30] - China's smart hardware market is expected to grow at a 20% CAGR, reaching 2 trillion CNY by 2026[32] - The company holds over 60 circuit design IPs and has developed 7 core technologies, including SoC, ISP, video, and machine learning[33] - The company's IoT camera chips are used by major clients such as China Mobile, China Unicom, and TP-LINK[33] - IoT application processor chips are applied in smart home and office solutions, including smart locks and access control systems[34] - Main products include IoT camera chips and IoT application processor chips, used in smart home, security, office, and industrial IoT applications[35] - SoC chips integrate CPU, system control interfaces, and operating systems, with complex internal structures tailored to specific applications[36] - The company's IoT camera chips, including the AK39A series with built-in NPU, support human detection and facial recognition algorithms, and have been in mass production since 2022[37] - The AK39E series IoT camera chips are known for their balanced performance, cost-effectiveness, and low power consumption, making them the mainstream chips sold during the reporting period[37] - The HMI chips (AK37 series) are designed with 40nm process technology, offering improved CPU performance, image codec capabilities, and power efficiency, and are widely used in building intercom and access control systems[39] - The BLE chips (AK10 series) support low-power Bluetooth, fingerprint recognition, and multiple connection modes, with the AK10X series further reducing power consumption and integrating RFID and touch key modules[40] - The company has established a smart lock product line division to promote BLE chips, providing complete smart lock solutions to downstream manufacturers[40] - The company's core technologies include system-level large-scale integrated circuit design, low-power technology, image processing, and ultra-low bitrate video codec, all of which are independently developed[42] - The company's self-developed ISP technology supports multi-level noise reduction, micro-light full-color, and auto-focus algorithms, enhancing the performance of IoT camera chips[37] - The BLE chips' second-generation application processor chip (B version) has completed iteration and entered trial production in the first half of 2023[40] - The company's HMI chips meet industrial-grade standards, offering long service life, high reliability, and low defect rates, with promising prospects for domestic substitution in the industrial chip field[39] - The company's business model focuses on "Fabless + final chip testing," specializing in chip R&D, design, final testing, and sales, while outsourcing wafer manufacturing and packaging[41] - The company achieved a 4.21% year-over-year revenue growth, reaching RMB 237.70 million, driven by the AK39Av100 series chip launched in 2022[46] - Competitors such as Fullhan Micro and Ingenic Semiconductor have invested in 4K/8K camera chip R&D projects[100] - The company's latest IoT camera chip, AK39Av100 series, uses 22nm process technology, lagging behind industry leaders using 5nm and 14nm processes[85] - In 2021, the company achieved a 2.33% market share in the global security camera chip market, trailing behind leading competitors[86] - The company's gross margin for H1 2023 was 29.29%, down from 30.24% in the same period last year[91] - The company's accounts receivable bad debt provision rate was 7.63% at the end of the reporting period[94] - The company's IoT camera chips are primarily used in home cameras, while IoT application processor chips are mainly used in building intercom systems[88] - The company's revenue is highly concentrated in South China and Hong Kong, posing regional concentration risks[96] - The company faces risks from supplier concentration and reliance on external manufacturing, including potential delays and cost increases[92] - Inventory devaluation risks have increased due to rising wafer and packaging costs and weak demand in consumer electronics markets[95] - The company faces risks related to rapid technological upgrades and the need for continuous product development to maintain competitiveness[83] - The company faces risks from potential EDA tool and IP licensing issues, with international vendors controlling 80% of the domestic EDA market[104] - Potential risks from wafer supply shortages, as the company relies on foundries like SMIC and TSMC[105] Corporate Governance and Shareholder Commitments - The lock-up period for shares held by major shareholders before the IPO is automatically extended by at least 6 months if the stock price remains below the IPO price for 20 consecutive trading days within 6 months of listing[161] - Major shareholders are prohibited from transferring or entrusting others to manage their pre-IPO shares for 36 months from the listing date[161] - Shareholders must comply with applicable laws and regulations, and will bear corresponding responsibilities if they violate their commitments[161] - Directors and senior management are restricted from transferring their pre-IPO shares for 36 months from the listing date[163] - Directors and senior management are prohibited from transferring their shares within 6 months after leaving their positions[163] - If the stock price remains below the IPO price for 20 consecutive trading days within 6 months of listing, the lock-up period for directors and senior management's pre-IPO shares will be extended[163] - Shareholders must adjust the IPO price according to stock exchange regulations in case of stock dividends, stock splits, or new share issuances[161] - Shareholders are required to fulfill information disclosure obligations when reducing their holdings[163] - Shareholders must comply with the stock reduction regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange[163] - Shareholders will bear legal responsibilities if they violate their commitments[163] - The company's actual controller, Hu Shengfa, commits to not transferring or entrusting others to manage shares held before the IPO for 36 months after the company's stock listing[194] - The actual controller also commits to not transferring shares within 6 months after leaving the position[194] - Shareholders, including Ankai Technology and Wuyi Kairuida, commit to not selling shares below the IPO price within 2 years after the lock-up period ends[196] - Core technical personnel, including Hu Shengfa and Yu Mao, commit to not selling more than 25% of their pre-IPO shares annually within 4 years after the lock-up period ends[196] - The company has established a stock price stabilization plan, which will be triggered if the stock price remains below the net asset value per share for 20 consecutive trading days[198] - The company will repurchase shares if the stock price stabilization conditions are met, with the repurchase amount ranging from 10% to 20% of the previous year's audited net profit attributable to shareholders[199] - The total repurchase funds for stock price stabilization in a single fiscal year shall not exceed 50% of the previous year's audited net profit attributable to shareholders[199] - Directors (excluding independent directors) and senior management are required to purchase company shares if the stock price remains below the net asset value per share for 20 consecutive trading days after the stabilization measures are initiated[199] - The amount used by directors (excluding independent directors) and senior management to purchase shares shall not be less than 20% of their after-tax salary from the company in the previous fiscal year[200] - If the company or its directors (excluding independent directors) and senior management fail to implement the stock price stabilization measures, they must publicly explain the reasons and apologize to shareholders and investors[200] - Unfulfilled commitments by directors (excluding independent directors) and senior management will result in the suspension of their salaries and the prohibition of transferring their shares until the stabilization measures are completed[200] - New directors (excluding independent directors) and senior management will be required to sign commitment letters to fulfill the company's stock price stabilization obligations[200] Environmental and Social Responsibility - The company did not incur any environmental penalties and does not engage in activities that cause environmental pollution[154] - The company actively promotes energy conservation and emission reduction, optimizing chip design to reduce energy consumption during wafer manufacturing[156] - The company did not take any specific measures to reduce carbon emissions during the reporting period[157] Employee Compensation and Benefits - Short-term employee compensation increased from 8,257,119.12 yuan to 45,968,879.54 yuan, a significant rise of 456.5%[68] - Social insurance expenses rose from 22,578.17 yuan to 2,119,031.58 yuan, an increase of 9,284.6%[68] - Housing provident fund expenses increased from 12,583.00 yuan to 1,494,525.25 yuan, a growth of 11,780.5%[69] Legal and Regulatory Compliance - The company did not propose any profit distribution or capital reserve to share capital conversion plan for the first half of the year[150] - The company did not