GUOXIN MICRO(002049)2024-04-17 13:28Financial Performance - Revenue for 2023 reached 7.565 billion yuan, a 6.26% increase compared to 2022[12] - Net profit attributable to shareholders decreased by 3.84% to 2.531 billion yuan in 2023[12] - Total assets grew by 14.39% to 17.534 billion yuan at the end of 2023[12] - Operating cash flow increased by 2.63% to 1.772 billion yuan in 2023[12] - Revenue for 2023 reached 7.565 billion yuan, a year-on-year increase of 6.26%[22] - Net profit attributable to shareholders was 2.531 billion yuan, a year-on-year decrease of 3.84%[22] - The company achieved total revenue of 7,565,369,089.74 yuan in 2023, a year-on-year increase of 6.26%, with net profit attributable to shareholders of 253,070,320 yuan, a year-on-year decrease of 3.84%[37] - The integrated circuit business generated revenue of 7,329,886,487.35 yuan, accounting for 96.89% of total revenue, with a year-on-year growth of 7.72%[39] - The smart security chip business saw a significant revenue increase of 36.67% to 2,842,344,183.03 yuan, while the special integrated circuit business revenue decreased by 5.02% to 4,487,542,304.32 yuan[40] - Domestic sales accounted for 89.38% of total revenue at 6,761,621,566.88 yuan, while overseas sales grew by 26.16% to 803,747,522.86 yuan[39] - The company's total assets reached 1,753,386,350 yuan, a year-on-year increase of 14.39%, with shareholders' equity growing by 20.11% to 1,165,417,010 yuan[38] - The integrated circuit business achieved a gross profit margin of 62.72%, despite a 2.82 percentage point decrease due to a 16.55% increase in operating costs[40] - The sales volume of integrated circuits increased by 32.76% to 3,656,836,983 units, driven by growth in the smart security chip business[42] - The top five customers contributed 40.47% of total sales, amounting to 3,041,669,528.46 yuan, with no related party transactions[45] - Top 5 customers accounted for 40.47% of total annual sales, with Customer 1 contributing the highest at 13.95% (1,048,204,274.38 yuan)[46] - Top 5 suppliers accounted for 56.62% of total annual procurement, with Supplier 1 contributing the highest at 22.29% (815,640,315.36 yuan)[48] - Investment income accounted for 2.57% of total profit, primarily from equity method investments and financial product returns[53] - Government subsidies related to daily operations contributed 5.39% to total profit, with sustainable benefits from software VAT refunds and IC industry tax incentives[53] - The company's monetary funds decreased by 9.12 percentage points to 17.58% of total assets, primarily due to significant cash outflows from purchasing bank wealth management products, large certificates of deposit, and share repurchases[55] - Accounts receivable increased by 4.42 percentage points to 24.68% of total assets, mainly due to extended payment cycles from customers in the special integrated circuit business[55] - The company's investment in financial assets increased significantly, with trading financial assets rising by 5.94 percentage points to 5.94% of total assets, driven by the purchase of principal-guaranteed floating-rate bank wealth management products[55] - The company's total investment in the reporting period was RMB 141.37 million, a 13.33% increase compared to the same period last year[58] - The company invested RMB 127.63 million in ongoing major non-equity investment projects, including the 5G communication quartz crystal oscillator industrialization project and integrated circuit installation and debugging equipment[58] - The 5G communication quartz crystal oscillator industrialization project has reached 100% completion, with a total investment of RMB 35.15 million[59] - The integrated circuit installation and debugging equipment project is partially under debugging, with a total investment of RMB 139.07 million[59] - The company's restricted assets totaled RMB 823.14 million, including RMB 79.41 million in other monetary funds used as bank acceptance bill guarantees and RMB 200 million in large certificates of deposit pledged for bank acceptance bills[57] - The company's financial assets measured at fair value increased by RMB 1.12 billion, with a fair value change profit of RMB 17.42 million during the reporting period[56] - The company's long-term borrowings decreased by 2.04 percentage points to 0.82% of total assets, mainly due to the reclassification of long-term borrowings due within one year as current liabilities[55] - The company raised a total of RMB 15 billion through the issuance of convertible bonds in 2021, with a net amount of RMB 14.878 billion after deducting issuance costs[62] - As of December 31, 2023, the company has cumulatively used RMB 7.914 billion of the raised funds, with RMB 2.505 billion used for project construction and RMB 7.663 billion for working capital[62] - The remaining unused raised funds amount to RMB 7.343 billion, with RMB 2.959 billion in dedicated accounts and RMB 4.384 billion in bank wealth management products[62] - 70% of the raised funds (RMB 10.5 billion) have been reallocated to new projects due to significant changes in the feasibility of the original projects[62] - The "New High-End Security Series Chip R&D and Industrialization Project" and the "Vehicle Controller Chip R&D and Industrialization Project" were canceled due to market demand misalignment and high technical barriers[63] - The "High-Speed RF ADC and Clock Series Chip R&D and Industrialization Project" and the "New High-Performance Video Processor Series Chip R&D and Industrialization Project" were newly added with planned investments of RMB 2.05 billion and RMB 2.4 billion, respectively[63] - The "Shenzhen Guowei Research and Production Building Construction Project" has an investment progress of 8.21%, with RMB 250.5 million invested as of the reporting period[63] - The company reallocated funds from canceled projects to new projects, with implementation locations changed to Shenzhen and Chengdu[63] - The company replaced pre-invested self-raised funds with raised funds amounting to RMB 66.52 million for the fundraising projects[64] - The company used RMB 150 million of idle raised funds to supplement working capital, which was fully repaid by June 26, 2022[64] - As of December 31, 2023, the unused raised funds balance was RMB 734.3451 million, with RMB 438.4 million used for cash management and RMB 295.9451 million stored in the raised funds account[64] - The total actual cumulative investment in the changed fundraising projects was RMB 791.3558 million, with an investment progress of 103.85% for the working capital supplement project[65] - The company's subsidiary, Shenzhen Guowei Electronics Co., Ltd., reported total assets of RMB 11.4238 billion, net assets of RMB 8.7146 billion, and a net profit of RMB 2.2694 billion[69] - The company's distributable profit at the end of 2023 is RMB 10,365,557,318.92[130] - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period[131] - The company's 2023 Social Responsibility Report was disclosed on April 18, 2024, on the CNINFO website[141] - The company has no current commitments related to poverty alleviation or rural revitalization[142] - All commitments made by the company's controlling shareholders and related parties, including those related to competition avoidance and independent operations, are being strictly adhered to[143] - No non-operational fund occupation by controlling shareholders or related parties was reported during the period[143] - No changes in accounting policies, estimates, or significant accounting errors were reported for the period[145] - The company added 3 new subsidiaries in 2023: Wuxi Ziguang Jidian Technology Co., Ltd. (registered capital of RMB 50 million), Wuxi Ziguang Jidian Semiconductor Technology Co., Ltd. (registered capital of RMB 10 million), and Chengdu Guowei Property Management Co., Ltd. (registered capital of RMB 1 million)[146] - The company disposed of 3 subsidiaries in 2023: Tangshan Jingyuan Electronics Co., Ltd., Tibet Tuozhan Chuangxin Technology Co., Ltd., and Tibet Weinaxin Technology Co., Ltd.[146] - The total amount of related-party transactions in 2023 was RMB 630.1886 million, accounting for 14.82% of the total procurement amount with Beijing Ziguang Storage Technology Co., Ltd. and its subsidiaries[153] - The company's domestic accounting firm, ShineWing, was paid RMB 550,000 for audit services and RMB 150,000 for internal control audit services[148] - The company's indirect controlling shareholder, Ziguang Group, and its subsidiaries accounted for RMB 542.3078 million in procurement-related transactions, representing 14.82% of the total procurement amount[153] - The company's indirect controlling shareholder, Ziguang Group, and its subsidiaries accounted for RMB 34.0354 million in sales-related transactions, representing 0.46% of the total sales amount[153] - The company's subsidiary, Shenzhen Guowei Electronics, acquired a 30% equity stake in Wuxi Jidian from Tibet Ziguang Chunhua Technology Co., Ltd. for RMB 1.5 million[156] - The company's subsidiary, Wuxi Ziguang Jidian Technology Co., Ltd., had a total asset value of RMB 109.5572 million and a net loss of RMB 1.0668 million in 2023[157] - The company's subsidiary, Shenzhen Guowei Electronics, increased its equity stake in Wuxi Ziguang Jidian Technology Co., Ltd. from 70% to 100% in September 2023[157] - The company completed the transfer of management rights and assets for the Chengdu Ziguang Xinyun Center, with the settlement date set as March 31, 2023[165] - The company provided a guarantee of 20,000 million yuan for Ziguang Tongxin Microelectronics Co., Ltd., with the actual guarantee amount also being 20,000 million yuan[166] - The total actual guarantee balance at the end of the reporting period was 14,950 million yuan, accounting for 1.28% of the company's net assets[167] - The company's entrusted financial management during the reporting period totaled 157,500 million yuan, with 104,840 million yuan remaining undrawn[168] - The company changed part of its fundraising investment projects, reallocating funds to new projects including high-speed RF ADC chips and supporting clock series chips[171] - The company repurchased 6,396,000 shares, accounting for 0.75% of the total shares, with a total transaction value of 599,952,971 yuan[173] - The company transferred 100% equity of Tangshan Jingyuan Electronics Co., Ltd. for 47.9597 million yuan, completing the industrial and commercial registration on September 6, 2023[175] - The total number of shares increased by 10,766 due to the conversion of convertible bonds, bringing the total shares to 849,619,317 as of December 31, 2023[181] - The limited-sale shares increased by 148,410, resulting in a total of 150,060 limited-sale shares, accounting for 0.02% of the total shares[177] - The unrestricted shares decreased by 137,644, resulting in a total of 849,469,257 unrestricted shares, accounting for 99.98% of the total shares[177] - The conversion of convertible bonds had a minimal impact on the company's earnings per share and net assets per share due to the small number of shares converted[179] - The largest shareholder, Tibet Unisplendour Chunhua Technology Co., Ltd., holds 26.00% of the shares, totaling 220,901,326 shares[186] - Hong Kong Securities Clearing Company Limited reduced its holdings by 11,471,500 shares, now holding 17,939,751 shares, accounting for 2.11% of the total shares[186] - The number of ordinary shareholders at the end of the reporting period was 176,602, a decrease from 197,459 at the end of the previous month[182] - The company's convertible bonds entered the conversion period on December 17, 2021, and 10,766 shares were converted during the reporting period[181] - The company's largest institutional shareholder, China Construction Bank Corporation - Huaxia Guozheng Semiconductor Chip ETF, increased its holdings by 1,770,899 shares, now holding 15,758,895 shares, accounting for 1.85% of the total shares[186] - The company's second-largest institutional shareholder, China Construction Bank Corporation - E Fund Defense and Military Industry Mixed Securities Investment Fund, reduced its holdings by 207,564 shares, now holding 12,020,737 shares, accounting for 1.41% of the total shares[186] - The top shareholder, Tibet Unisplendour Chunhua Technology Co., Ltd., holds 220,901,326 unrestricted shares, accounting for a significant portion of the company's equity[187] - Hong Kong Securities Clearing Company Limited holds 17,939,751 unrestricted shares, representing a notable stake in the company[187] - China Construction Bank Corporation - Huaxia Guozheng Semiconductor Chip ETF holds 15,758,895 unrestricted shares, showing institutional interest in the company[187] - The company's largest shareholder, Tibet Unisplendour Chunhua Technology Co., Ltd., has a significant influence with its 220,901,326 shares[187] - The company's shareholding structure shows a diverse range of institutional investors, including ETFs and pension funds[187][188] - The company's shareholding structure is stable, with no significant changes in the top 10 shareholders during the reporting period[190] - The company's actual controller is not clearly defined, with no single entity holding a controlling stake[193] - The company's shareholding structure is influenced by a mix of domestic and international investors, reflecting its global reach[187][188] - The company's shareholding structure is characterized by a high level of institutional ownership, indicating confidence in its long-term prospects[187][188] - The company's shareholding structure is stable, with no significant changes in the top 10 shareholders during the reporting period[190] - The initial conversion price of "Guowei Convertible Bonds" was set at RMB 137.78 per share[199] - The conversion price of "Guowei Convertible Bonds" was adjusted to RMB 98.18 per share after the 2021 annual equity distribution[199] - The total issuance amount of "Guowei Convertible Bonds" is RMB 1,500,000,000[200] - The cumulative conversion amount of "Guowei Convertible Bonds" is RMB 7,485,000[200] - The cumulative number of shares converted from "Guowei Convertible Bonds" is 57,311[200] - The conversion ratio of "Guowei Convertible Bonds" is 0.01% of the total shares issued before the conversion period[200] - The unconverted amount of "Guowei Convertible Bonds" is RMB 1,492,510,300[200] - The unconverted amount of "Guowei Convertible Bonds" accounts for 99.50% of the total issuance amount[200] Dividend and Share Repurchase - The company's total share capital is 849,620,535 shares, with 6,396,000 shares repurchased, resulting in a base of 843,224,535 shares for dividend distribution[3] - The company plans to distribute a cash dividend of 6.80 RMB per 10 shares to all shareholders[3] - The company completed a share repurchase totaling 600 million yuan in 2023 to enhance shareholder value[79] - The company has maintained continuous annual profit distribution since its listing in 2005[79] - The company plans to use between RMB 300 million and RMB 600 million from undistributed profits of 2022 to repurchase shares[125] - The company did not distribute cash dividends in 2022, with the undistributed profits carried forward to the next year to meet operational and development needs[128] - Cash dividend distribution for 2023 is RMB 6.80 per 10 shares, totaling RMB 573,392,683.80[129] - Total cash dividends including share repurchases amount to RMB 1,173,345,654.80, representing 100% of the total profit distribution[129] R&D and Innovation - R&D investment for the year was 1.633 billion yuan, a year-on-year increase of 30.68%, accounting for 21.58% of revenue[23] - The company obtained 149 patent authorizations during the year[23] - New industrial-grade and radiation-resistant product series were launched in the special integrated circuit business[23] - The company completed the development of a large number of new analog products, forming a comprehensive analog product system[23] - The company achieved breakthroughs in low-ripple switching power supply control technology and special Ethernet switching circuit design[23] - The company launched the world's first eSIM solution specifically designed for smart POS[23] - The company's FPGA products maintained a leading position in the industry market, with expanding user base[27] - The company's special memory products remain the most comprehensive and technologically advanced in China, with new special Nand Flash and new special memory products developed[27] - The company's R&D personnel accounted for over 50% of total employees, with nearly 50% holding master's degrees or higher[36] - R&D expenses increased by 17.40% to 1,421,455,360.31 yuan in 2023, with R&D personnel growing by 19.50% to 1,342 employees[49][50] - R&D investment increased by 30.68% to 1,632,852,338.98 yuan, accounting for 21.58% of total revenue, with capitalised R&D investment surging by 1,923.41%[50] Industry and Market Trends - Global semiconductor industry sales