Giantec Semiconductor(688123)2024-03-29 16:00Financial Performance - Giantec Semiconductor Corporation reported a significant increase in revenue for 2023, reaching CNY 1.5 billion, representing a year-over-year growth of 25%[2]. - The company achieved a net profit of CNY 300 million, which is a 15% increase compared to the previous year[2]. - The company's revenue for 2023 was CNY 703.48 million, a decrease of 28.29% compared to CNY 980.43 million in 2022[30]. - Net profit attributable to shareholders for 2023 was CNY 100.36 million, down 71.56% from CNY 353.76 million in 2022[30]. - Basic earnings per share for 2023 was CNY 0.64, a decline of 71.56% from CNY 2.25 in 2022[29]. - The company reported a net profit of CNY 88.30 million after deducting non-recurring gains and losses in 2023, a decrease of 77.60% from CNY 250.00 million in 2022[29]. - The company achieved a weighted average return on equity of 5.16% in 2023, down 15.41 percentage points from 20.57% in 2022[29]. - The company achieved a net cash flow from operating activities of CNY 102,708,713.84 in 2023, a decline of 64.37% compared to CNY 288,239,664.54 in 2022[48]. Market and Product Development - User data showed a 30% increase in active users, reaching 1.2 million by the end of 2023[2]. - Giantec has set a revenue guidance for 2024, projecting a growth of 20% to CNY 1.8 billion[2]. - The company is focusing on the development of new products, including advanced CMOS technology, expected to launch in Q3 2024[2]. - Giantec plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[2]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of CNY 500 million allocated for this purpose[2]. - Research and development expenses increased by 40% in 2023, totaling CNY 200 million, to support innovation initiatives[2]. - Giantec has established partnerships with three leading tech firms to co-develop next-generation semiconductor solutions[2]. - The company launched new generation products, including 1.2V smart phone camera EEPROM, which contributed to a rapid increase in industrial-grade EEPROM sales and revenue[37]. - The cumulative shipment of NOR Flash products exceeded 100 million units, with the company achieving a leading position in the market[42]. - The company plans to enhance its market share in the NOR Flash sector by focusing on product quality and cost-effectiveness[42]. Challenges and Risks - The company faced a significant decline in sales and revenue of DDR5 memory module products due to weak demand in the personal computer and server markets[30]. - The company experienced significant fluctuations in revenue scale and profitability over the past three years due to changes in product sales structure[30]. - The overall scale and market share of the company's automotive-grade EEPROM business still lag behind foreign competitors, highlighting potential growth areas[80]. - The company reported a significant decline in SPD product sales and revenue due to weak demand in the personal computer and server markets, impacting overall performance[173]. Shareholder and Financial Management - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares, totaling approximately RMB 31.63 million, which represents 31.52% of the net profit attributable to shareholders for the year 2023[131]. - As of December 31, 2023, the total share capital is 158,173,037 shares, which will be the basis for the dividend distribution[131]. - The profit distribution proposal is subject to approval at the upcoming shareholders' meeting[132]. - The company will adjust the total cash dividend amount if there are changes in the total share capital due to convertible bonds, share buybacks, or other corporate actions[132]. - The company has received a standard unqualified audit opinion from Lixin Certified Public Accountants[138]. - The company has committed to not providing financial assistance for the acquisition of restricted shares under the incentive plan[150]. - The company has held three shareholder meetings during the reporting period, with active participation from institutional investors[146]. - The company emphasizes the importance of risk factors and has disclosed potential risks in the management discussion section of the report[137]. Technological Advancements - The company has made substantial progress in the optical image stabilization (OIS) motor driver chip sector, with some products passing tests from leading smartphone manufacturers[72]. - The company aims to enhance its competitive edge by developing integrated motor driver chips and EEPROM products, reducing the footprint in camera modules[72]. - The company has developed a series of NOR Flash products with independent intellectual property rights, covering a capacity range of 512Kb to 32Mb, which exhibit more reliable performance compared to similar market products[70]. - The company has developed 28 core technologies related to its main business, covering storage chips, voice coil motor driver chips, and smart card chips[112]. - The company is actively pursuing advanced technologies such as online error correction and high-efficiency charge pump design for its EEPROM and NOR Flash products[125]. Corporate Governance and Compliance - The company assures that the annual report's content is true, accurate, and complete, with no false records or misleading statements[136]. - The company has committed to actively fulfilling all promises related to its issuance and listing, with a lock-up period for shares extending until all negative impacts from any unfulfilled commitments are eliminated[153]. - The controlling shareholder has pledged not to engage in any activities that would compete with the company's existing or future business, ensuring no economic losses arise from such competition[154]. - The company has appointed Lixin Certified Public Accountants as the auditing firm for the fiscal year 2023, following approval at the 2022 annual shareholders' meeting[160].