炬芯科技(688049) - 2024 Q2 - 季度财报

Glossary Company Profile and Key Financial Indicators Company Basic Information This section provides Actions Technology Co., Ltd.'s basic business information, including names, legal representative, addresses, website, and contact details Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | 炬芯科技股份有限公司 | | Company Chinese Abbreviation | 炬芯科技 | | Legal Representative | ZHOU Zhengyu | | Company Website | www.actionstech.com | | Email | investor.relations@actionstech.com | Key Accounting Data and Financial Indicators In H1 2024, the company achieved strong performance growth, with operating revenue up 27.90% and net profit attributable to parent up 65.73%, driven by market recovery and product mix optimization, leading to a 5.17 percentage point increase in gross margin to 46.46% and R&D investment reaching 35.73% of revenue Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 280,495,954.97 | 219,302,109.21 | 27.90 | | Net Profit Attributable to Shareholders | 40,940,046.50 | 24,702,968.39 | 65.73 | | Net Profit Attributable to Shareholders (Excl. Non-recurring) | 23,275,473.85 | 16,007,269.25 | 45.41 | | Net Cash Flow from Operating Activities | 57,040,072.65 | 66,378,935.66 | -14.07 | Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.28 | 0.17 | 64.71% | | Weighted Average Return on Net Assets (%) | 2.27 | 1.39 | Increased by 0.88 percentage points | | R&D Investment as % of Operating Revenue (%) | 35.73 | 33.76 | Increased by 1.97 percentage points | - Performance growth was primarily driven by the recovery in consumer electronics market demand, the company's proactive sales strategies, and significant growth in Bluetooth speaker SoC chips, low-latency high-fidelity wireless audio products, and edge AI processor chips. The increased sales proportion of high-margin products led to a 5.17 percentage point increase in comprehensive gross margin to 46.46%[17] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 17.66 million Yuan, primarily from fair value changes of financial assets (11.16 million Yuan) and government grants recognized in current profit or loss (4.43 million Yuan) Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Fair value changes from financial assets and liabilities held by non-financial enterprises | 11,164,707.17 | | Government grants recognized in current profit or loss | 4,434,352.84 | | Gains or losses on disposal of non-current assets | 15,766.02 | | Total | 17,664,572.65 | Management Discussion and Analysis Industry and Main Business The company is a Fabless designer specializing in low-power AIoT chips, focusing on mid-to-high-end smart audio SoC chips for Bluetooth speakers and smart wearables, leveraging technological accumulation to secure a stable industry position with major brands like Harman and Sony - The company's main business involves the R&D, design, and sales of mid-to-high-end smart audio SoC chips, focusing on wireless audio, smart wearables, and smart interaction in the AIoT sector[20] - Key product series include: Bluetooth audio SoC chips, edge AI processor chips, and portable audio/video SoC chips[21] - The company operates on a Fabless model, concentrating on chip R&D and design while outsourcing wafer manufacturing, packaging, and testing[25] - Industry trends indicate that Bluetooth technology innovation and edge AI development present growth opportunities, with SIG projecting 7.5 billion Bluetooth device shipments annually by 2028, representing an 8% CAGR[28] Key Products and Market Position The company's core product lines demonstrate strong market performance, with Bluetooth speaker SoC chips becoming mainstream for top international brands, low-latency high-fidelity wireless audio SoC chips rapidly penetrating niche markets, smart wearable SoC chips adopted by multiple brands, and edge AI processor chips shipping in volume to leading audio brands - Bluetooth speaker SoC chips have become a mainstream industry supplier, achieving breakthroughs in the mid-to-high-end market, serving brands such as Harman, SONY, Anker Innovations, Xiaomi, and Logitech[31] - Low-latency high-fidelity wireless audio SoC chips cover wireless home theater, wireless microphone, and gaming headset markets, entering the supply chains of brands like SONY, Samsung, DJI, and RODE[32] - Smart Bluetooth wearable SoC chips are applied in multiple smartwatches, smart bands, and AR glasses products from Xiaomi, Honor, realme, and Nothing[32] - Edge AI processor chips have shipped in large volumes to international first-tier audio brand customers and continue to scale. The new generation dedicated audio DSP processing chip ATS361X has been adopted by international first-tier customers and is expected to enter mass production in the second half of the year[33] Core Technologies and R&D Progress During the reporting period, R&D investment reached 100 million Yuan, a 35.37% YoY increase, representing 35.73% of revenue, with successful development of a CPU, DSP, and NPU tri-core heterogeneous architecture for low-power edge computing, and multiple new products with in-memory computing NPU are taped out or in customer promotion, contributing to the company's 335 global patents R&D Investment | R&D Investment | Current Period (10,000 Yuan) | Prior Year Period (10,000 Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 10,022.55 | 7,403.55 | 35.37 | | Total R&D Investment | 10,022.55 | 7,403.55 | 35.37 | | Total R&D Investment as % of Operating Revenue (%) | 35.73 | 33.76 | Increased by 1.97 percentage points | - Successfully developed a tri-core heterogeneous architecture based on CPU, DSP, and NPU, utilizing SRAM-based Compute-in-Memory (CIM) technology to achieve high computing power at low power consumption[38][39] - High-end Bluetooth speaker SoC chip ATS286X and low-latency high-fidelity wireless audio SoC chip ATS323X, both integrating in-memory computing NPU, have been taped out, passed internal verification, and are currently being promoted to customers[39] - As of June 30, 2024, the company holds a total of 335 patents globally, including 299 invention patents, 96 software copyrights, and 90 integrated circuit layout designs[42] Core Competitiveness Analysis The company's core competitiveness stems from deep technological accumulation, comprehensive R&D capabilities, extensive audio quality optimization experience, a broad base of renowned brand customers, and sustained high R&D investment, positioning it as a leader in low-power, low-latency, high-fidelity audio technology with a robust intellectual property barrier - The company inherited the core assets of Actions Semiconductor, possessing a long history of technology, talent, and supply chain resource accumulation[49] - Extensive experience in achieving high-quality audio, independently mastering low-latency wireless communication protocols with end-to-end latency potentially below 10ms, and ADC/DAC signal-to-noise ratios exceeding 112dB and 120dB respectively, placing it at an advanced industry level[51][52] - Entered the supply chains of numerous well-known terminal brands (e.g., Harman, SONY, Xiaomi, Honor) and ODM/OEM manufacturers (e.g., Sannuo, Fenda, Tonly), establishing a strong customer barrier[31][53] - Sustained high R&D investment, with R&D expenses accounting for 35.73% of revenue during the reporting period, building a comprehensive intellectual property barrier[53] Discussion and Analysis of Operations In H1 2024, the company achieved robust operational growth with main business revenue up 27.93% and gross margin rising to 46.43%, driven by Bluetooth speaker chip penetration, strong demand for low-latency high-fidelity audio, and increasing shipments of edge AI processor chips, while maintaining high R&D investment in low-power high-performance computing and wireless communication technologies - The company achieved robust operational growth, with main business revenue of 280 million Yuan, a 27.93% YoY increase; comprehensive gross margin reached 46.43%, a 5.17 percentage point YoY increase; and net profit attributable to parent was 40.94 million Yuan, a 65.73% YoY increase[55] - Sustained high R&D investment, with R&D expenses of 100 million Yuan in the first half, a 35.37% YoY increase, accounting for 35.73% of revenue, focusing on low-power high-performance computing, wireless communication, and low-latency high-fidelity audio technologies[56] - Business expansion proceeded smoothly, with brand penetration steadily increasing. Bluetooth speaker chips are applied in Harman and SONY brands; low-latency high-fidelity products entered Samsung, DJI, and RODE supply chains; and smart watch chips rapidly gained traction in Honor and realme brands[57] Risk Factors The company faces multi-faceted risks including core competitiveness (rapid technology iteration, R&D failure, IP leakage, talent loss), operational risks (performance volatility, high customer concentration, supply chain dependence), and other significant risks such as inventory impairment, industry cyclicality, international trade friction, and reliance on third-party technology licenses - Core Competitiveness Risks: Rapid technological upgrades and iterations, significant R&D investment with potential for failure, risks of core technology leakage, and risks of losing key technical talent[58][59][60][61] - Operational Risks: Performance volatility influenced by industry cycles and macroeconomic conditions; relatively high customer concentration; and risks in raw material supply and outsourced processing due to the Fabless model[62][63][64] - Other Significant Risks: International trade frictions may impact supply chains and customer demand; R&D processes rely on third-party EDA tools and technical authorizations for a limited number of IPs[67][69] Corporate Governance Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, the company's senior management team experienced changes, with former Deputy General Manager Mr. LIU SHUWEI resigning for personal reasons - Former Deputy General Manager Mr. LIU SHUWEI resigned during the reporting period due to personal reasons[83][84] Equity Incentive Plan To further improve its long-term incentive mechanism, the company's Board of Directors and Supervisory Committee approved the '2024 Restricted Stock Incentive Plan (Draft)' and its summary on June 21, 2024 - On June 21, 2024, the company's Board of Directors approved the '2024 Restricted Stock Incentive Plan (Draft)'[85] Environmental and Social Responsibility Environmental Information As an integrated circuit design company, the company is not a major polluter, emphasizes environmental protection, promotes energy-saving office practices, and leverages its technology to offer a light energy harvesting battery-free Bluetooth voice remote control solution based on the ATB111X chip, embodying a low-carbon environmental philosophy - The company's main business is chip design, not direct manufacturing, and it is not listed as a key polluting entity[87] - To implement its low-carbon philosophy, the company launched a light energy harvesting battery-free Bluetooth voice remote control solution based on the ATB111X chip[89] Significant Matters Fulfillment of Commitments During the reporting period, the company, its actual controller, shareholders, and directors, supervisors, and senior management strictly adhered to all commitments made during the initial public offering, including share lock-up, holding intentions, share price stabilization, related-party transactions, and non-compete clauses, with no breaches observed - Controlling shareholder Zhuhai Ruisheng Investment Partnership (Limited Partnership) committed not to transfer pre-IPO shares within 42 months from the company's listing date[90] - The actual controller committed not to transfer pre-IPO shares within 36 months from the company's listing date, with additional conditions regarding reduction price and extended lock-up period[91] - The company, controlling shareholder, actual controller, and directors, supervisors, and senior management all made commitments regarding share price stabilization, repurchase of shares due to fraudulent issuance, and compensation for diluted immediate returns, all of which are being strictly fulfilled[96][98][100] Significant Contracts and Their Performance During the reporting period, to support the business development of its wholly-owned subsidiary Hefei Actions, the company provided a joint and several liability guarantee of up to 50 million Yuan for its wafer foundry payment obligations Guarantees Provided | Guarantor | Guaranteed Party | Guarantee Amount (10,000 Yuan) | Guarantee Period | | :--- | :--- | :--- | :--- | | Actions Technology | Hefei Actions | 5,000 | 2024-05-01 to 2027-04-30 | Explanation of Proceeds Utilization Progress The company's net proceeds from its IPO amounted to 1.195 billion Yuan, with 596 million Yuan cumulatively invested by the end of the reporting period, representing a 49.84% progress, primarily for smart Bluetooth audio chip upgrades, ultra-low-power MCU R&D, R&D center construction, and working capital, including 32.26 million Yuan used for share repurchases from over-raised funds Proceeds Utilization Summary | Proceeds Utilization | Amount (10,000 Yuan) | | :--- | :--- | | Net Proceeds | 119,486.61 | | Total Over-raised Funds | 84,332.79 | | Cumulative Investment as of Reporting Period End | 59,553.42 | | Cumulative Investment Progress (%) | 49.84 | - As of June 30, 2024, the company cumulatively repurchased 1,317,978 shares using over-raised funds, with a total payment of 32.26 million Yuan[126] - The company used part of the over-raised funds to increase investment in the 'Smart Bluetooth Audio Chip Upgrade and Industrialization Project' and the 'Ultra-Low-Power MCU R&D and Industrialization Project for Wearables and IoT,' extending the estimated ready-for-use date for these projects to December 2025[126] Share Changes and Shareholder Information Changes in Share Capital During the reporting period, the company implemented its 2023 profit distribution and capital reserve capitalization plan, converting capital reserves into shares at a rate of 2 shares for every 10 shares held by all shareholders, increasing the total share capital from 122 million shares to 146 million shares - The company implemented a capital reserve capitalization plan, converting 2 shares for every 10 shares, totaling 24,136,404 new shares[130] - Following the capitalization, the company's total share capital increased from 122,000,000 shares to 146,136,404 shares[129][130] Shareholder Information As of the end of the reporting period, the company had 11,719 common shareholders, with the top two being Zhuhai Ruisheng Investment Partnership (Limited Partnership) and Xiamen Jujiawei Investment Partnership (Limited Partnership), holding 23.18% and 2.43% respectively - As of the end of the reporting period, the company had a total of 11,719 common shareholders[132] Top Five Shareholders | Top Five Shareholders | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Zhuhai Ruisheng Investment Partnership (Limited Partnership) | 33,868,320 | 23.18 | | Xiamen Jujiawei Investment Partnership (Limited Partnership) | 3,554,861 | 2.43 | | Zhuhai Chenyou Investment Partnership (Limited Partnership) | 3,469,200 | 2.37 | | Xiamen Jushangyi Investment Partnership (Limited Partnership) | 3,341,404 | 2.29 | | Xiamen Jushangji Investment Partnership (Limited Partnership) | 3,225,400 | 2.21 | Preferred Shares Information During the reporting period, the company had no preferred shares - During the reporting period, the company had no preferred shares[138] Bonds Information During the reporting period, the company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible bonds - During the reporting period, the company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible bonds[138][139] Financial Report Financial Statements This section presents the company's unaudited consolidated and parent company financial statements for H1 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in equity, showing total assets grew to 1.946 billion Yuan, net profit attributable to parent was 40.94 million Yuan, and net cash flow from operating activities was 57.04 million Yuan Consolidated Balance Sheet Summary (2024-06-30) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 1,946,304,750.48 | | Total Liabilities | 149,979,687.28 | | Equity Attributable to Owners of the Parent | 1,796,325,063.20 | Consolidated Income Statement Summary (Jan-Jun 2024) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 280,495,954.97 | | Total Operating Costs | 260,863,420.06 | | Total Profit | 41,059,295.07 | | Net Profit | 40,940,046.50 | Consolidated Cash Flow Statement Summary (Jan-Jun 2024) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 57,040,072.65 | | Net Cash Flow from Investing Activities | 29,999,856.45 | | Net Cash Flow from Financing Activities | -56,193,840.00 | | Net Increase in Cash and Cash Equivalents | 31,589,435.46 | Notes to Consolidated Financial Statements This section details key items in the consolidated financial statements, showing operating revenue primarily from Bluetooth audio SoC chips (approximately 74% of main business revenue), R&D expenses increased by 35.37% mainly for staff salaries, depreciation, and direct inputs, and the top five accounts receivable customers accounted for 83.45% of the total, indicating customer concentration, with non-recurring gains and losses mainly from fair value changes of financial assets and government grants Operating Revenue by Product Type Decomposition (Jan-Jun 2024) | Product Type | Operating Revenue (Yuan) | | :--- | :--- | | Bluetooth Audio SoC Chips | 207,364,854.62 | | Portable Audio/Video SoC Chips | 42,211,215.22 | | Edge AI Processor Chips | 30,721,470.80 | | Other | 198,414.33 | | Total | 280,495,954.97 | R&D Expense Composition (Jan-Jun 2024) | Item | Current Period Amount (Yuan) | | :--- | :--- | | Staff Remuneration | 55,936,016.03 | | Depreciation and Amortization | 13,902,504.11 | | Direct Input | 16,247,634.57 | | Commissioned Research Fees | 10,696,913.11 | | Other | 3,442,474.13 | | Total | 100,225,541.95 | - As of the end of the period, the top five accounts receivable balances, grouped by debtor, collectively accounted for 83.45% of the total[222]