C*Core Technology(SH:688262)2025-04-28 15:15Financial Performance - The net profit attributable to the parent company's shareholders for 2024 is -180,590,013.37 CNY, indicating a loss [6]. - As of December 31, 2024, the parent company's distributable profits are -176,798,858.02 CNY, leading to no cash dividends or capital reserve transfers for 2024 [6]. - The company plans to carry forward the undistributed profits to future years due to the negative net profit for 2024 [6]. - The board of directors has approved the profit distribution plan, which is subject to shareholder meeting approval [6]. - The company reported a revenue of RMB 1.5 billion for the fiscal year 2024, representing a year-over-year growth of 20% [15]. - The company's operating revenue for 2024 reached ¥574,201,841.27, representing a 27.78% increase compared to ¥449,375,494.20 in 2023 [24]. - The net profit attributable to shareholders was -¥180,590,013.37 in 2024, compared to -¥168,750,322.50 in 2023, indicating a continued loss [24]. - The net profit after deducting non-recurring gains and losses was -¥224,011,759.10 for 2024, slightly worsening from -¥223,686,328.09 in 2023 [24]. - The cash flow from operating activities improved to -¥76,423,025.02 in 2024, compared to -¥285,914,887.77 in 2023, showing a significant reduction in cash outflow [24]. - The net profit attributable to shareholders of the listed company expanded the loss to 11.84 million yuan, primarily due to a 13.99% increase in R&D expenses and a 59.71% decrease in other income [27]. Research and Development - The company is investing RMB 300 million in R&D for new technologies, focusing on semiconductor innovations [15]. - R&D investment accounted for 56.26% of operating revenue, down 6.80 percentage points from 63.06% in the previous year [26]. - Total R&D investment reached approximately ¥323 million, representing a year-on-year increase of 13.99% [165]. - The company has completed the hardware implementation of the ML-KEM (Kyber) algorithm and is currently working on the ML-DSA (Dilithium) algorithm [168]. - The company has the capability for customized embedded CPU IP core microarchitecture design, enhancing SoC chip optimization [180]. - The company has integrated its architecture design, self-controlled embedded CPU cores, key peripheral IP, and SoC software system verification environment to launch a SoC chip design platform targeting various applications, significantly improving design efficiency and success rates [181]. Market Expansion and Future Outlook - User data showed an increase in active users by 15% to 3 million by the end of Q4 2024 [15]. - The company provided guidance for Q1 2025, expecting revenue to be between RMB 400 million and RMB 450 million, indicating a growth rate of 10% to 12% [15]. - New product launches are anticipated to contribute an additional RMB 200 million in revenue in 2025 [15]. - Market expansion plans include entering two new international markets by mid-2025, targeting a 5% market share in each [15]. - The overall market outlook remains positive, with an expected industry growth rate of 8% annually over the next five years [15]. Product Development and Innovation - The company is focused on expanding its market presence and enhancing its product offerings in the semiconductor industry [18]. - The company has successfully developed over 40 embedded CPU cores based on RISC-V, PowerPC, and M*Core instruction sets, expanding its IP licensing and custom chip services [83]. - The company has launched a series of automotive MCU and DSP chips, achieving full coverage across 12 product lines, enhancing competitiveness against module and OEM manufacturers [65]. - The company has developed advanced quantum security chips and modules, including the A5Q terminal application quantum security chip, which can replace traditional SE chips in various information security terminals [113]. - The company has established quantum chip joint laboratories with leading firms, advancing the development and commercialization of quantum security chips [52]. Operational Efficiency and Cost Management - The company aims to reduce production costs by 15% through operational efficiencies by the end of 2025 [15]. - The management remains optimistic about future growth despite current financial challenges, aiming for improved profitability in the upcoming periods [18]. - The company is focusing on enhancing its automotive electronics MCU and SoC chip design technology to meet high safety standards [161]. Compliance and Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties [9]. - There are no violations of decision-making procedures regarding external guarantees [9]. - The company has received a standard unqualified audit report from the auditing firm [5]. - The board of directors and management have confirmed the accuracy and completeness of the annual report [3]. Industry Trends and Challenges - The domestic automotive chip localization rate is currently below 10%, with core chips like vehicle-grade MCUs having an even lower self-sufficiency rate [126]. - The demand for cloud computing security chips is expected to grow significantly, driven by the widespread adoption of cloud services [124]. - The global data volume is projected to increase from 33ZB in 2018 to 175ZB by 2025, highlighting the growing importance of data security and the need for high-performance security SoC chips [152].