ThunderSoft(300496)2024-03-19 16:00Financial Performance - Revenue in 2023 decreased by 3.73% to 5,242,234,178.40 yuan compared to 2022[12] - Net profit attributable to shareholders in 2023 dropped by 39.36% to 466,186,194.83 yuan[12] - Cash flow from operating activities increased by 51.89% to 754,721,852.45 yuan in 2023[12] - Basic earnings per share decreased by 42.68% to 1.0171 yuan in 2023[12] - Total assets grew by 6.88% to 11,459,187,610.03 yuan at the end of 2023[12] - Net profit in Q4 2023 was negative at -123,133,054.50 yuan[14] - Non-recurring gains and losses in 2023 amounted to 125,968,020.17 yuan[17] - The company achieved a revenue of 5.242 billion yuan in 2023, with R&D investment reaching 1.458 billion yuan and net profit attributable to shareholders of 466 million yuan[26] - The net cash flow from operating activities in 2023 was 755 million yuan, a year-on-year increase of 51.89%[26] - Total operating revenue for 2023 was RMB 5,242,234,178.40, a decrease of 3.73% year-over-year[38] - Revenue from software development decreased by 9.93% to RMB 1,841,946,749.57, accounting for 35.14% of total revenue[38] - Revenue from technical services increased by 2.93% to RMB 1,825,666,011.82, accounting for 34.83% of total revenue[38] - Revenue from Japan decreased significantly by 20.47% to RMB 439,503,083.66, while revenue from other countries increased by 19.11% to RMB 330,036,455.96[38] - Gross margin for software and information services decreased by 2.34% to 36.95%[42] - Direct labor costs decreased by 6.21% to RMB 1,434,203,354.98, accounting for 43.39% of total operating costs[44] - Hardware and material procurement costs increased by 14.71% to RMB 1,244,607,113.58, accounting for 37.65% of total operating costs[44] - The top five customers contributed RMB 1,073,715,333.33, accounting for 20.48% of total sales[47] - The top five suppliers accounted for 48.28% of total annual procurement, with a total procurement amount of RMB 929,862,144.13[48] - Net profit attributable to shareholders in Q4 2023 was negative RMB 123,070,011.89, a significant decline compared to RMB 129,698,501.57 in Q4 2022[40] - Top 5 suppliers accounted for 48.28% of total annual procurement, with the largest supplier contributing 234.7 million yuan (12.19%)[49] - Sales expenses increased by 19.24% to 198.89 million yuan in 2023, while R&D expenses grew by 12.27% to 950.64 million yuan[50] - R&D investment reached 1.46 billion yuan in 2023, accounting for 27.82% of operating revenue, with a 34.81% capitalization rate[53] - R&D personnel decreased by 3.16% to 11,705, with a notable 44.42% increase in employees over 40 years old[52] - Capitalized R&D expenditure accounted for 128.62% of net profit in 2023, significantly higher than previous years[53] - R&D capitalization amount for the Intelligent Connected Vehicle Operating System project is 125,603,549.05 yuan, which aims to build a new generation of intelligent connected vehicle operating system with features like cloud integration, openness, and security[55] - The company's operating cash flow increased by 51.89% year-over-year, reaching 754,721,852.45 yuan, primarily due to increased sales revenue[57] - Investment cash flow decreased by 46.18% year-over-year, with a net outflow of 663,070,436.97 yuan, mainly due to increased development expenditures[57] - Financing cash flow decreased by 105.23% year-over-year, with a net outflow of 131,079,529.24 yuan, primarily due to the non-public issuance of shares in the previous year[57] - The company's investment income was 52,552,221.57 yuan, accounting for 12.40% of total profit, mainly from equity method investments and gains from disposal of long-term equity investments[58] - Other income, including government subsidies and VAT refunds, amounted to 153,969,338.99 yuan, accounting for 36.33% of total profit[59] - Credit impairment loss was -111,615,414.57 yuan, accounting for -26.34% of total profit, mainly due to provisions for receivables and contract assets[59] - The Edge Computing Station R&D and Industrialization Project has a capitalization amount of 95,571,572.70 yuan, focusing on 5G, AI, IoT, and cloud-native technologies[55] - The Extended Reality (XR) R&D and Industrialization Project has a capitalization amount of 39,864,629.70 yuan, aiming to develop a new generation of XR computing platform[55] - The Multi-modal Fusion Technology R&D Project has a capitalization amount of 3,216,186.07 yuan, focusing on data collection, aggregation, and processing technologies[55] - Cash and cash equivalents decreased by 3.15% to RMB 4,626,971,533.38, accounting for 40.38% of total assets, primarily due to the previous non-public issuance of shares[60] - Accounts receivable decreased by 0.33% to RMB 1,888,060,477.83, accounting for 16.48% of total assets[60] - Contract liabilities increased by 2.76% to RMB 681,692,877.59, accounting for 5.95% of total assets, mainly due to increased prepayments for undelivered contracts[60] - Intangible assets increased by 2.96% to RMB 963,536,028.97, accounting for 8.41% of total assets, primarily due to increased self-developed software[60] - Other non-current assets increased by 3.23% to RMB 370,000,000.00, accounting for 3.23% of total assets, mainly due to the addition of large-denomination certificates of deposit[60] - Total investment in the reporting period was RMB 5,570,751,258.72, a 104.42% increase compared to the same period last year[63] - The Nanjing Yuhua Artificial Intelligence Industrial Park project has a cumulative investment of RMB 299,206,920.30, with a progress rate of 79.07%[65] - The 2020 non-public issuance raised RMB 170,090.78 million, with RMB 131,599.81 million already used, and RMB 7,915.53 million remaining unused[68] - The 2022 non-public issuance raised RMB 310,000 million, with RMB 112,543.90 million already used, and RMB 197,663.44 million remaining unused[68] - Restricted bank deposits at the end of the reporting period amounted to RMB 3,643,178.67, mainly due to performance bonds, rent deposits, and litigation freezes[62] - The intelligent connected vehicle operating system R&D project has completed 100% of its investment with a total adjusted investment of 489.6088 million yuan[71] - The intelligent driving assistance system R&D project has completed 100% of its investment with a total adjusted investment of 298.4695 million yuan[71] - The 5G intelligent terminal certification platform R&D project has completed 100% of its investment with a total adjusted investment of 175.4291 million yuan[71] - The multimodal fusion technology R&D project has completed 100% of its investment with a total adjusted investment of 62.3486 million yuan[71] - The Nanjing Yuhua Research Institute construction project has completed 78.57% of its investment with a total adjusted investment of 369.2974 million yuan[71] - The vehicle operating system R&D project has completed 13.53% of its investment with a total adjusted investment of 647.3498 million yuan[71] - The edge computing station R&D and industrialization project has completed 7.91% of its investment with a total adjusted investment of 1.0009025 billion yuan[71] - The extended reality (XR) R&D and industrialization project has completed 10.21% of its investment with a total adjusted investment of 358.5322 million yuan[71] - The distributed computing network technology R&D project has completed 5.99% of its investment with a total adjusted investment of 184.2457 million yuan[71] - The supplementary working capital project has exceeded its investment by 101.64% with a total adjusted investment of 896.3306 million yuan[71] - The company repurchased 808,400 shares, accounting for 0.18% of the total shares, with a total expenditure of 49.9851 million yuan[165] - The company's total share capital increased from 457,478,344 shares to 459,965,094 shares due to the exercise of stock options and restricted stock vesting[167] - The company's basic earnings per share decreased from 1.0190 yuan to 1.0171 yuan, and diluted earnings per share increased from 1.0152 yuan to 1.0155 yuan after the share capital increase[169] - The company's net assets per share attributable to ordinary shareholders decreased from 20.9027 yuan to 20.8629 yuan after the share capital increase[169] - The company's controlling shareholder, Zhao Hongfei, has pledged 5.91 million shares, accounting for 4.83% of his holdings and 1.28% of the company's total share capital[165] - The company's restricted shares increased by 393,355 shares, with a total of 93,157,323 restricted shares at the end of the period[170] - The company's entrusted financial management amounted to 181 million yuan, with 37 million yuan still outstanding[163] - The company's entrusted financial management included 49 million yuan from its own funds and 132 million yuan from raised funds[163] - The total number of ordinary shareholders at the end of the reporting period was 52,167, a decrease from 68,074 at the end of the previous month before the annual report disclosure[173] - Zhao Hongfei, the largest shareholder, holds 26.60% of the company's shares, totaling 122,351,063 shares, with 91,763,297 shares under restricted sale conditions[173] - Hong Kong Central Clearing Limited, the second-largest shareholder, holds 4.64% of the company's shares, totaling 21,336,721 shares, with a decrease of 8,232,809 shares during the reporting period[173] - The company's actual controller is Zhao Hongfei, who serves as the chairman and general manager, and there were no changes in the actual controller during the reporting period[176][177] - The company's top 10 shareholders did not engage in any agreed repurchase transactions during the reporting period[175] - The company plans to repurchase between 239,273 and 398,787 shares, accounting for 0.05%-0.09% of the total shares, with a repurchase amount of no less than 30 million yuan and no more than 50 million yuan[179] - The repurchase period is from September 8, 2023, to March 6, 2024, and the repurchased shares will be used for employee stock ownership plans or equity incentives[179] - As of the report date, the company has already repurchased 235,100 shares[179] - The company's total revenue for 2023 was 5,242.2342 million yuan, primarily from software development and technical services[186] - The company's goodwill as of December 31, 2023, was 420.5903 million yuan, resulting from acquisitions made in 2016, 2017, and 2018[186] - The company's financial statements for 2023 received a standard unqualified audit opinion from Asia Pacific (Group) Certified Public Accountants[182] - The audit report was signed on March 19, 2024, by auditors Gong Wei and Xie Hongxin[182] - The company's revenue recognition and goodwill impairment were identified as key audit matters[186] - The company's financial statements were prepared in accordance with Chinese Accounting Standards and fairly present the company's financial position and operating results[183] - The company's management is responsible for the preparation and fair presentation of the financial statements, while the governance layer oversees the financial reporting process[189] - Total assets increased to 11,459,187,610.03 yuan in 2023, up from 10,721,206,544.29 yuan in 2022[193][195] - Cash and cash equivalents decreased slightly to 4,626,971,533.38 yuan in 2023 from 4,667,263,432.75 yuan in 2022[193] - Accounts receivable increased to 1,888,060,477.83 yuan in 2023, up from 1,801,711,285.84 yuan in 2022[193] - Total liabilities rose to 1,703,924,966.42 yuan in 2023, compared to 1,410,940,230.42 yuan in 2022[195] - Shareholders' equity increased to 9,755,262,643.61 yuan in 2023, up from 9,310,266,313.87 yuan in 2022[195] - Contract liabilities nearly doubled to 681,692,877.59 yuan in 2023 from 342,030,541.12 yuan in 2022[194] - Intangible assets grew significantly to 963,536,028.97 yuan in 2023, up from 584,447,766.81 yuan in 2022[194] - Deferred tax liabilities decreased to 44,275,394.92 yuan in 2023 from 89,323,120.61 yuan in 2022[195] - Parent company's cash and cash equivalents increased sharply to 1,176,725,289.49 yuan in 2023 from 620,535,410.08 yuan in 2022[196] - Parent company's prepayments grew to 1,331,423,055.35 yuan in 2023, up from 878,087,339.85 yuan in 2022[196] - Total assets increased to 10,657,886,415.06 RMB in 2023, up from 8,752,781,164.85 RMB in 2022, representing a growth of 21.8%[197][198] - Total revenue for 2023 was 5,242,234,178.40 RMB, a decrease of 3.7% compared to 5,445,453,628.50 RMB in 2022[199] - Total operating costs for 2023 were 4,908,981,785.07 RMB, an increase of 2.2% from 4,802,672,303.91 RMB in 2022[199] - Current assets totaled 8,053,820,678.86 RMB in 2023, up 22.7% from 6,565,011,052.13 RMB in 2022[197] - Non-current assets increased to 2,604,065,736.20 RMB in 2023, a 19.0% rise from 2,187,770,112.72 RMB in 2022[197] - Current liabilities surged to 3,165,370,945.33 RMB in 2023, a 124.5% increase from 1,410,319,364.05 RMB in 2022[197] - Total liabilities for 2023 were 3,209,110,709.66 RMB, up 116.2% from 1,484,439,558.94 RMB in 2022[198] - Owner's equity grew slightly to 7,448,775,705.40 RMB in 2023, a 2.5% increase from 7,268,341,605.91 RMB in 2022[198] - Sales expenses increased to 198,890,805.30 RMB in 2023, up 19.2% from 166,795,103.26 RMB in 2022[199] - Management expenses rose to 492,037,967.69 RMB in 2023, a 2.5% increase from 479,829,452.88 RMB in 2022[199] - R&D expenses increased to 950.64 million CNY from 846.77 million CNY, a growth of 12.3%[200] - Financial expenses decreased to -57.38 million CNY from -12.96 million CNY, primarily due to higher interest income of 80.23 million CNY compared to 43.68 million CNY[200] - Net profit attributable to parent company shareholders was 466.19 million CNY, down from 768.77 million CNY in the previous year[200] - Other comprehensive income after tax was 67.83 million CNY, a significant improvement from -67.28 million CNY in the prior year[200] - Interest income rose to 80.23 million CNY from 43.68 million CNY, an increase of 83.7%[200] - Credit impairment losses increased to -111.62 million CNY from -30.49 million CNY, reflecting higher credit risk[200] - Investment income grew to 52.55 million CNY from 23.57 million CNY, a 123% increase[200] - Other gains increased to 153.97 million CNY from 135.08 million CNY, up 14%[200] - Operating profit decreased to 427.99 million CNY from 771.23 million CNY, a 44.5% decline[200] - Minority interest losses widened to -71.48 million CNY from -43.96 million CNY[200] Business Operations and Strategy - The global AI market revenue reached 513.2 billion USD in 2023, with software accounting for nearly 90% of the market share[19] - The automotive industry is transitioning towards a centralized computing architecture, supported by high-performance chips from companies like Qualcomm and NVIDIA[21] - AI