SCREEN(SH:688053)2025-04-25 17:10Financial Performance - The net profit attributable to shareholders for the year 2024 was -21.0032 million RMB, with the parent company's net profit at -11.4374 million RMB[7]. - The cumulative undistributed profits at the beginning of 2024 were 105.6811 million RMB, decreasing to 63.5319 million RMB by the end of the year[7]. - The company plans not to distribute cash dividends or issue bonus shares for the year 2024 due to the negative net profit[7]. - The company's operating revenue for 2024 was ¥143,808,257.68, a decrease of 28.40% compared to ¥200,838,880.34 in 2023[26]. - The net profit attributable to shareholders decreased by 143.90% to -¥21,003,195.56 in 2024 from ¥47,840,488.21 in 2023[26]. - The basic earnings per share fell by 143.75% to -¥0.21 in 2024, down from ¥0.48 in 2023[28]. - The cash flow from operating activities decreased by 49.28% to ¥35,416,321.90 in 2024, compared to ¥69,833,298.40 in 2023[29]. - The company's operating profit for 2024 was -34.61 million RMB, a year-on-year decrease of 169.02%[38]. - The company's equity attributable to shareholders decreased by 4.27% to 1,608.00 million RMB compared to the beginning of the year[39]. - The company's gross profit margins for 2023 and 2024 are 53.97% and 36.30% respectively, highlighting a significant risk of margin decline due to increased competition and client bargaining power[106]. Research and Development - Research and development expenses accounted for 16.91% of operating revenue in 2024, an increase of 5.81 percentage points from 11.10% in 2023[28]. - R&D investment in 2024 was 24.32 million RMB, an increase of 9.09% year-on-year[39]. - The company has developed over 41,000 testing programs, with more than 38,000 being self-developed, as of December 31, 2024[59]. - The company has established a comprehensive R&D management system, including annual planning, project management, process management, and outcome management[61]. - The total investment in R&D projects this year is projected to significantly contribute to the company's technological advancements and market competitiveness[90]. - The company is focused on developing new reliability testing technologies and processes based on market demand and industry trends[58]. Testing Capabilities and Services - The company has established a comprehensive testing capability for various environmental reliability tests, including vibration, impact, and temperature tests[41]. - The company has expanded its detection capabilities to include PHY chips with a communication rate of 1000Mbps and a 100% error rate detection[41]. - The company has achieved a dynamic detection capability of 2.4Gbps for DRAM with a 100ps level dynamic parameter detection capability[41]. - The company has optimized its market strategy to expand customer coverage and increase market share among key clients[41]. - The company offers environmental reliability testing to assess military equipment performance under extreme conditions, ensuring operational reliability[55]. - The company conducts Destructive Physical Analysis (DPA) to verify the design, structure, and manufacturing quality of electronic components, helping to identify manufacturing anomalies early[53]. Market Position and Strategy - The company is positioned in a strategic emerging industry, with government policies supporting the development of the reliability testing sector[70]. - The company is expanding its market presence across key military regions in China, enhancing its ability to respond to client needs and maintain competitive advantages[3]. - The company is likely to benefit from the experience of its board members in managing complex projects and navigating market challenges[169]. - The military electronic component reliability testing market is expected to grow in correlation with China's weaponry expenditure, which is projected to continue increasing due to the "Strengthening the Military" national strategy[144]. - The company is pursuing a strategy of deepening cooperation with major clients and expanding into new business areas, including modular board-level product design and testing[149]. Governance and Management - The company has maintained a consistent management structure with no significant changes in leadership roles[163]. - The company has appointed several independent directors and senior management personnel, enhancing its governance structure[166]. - The company has established specialized committees under the board, including the Audit Committee and the Strategic Committee, with designated members[183]. - The company has not reported any changes in shareholding for its directors and senior management during the reporting period[163]. - The total remuneration for senior management during the reporting period amounted to 546.91 million CNY[165]. Risks and Challenges - The company faces risks related to technological development, including the need to keep pace with rapid advancements in electronic components and potential talent shortages in technical staff[99]. - The company is exposed to risks from potential quality incidents in reliability testing, which could severely impact its reputation and business operations[101]. - The company is navigating a challenging environment due to a phase of adjustment in the military industry, which has led to a decrease in orders and uncertainty regarding future revenue growth[98]. - The company faces competition from both military group testing institutions and independent third-party testing companies in the military electronic components reliability testing industry[143]. Future Plans - The company plans to invest approximately 420 million in the Wenchang International Space City project, which is expected to create over 300 jobs and support the development of the local space industry[151]. - By 2025, the company aims to expand its testing capabilities, with an expected increase of 3,000 CNAS accredited capabilities, 5,000 testing procedures, and 5,000 testing adapters[150]. - The company plans to implement a "quality improvement and efficiency enhancement" action plan for 2024[177]. - The company is focused on enhancing its market position through strategic actions and potential mergers and acquisitions[177].