BEKEN(SH:603068)2025-04-28 16:00Financial Performance - The company's operating revenue for 2024 reached ¥827,835,584.15, representing a 17.49% increase compared to ¥704,589,752.32 in 2023 [24]. - The net profit attributable to shareholders was -¥24,724,855.97, a significant reduction in losses by 73.70% from -¥94,027,610.86 in 2023 [24]. - The basic earnings per share for 2024 was -¥0.16, improving from -¥0.63 in 2023 [25]. - The consolidated revenue for the reporting period was 134,732.34 million, with a cash flow of 6,452.42 million [180]. - The consolidated net profit attributable to shareholders was a loss of RMB 24.72 million, a decrease in loss by 73.70% year-on-year [65]. - The gross margin for the integrated circuit segment was 34.01%, an increase of 3.40 percentage points year-on-year [71]. - The operating costs increased to RMB 546.25 million, up 11.72% compared to the previous year, primarily due to increased sales revenue [67]. - Research and development expenses decreased by 8.65% to RMB 273.10 million, reflecting a reduction in related salaries and material costs [67]. - The company reported a significant increase in cash flow from financing activities, amounting to RMB 594.41 million, a 439.57% increase year-on-year [67]. Research and Development - The company has made progress in R&D for new products, including Wi-Fi and Bluetooth chips, which are expected to contribute to future revenue [36]. - The company invested CNY 27.31 million in R&D in 2024, accounting for 32.99% of its revenue, emphasizing market-oriented R&D planning [44]. - The company has a total of 244 R&D personnel, representing 86.52% of its workforce, and has implemented a competitive compensation policy to enhance team efficiency [45]. - The company has established a comprehensive R&D management process to mitigate risks associated with new product development [100]. - The company has successfully mass-produced several AIoT chip products, with applications in AI glasses and toys, and plans to release an AI smart kit in collaboration with Aodubi in 2024 [38]. - The company has launched multiple new Wi-Fi chips, including the world's first Wi-Fi 6 IoT chip and the smallest Wi-Fi MCU chip in the industry, and has initiated the development of Wi-Fi 7 chips [37]. Market Position and Strategy - The company focused on upgrading products and expanding market reach, particularly in Wi-Fi and automotive chips [26]. - The company aims to enhance its competitive edge by continuously upgrading its product lineup to meet market demands [36]. - The company has successfully entered the automotive market with its ETC SoC chip, which has received automotive-grade certification [43]. - The company has established a strong supply chain management system, collaborating closely with suppliers like SMIC and JCET to ensure stable production capacity [46]. - The company is positioned to capitalize on the ongoing shift of the integrated circuit industry from developed countries to developing regions, including China [97]. - The company plans to expand into smart transportation and smart IoT markets, leveraging its existing customer base in emerging markets [63]. Governance and Compliance - The company has implemented various governance measures to ensure compliance with laws and regulations, maintaining the independence of its operations [107]. - The board of directors consists of 5 members, including 2 independent directors, and has established three specialized committees to enhance decision-making and oversight [106]. - The company has not reported any significant differences in governance practices compared to regulatory requirements [107]. - The company has established a comprehensive internal control and risk management system to identify and manage significant risks, ensuring effective response to uncertainties [143]. - The company has committed to maintaining fair practices in related party transactions and protecting shareholder interests [156]. Shareholder and Management Information - The total number of shares held by directors and senior management decreased from 26,711,305 at the beginning of the year to 26,488,220 at the end of the year, a reduction of 223,085 shares [110]. - The total pre-tax remuneration for all directors and senior management amounted to 758.67 million yuan for the year [110]. - The company has appointed two new independent directors, Lu Kuncai and Zhang Yi, with a remuneration of 15.00 million yuan each [110]. - The company’s management team consists of experienced professionals with diverse backgrounds in technology and finance, enhancing its strategic capabilities [113]. - The company has a well-defined training program to develop professional talent in product R&D and management [130]. Risks and Challenges - The company recognizes the risk of rapid technological changes and the need for continuous innovation to maintain market position [100]. - The company faces significant competition risks from international chip design firms like Qualcomm and MediaTek, which have superior asset scales and risk resistance capabilities [102]. - The domestic IC design industry is rapidly developing, leading to increased competition and potential market share loss for the company if competitors invest more in promotion and adopt aggressive pricing strategies [102]. - The company relies heavily on technical personnel in the chip design industry, and there is a risk of talent loss to competitors offering better compensation, which could negatively impact new product development and technical capabilities [102]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, indicating a potential growth of 7% to 13% [114]. - New product launches are anticipated, including a next-generation device expected to contribute an additional $200 million in revenue over the next year [114]. - The company is investing in R&D, allocating $100 million towards the development of new technologies aimed at enhancing product performance [114]. - The company plans to improve the technology and performance of Wi-Fi, Bluetooth, and ETC products, while actively expanding into international markets [99]. Accounting and Financial Reporting - The company will adhere to the new accounting standards and guidelines issued by the Ministry of Finance, effective from October 25, 2023 [157]. - The company will implement the new accounting interpretation regarding the classification of liabilities starting from January 1, 2024, which is not expected to have a significant impact on its financial position and operating results [158]. - The company has not reported any major changes in its accounting policies that would require board or shareholder approval, adhering to regulatory requirements [164]. - The company has not disclosed any major related party transactions during the reporting period, indicating a lack of significant financial dealings with related parties [169].