GOODIX(603160)2024-04-10 16:00Financial Performance - 2023 net profit attributable to the parent company was RMB 195.3 million, with a year-end distributable profit of RMB 6.35 billion[4] - Revenue for 2023 reached RMB 4,408,052,320.27, a 30.26% increase compared to 2022[20] - Net profit attributable to shareholders in 2023 was RMB 165,054,933.06, a significant recovery from a loss of RMB 747,641,878.56 in 2022[20] - Operating cash flow for 2023 was RMB 1,785,770,737.45, a strong recovery from a negative RMB 905,611,561.96 in 2022[20] - Basic earnings per share for 2023 were RMB 0.36, compared to a loss of RMB 1.63 per share in 2022[21] - Weighted average return on equity (ROE) for 2023 was 2.09%, an improvement from -9.07% in 2022[22] - Q4 2023 revenue was RMB 1,211,633,101.51, the highest among all quarters in 2023[24] - Net profit attributable to shareholders in Q4 2023 was RMB 152,604,897.32, the highest among all quarters in 2023[24] - Revenue for the year reached 4.408 billion yuan, a year-on-year increase of 30.3%, with net profit attributable to shareholders of 165 million yuan, turning a profit compared to the previous year[29] - Total assets at the end of 2023 were RMB 9,727,030,979.94, a 3.19% increase from 2022[20] - Market value at the end of 2023 reached 31.6 billion yuan, a 37.4% increase compared to the end of 2022[103] - Inventory value decreased from 1.795 billion yuan at the beginning of the year to 716 million yuan at the end of the year, a decrease of 60.1%[103] - Sales, management, and R&D expenses decreased from 2.026 billion yuan in the previous year to 1.479 billion yuan, a decrease of 27.0%[103] - Total compensation for directors, supervisors, and senior management in 2023 was 16.1718 million yuan, a year-on-year increase of 31.06%[103] - Directors received a total compensation of 2.7342 million yuan, supervisors received 347,300 yuan, and senior management received 13.0903 million yuan[104] - The company's inventory structure has been significantly optimized, and inventory levels have been greatly reduced[103] - The company's internal management has been strengthened, leading to improved performance and cost control[103] - The company's market expansion and internal management improvements have contributed to the overall growth in performance[103] Share Repurchase and Dividends - The company repurchased shares worth RMB 101.1 million in 2023[4] - Proposed cash dividend of RMB 0.18 per share for 2023[4] - In 2023, the company repurchased 2,068,585 shares at a total cost of RMB 101,127,517.89, which is considered equivalent to cash dividends[127] - The 2023 profit distribution plan proposes a cash dividend of RMB 0.18 per share (tax included) to all shareholders except the company's repurchase account[128] - The company adjusted its cash dividend policy in January 2024 to align with new regulatory requirements, ensuring compliance and transparency[123][124] - The 2023 cash dividend plan considers the company's industry characteristics, development stage, and future capital needs, aiming to balance shareholder returns with long-term growth[131] - Cash dividend policy complies with the company's articles of association and shareholder meeting resolutions, with clear standards and procedures[132] - The company plans to distribute a cash dividend of RMB 1.8 per 10 shares, totaling RMB 82,205,953.56, representing 49.81% of net profit attributable to ordinary shareholders[134] - Total cash dividends and share repurchases amount to RMB 183,333,471.45, accounting for 111.07% of net profit attributable to ordinary shareholders[134] Business Operations and Technology - The company focuses on IC design, IoT, and automotive connectivity technologies[10] - Key technologies include AI, AR/VR, BLE, MCU, NFC, and UWB[10][11] - The company operates in the Fabless model, specializing in design without manufacturing[10] - Major applications include wearables, automotive, and smart devices[10] - Shipment volume increased by 58.0% year-on-year, driven by structural demand from terminal customers and inventory adjustments[29] - Fingerprint and touch products generated revenues of 1.89 billion yuan and 1.514 billion yuan, up 19.0% and 67.4% respectively, benefiting from OLED soft screen penetration and market share gains[29] - Inventory value decreased significantly from 1.795 billion yuan to 716 million yuan, a reduction of 60.1%, returning to normal levels[29] - R&D efficiency improved, leading to the commercialization of eSE security chips in OPPO's flagship foldable phone and mass production of ultrasonic fingerprint sensors for major smartphone clients[30] - Health sensor revenue in the wearable market grew by over 60.0%, driven by market recovery[30] - Automotive touch chip shipments increased by more than 50.0%, with CarVoice software successfully integrated into models by BYD, Toyota, Geely, and NIO[30] - Fingerprint sensor demand increased significantly in 2023 due to higher OLED screen penetration and customer product structural upgrades, with both under-display optical and side capacitive fingerprint sensors gaining market share[36] - Ultrasonic fingerprint sensors achieved mass production for top-tier smartphone clients, driving the trend of large-scale adoption[36] - New generation under-display optical and side capacitive fingerprint sensors completed R&D, expected to further increase market share[36] - Health sensor shipments grew rapidly in 2023, with new products in mass production and evaluation by multiple top-tier clients[36] - OLED soft-screen touch chips saw significant growth in shipments and market share in 2023, supported by high refresh rates and low latency[37] - Automotive-grade touch chips continued to grow in shipments in 2023, with new FMLOC touch chips leading the market[37] - Domestic revenue reached 2.2 billion yuan, up 37.3% year-over-year, while overseas revenue reached 2.06 billion yuan, up 20.8% year-over-year[46] - Total revenue for 2023 was 4,408,052,320.27 yuan, a 30.26% increase year-over-year, with a 5.74 percentage point decrease in gross margin[47] - Main business revenue grew by 28.78% to 4,262,976,520.52 yuan, with a 37.48% increase in main business costs, leading to a 3.71 percentage point decrease in gross margin[50][51] - Fingerprint recognition chip revenue increased by 19.03% to 1,889,606,421.16 yuan, but gross margin decreased by 5.35 percentage points[51] - Touch control chip revenue surged by 67.36% to 1,513,546,791.55 yuan, with a slight 0.07 percentage point decrease in gross margin[51] - Domestic sales revenue grew by 37.27% to 2,196,359,409.37 yuan, while export sales increased by 20.83% to 2,066,617,111.15 yuan[51] - Top five customers accounted for 67.47% of total annual sales, with no related party sales[53] - The top five suppliers accounted for 55.01% of the total annual procurement, amounting to 820.08 million yuan[56] - The company's ultrasonic fingerprint sensor has entered mass production with leading smartphone customers and is being introduced to new customer projects[80] - OLED soft screen penetration has significantly boosted the company's touch product shipments, enhancing competitiveness in mobile, PC, and tablet markets[81] - The company's eSE chip has been commercially deployed and is expected to expand in 2024, with opportunities in the eSE+NFC market[81] - The company is accelerating the development of new automotive-grade touch and audio products[81] R&D and Innovation - Total R&D investment reached 1.348 billion yuan, accounting for 30.59% of the total revenue, with 22.19% of R&D investment being capitalized[58] - The company has 1,245 R&D personnel, representing 82.67% of the total workforce, with 710 holding master's degrees and 488 holding bachelor's degrees[59] - The company has over 1,500 global employees, with over 80% in R&D and over 50% holding master's degrees or higher[44] - The company has accumulated over 7,000 international and domestic patents as of December 31, 2023[44] - R&D expenses decreased by 31.72% to 1,049,255,196.17 yuan due to the termination of low-return projects and improved efficiency[48][49] - The company is enhancing its internal management systems and integrating IT technology to improve operational efficiency[83] - The company is strengthening its supply chain by shifting some product manufacturing to domestic suppliers to ensure capacity and cost control[83] - The company is focusing on talent development and global team collaboration to enhance its competitive edge[84] Corporate Governance and Management - The company is listed on the Shanghai Stock Exchange with the stock code 603160[1] - The company is headquartered in Shenzhen, China[12] - The company adheres to strict corporate governance standards, with clear responsibilities for shareholders' meetings, board of directors, and supervisory board[90] - The board of directors has four specialized committees, with independent directors constituting more than half of the members in all except the strategy committee[90] - The company maintains independence from its controlling shareholders and actual controllers, with no non-operational fund or asset occupation[91] - A transparent performance evaluation and incentive mechanism is in place for senior management, ensuring compliance with relevant laws and regulations[91] - The company strictly follows information disclosure requirements, ensuring timely and accurate reporting through designated media and the Shanghai Stock Exchange website[91] - The company has established a robust internal control system, conducting regular self-assessments and evaluations of key business processes and control points[92] - All proposals at the four shareholders' meetings held during the reporting period were approved, with no rejected proposals[96] - Chairman and CEO Zhang Fan holds 206,296,376 shares, unchanged from the beginning to the end of the year[98] - President Hu Yuhua received a pre-tax remuneration of 8.2846 million yuan in 2023[98] - Vice President and CFO Guo Fengwei received a pre-tax remuneration of 3.7921 million yuan in 2023[98] - Vice President and Board Secretary Wang Li's shareholding increased by 5,743 shares due to the employee stock ownership plan[98] - Total pre-tax remuneration for all directors, supervisors, and senior management in 2023 was 16.1718 million yuan[98] - Xie Bing (谢兵), a former director, received a pre-tax remuneration of 2.1127 million yuan during his tenure[98] - RAY TZUHSIN HUANG, a former supervisor, received a pre-tax remuneration of 163,500 yuan during his tenure[98] - Cai Bingxian, a former supervisor, received no remuneration during his tenure[98] - Zhang Fan, the Chairman and CEO, co-founded Shenzhen Goodix Technology Co., Ltd. in May 2002[99] - Hu Yuhua, the President, previously held various sales management positions at Texas Instruments (TI)[99] - The company held a total of 11 board meetings in 2023, all of which were conducted through a combination of on-site and teleconference methods[110] - The Audit Committee held 7 meetings in 2023, reviewing financial statements, annual reports, and internal control reports, among other items[114] - The Remuneration and Assessment Committee held 3 meetings in 2023, focusing on executive performance evaluations, stock option plans, and long-term incentive reward funds[114] - The Nomination Committee held 1 meeting in 2023, approving the appointment of a new Vice President and CFO[115] - The Strategy Committee held 1 meeting in 2023, reviewing the key work priorities for the year[116] - All board members attended all 11 board meetings in 2023, with no absences or consecutive missed meetings[109] - The company's board of directors includes 3 independent directors out of 6 total members[109] - The Audit Committee consists of 3 members: Zhuang Renyan, Gao Xiang, and Zhang Tong[112] - The Remuneration and Assessment Committee includes Gao Xiang, Zhang Fan, and Zhang Tong as members[113] - The Strategy Committee's membership changed in January 2024, with Xie Bing being replaced by Gao Xiang[113] - Total number of employees is 1,506, with 960 in the parent company and 546 in major subsidiaries[118] - R&D personnel account for 1,245 out of the total 1,506 employees, representing 82.7% of the workforce[118] - Employees with a master's degree or higher total 796, making up 52.9% of the total workforce[118] - The company implemented a differentiated salary strategy based on performance, effectively controlling labor costs[120] - In 2023, the company conducted a talent review and customized training programs for high-potential employees, while promoting eLearning platforms[121] - The company did not distribute profits in 2022 due to a net loss and allocated funds for R&D, talent development, and market expansion[126][130] - The company's internal control system was effectively implemented, with no significant defects reported during the period[160] - The company conducted daily supervision on fixed assets, funds, financial statements, expenses, and engineering through its audit department[160] - The company managed and supervised the daily operations and compliance of its subsidiaries, ensuring timely disclosure of significant matters[161] - The company's internal control audit report for 2023 received a standard unqualified opinion from Da Hua Certified Public Accountants, consistent with the board's self-assessment[162] - The company conducted self-inspections on historical asset impairments, long-term investments, and internal control processes, with related accounting estimate changes approved by the audit committee, board, and supervisors[163] - The company did not establish environmental protection mechanisms or invest in environmental protection funds during the reporting period[165] - No carbon reduction measures were taken by the company in the reporting period, with no data on reduced CO2 emissions[166] - The company did not separately disclose a social responsibility report, sustainability report, or ESG report[167] - The company's actual controller, shareholders, and related parties fulfilled their commitments during the reporting period, including share lock-up and non-competition agreements[169][170] - The company has commitments to repurchase shares and compensate investors if the prospectus is found to contain false statements or omissions[171] - The company's actual controller has committed to covering any social insurance or housing fund arrears and related penalties for the company and its subsidiaries[172] - No performance commitments were applicable during the reporting period, and there was no impact on goodwill impairment testing[174] - The company did not receive a non-standard audit report from its accounting firm, and no significant changes in accounting policies or estimates were reported[175] - The company adjusted its accounting policies in 2023 due to the implementation of "Interpretation No. 16" issued by the Ministry of Finance, affecting deferred tax treatment for assets and liabilities[176] - The accounting policy change required the company to reverse the net amount of deferred tax assets and liabilities at the end of 2022 and recognize them in full at the beginning of 2022[177] - The company revised its inventory impairment method in 2018 after implementing the SAP system, using a quantitative standard for inventory over 180 days for finished goods and 210 days for raw materials[178] - The new inventory impairment method, effective from October 1, 2018, uses inventory months and future sales orders to assess impairment risks, differing from the previous method based on aging and professional judgment[179] - The company could not calculate the impact of the new inventory impairment method on profits and net assets for 2015-2017 due to the lack of historical data in the SAP system[180] - The company renewed its contract with Da Hua Certified Public Accountants for the 2023 financial audit at a fee of RMB 1.3 million, a decrease of over 20% compared to the previous year[182] - The company confirmed no significant litigation, arbitration, or bankruptcy restructuring issues during the reporting period[184] - The company and its controlling shareholders maintained good credit status with no overdue debts or court judgments[185] - No significant changes or progress were reported in the company's major related-party transactions during the reporting period[186] - The company reported no instances of trusteeship, contracting, or leasing activities during the reporting period[187] - The total guarantee amount provided by the company to its subsidiaries during the reporting period was RMB 35,413,500[189] - The total guarantee balance for subsidiaries at the end of the reporting period was RMB 7,939,255.08, accounting for 0.10% of the company's net assets[189] - The company provided a cumulative guarantee of up to USD 45 million for its wholly-owned subsidiary, Huiding Hong Kong, to ensure smooth business operations with TSMC[190] - A guarantee of USD 13.5 million was provided by the company for Huiding Hong Kong's purchase of integrated circuit manufacturing services from UMC, effective from April 1, 2020, to July 30, 2023[190] - In December 2023, the company approved a new guarantee of up to USD 5 million for Huiding Hong Kong's obligations related to integrated circuit manufacturing services with UMC, valid for 36 months[190] - The company provided a guarantee of up to USD 200 million for bank credit facilities for its wholly-owned subsidiaries, Huiding Hong Kong and Huiding Singapore, valid for 12 months[191] - The company's total entrusted wealth management funds amounted to RMB 995 million for bank financial products and RMB 389.999 million for securities financial products[192] - The outstanding balance of entrusted wealth management funds was RMB 650 million for bank financial products and RMB 299.999 million for securities financial products[192] - The company invested 20,000,000 RMB in a bank wealth management product with Ningbo Bank, yielding an annualized return of 3.23% and actual收益 of 246,160 RMB[193] - A 20,000,000 RMB investment in a securities wealth management product with CITIC Securities