Chipsea(688595)2024-08-19 12:01Financial Performance - Revenue for the first half of 2024 reached 75 million compared to the same period last year[1] - Revenue for the first half of 2024 reached 350.11 million yuan, a year-on-year increase of 121.89%[16][17] - Net profit attributable to shareholders of the listed company was -56.82 million yuan, narrowing the loss by 13.29 million yuan compared to the same period last year[17] - The company expects Q3 revenue to grow by 10-15% year-over-year, with a projected range of 275-300 million[1] - Net profit for the first half of 2024 was a loss of RMB 56.48 million, an improvement from a loss of RMB 69.95 million in the first half of 2023[138] - Total revenue for the first half of 2024 was RMB 350.11 million, a significant increase from RMB 157.79 million in the same period of 2023[137] - Net profit for the period was -17,888,704.79 yuan, an improvement from -42,087,015.44 yuan in the same period last year[142] R&D and Innovation - The company's R&D investment in new technologies amounted to 50 million, accounting for 10% of total revenue[1] - A new R&D center in Shanghai is expected to be operational by Q4 2024, with an initial investment of 20 million[1] - R&D investment accounted for 36.81% of revenue, a decrease of 19.94 percentage points year-on-year[17][18] - The company's R&D investment in the first half of 2024 increased by 43.93% year-on-year, reaching RMB 128.88 million, with a significant portion attributed to the increase in share-based payment expenses[37][38] - The company applied for 72 new invention patents and was granted 30 in the first half of 2024, bringing the total number of invention patents to 795, with 244 granted[36][37] - The company's R&D personnel increased by 1.97% to 363, with a 10.69% increase in R&D personnel compensation compared to the same period last year[37] - Total R&D investment in the first half of 2024 reached 12,887.67 million yuan, with a cumulative investment of 35,751.21 million yuan across various projects[39] - The company has developed China's first high-precision 24-bit Sigma-Delta ADC, achieving domestic leading and internationally advanced levels[44] Market Expansion and Strategic Partnerships - The company plans to invest 100 million in market expansion and potential acquisitions in the next fiscal year[1] - Strategic partnerships with key players like Vivo have driven a 12% increase in B2B sales[1] - The company's 2-5 section BMS products for laptops, power tools, drones, and sweeping robots have achieved mass shipments to leading clients[25] - The company's first-generation EC chip has achieved mass production in leading computer clients, and the second-generation EC chip has passed Intel PCL certification[26] - The company has successfully introduced 245 HarmonyOS ecosystem project opportunities and completed 97 SKU product integrations[28] - The company's BLE products have achieved mass production in industrial intelligent sensing and HMI display applications[28] - The company's automotive MCU chips have passed AEC-Q100 certification and have been introduced into multiple automotive clients for mass production[27] - The company's PD series MCU products have achieved new market breakthroughs in energy storage and power tool markets[26] Product Development and Technology - New product lines contributed $150 million in revenue, representing 30% of total revenue[1] - The company's high-reliability industrial-grade sensor conditioning chips have achieved mass shipments, with rapidly increasing customer numbers[25] - The company's new generation of automotive-grade high-precision Sigma-Delta ADC and high-speed high-precision SAR ADC have achieved mass production in leading clients[25] - High-precision ADC technology has improved signal input range, reduced chip noise, and minimized power supply noise impact, enabling ADC to meet various application scenarios[30] - The company's ADC products have significantly reduced costs compared to foreign competitors like TI and ADI, promoting rapid development in related industries[30] - High-precision reference source technology enhances measurement accuracy through 2nd-order temperature compensation and dynamic device matching[30] - Human impedance measurement technology achieves 1% accuracy in impedance measurement and ±0.5° in phase angle measurement, comparable to TI's AFE4300 but at a lower cost[30] - The company's MCU technology achieves ESD performance of 8KV and EFT performance of 4KV, meeting various application requirements[31] - High-reliability MCU technology has enabled the company to replace foreign products in many application fields, increasing the localization rate of terminal products and reducing costs[31] - High-precision Forcetouch AFE technology is widely used in smart terminals such as mobile phones, TWS, and PADs for pressure sensing[31] Financial Position and Cash Flow - The company's gross margin improved to 40%, up from 38% in the previous year[1] - The net cash outflow from operating activities was 80.46 million yuan, mainly due to increased inventory procurement[18] - The company incurred a share-based payment cost of 37 million yuan in the first half of 2024[18] - Excluding share-based payments, the net loss attributable to shareholders narrowed by 57.58 million yuan[18] - Non-recurring gains and losses amounted to 4.02 million yuan, including government subsidies of 4.21 million yuan[19][20] - The company's cash and cash equivalents decreased by 33.14% to RMB 368,251,214.69, mainly due to increased inventory payments and stock repurchases[64] - Accounts receivable increased by 25.48% to RMB 10,708,833.59, driven by higher customer payments via bills[64] - Prepayments rose by 27.98% to RMB 32,378,352.08, reflecting increased advance payments for inventory[64] - Construction in progress increased by 61.88% to RMB 59,768,316.23, mainly due to capitalized interest expenses and subsidiary projects[64] - The company's short-term borrowings increased by 52.62% to 58,039,150.00 RMB, primarily due to increased working capital needs and lower financing costs[65] - Accounts payable rose by 73.94% to 111,800,474.58 RMB, driven by increased procurement and processing fees due to improved performance[65] - The company's lease liabilities surged by 659.44% to 15,918,056.70 RMB, mainly due to new lease agreements and increased lease payments within the year[65] Corporate Governance and Shareholder Information - The company's Chinese name is 芯海科技（深圳）股份有限公司, and its English name is Chipsea Technologies (Shenzhen) Corp., Ltd.[11] - The company's stock is listed on the Shanghai Stock Exchange's STAR Market under the ticker symbol 688595[15] - The company's registered and office address is located at Building 1, 301, Shenzhen Bay Innovation and Technology Center, Nanshan District, Shenzhen[11] - The company's website is www.chipsea.com, and the contact email is info@chipsea.com[11] - The company's legal representative is Lu Guojian[11] - The company's board secretary is Wan Wei, and the securities affairs representative is Wu Yuan[12] - The company's contact phone number is 0755-8616 8545, and the fax number is 0755-2680 4983[12] - The company's semi-annual report is published on the Shanghai Stock Exchange website (www.sse.com.cn) and the company's board office[14] - The company's stock is classified as A-shares and is listed on the Shanghai Stock Exchange's STAR Market[15] - The company's stock code is 688595, and there is no previous stock name change[15] - The company's total share capital increased from 142,156,346 shares to 142,381,046 shares after the completion of the first vesting period of the 2021 restricted stock incentive plan[74] - The company granted 1.3 million restricted shares to 35 incentive recipients at a price of 16.60 yuan per share on February 2, 2024[75] - The company did not distribute any dividends or conduct any capital reserve to share capital conversion during the reporting period[73] - The company held its 2023 annual general meeting on April 19, 2024, where all 12 proposals were approved[72] - Yang Lining was elected as a non-independent director during the 32nd meeting of the third board of directors on March 28, 2024[73] Environmental and Social Responsibility - The company has established policies such as the "Quality and Hazardous Substance Process Management Manual" and "Hazardous Substance Management Specification" to promote energy conservation and environmental protection[77] - No specific carbon reduction measures were implemented during the reporting period, and the reduction in carbon dioxide equivalent was 0 tons[78] - The company did not allocate any funds for environmental protection during the reporting period[76] Shareholder Commitments and Lock-up Periods - The controlling shareholder and actual controller, Lu Guojian, and his controlled enterprise, Xinlian Zhihe, have committed to not transferring or entrusting others to manage their directly or indirectly held shares for 6 months after the company's stock is listed. If the stock price remains below the issue price for 20 consecutive trading days or at the end of 6 months, the lock-up period will automatically extend by another 6 months[79] - Lu Guojian and Xinlian Zhihe have pledged that after the lock-up period expires, they will not sell more than 25% of their total shares held at the end of the previous year within two years[81] - The lock-up period for shares held by Lu Guojian and Xinlian Zhihe is 36 months from the date of the company's listing[79] - If the company's stock price remains below the issue price for 20 consecutive trading days or at the end of 6 months after listing, the lock-up period for shares held by Lu Guojian and Xinlian Zhihe will automatically extend by another 6 months[79] - Lu Guojian and Xinlian Zhihe have committed to maintaining their controlling position in the company and will only consider limited share reductions after the lock-up period, in compliance with relevant regulations[81] - The lock-up period for shares held by Lu Guojian and Xinlian Zhihe will be adjusted accordingly if the company undergoes events such as stock dividends, stock splits, or capital increases[79] - Lu Guojian and Xinlian Zhihe have agreed to automatically apply any changes in laws, regulations, or regulatory requirements regarding share lock-up and reduction during their holding period[81] - Lu Guojian and Xinlian Zhihe have committed to not transferring or entrusting others to manage their shares for 6 months after leaving their positions as directors, supervisors, or senior management[79] - Lu Guojian and Xinlian Zhihe have pledged to strictly comply with relevant laws and regulations regarding share lock-up and reduction, and to fulfill necessary filing and announcement procedures before any reduction[81] - Lu Guojian and Xinlian Zhihe have agreed to bear legal responsibility for any violations of their commitments regarding share lock-up and reduction[81] Fundraising and Investment - The company plans to invest the funds raised from the public offering in high-performance 32-bit MCU, health SoC, and other chip upgrade and industrialization projects[90] - The company will accelerate the investment progress of the fundraising projects to achieve expected benefits as soon as possible[90] - The company will strictly implement the cash dividend policy to provide reasonable returns to investors[90] - The company aims to enhance its competitiveness and profitability through improved management, increased R&D investment, and market expansion[90] - The actual controller, Lu Guojian, commits to not abusing his position and to fulfilling his obligations diligently[90] - The company will ensure the proper use of raised funds and accelerate project implementation to achieve expected returns[90] - The company will actively allocate resources to speed up the construction of fundraising projects[90] - The company will use its own funds to advance the investment in fundraising projects before the funds are raised[90] - The company will improve decision-making procedures for profit distribution to protect shareholders' rights[90] - The company will continue to supplement and improve measures to protect investors' legal rights[90] Risk Management and Compliance - The company faces risks from fluctuating wafer and packaging costs, which could impact gross margins and net profits[57] - Risk of supply chain disruption due to high supplier concentration and potential capacity constraints[56] - The company's main business costs are primarily composed of wafer, packaging, and testing costs, accounting for 95.12% of total costs[57] - The company has committed to repurchasing all newly issued shares within 5 working days if it is found to have obtained listing through fraudulent means[93] - The company will strictly adhere to the profit distribution policy outlined in its draft articles of association post-IPO[93] - The controlling shareholder and actual controller have pledged to avoid any business or product competition with the company[94] - The controlling shareholder and actual controller will not engage in any activities that compete with the company's business or products[94] - The company will ensure that any unavoidable related-party transactions are conducted fairly and in compliance with regulatory requirements[94] - The controlling shareholder and actual controller will take responsibility and compensate for any losses caused by violations of their commitments[94] - The company will publicly explain and apologize for any failure to fulfill its commitments[93] - The company will compensate investors for any losses incurred due to unfulfilled commitments[93] - The controlling shareholder and actual controller will stop receiving dividends and restrict share transfers if they violate their commitments[94] - The company will implement measures to avoid or resolve any potential conflicts of interest with its controlling shareholder and actual controller[94] Industry and Market Trends - Global semiconductor industry sales reached $149.9 billion in Q2 2024, a year-on-year increase of 18.3% and a quarter-on-quarter increase of 6.5%[21] - Domestic integrated circuit product output increased by 28.9% year-on-year in the first half of 2024[21] - The company's 2-5 section BMS products for laptops, power tools, drones, and sweeping robots have achieved mass shipments to leading clients[25] - The company's first-generation EC chip has achieved mass production in leading computer clients, and the second-generation EC chip has passed Intel PCL certification[26] - The company has successfully introduced 245 HarmonyOS ecosystem project opportunities and completed 97 SKU product integrations[28] - The company's BLE products have achieved mass production in industrial intelligent sensing and HMI display applications[28] - The company's automotive MCU chips have passed AEC-Q100 certification and have been introduced into multiple automotive clients for mass production[27] - The company's PD series MCU products have achieved new market breakthroughs in energy storage and power tool markets[26] - The company's new generation of automotive-grade high-precision Sigma-Delta ADC and high-speed high-precision SAR ADC have achieved mass production in leading clients[25] - High-precision ADC technology has improved signal input range, reduced chip noise, and minimized power supply noise impact, enabling ADC to meet various application scenarios[30] - The company's ADC products have significantly reduced costs compared to foreign competitors like TI and ADI, promoting rapid development in related industries[30] - High-precision reference source technology enhances measurement accuracy through 2nd-order temperature compensation and dynamic device matching[30] - Human impedance measurement technology achieves 1% accuracy in impedance measurement and ±0.5° in phase angle measurement, comparable to TI's AFE4300 but at a lower cost[30] - The company's MCU technology achieves ESD performance of 8KV and EFT performance of 4KV, meeting various application requirements[31] - High-reliability MCU technology has enabled the company to replace foreign products in many application fields, increasing the localization rate of terminal products and reducing costs[31] - High-precision Forcetouch AFE technology is widely used in smart terminals such as mobile phones, TWS, and PADs for pressure sensing[31]