Loongson Technology(688047)2025-04-28 16:10Financial Performance - The company has not achieved profitability since its listing[3]. - The company achieved operating revenue of 50,425.72 million RMB, which is a slight decrease of 0.28% compared to the previous year[24]. - The net profit attributable to shareholders was -62,534.71 million RMB, a decline of 29,590.73 million RMB year-on-year[24]. - The basic and diluted earnings per share were both -1.56 RMB, down 0.74 RMB from the same period last year[24]. - The weighted average return on equity was -19.29%, a decrease of 10.45 percentage points compared to the previous year[22]. - The company's net assets attributable to shareholders decreased by 17.26% to 293,639.71 million RMB compared to the beginning of the year[24]. - The total assets decreased by 14.95% to 349,748.34 million RMB compared to the beginning of the year[24]. - The cash flow from operating activities was -33,501.01 million RMB, indicating a negative cash flow situation[24]. - The company reported a significant increase in the revenue share of information technology chips, which contributed to the overall cost structure change[121]. - The company reported a net profit margin of 12% for Q3 2023, an improvement from 10% in the previous quarter[163]. Research and Development - The company is investing heavily in R&D, allocating 15% of its annual revenue to develop next-generation chips and technologies[15]. - Research and development expenses accounted for 105.34% of operating revenue, an increase of 1.87 percentage points year-on-year[22]. - R&D expenses totaled 531 million RMB, constituting 105.34% of the company's revenue during the reporting period, indicating a high level of investment in innovation[102]. - The company has developed the LongArch instruction system and has full control over CPU IP core source code, enhancing its independence from foreign technology[57]. - The company has made significant advancements in high-performance CPU and GPU design capabilities, enhancing its competitive edge in the market[87]. - The company has established a complete basic software technology system based on the Loongson architecture, including operating systems and key software modules[88]. - The company has developed multiple product solutions based on the Loongson series chips, including PC, server, and cloud terminal products, achieving significant shipment status[19]. - The company is committed to independent R&D, forming a unique CPU ecosystem that is independent of X86 and ARM architectures[87]. Market Expansion and Strategy - For the upcoming fiscal year, Loongson Technology projects a revenue growth target of 30%, driven by new product launches and market expansion strategies[15]. - Loongson Technology plans to enter new markets, including Europe and Southeast Asia, aiming for a 20% market share in these regions by 2025[15]. - The company is actively expanding into new industries such as energy, transportation, and manufacturing, showing positive growth trends despite challenges in the traditional industrial control market[37]. - The company is considering strategic acquisitions to enhance its technology portfolio, with a budget of 500 million RMB allocated for potential deals[166]. - The company plans to focus on the recovery of the electronic government market in the second half of 2024 to drive revenue growth[110]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has declared that there are no violations of decision-making procedures regarding external guarantees[7]. - The company emphasizes the importance of risk factors as outlined in the management discussion and analysis section[3]. - The company has established a transparent performance evaluation and incentive mechanism for its board members and senior management to attract and retain talent[157]. - The company ensures compliance with legal regulations in its governance structure, maintaining independence from its controlling shareholders[158]. Sustainability and ESG - Loongson Technology is committed to sustainability, with plans to reduce its carbon footprint by 50% by 2030 through energy-efficient technologies[15]. - The company is committed to ESG management, achieving a BBB rating from Shanghai Huazheng Index Information Service Co., Ltd. for the year[190]. - The company emphasizes energy-saving and efficiency improvement through its office management practices[193]. - The company promotes a culture of green and low-carbon practices among its employees[193]. Talent and Workforce - The total number of employees in the parent company and major subsidiaries is 940, with 641 in R&D roles, representing approximately 68% of the workforce[178]. - The company has a total of 63 employees with doctoral degrees and 320 with master's degrees, highlighting a strong educational background among its workforce[178]. - The number of R&D personnel increased to 641, accounting for 68.19% of the total workforce, with an average salary of 50.07 thousand RMB[86]. - The average salary of R&D personnel increased from 49.13 thousand RMB to 50.07 thousand RMB year-on-year[86]. Financial Management - The company plans not to distribute cash dividends for the fiscal year 2024 and will not increase capital reserves or issue bonus shares[5]. - The company has established a comprehensive salary management system, combining fixed and variable compensation to ensure employee rights and incentives[179]. - The total pre-tax remuneration for the reporting period received by the board members and senior management amounted to CNY 1,055.28 million[161]. - The company has recognized impairment provisions for assets, impacting net profit and increasing losses during the reporting period[94]. Audit and Compliance - The company received a standard unqualified audit report from Zhongxinghua Accounting Firm[4]. - The company received a standard unqualified opinion in the internal control audit report for 2024, confirming the effectiveness of its internal controls[188]. - The company has not identified any significant internal control deficiencies during the reporting period[187]. - No penalties from securities regulatory agencies were reported in the last three years[169].