Ingenic(300223)2024-04-12 16:00Financial Performance - The company's operating revenue for 2023 was ¥4,530,925,656.37, a decrease of 16.28% compared to ¥5,411,867,514.79 in 2022[13]. - The net profit attributable to shareholders for 2023 was ¥537,254,388.07, down 31.93% from ¥789,243,560.04 in 2022[13]. - The net profit after deducting non-recurring gains and losses was ¥491,438,067.99, a decline of 34.23% from ¥747,218,169.59 in 2022[13]. - The total assets at the end of 2023 amounted to ¥12,742,026,939.41, reflecting a 2.58% increase from ¥12,421,836,630.57 at the end of 2022[13]. - The company reported a basic earnings per share of ¥1.1156 for 2023, down 31.93% from ¥1.6389 in 2022[13]. - The total revenue for 2023 was approximately ¥4.53 billion, a decrease of 16.28% compared to ¥5.41 billion in 2022[56]. - Integrated circuit design revenue accounted for ¥4.52 billion, representing 99.76% of total revenue, with a year-over-year decline of 16.30%[57]. - The revenue from computing chips increased by 43.91% to ¥1.11 billion, while storage chip revenue decreased by 28.19% to ¥2.91 billion[56]. - The company achieved a total cash inflow from operating activities of approximately ¥4.81 billion in 2023, down 18.10% from ¥5.87 billion in 2022[72]. - The company reported a significant decrease in asset impairment losses by 73.79%, amounting to -¥72,893,028.79[69]. Market and Industry Trends - The global semiconductor industry sales in 2023 totaled 574.1 billion in 2022[19]. - The global silicon wafer shipment volume in 2023 decreased by 14.3% to 12.602 billion square inches, with revenue declining by 10.9% to $12.3 billion[19]. - The company experienced good year-on-year growth in sales revenue for consumer market chip products, while automotive and industrial chip product lines faced significant market pressure[19]. - The company anticipates a gradual recovery in the integrated circuit industry as different market segments begin to recover and inventory adjustments continue[19]. - The government has implemented various supportive policies for the domestic integrated circuit industry, creating a favorable operating environment for technological innovation and industry development[20]. Research and Development - The company has strengthened its technology research and development to meet the increasing market demand for higher performance, higher integration, and lower power consumption in chip products[22]. - The company has invested significantly in AI technology, enhancing its self-developed AI computing engine's processing capabilities to meet diverse market needs for AI performance in chips[22]. - The company has established a strict R&D and testing process to ensure product reliability and compatibility, particularly for automotive and industrial applications, where temperature ranges can be as low as -40°C and as high as 125°C[22]. - The company has developed core technologies in various fields, including embedded CPU technology and AI algorithms, which have significantly reduced costs associated with technology licensing[24]. - The company is actively developing RISC-V architecture technologies, with its self-developed RISC-V CPU core already applied in some chip products[26]. - The company has made significant advancements in embedded CPU technology, achieving breakthroughs in high performance and low power consumption, with its self-developed RISC-V CPU cores already applied in some chip products[32]. - The company has launched multiple new LED driver chips and continues to enhance its product offerings in automotive and industrial applications[47]. - The company is focusing on strengthening its core technology and product R&D to enhance its overall competitiveness in the integrated circuit design industry[43]. Product Strategy and Market Position - The company has developed a comprehensive product strategy focusing on "computation + storage + analog" technologies, enhancing its core competencies in computing, AI, storage, and analog technologies[30]. - In 2024, the company plans to leverage its strengths in computing and AI to expand into key application areas such as automotive electronics, industrial, medical, security monitoring, and smart IoT[30]. - The company has maintained a strong market position in the smart video chip sector, becoming a mainstream supplier in the domestic security monitoring market[24]. - The automotive storage chip market remains the largest application market for the company, with significant adoption by major Tier 1 manufacturers and various vehicle brands[50]. - The company’s products are characterized by high performance and low power consumption, which have been widely recognized in the industry[35]. Financial Management and Governance - The company emphasizes that forward-looking statements regarding future plans are subject to market conditions and uncertainties, and do not constitute a commitment to investors[2]. - The company’s board of directors and management guarantee the accuracy and completeness of the annual report[2]. - The company has established a robust corporate governance structure, ensuring effective internal controls and compliance with relevant laws and regulations[113]. - The company is committed to improving investor relations and enhancing the quality of information disclosure to ensure timely and accurate communication with investors[112]. - The company has established a comprehensive quality control system to meet industry standards and enhance product reliability[54]. - The company has implemented a performance evaluation and incentive mechanism for senior management to ensure accountability and transparency[118]. - The company has not identified any significant internal control deficiencies in its financial reporting as of the evaluation report date[113]. Shareholder and Investor Relations - The profit distribution plan approved by the board is to distribute a cash dividend of 2 RMB per 10 shares (including tax) based on a total of 481,569,911 shares[2]. - The company has maintained a strong emphasis on cash dividends, aiming to provide reasonable returns to investors while ensuring long-term stability[110]. - The company actively engages with investors through multiple channels, ensuring the protection of shareholders' rights[120]. - The annual shareholders meeting had an investor participation rate of 18.74% on May 19, 2023[122]. - The company’s profit distribution policy was strictly adhered to, ensuring clarity in dividend standards and ratios[148]. Risks and Challenges - The company faces competition from major semiconductor firms such as Micron, Samsung, and Infineon in the storage chip sector, and from various competitors in the processor and analog chip markets[29]. - The company faces risks related to product development, market expansion, and new technology research, necessitating careful market research and product evaluation[99]. - The company has experienced a decline in gross margins due to market demand fluctuations and increased competition, prompting a focus on cost management and new product development[100]. - The company is addressing the rising costs of technical personnel by optimizing the structure of R&D staff and enhancing employee incentive programs[100]. - The company faces foreign exchange risks due to operations in multiple currencies, including USD and EUR, and plans to closely monitor exchange rate fluctuations to mitigate potential risks[104]. - Tax risks are highlighted as the company operates in various countries, and changes in tax regulations could increase the overall tax burden, impacting financial performance[104]. Subsidiaries and Acquisitions - The company has subsidiaries including Shenzhen Junzheng, Hefei Junzheng, and Beijing Xicheng, all of which are wholly owned[6]. - The company completed the acquisition of Beijing Xicheng, resulting in significant goodwill on the balance sheet, which requires annual impairment testing[104]. - The Hefei Junzheng subsidiary achieved a revenue of 950.40 million CNY and a net profit of 129.52 million CNY, both showing year-on-year growth[94]. - The subsidiary Beijing Xicheng Semiconductor reported a revenue of 341.80 million CNY and a net profit of 45.10 million CNY, reflecting a decline due to market demand issues[93]. Employee and Talent Management - The company is actively cultivating a diverse talent pool and has implemented a systematic human resources training system to support its growth[39]. - The total number of employees at the end of the reporting period was 1,115, with 984 from major subsidiaries and 131 from the parent company[144]. - The company employed 724 technical personnel, 88 sales personnel, and 74 production personnel, reflecting a strong focus on technical expertise[144]. - The educational background of employees included 11 with doctoral degrees, 285 with master's degrees, and 693 with bachelor's degrees, indicating a highly educated workforce[145]. - The company conducted various training programs, including onboarding, technical training, and management training, to enhance employee skills and team cohesion[147]. Compliance and Social Responsibility - The company has actively fulfilled its corporate social responsibility, focusing on shareholder value while also considering employees, customers, suppliers, and the community[161]. - The company has not reported any major environmental protection issues or penalties, indicating compliance with national laws and regulations[160]. - The company has not conducted any targeted poverty alleviation work during the reporting year and has no subsequent plans[162]. - The company has established a robust internal management and control system to protect shareholder rights and improve governance levels[161].