ArcSoft(688088)2023-04-25 16:00Technology 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]