Netac(SZ:300042)2025-04-08 12:25Financial Performance - The company reported a significant decline in consumer storage revenue and gross margin, attributed to weak demand and intensified competition, leading to increased inventory write-downs [4]. - The company's operating revenue for 2024 was ¥829,498,689.30, a decrease of 23.73% compared to ¥1,087,597,455.99 in 2023 [17]. - The net profit attributable to shareholders for 2024 was -¥99,248,761.85, representing a decline of 126.78% from -¥43,764,196.30 in 2023 [17]. - The net cash flow from operating activities improved by 73.15%, reaching -¥22,935,278.34 in 2024 compared to -¥85,433,598.32 in 2023 [17]. - The total assets at the end of 2024 were ¥1,196,364,228.98, down 12.87% from ¥1,373,141,059.44 at the end of 2023 [17]. - The net assets attributable to shareholders decreased by 8.61% to ¥1,032,132,218.61 at the end of 2024 from ¥1,129,359,222.11 at the end of 2023 [17]. - The basic earnings per share for 2024 was -¥0.4953, a decline of 126.79% from -¥0.2184 in 2023 [17]. - The weighted average return on net assets for 2024 was -10.16%, a decrease of 6.13% compared to -4.03% in 2023 [17]. - The company reported a quarterly operating revenue of ¥241,569,251.02 in Q4 2024, with a net profit of -¥31,048,501.34 for the same quarter [19]. - The revenue after deducting non-recurring gains and losses for 2024 was ¥824,581,469.10, compared to ¥1,077,190,773.52 in 2023 [17]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as both net profits before and after non-recurring gains and losses have been negative in recent years [17]. Market Conditions - The decline in NAND Flash and DRAM prices has significantly impacted the company's financial performance, necessitating strategic adjustments [4]. - In 2024, the global storage market size reached $120.225 billion, a year-on-year increase of 96.8% [26]. - The NAND Flash market share in Q3 2024 was dominated by Samsung (32.9%), SK Hynix (19.1%), and Kioxia (17.0%) respectively [27]. - The global smartphone shipment is expected to grow by 3% to 1.184 billion units in 2024, driven by mid-range models in overseas markets [29]. - The DRAM market is projected to maintain growth in 2025 due to increased applications of HBM3e and DDR5, while NAND Flash faces challenges [26]. - The global server shipment is anticipated to grow by 5% to 13.6 million units in 2025, supported by the demand for AI servers and traditional server replacements [28]. Product Development and Strategy - The company continues to invest in new product development, launching safer and faster iterations of mobile storage, SSD, and DRAM products to meet diverse customer needs [41]. - The company has developed a complete PCIe 4.0 SSD product line and is currently working on the next generation PCIe 5.0 SSD products [48]. - The company launched new high-speed mobile SSD products, such as the ZX20L, to cater to the gaming consumer market [49]. - The company plans to deepen cooperation within the computing power industry chain, enhancing its strategic layout based on market demand [106]. - The company aims to optimize its product structure and explore higher-margin sales channels, integrating with emerging technologies like IoT and AI [104]. - The company is focusing on R&D for new product forms and high-speed, high-capacity storage solutions, including PCIe and DDR5 products [102]. Operational Efficiency and Cost Management - The company is restructuring its subsidiaries to reduce operational costs and improve management efficiency [4]. - The company aims to optimize management processes and increase operational efficiency to achieve cost reduction and efficiency improvement [4]. - The total operating costs for 2024 were ¥749,094,572.32, down 24.02% from ¥985,970,548.02 in 2023 [62]. - The company reported a significant reduction in inventory for flash control chips and other products, with inventory decreasing by 58.99% to 1,717,399 units [60]. - The company's direct labor costs decreased by 41.60% to ¥12,443,908.17 in 2024 from ¥21,308,442.89 in 2023 [62]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in its annual report [5]. - The company has outlined potential risk factors and corresponding mitigation strategies in its management discussion section [5]. - The company faces risks related to raw material price fluctuations, particularly for storage chips, which significantly impact production costs and inventory management [114]. - The company anticipates potential losses from uncollectible receivables amounting to CNY 23.53 million, which may affect tax deductions [118]. - The company has established measures to mitigate risks associated with currency fluctuations, particularly concerning the procurement of imported raw materials [120]. Corporate Governance and Compliance - The company has established a comprehensive corporate governance structure and internal control system, ensuring compliance with relevant laws and regulations [187]. - The company faced regulatory measures from the Shenzhen Securities Regulatory Bureau due to non-compliance in trade revenue accounting, prepaid accounts, and inventory management, resulting in warnings issued to key executives [156]. - The company has completed rectifications regarding the financial accounting issues identified by the regulatory body and will continue to maintain compliance [156]. - The company adheres to legal and regulatory requirements for corporate governance, ensuring compliance with relevant laws and regulations [127]. Shareholder Relations and Remuneration - No cash dividends or stock bonuses will be distributed to shareholders for the current fiscal year [5]. - The total remuneration paid to the directors, supervisors, and senior management during the reporting period amounted to 4.365 million yuan [159]. - The remuneration for directors, supervisors, and senior management is determined by the shareholders' meeting and the board of directors, based on the company's articles of association and relevant regulations [157]. - The board proposed no cash dividends for the fiscal year 2024 due to negative distributable profits, ensuring operational liquidity [176]. Employee Management and Development - The total number of employees at the end of the reporting period is 427, with 211 in the parent company and 216 in major subsidiaries [171]. - The company has implemented a comprehensive employee training system to enhance skills and knowledge, aligning with business development needs [173]. - Employee training plans are developed based on operational needs, incorporating both internal and external training methods [173]. - The company maintains a mixed compensation strategy, ensuring salaries are not lower than the minimum wage standard in Shenzhen, with a 100% labor contract signing rate during the reporting period [172].