成都华微(688709) - 2024 Q2 - 季度财报

Definitions This chapter provides fundamental definitions for professional terms, company entities, and related party abbreviations used in the report, serving as a basis for understanding the content - This chapter primarily explains professional terms, company entities, and related party abbreviations used in the report, providing foundational definitions for understanding the report content[6] Company Profile and Key Financial Indicators This section introduces the company's basic information and presents key financial data and indicators for the reporting period Company Profile Chengdu HuaWei Electronics Technology Co., Ltd. (Chengdu HuaWei) is a company listed on the STAR Market of the Shanghai Stock Exchange, stock code 688709, with its legal representative changing to Mr. Wang Ce after the reporting period - Basic company information includes Chinese and English names, legal representative, registered and office addresses[7] - After the reporting period, the company's legal representative changed from Mr. Huang Xiaoshan to Mr. Wang Ce[7][64] Key Accounting Data and Financial Indicators In the first half of 2024, the company's performance significantly declined, with operating revenue decreasing by 38.55% year-on-year and net profit attributable to shareholders decreasing by 50.22%, primarily due to fluctuating demand in the special integrated circuit industry Key Accounting Data (January-June 2024) | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Year (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 279,616,209.26 | 455,049,898.51 | -38.55 | | Net Profit Attributable to Shareholders | 73,284,314.34 | 147,209,281.97 | -50.22 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 46,480,951.92 | 140,335,271.29 | -66.88 | | Net Cash Flow from Operating Activities | -14,146,133.16 | -23,523,591.48 | Not Applicable | | Asset Status | End of Current Period (RMB) | End of Prior Year (RMB) | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders | 2,743,439,230.67 | 1,312,814,437.45 | 108.97 | | Total Assets | 3,420,935,231.85 | 2,274,217,612.93 | 50.42 | Key Financial Indicators (January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.12 | 0.27 | -55.56% | | Weighted Average Return on Net Assets (%) | 3.19 | 14.03 | Decreased by 10.84 percentage points | | R&D Investment as % of Operating Revenue | 26.25 | 23.09 | Increased by 3.16 percentage points | - The company attributes performance decline primarily to: - Operating revenue decrease: Affected by fluctuations in domestic special integrated circuit industry demand, leading to reduced order volumes year-on-year - Net profit decrease: Due to reduced revenue and increased expense ratios - Earnings per share decrease: Resulting from lower profit and an increase in total share capital due to the February 2024 IPO issuance[12] Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 26.80 million, primarily from government grants recognized in current profit or loss, totaling RMB 25.69 million Non-recurring Gains and Losses (January-June 2024) | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in current profit or loss | 25,687,819.89 | | Other gains and losses meeting the definition of non-recurring items | 4,445,603.93 | | Less: Income tax impact | 3,119,129.60 | | Less: Impact on minority interests (after tax) | 215,283.62 | | Total | 26,803,362.42 | Management Discussion and Analysis This section provides an in-depth discussion and analysis of the company's industry, core business, technological advancements, competitive advantages, and operational performance during the reporting period Industry and Main Business Overview The company specializes in R&D, design, testing, and sales of special integrated circuits using a Fabless model, with products spanning digital and analog domains for various special industries - The company's main business involves the R&D, design, testing, and sales of special digital and analog integrated circuits, providing overall solutions for signal processing and control systems[16] - Key product lines include: - Digital Integrated Circuits: Programmable logic devices (CPLD/FPGA), memory chips (NOR Flash/EEPROM), microcontrollers (MCU) - Analog Integrated Circuits: Data conversion (ADC/DAC), bus interfaces, power management (LDO/DC-DC)[16][17][18][20] - The company operates on a Fabless model, focusing on chip R&D, design, and sales, while outsourcing wafer fabrication and packaging, with testing primarily conducted in-house[24] - The sales model is primarily direct sales, comprehensively covering mainstream domestic downstream special integrated circuit application customers[26] Core Technologies and R&D Progress The company possesses multiple core technologies in digital and analog integrated circuits, leading domestic advancements in FPGA and high-speed high-precision ADC fields, with significant R&D investment and ongoing projects - The company's core technologies cover logic chips, data conversion, MCUs, power management, memory chips, and bus interfaces, with FPGA products reaching 28nm process technology and 70 million gate-level scale, supported by a full-flow independently developed toolchain, achieving a leading domestic level[27] R&D Investment | Indicator | Current Period (RMB) | Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 73,411,231.14 | 105,060,046.32 | -30.12 | | Total R&D Investment | 73,411,231.14 | 105,060,046.32 | -30.12 | | Total R&D Investment as % of Operating Revenue | 26.25 | 23.09 | Increased by 3.16 percentage points | - During the reporting period, the company filed 21 new invention patent applications and 13 integrated circuit layout designs; it obtained 3 new authorized invention patents and 13 integrated circuit layout designs[29] - The company continues to advance 7 major R&D projects, including high-performance FPGA, high-speed data conversion (ADC/DAC) chips, and intelligent heterogeneous system (SoC) chips, with a total investment budget exceeding RMB 1 billion, and all technologies are domestically leading or internationally advanced[31][32][34] - As of the end of the reporting period, the company had 388 R&D personnel, accounting for 41.15% of the total workforce, with over 40% holding master's degrees or above[35] Core Competitiveness Analysis The company's core competitiveness stems from its deep technical accumulation, comprehensive product portfolio, robust testing capabilities, and extensive market recognition within the special integrated circuit industry - Technology and R&D: Undertakes multiple national key R&D programs and major science and technology projects, with technology reserves among the industry's top tier; as of the end of the reporting period, it holds 108 domestic invention patents[36] - Products and Portfolio: Possesses both digital and analog integrated circuit design capabilities, with products covering over ten categories including CPLD/FPGA and ADC/DAC, where its 28nm 70 million gate-level FPGA and 24-31 bit ultra-high precision ADC products are domestically leading[37] - Quality and Testing: Operates a CNAS and DiLAC certified national-level testing center with comprehensive special integrated circuit testing lines, meeting the high-standard testing requirements of downstream customers[38] - Market and Service: Products have gained recognition from mainstream domestic special integrated circuit industry downstream manufacturers, with major clients including China Electronics Technology Group, Aviation Industry Corporation of China, China Aerospace Science and Technology Corporation, and China Aerospace Science and Industry Corporation[38] Discussion and Analysis of Operations During the reporting period, the company achieved operating revenue of RMB 279.62 million and net profit attributable to shareholders of RMB 73.28 million amidst industry fluctuations, implementing measures to enhance R&D, market presence, and governance - During the reporting period, the company achieved operating revenue of RMB 279.62 million, net profit attributable to shareholders of RMB 73.28 million, and net profit attributable to shareholders (excluding non-recurring items) of RMB 46.48 million[39] Analysis of Major Financial Statement Item Changes | Item | Current Period (RMB) | Prior Year (RMB) | Change (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 279,616,209.26 | 455,049,898.51 | -38.55 | Customer acceptance amount decreased year-on-year | | Operating Cost | 64,467,727.49 | 101,234,184.99 | -36.32 | Cost of goods sold decreased due to lower revenue | | Financial Expenses | -76,561.98 | 4,400,585.49 | -101.74 | Due to interest income generated from raised funds | | R&D Expenses | 73,411,231.14 | 105,060,046.32 | -30.12 | Some R&D personnel allocated to national projects | | Net Cash Flow from Financing Activities | 1,080,520,325.46 | 139,145,555.20 | 676.54 | Due to initial public offering of shares | - In terms of assets and liabilities, monetary funds significantly increased by 526.99% due to the IPO; short-term borrowings significantly decreased by 97.58% due to repayment of bank loans; and employee compensation payable decreased by 52.62% due to payment of prior year's bonuses[55][56] Risk Factors The company faces multiple risks, including significant performance decline due to industry demand fluctuations, core competitiveness challenges, operational risks from customer concentration and supply chain instability, and financial risks related to accounts receivable and inventory impairment - Significant performance decline risk: Operating revenue decreased by 38.55% year-on-year, and net profit attributable to shareholders decreased by 50.22% year-on-year during the reporting period, primarily affected by industry demand fluctuations, project acceptance, and delayed procurement plans[43] - Core competitiveness risk: Risks include insufficient technological iteration and new product development capabilities, as well as R&D outcomes not meeting industrialization expectations[44][45] - Operational risk: High customer concentration, with major clients being subsidiaries of large central state-owned enterprises; additionally, the Fabless model exposes the company to risks of wafer supply chain stability and procurement price fluctuations[46][51] - Financial risk: Large scale of accounts receivable and high proportion to current assets pose collection risks; low inventory turnover rate presents impairment risks[49][50] Corporate Governance This section details the company's corporate governance structure, including shareholder meetings and changes in senior management during the reporting period Shareholder Meetings and Executive Changes During the reporting period, the company held its 2023 Annual General Meeting and the First Extraordinary General Meeting of 2024, approving various proposals, and completed the re-election of its board and supervisory board, appointing new senior management, including Mr. Wang Ce as General Manager - Two shareholder meetings were held during the reporting period, with all proposals approved[61] - The company completed the re-election of its Board of Directors and Supervisory Board on July 22, 2024, and appointed new senior management; Mr. Li Ye was elected as the new Chairman, and Mr. Wang Ce was appointed as General Manager[62][64] - No profit distribution or capital reserve capitalization plans were proposed during the reporting period[66] Environmental and Social Responsibility This section outlines the company's environmental protection measures and its commitment to social responsibility Environmental Information The company has established environmental protection mechanisms; its core business of integrated circuit design, testing, and sales, with outsourced production, means its operations do not involve significant environmental pollution - The company's operations do not involve significant environmental pollution, primarily generating domestic sewage and waste, which are handled according to regulations[68] - During the reporting period, carbon reduction measures were implemented by reducing energy consumption, resulting in a decrease of approximately 0.1 tons of standard coal equivalent in carbon emissions[69][70] Significant Matters This section covers significant events and commitments, including the fulfillment of IPO commitments, major related party transactions, and the progress of raised funds utilization Fulfillment of Commitments During the reporting period, the company's actual controller, shareholders, related parties, and the company itself strictly fulfilled all commitments made during the initial public offering, including share lock-up, resolution of horizontal competition, standardization of related party transactions, and share price stabilization - The company's controlling shareholder, China Zhenhua, and actual controller, China Electronics, both committed not to transfer or entrust others to manage their pre-IPO shares for 36 months from the listing date[72][74][76] - The company, its controlling shareholder, actual controller, directors, and senior management made detailed commitments regarding share price stabilization, repurchase for fraudulent issuance, compensation for diluted immediate returns, and profit distribution, all of which were strictly fulfilled during the reporting period[73] Major Related Party Transactions The company's major related party transactions involve financial services with China Electronics Finance Co., Ltd., a financial company under the same actual controller (China Electronics), including deposits and loans, all duly approved - The company projected its routine related party transactions for 2024 and added projected transactions with its associate, Xinhuo Weice, both approved by the Board of Directors and Supervisory Board[115] Financial Services with Related Party Finance Company (Unit: RMB 10,000) | Business Type | Related Party | Max Daily Deposit Limit/Loan Limit | Beginning Balance | Amount Incurred This Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Deposit Business | China Electronics Finance Co., Ltd. | 100,000.00 | 380.34 | Deposited 56,524.76 / Withdrawn 49,407.24 | 7,497.86 | | Loan Business | China Electronics Finance Co., Ltd. | 100,000.00 | 8,000.00 | Repaid 8,000.00 | 0.00 | Progress of Raised Funds Utilization The company raised RMB 1.416 billion net from its IPO in February 2024, with RMB 463 million cumulatively invested by the end of the reporting period, primarily in "Chip R&D and Industrialization" and "High-end Integrated Circuit Industrial Base" projects Overall Utilization of Raised Funds (Unit: RMB 10,000) | Net Raised Funds (1) | Total Committed Investment (2) | Cumulative Investment as of Period-end (4) | Cumulative Investment Progress (%) (4)/(1) | | :--- | :--- | :--- | :--- | | 141,592.59 | 150,000.00 | 46,333.68 | 32.72 | Details of Raised Fund Investment Projects (Unit: RMB 10,000) | Project Name | Committed Investment (RMB) | Amount Invested This Year (RMB) | Cumulative Investment (RMB) | Investment Progress (%) | | :--- | :--- | :--- | :--- | :--- | | Chip R&D and Industrialization | 75,000.00 | 11,719.99 | 11,719.99 | 15.63 | | High-end Integrated Circuit Industrial Base | 55,000.00 | 23,021.10 | 23,021.10 | 41.86 | | Replenish Working Capital and Repay Loans | 11,592.59 | 11,592.59 | 11,592.59 | 100.00 | - The company used up to RMB 200 million of idle raised funds to temporarily supplement working capital and up to RMB 600 million for cash management to improve fund utilization efficiency[128][129] Share Capital Changes and Shareholder Information This section details the changes in the company's share capital due to its IPO and provides an overview of its shareholder structure Share Capital Changes During the reporting period, the company's total share capital increased from 541 million shares to 637 million shares due to the issuance of 95.6 million new shares in its February 2024 STAR Market IPO - The company issued 95.6 million shares in its initial public offering on February 7, 2024, increasing its total share capital to 636,847,026 shares[133] Share Capital Structure Changes | Share Type | Quantity Before Change | Quantity After Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | | Restricted Shares | 541,247,026 | 565,143,084 | 88.74 | | Unrestricted Tradable Shares | 0 | 71,703,942 | 11.26 | | Total Share Capital | 541,247,026 | 636,847,026 | 100.00 | Shareholder Information As of the end of the reporting period, the company had 20,638 common shareholders, with a highly concentrated equity structure where the top two shareholders are entities controlled by the actual controller, China Electronics Information Industry Group Co., Ltd. - As of the end of the reporting period, the company had 20,638 common shareholders[138] Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held | Proportion (%) | Nature of Shares | | :--- | :--- | :--- | :--- | | China Zhenhua Electronics Group Co., Ltd. | 285,575,825 | 44.84 | State-owned Legal Person | | Huada Semiconductor Co., Ltd. | 115,707,282 | 18.17 | State-owned Legal Person | | Chengdu HuaWei Zhongzhi Gongchuang Enterprise Management Center (Limited Partnership) | 48,776,536 | 7.66 | Domestic Non-state-owned Legal Person | | Chengdu Innovation Venture Capital Co., Ltd. | 26,909,133 | 4.23 | State-owned Legal Person | | Chengdu HuaWei Zhanfei Partner Enterprise Management Center (Limited Partnership) | 15,635,708 | 2.46 | Domestic Non-state-owned Legal Person | - Among the top ten shareholders, China Zhenhua, Huada Semiconductor, and CEC Capital are all entities controlled by the actual controller, China Electronics, indicating clear related party relationships[141] Preferred Shares Information This section confirms that the company has no preferred shares during the reporting period - The company had no preferred shares during the reporting period[145] Bond Information This section confirms that the company has no bonds during the reporting period - The company had no bonds during the reporting period[146] Financial Report This section presents the company's unaudited financial statements and notes, providing a comprehensive overview of its financial position, operating results, and cash flows Financial Statements This section includes the company's unaudited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial status, operating results, and cash flow in the first half of 2024 - Provides consolidated and parent company balance sheets as of June 30, 2024[147][150] - Provides consolidated and parent company income statements for the first half of 2024[153][156] - Provides consolidated and parent company cash flow statements for the first half of 2024[159][161] - Provides consolidated and parent company statements of changes in owners' equity for the first half of 2024[164][172] Changes in Significant Accounting Policies and Estimates During the reporting period, the company made a significant accounting estimate change, adjusting the expected credit loss rates for accounts receivable within one year, effective April 15, 2024, to better reflect its financial position Accounts Receivable Bad Debt Provision Rate Change | Aging | Provision Rate Before Change (%) | Provision Rate After Change (%) | | :--- | :--- | :--- | | 0-6 months | 4.00 | 1.00 | | 7-12 months | 4.00 | 5.00 | | 1-2 years | 10.00 | 10.00 | | Over 2 years | 20.00-100.00 | 20.00-100.00 | - This accounting estimate change became effective on April 15, 2024, impacting credit impairment losses, notes receivable, and accounts receivable by RMB 3.58 million[240] Notes to Consolidated Financial Statements The notes to the financial statements detail the composition and changes of various accounting items, highlighting significant increases in monetary funds, share capital, and capital reserves due to the IPO, alongside substantial accounts receivable and inventory balances - As of the end of the period, accounts receivable had a book balance of RMB 1.137 billion, with bad debt provisions of RMB 84.15 million, resulting in a carrying value of RMB 1.053 billion[253][255] - As of the end of the period, inventory had a carrying value of RMB 387 million, with raw materials, work-in-progress, and finished goods being the main components; the company accrued a total of RMB 39.52 million in inventory impairment provisions for raw materials and finished goods[272][273] - Construction in progress had a carrying value of RMB 362 million at period-end, primarily for the "High-end Integrated Circuit R&D and Industrialization" project, with a budget of RMB 795 million and 47.04% cumulatively invested[285][287] - Due to the IPO, share capital increased from RMB 541 million to RMB 637 million, and capital reserves significantly increased from RMB 148 million to RMB 1.481 billion[320][322]