豪威集团(603501) - 2025 Q2 - 季度财报

Part I Definitions This section provides a comprehensive glossary of key terms and abbreviations used throughout the report, ensuring clarity and consistent understanding of the disclosed information Definitions of Common Terms This chapter provides definitions for key terms and abbreviations used in the report, covering company names, bond codes, product technologies (e.g., GDR, ADAS, CMOS, TDDI, PMIC), and business models (Fabless, ODM, OEM), ensuring clear understanding of the report content - The reporting period refers to January 1, 2025, to June 30, 2025[13] Definitions of Common Terms | Common Term | Definition | | :--- | :--- | | OmniVision Group/Company/Will Semiconductor | OmniVision Integrated Circuit (Group) Co., Ltd., formerly known as Shanghai Will Semiconductor Co., Ltd. | | Will Convertible Bonds | Convertible corporate bonds, with bond abbreviation "Will Convertible Bonds" and bond code "113616" | | GDR | Global Depositary Receipts | | ADAS | Advanced Driver-Assistance Systems | | CMOS | Complementary Metal Oxide Semiconductor Image Sensor | | TDDI | Touch and Display Driver Integration | | PMIC | Power Management Integrated Circuits | | Fabless | A business model without wafer fabrication plants, solely engaged in integrated circuit R&D design and sales | | ODM | Original Design Manufacturer | | OEM | Original Equipment Manufacturer, a contract manufacturing model | Part II Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key accounting data and financial performance for the reporting period 1. Company Information This section outlines the basic information of OmniVision Integrated Circuit (Group) Co., Ltd., including its Chinese name, abbreviation, foreign name, and legal representative, providing essential identification for investors - The company's Chinese name is OmniVision Integrated Circuit (Group) Co., Ltd., abbreviated as OmniVision Group[16] - The company's legal representative is Wang Song[16] 2. Contact Persons and Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email, facilitating investor communication and information inquiries - The Board Secretary is Ren Bing, and the Securities Affairs Representative is Zhou Shuyang[17] - The company's contact address is No. 88 Shangke Road, Pudong New Area, Shanghai, with telephone number 021-50805043[17] 3. Overview of Basic Information Changes This section details the company's registered address, office address, postal code, website, and email, noting that historical changes to the registered address are not applicable, indicating stable basic company information - The company's registered address is 7th Floor, Building C, No. 3000 Longdong Avenue, China (Shanghai) Pilot Free Trade Zone[18] - The company's website is **www.omnivision-group.com**[18](index=18&type=chunk) 4. Overview of Information Disclosure and Document Custody Location Changes This section specifies the designated newspapers for company information disclosure, the website address for semi-annual reports, and the report custody location, ensuring investors can timely access public company information - The company's selected newspapers for information disclosure are Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily[19] - The website address for publishing semi-annual reports is **www.sse.com.cn**[19](index=19&type=chunk) 5. Company Stock Overview This section provides the company's stock listing exchange, stock abbreviation, stock code, and previous stock abbreviation, facilitating investor identification and trading of company shares - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "OmniVision Group", stock code 603501, and previous stock abbreviation "Will Semiconductor"[20] 7. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in operating revenue and net profit, with improved profitability and asset scale Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 13.96 billion | RMB 12.09 billion | 15.42 | | Total Profit | RMB 2.19 billion | RMB 1.50 billion | 45.88 | | Net Profit Attributable to Listed Company Shareholders | RMB 2.03 billion | RMB 1.37 billion | 48.34 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | RMB 1.95 billion | RMB 1.37 billion | 42.21 | | Net Cash Flow from Operating Activities | RMB 1.89 billion | RMB 1.82 billion | 3.66 | | Net Assets Attributable to Listed Company Shareholders (Period-End) | RMB 26.19 billion | RMB 24.20 billion | 8.23 | | Total Assets (Period-End) | RMB 42.48 billion | RMB 38.96 billion | 9.03 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.69 | 1.14 | 48.25 | | Diluted Earnings Per Share (RMB/share) | 1.68 | 1.14 | 47.37 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 1.63 | 1.14 | 42.98 | | Weighted Average Return on Net Assets (%) | 8.01 | 6.38 | Increased by 1.63 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 7.71 | 6.41 | Increased by 1.30 percentage points | 9. Non-Recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling RMB 76.53 million, primarily including government subsidies recognized in current profit or loss and fair value changes in financial assets Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the reversal of impairment provisions already made | -0.36 million | | Government grants recognized in current profit or loss | 25.04 million | | Gains or losses from changes in fair value of financial assets and liabilities, and from disposal of financial assets and liabilities, excluding effective hedging activities related to normal business operations of non-financial enterprises | 64.92 million | | Gains or losses from debt restructuring | 0.06 million | | Other non-operating income and expenses apart from the above | 1.26 million | | Less: Income tax impact | 14.38 million | | Minority interest impact (after tax) | 0.01 million | | Total | 76.53 million | Part III Management Discussion and Analysis This section provides an in-depth review of the company's industry, business operations, core competencies, and financial performance during the reporting period, along with an outlook on potential risks and future strategies 1. Industry and Main Business Overview During the Reporting Period This section elaborates on the company's industry position as a Fabless chip design company, global and Chinese semiconductor industry trends, its Fabless business model, three core business systems (image sensor, display, and analog solutions), and their wide applications in smartphones, automotive, emerging markets, medical, and security - The company is one of the top ten global Fabless semiconductor companies, with main businesses covering image sensor, display, and analog solutions[28] - In the first half of 2025, the global semiconductor market reached USD 346 billion, growing by 18.9% year-on-year, with strong growth in logic, memory, and sensor sectors[30] - China's integrated circuit imports increased by 8.9% year-on-year in the first half, while exports grew by 20.6% year-on-year[30] - The company adopts a Fabless model, focusing on R&D design and sales, with wafer manufacturing and packaging/testing outsourced to professional manufacturers[31] (I) Company's Industry The company's industry is classified as Computer, Communication and Other Electronic Equipment Manufacturing (C39) according to both the 'National Economic Industry Classification and Codes' and the CSRC's 'Guidelines for Industry Classification of Listed Companies' - The company operates in the Computer, Communication and Other Electronic Equipment Manufacturing (C39) industry[29] (II) Industry Development The global semiconductor market achieved 18.9% strong growth in the first half of 2025, with an anticipated 15.4% full-year growth, primarily driven by data center and AI applications; China's semiconductor import and export trade also maintained a positive trend, with import volume increasing by 8.9% and export volume by 20.6% Global Semiconductor Market Data for H1 2025 | Indicator | Data | | :--- | :--- | | Market Size | USD 346 billion | | Year-on-Year Growth | 18.9% | | Strong Growth Areas | Logic, Memory, Sensors (16%) | | Growth Areas | Analog Chips, Microcontrollers (4%) | | Declining Areas | Discrete Devices, Optoelectronics (single-digit decline) | China's Integrated Circuit Import and Export Data for H1 2025 | Indicator | Import | Export | | :--- | :--- | :--- | | Cumulative Volume | 281.9 billion units (up 8.9% YoY) | 167.8 billion units (up 20.6% YoY) | | Import/Export Value | RMB 1.38 trillion (up 8.3% YoY) | RMB 650.3 billion (up 20.3% YoY) | (III) Company Business Model The company's semiconductor design and sales business operates on a Fabless model, focusing on R&D design and sales, with wafer manufacturing and packaging/testing outsourced. Sales models include direct sales and distribution to meet diverse customer needs. The company's products span three major systems: image sensor, display, and analog solutions, and it also distributes various electronic components - The company's semiconductor design and sales business adopts a Fabless model, focusing solely on integrated circuit R&D design and sales, with wafer manufacturing and packaging/testing outsourced[31] - The company sells through both direct sales and distribution, with direct sales serving module, ODM, and OEM manufacturers and end customers, and distribution through renowned multinational large distributors[33] - The company's semiconductor product design business primarily comprises three major systems: image sensor solutions, display solutions, and analog solutions[34] Company Semiconductor Design Business Product Types | Business | Product Name | Main Function | Application Areas | | :--- | :--- | :--- | :--- | | Image Sensor Solutions | CMOS Image Sensor | Converts optical information into electrical signals | Consumer electronics, security, automotive electronics, medical, emerging markets | | | CameraCubeChip | Integrates wafer-level optics and CMOS image sensors | Medical, emerging markets, etc. | | | LCOS | Reflective mode, very small matrix liquid crystal display device | Automotive electronics, medical, emerging markets, laptops, etc. | | Display Solutions | TDDI | Drives LCD screens, detects user touch signals | Smartphones | | | DDIC | Drives displays and controls drive current | Smartphones | | | TED | Combines eDP TCON and source driver | Laptops | | Analog Solutions | TVS, MOSFET, LDO, DC-DC, LED Backlight Driver, CAN, LIN, SBC, SerDes, MCU, Motor Driver, Operational Amplifier | Enhances anti-static/surge protection, signal amplification, power control, voltage regulation, voltage adjustment, constant current source, signal switching, communication networks, integrated power/communication/diagnosis/safety monitoring, high-speed communication, smart semiconductor chips, motor control, amplifiers, etc. | Consumer electronics, security, network communication, automotive electronics, industrial, IoT, etc. | Company Distribution Business Product Types | Product Name | Sub-Products | Main Original Manufacturers | | :--- | :--- | :--- | | Electronic Components | Resistors, capacitors, inductors, crystals, etc. | Panasonic, Chicony, Yageo, Samsung, Walsin Technology, Holy Stone, TXC, etc. | | Structural Components | Connectors, card holders, card trays, PCBs, speakers, electrets, etc. | Molex, Panasonic, Nanya, Goertek, etc. | | Electromechanical Systems | Servos, motors, fans, PLCs, etc. | Panasonic, NIDEC, Delta, etc. | | Integrated Circuits | Chips, Sensors, Memory, Flash, Sensors, Diodes/Transistors, etc. | Lite-On, Longsys, XMC, Quantum Micro, Jinglue, Rongpai, Lisenme, Xinsheng, Qianhai Weisheng, Hailichuang, Aixin, Jiutian Ruixin, Nationz, BOSCH, Fourier, Yichong, etc. | | RF Devices | Filters, etc. | Panasonic, ACX, Jiali, Huaying, Xinpu, Walsin Technology, etc. | (IV) Main Applications of Company Products The company's image sensor, display, and analog solutions are widely applied in smartphones, automotive, emerging markets (sports/panoramic cameras, smart glasses, machine vision), medical, and security sectors, meeting industry demands for high-performance, low-power, and high-resolution chips through continuous technological innovation - Smartphone Market: The company offers high-resolution image sensors (e.g., OV50H, OV50X) and TDDI technology; newly developed OLED DDIC products have received test approval from leading Chinese panel suppliers, and analog products address power density and power management needs[43] - Automotive Market: Image sensor solutions are applied in ADAS, autonomous driving, and cabin monitoring, featuring split-pixel technology for LED flicker suppression and HALE combination algorithms. LCOS products enable HUD applications, and the company expands its automotive analog chip portfolio (e.g., SerDes, PMIC, MCU, SBC)[44][46][48][49] - Emerging Markets: Image sensor products provide high image quality and stability for sports/panoramic cameras. LCOS technology offers single-chip display solutions for smart glasses, while CIS integrated NPU technology addresses real-time performance, power consumption, privacy, and size challenges for smart glasses. A machine vision department has been established, focusing on innovative solutions for industrial automation and robotics[50][51][52] - Medical Market: Provides complete end-to-end medical imaging subsystems, meeting demands for minimally invasive diagnostic and therapeutic surgeries, with CMOS image sensors gradually replacing traditional CCDs[53][54] - Security Market: Nyxel® near-infrared technology enables security cameras to see clearer and further in low light, while also offering energy-efficient power management and interface protection products[55] - Laptop Market: Offers first-class imaging system solutions, including new technologies like infrared global shutter sensors and RGB-IR, for security applications such as eye tracking, facial/iris recognition[56] 2. Discussion and Analysis of Operations During the reporting period, the company benefited from the structural recovery of the global semiconductor industry and the integration of AI technology, achieving 15.49% growth in operating revenue and 48.34% growth in net profit. The image sensor business performed outstandingly in automotive intelligent driving and emerging markets, while the analog solutions business also saw significant growth. The company continued to increase R&D investment, optimize its supply chain, and actively enhance shareholder returns and sustainable development - In the first half of 2025, the company's main business revenue was RMB 13.94 billion, a 15.49% year-on-year increase[60] - Semiconductor design business product sales revenue was RMB 11.57 billion, accounting for 83.01% of main business revenue, a 11.08% year-on-year increase[60] - Semiconductor distribution business revenue was RMB 2.31 billion, accounting for 16.60% of main business revenue, a 41.73% year-on-year increase[60] - Net profit attributable to parent company shareholders was RMB 2.03 billion, a 48.34% year-on-year increase[127] 1. Image Sensor Solutions The image sensor solutions business achieved RMB 10.35 billion in operating revenue in the first half, a 11.10% year-on-year increase. Revenue from image sensors in automotive intelligent driving and emerging markets (sports/panoramic cameras, smart glasses, machine vision) grew significantly, while the smartphone market saw a decline due to the end-of-life cycle of older products, though new products have been validated and introduced by customers - The image sensor solutions business achieved operating revenue of RMB 10.35 billion in the first half of 2025, accounting for 74.21% of main business revenue, an 11.10% increase year-on-year[61] - Automotive market image sensor revenue was approximately RMB 3.79 billion, a 30.04% year-on-year increase, solidifying its leading position[67] - Smartphone market image sensor revenue was approximately RMB 3.92 billion, a 19.48% decrease year-on-year, primarily due to the end-of-life cycle of the older OV50H product[68] - The company's newly launched 50-megapixel 1-inch high dynamic range image sensor OV50X has entered mass production and delivery, and 200-megapixel image sensor products have been validated and introduced by customers[69][70] - Emerging market image sensor revenue was approximately RMB 1.17 billion, achieving a 249.42% year-on-year increase, primarily driven by growth in sports/panoramic cameras, smart glasses, and machine vision sectors[74] - Security market image sensor revenue was approximately RMB 0.83 billion, a 16.77% year-on-year increase. Medical market revenue was approximately RMB 0.44 billion, a 68.10% year-on-year increase[75] 2. Display Solutions The display solutions business achieved RMB 0.46 billion in operating revenue in the first half, a 2.60% year-on-year decrease, primarily due to pricing pressure in the mobile LCD-TDDI market. Despite a slight revenue decline, the company achieved a 7.03% steady increase in shipments and significant gross margin improvement through product supply chain optimization and expansion into high-margin products. OLED DDIC and TED products have been successfully introduced to tier-one customers - The display solutions business achieved operating revenue of RMB 0.46 billion in the first half of 2025, a 2.60% decrease year-on-year[77] - The display solutions business achieved sales volume of 72.56 million units, a 7.03% increase year-on-year, with steady market share growth[77] - The company's OLED DDIC products have been successfully introduced to tier-one panel manufacturers and are in mass production, while TED chips have been adopted by leading global laptop brands[77][78] - Automotive TDDI products have been validated and introduced by customers[78] 3. Analog Solutions The analog solutions business achieved RMB 0.77 billion in operating revenue in the first half, a 20.88% year-on-year increase, primarily benefiting from inventory destocking and demand recovery in the consumer electronics industry. The company completed a multi-category layout in automotive analog chips, with automotive analog IC revenue growing by 45.51% year-on-year, becoming a new growth driver - The analog solutions business achieved operating revenue of RMB 0.77 billion in the first half of 2025, a 20.88% increase year-on-year[79] - Automotive analog ICs achieved operating revenue of RMB 0.12 billion, accounting for 15.66% of analog solutions business, a 45.51% increase year-on-year[79] - The company completed a multi-category layout in automotive analog chips, including SerDes, PMIC, and MCU for high-speed transmission scenarios in intelligent driving/cockpit systems[79] (II) Continuous Increase in R&D Investment to Drive Product Innovation and Upgrades During the reporting period, the company's semiconductor design and sales business R&D investment reached RMB 1.72 billion, a 9.01% year-on-year increase, accounting for 14.90% of the business revenue. The company highly values independent intellectual property and talent development, holding 4,761 authorized patents as of the end of the reporting period, and successfully mass-producing high-performance image sensors like OV50X - The company's semiconductor design and sales business R&D investment amounted to approximately RMB 1.72 billion, accounting for 14.90% of the business revenue, a 9.01% increase year-on-year[80] - As of the end of the reporting period, the company held 4,761 authorized patents, including 4,552 invention patents[80] - The company's launched OV50X is a 50-megapixel sensor with ultra-high dynamic range, capable of cinematic video recording, and has entered mass production[81] (III) Fruitful Achievements in Automotive Intelligent Driving, Opening New Growth Curves The company achieved fruitful results in automotive intelligent driving, launching several market-competitive new products, including automotive image sensors based on TheiaCel™ technology and the OX01N1B sensor for driver monitoring systems. Concurrently, the company expanded its automotive solutions horizontally, introducing high-performance MCU OMX2x4B, 2Gbps SerDes series products, and high-performance automotive intelligent high-side switch chip ONXQ000, empowering comprehensive automotive solutions - The company utilized TheiaCel™ technology to solve LED traffic light flicker issues and achieve wide dynamic range in single-exposure HDR images, successfully entering the NVIDIA supply chain[82] - Launched the in-cabin driver monitoring system (DMS) OX01N1B image sensor, featuring industry-leading near-infrared quantum efficiency and low power consumption[84] - Introduced high-performance MCU OMX2x4B, suitable for intelligent cockpits and body domain control scenarios[86] - Launched new 2Gbps SerDes series products OTX9211 and OTX9342, which have secured project nominations from multiple domestic automakers and Tier1 suppliers[86][87] - Introduced high-performance automotive intelligent high-side switch chip ONXQ000, expected to enter mass production in Q3 2025[88] (IV) Strengthening Supply Chain Collaboration to Enhance Overall Operational Efficiency The company strengthened cooperation with wafer fabs and packaging/testing plants, and transferred some mature products to local wafer fabs, ensuring stable capacity and cost control. Concurrently, the company coordinated development strategies across business segments, leveraging synergies to provide comprehensive solutions to customers, thereby enhancing overall operational efficiency and competitiveness - The company maintained deep cooperation with wafer fabs and packaging plants, and transferred some mature products to local wafer fabs, ensuring capacity needs and improving production efficiency[89] - The company's product lines share high consistency in end customers, providing comprehensive solutions through synergistic development to enhance business scale and competitiveness[89] (V) Convertible Bond Fundraising Project Completion, Remaining Funds Permanently Supplement Working Capital The company's convertible bond fundraising project was fully completed and closed in 2024, with remaining raised funds of RMB 382.14 million (including interest income) permanently supplementing working capital to maximize the efficiency of fund utilization, aligning with the company's operational development needs and shareholder interests - The company's convertible bond fundraising project was fully completed and closed in 2024[90] - The company has transferred a cumulative RMB 382.14 million (including interest income) from its special fundraising account to other company accounts to permanently supplement working capital, and completed the closure of relevant special fundraising accounts[91] (VI) Continuously Optimizing Talent Development and Incentive Mechanisms to Stabilize Team Cohesion Adhering to a 'people-oriented' principle, the company continuously optimized its talent development and incentive mechanisms by providing a diverse workplace, competitive salaries, training resources, and career development opportunities. During the reporting period, the 2025 stock option incentive plan was implemented, granting 19,983,400 stock options to 3,361 incentive recipients to stabilize the core team and share development achievements - The company continuously improved its talent training system through the OV-Learning online training platform[92] - During the reporting period, the company implemented the 2025 stock option incentive plan, completing the registration of 19,983,400 stock options for 3,361 incentive recipients[93] (VII) Enhancing Shareholder Returns and Consolidating Market Trust The company highly values investor returns, enhancing shareholder value by canceling repurchased shares and continuously promoting multiple cash dividends annually. During the reporting period, the 2024 annual equity distribution was completed, with a cash dividend of RMB 2.20 (tax inclusive) per 10 shares, totaling RMB 264 million, and the Board of Directors was authorized to formulate the 2025 interim profit distribution plan - The company has canceled 11,213,200 repurchased shares, with a corresponding reduction in registered capital[94] - The company completed the 2024 annual equity distribution on August 1, 2025, distributing a cash dividend of RMB 2.20 (tax inclusive) per 10 shares, totaling RMB 264 million[94] - The company's general meeting of shareholders has authorized the Board of Directors to determine the 2025 interim profit distribution plan, continuing to implement multiple cash dividends annually[94] (VIII) Implementing Science-Based Carbon Targets to Deepen Company's Sustainable Development The company established a three-tier ESG governance structure, committed to achieving a win-win for economic and social responsibilities. During the reporting period, its subsidiary, OmniVision Technologies, Inc., formulated and received SBTi approval for its near-term, long-term, and net-zero science-based carbon targets based on the latest greenhouse gas accounting system, deepening the company's commitment to sustainable development - The company established a three-tier ESG governance structure comprising the Board of Directors, ESG Committee, and ESG Working Group[96] - The near-term, long-term, and net-zero science-based carbon targets of its subsidiary, OmniVision Technologies, Inc., were approved by SBTi during the reporting period[96] 3. Analysis of Core Competencies During the Reporting Period The company's core competencies include strong R&D capabilities, leading core technologies (e.g., CMOS image sensors, LCOS, TDDI, power management chips), global brand recognition, extensive product lines, a flexible Fabless business model, stable supply chain and customer advantages, and a highly qualified sales, service, and talent team - R&D Capability Advantage: The company's semiconductor design and sales business invested RMB 1.72 billion in R&D, accounting for 14.90% of revenue, and holds 4,761 authorized patents[97] - Core Technology Advantage: Significant technological advantages accumulated in CMOS image sensor circuit design, packaging, and digital image processing, including BSI, PureCel®Plus, RGB-Ir, TheiaCel™, CameraCubeChip®, LCOS, TDDI, discrete devices, and power management chips[98][99][100][101][102] - Brand Recognition Advantage: One of the top three global CMOS image sensor suppliers, with leading market shares in numerous niche markets[103] - Product Line Advantage: Extensive range and application of CMOS image sensors, covering smartphones, automotive electronics, medical, security, smart glasses, panoramic and sports cameras, and actively integrating into the 'AI+' technology wave[104] - Asset-Light Business Model Advantage: The Fabless model enables the company to be efficient and flexible, focusing on R&D design, and establishing long-term partnerships with mainstream foundries[105] - Supply Chain and Customer Advantage: Formed long-term partnerships with internationally renowned and domestically leading foundries, with products demonstrating synergistic effects[106] - Sales and Service Advantage: Possesses a highly skilled FAE team capable of rapidly introducing products to market and providing technical support[107] - Talent and Team Advantage: Boasts an R&D team rich in technological innovation and a high-caliber management team, with a stable core team over the long term[109] 4. Key Operating Performance During the Reporting Period This section analyzes the company's key operating performance during the reporting period, including reasons for financial statement item changes, asset and liability status, investment activities, and the operating performance of major controlled and associate companies. The company achieved growth in both operating revenue and total profit, maintained a stable asset-liability structure, conducted investment activities aligned with its development strategy, and its major subsidiaries operated well - Operating revenue increased by 15.42% year-on-year, primarily due to the continuous penetration of image sensor products in automotive intelligent driving and sports camera application markets[110] - Total profit increased by 45.88% year-on-year, and net profit attributable to listed company shareholders increased by 48.34% year-on-year[22] - Net cash flow from operating activities increased by 3.66% year-on-year, primarily due to increased cash received from sales of goods and provision of services[110][111] - Net cash flow from investing activities decreased by 143.68% year-on-year, primarily due to increased cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets[110][111] - Net cash flow from financing activities increased by 116.27% year-on-year, primarily due to decreased cash paid for debt repayment[110][111] (I) Main Business Analysis This section analyzes the changes in the company's main financial statement items, indicating that the growth in operating revenue and cost of sales was primarily influenced by expanded sales volume, while the improvement in gross margin resulted from product structure optimization and cost control. Financial expenses decreased due to increased interest income and exchange gains/losses, while R&D and selling expenses rose due to increased employee compensation Analysis Table of Changes in Financial Statement Items | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13.96 billion | 12.09 billion | 15.42 | | Cost of Sales | 9.70 billion | 8.57 billion | 13.24 | | Selling Expenses | 269.33 million | 264.08 million | 1.99 | | Administrative Expenses | 339.49 million | 340.71 million | -0.36 | | Financial Expenses | -6.41 million | 6.14 million | -204.39 | | R&D Expenses | 1.36 billion | 1.26 billion | 8.70 | | Net Cash Flow from Operating Activities | 1.89 billion | 1.82 billion | 3.66 | | Net Cash Flow from Investing Activities | -1.24 billion | -508.27 million | -143.68 | | Net Cash Flow from Financing Activities | 436.28 million | -2.68 billion | 116.27 | - The growth rate of cost of sales was lower than that of operating revenue, primarily due to factors such as product mix optimization and cost control, leading to an increase in the company's gross profit margin[111] - The change in financial expenses was mainly due to increased interest income and exchange gains/losses[111] (III) Analysis of Assets and Liabilities This section analyzes the changes in the company's assets and liabilities at period-end. Notes receivable, other receivables, long-term receivables, deferred income tax assets, and other non-current assets all showed significant growth, primarily reflecting increases in bank acceptance bills, temporary payments, overseas tax refunds, unrealized profits from internal transactions, and prepayments for equipment. On the liability side, short-term borrowings, accounts payable, non-current liabilities due within one year, and other current liabilities also increased substantially, mainly due to increased bank borrowings, quarterly procurement fluctuations, and maturing long-term borrowings. Overseas assets accounted for 60.50% of total assets, primarily comprising Beijing OmniVision's overseas subsidiaries and OmniVision Display Solutions and its overseas subsidiaries Changes in Assets and Liabilities | Item Name | Period-End Amount (RMB) | Period-End % of Total Assets | Prior Year-End Amount (RMB) | Prior Year-End % of Total Assets | Period-End Change vs. Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 76.01 million | 0.18 | 24.40 million | 0.06 | 211.50 | Mainly due to an increase in the company's bank acceptance bills | | Other Receivables | 86.76 million | 0.20 | 57.80 million | 0.15 | 50.10 | Mainly due to an increase in the company's other temporary payments | | Long-Term Receivables | 9.90 million | 0.02 | 3.23 million | 0.01 | 206.35 | Mainly due to the company's receivables from overseas tax refunds | | Deferred Income Tax Assets | 635.25 million | 1.50 | 400.68 million | 1.03 | 58.54 | Mainly due to an increase in the company's unrealized profits from internal transactions | | Other Non-Current Assets | 316.28 million | 0.74 | 161.58 million | 0.41 | 95.74 | Mainly due to an increase in the company's prepayments for equipment | | Short-Term Borrowings | 1.58 billion | 3.71 | 1.09 billion | 2.79 | 45.12 | Mainly due to an increase in the company's bank borrowings in the current period | | Accounts Payable | 2.70 billion | 6.37 | 1.94 billion | 4.97 | 39.74 | Mainly due to quarterly procurement fluctuations | | Non-Current Liabilities Due Within One Year | 3.62 billion | 8.53 | 2.65 billion | 6.81 | 36.57 | Mainly due to an increase in long-term borrowings due within one year | | Other Current Liabilities | 6.21 million | 0.01 | 2.00 million | 0.01 | 210.21 | Mainly due to an increase in the company's endorsed notes receivable that cannot be derecognized in the current period | | Deferred Income | 41.14 million | 0.10 | 22.02 million | 0.06 | 86.80 | Mainly due to an increase in the company's government grants in the current period | - Overseas assets amounted to RMB 25.70 billion, accounting for 60.50% of total assets[114] Operating Performance of Major Overseas Assets | Overseas Asset Name | Reason for Formation | Operating Model | Operating Revenue for the Reporting Period (RMB Million) | Net Profit for the Reporting Period (RMB Million) | | :--- | :--- | :--- | :--- | :--- | | Beijing OmniVision Overseas Subsidiaries | Enterprise merger under common control | Independent operation | 9.67 billion | 1.94 billion | | OmniVision Display Solutions and its Overseas Subsidiaries | Establishment | Independent operation | 458.55 million | -57.29 million | (IV) Analysis of Investment Status This section analyzes the company's investment status, indicating that all investments align with the company's development strategy, contributing to enhanced technological capabilities and competitiveness, and generating investment returns. Financial assets measured at fair value totaled RMB 5.34 billion at period-end, primarily comprising stocks, private equity funds, and other investments, with positive fair value changes for stocks and private equity funds - The company's investment activities align with its development strategy, contributing to business growth, identifying new profit opportunities, enhancing technological capabilities and competitiveness, and achieving investment returns[115] Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB Million) | Fair Value Change in Current Period (RMB Million) | Cumulative Fair Value Change in Equity (RMB Million) | Impairment Provision in Current Period (RMB Million) | Purchases in Current Period (RMB Million) | Sales/Redemptions in Current Period (RMB Million) | Other Changes (RMB Million) | Ending Balance (RMB Million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 1,646.36 | 58.30 | -417.77 | | 19.06 | 0.09 | 0.00 | 1,723.80 | | Private Equity Funds | 2,698.11 | 17.43 | 198.00 | | 51.85 | | | 2,861.69 | | Others | 767.38 | 1.56 | -1.47 | | 210.00 | 210.31 | -14.95 | 753.68 | | Total | 5,111.84 | 77.30 | -419.23 | | 427.06 | 262.17 | -14.87 | 5,339.17 | (VI) Analysis of Major Controlled and Associate Companies This section analyzes the operating performance of Beijing OmniVision, the company's major controlled subsidiary, which achieved RMB 10.38 billion in operating revenue and RMB 1.92 billion in net profit during the reporting period. Concurrently, the company acquired and disposed of several subsidiaries during the reporting period, but these had no significant impact on overall production, operations, or performance Financial Performance of Major Subsidiary Beijing OmniVision | Company Name | Company Type | Main Business | Registered Capital (USD) | Total Assets (RMB Million) | Net Assets (RMB Million) | Operating Revenue (RMB Million) | Operating Profit (RMB Million) | Net Profit (RMB Million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing OmniVision | Subsidiary | Technology transfer, IC design, software development, sales, etc. | 129,750.00 | 26,840.66 | 21,988.75 | 10,378.98 | 2,246.07 | 1,921.23 | - During the reporting period, the company sold Shenzhen Tianqin Huizhi Technology Co., Ltd., deregistered Anhao Technology (Tianjin) Co., Ltd., and established Chongqing Jinghongzhi Electronics Co., Ltd., Sibico Integrated Circuit Design (Shanghai) Co., Ltd., and OmniVision International (Cayman) Company Limited, with no significant impact on overall production, operations, or performance[120] 5. Other Disclosures This section discloses potential market changes, operational, financial, and tax risks, as well as the controlling shareholder's equity pledge status. Concurrently, the company actively practices an 'investor-centric' philosophy, enhancing operational quality and market trust through measures such as focusing on main businesses, improving investment returns, strengthening technological barriers, enhancing investor communication, and perfecting corporate governance - The company faces market change risks, including macroeconomic fluctuations, lower-than-expected growth in downstream markets, and product seasonality and cyclicality[120][121] - Operational risks include relatively concentrated downstream customer business areas, uncertainties in outsourced processing capacity assurance and procurement unit price changes, and new product development not being recognized by the market[121][122] - Financial risks include bad debts from accounts receivable, large inventory scale, and exchange rate and interest rate fluctuation risks[123][124] - Changes in tax preferential policies may lead to an increase in the company's income tax burden[125] - Controlling shareholder Mr. Yu Renrong and his concerted parties collectively hold 33.88% of the company's shares, with 18.06% cumulatively pledged, posing a risk of a relatively high equity pledge ratio[125] - The company focused on its main business, with operating revenue and net profit attributable to the parent company growing by 15.49% and 48.34%, respectively[127] - The company has implemented multiple cash dividends annually and canceled 11,213,200 repurchased shares, enhancing investment returns[128] - The company's R&D investment was RMB 1.72 billion, accounting for 14.90% of semiconductor design and sales business revenue, and it holds 4,761 authorized patents, continuously strengthening its technological barriers[129] - The company strengthened investor communication through diversified channels such as performance briefings, SSE e-interaction, and investor engagement activities, and formulated a market capitalization management system[129][130] - The company revised its Articles of Association to abolish the Supervisory Board, with its functions now exercised by the Board's Audit Committee, and strengthened the compliant performance of duties by 'key individuals'[130] (I) Potential Risks The company faces multiple risks from market changes, operations, finance, and taxation. Market risks stem from macroeconomic fluctuations and uncertainties in downstream market demand; operational risks include high customer concentration, fluctuations in outsourced processing capacity and costs, and new product development not gaining market acceptance; financial risks involve accounts receivable bad debts, large inventory scale, and exchange rate and interest rate fluctuations; tax risks are related to changes in preferential tax policies. Additionally, a high equity pledge ratio by the controlling shareholder also constitutes a potential risk - Market Change Risks: The semiconductor industry is affected by macroeconomic fluctuations; lower-than-expected growth in downstream markets (consumer electronics, security, automotive, medical, smart glasses, machine vision, panoramic and sports cameras) or delayed customer sales promotion may adversely impact the company's sales volume[120][121] - Operational Risks: Downstream customer business areas are relatively concentrated, and fluctuations in major customer operations or intensified competition may affect performance; under the Fabless model, there are uncertainties in wafer fab and packaging/testing plant capacity assurance and procurement unit price changes; if new product development fails to timely grasp market demand, it may impact market competitiveness[121][122] - Financial Risks: Net accounts receivable of RMB 4.45 billion, accounting for 18.27% of current assets, may lead to bad debts if not recovered on time; net inventory of RMB 7.95 billion, accounting for 32.66% of current assets, may impact performance and cash flow if not sold smoothly; faces exchange rate fluctuation risks for financial assets and liabilities denominated in foreign currencies such as USD and HKD; bank borrowings face interest rate fluctuation risks[123][124] - Tax Risks: Changes in preferential tax policies in various countries or regions in the future may lead to an increase in the company's income tax burden[125] - Equity Pledge Risk: Controlling shareholder Mr. Yu Renrong and his concerted parties collectively hold 33.88% of the company's shares, with 18.06% cumulatively pledged, posing a risk of a relatively high equity pledge ratio[125] (II) Other Disclosure Items The company actively practices an 'investor-centric' philosophy, enhancing operational quality and market trust through measures such as focusing on main businesses, improving investment returns, strengthening technological barriers, enhancing investor communication, and perfecting corporate governance. During the reporting period, the company achieved significant growth in both main business revenue and net profit attributable to the parent company, and has implemented multiple cash dividends and share repurchases/cancellations. The company continuously increased R&D investment, holds numerous patents, and actively improved investor relations management and corporate governance systems - Focusing on Main Business, Accelerating Operational Quality Improvement: Main business revenue reached RMB 13.94 billion, a 15.49% year-on-year increase; net profit attributable to the parent company was RMB 2.03 billion, a 48.34% year-on-year increase[127] - Effectively Enhancing Investment Returns, Conveying Long-Term Investment Confidence: Implemented 2024 interim and annual profit distribution plans, distributing a total of RMB 504 million in cash dividends; 11,213,200 repurchased shares have been canceled[128] - Technological Barriers Continuously Strengthened, R&D Investment Accelerated Conversion: Semiconductor design and sales business R&D investment was RMB 1.72 billion, a 9.01% year-on-year increase; holds 4,761 authorized patents[129] - Strengthening Investor Communication Channels, Improving Company Market Capitalization Management: Responded to investor concerns and published company information through various channels, and formulated 'Market Capitalization Management System' and 'Public Opinion Management System'[129][130] - Adhering to Standardized Operations, Enhancing Governance Level: Revised the Articles of Association according to the 'Guidelines for Articles of Association of Listed Companies (2025 Revision)', abolishing the Supervisory Board, with its functions now exercised by the Board's Audit Committee[130] - Implementing Responsibilities of 'Key Individuals', Steadily Enhancing Performance Capabilities: Strengthened the sense of responsibility and compliance awareness of controlling shareholders, actual controllers, directors, supervisors, and senior management through training and daily reminders[130] Part IV Corporate Governance, Environment, and Society This section details the company's governance structure, including changes in directors and senior management, profit distribution plans, equity incentive programs, and its commitment to environmental and social responsibilities 1. Changes in Company Directors and Senior Management This section discloses the latest changes in the company's Board of Directors and senior management, including newly elected directors, appointed senior management, and departing personnel, ensuring transparency in the corporate governance structure - The members of the company's Seventh Board of Directors include Yu Renrong (Chairman), Wu Xiaodong, Lu Dalong, Jia Yuan (Deputy General Manager), Qiu Huanping (Employee Director), Chen Yu, Fan Mingxi (Independent Director), Mou Lei (Independent Director), and Zhu Liting (Independent Director)[132] - Wang Song was appointed as the company's General Manager, Xu Xing as Chief Financial Officer, and Ren Bing as Board Secretary[132] - Chen Zhibin resigned as director, and Wu Xingjun and Hu Renyu resigned as independent directors[132] 2. Profit Distribution or Capital Reserve Conversion Plan This section states that the company did not formulate a semi-annual profit distribution or capital reserve conversion to share capital plan during the reporting period, but has authorized the Board of Directors to formulate the 2025 interim profit distribution plan to continuously enhance shareholder returns - During the reporting period, the company did not formulate a semi-annual profit distribution plan or a capital reserve conversion to share capital plan[133] - The company has authorized the Board of Directors to formulate the 2025 interim profit distribution plan, provided profit distribution conditions are met[133] 3. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section discloses the progress of the company's equity incentive plans, including the completion of the 2025 stock option incentive plan grant registration, with 19,983,400 stock options granted to 3,361 incentive recipients. Concurrently, some 2022 stock options were canceled due to unmet performance targets, and the exercise of the first exercise period of the 2023 Phase I stock option incentive plan was processed - The company completed the grant registration for the 2025 stock option incentive plan on May 23, 2025, granting a total of 19,983,400 stock options to 3,361 incentive recipients[135] - Due to the company's 2024 performance not meeting the third exercise period performance targets stipulated in the '2022 Stock Option Incentive Plan', the company canceled 6,064,828 stock options[135] - The exercise conditions for the first exercise period of the '2023 Phase I Stock Option Incentive Plan' have been met, and 2,260,630 stock options were processed for 747 incentive recipients[135] Part V Significant Matters This section outlines the company's fulfillment of commitments, significant related-party transactions, major contracts, use of raised funds, and other material events impacting its operations and financial position 1. Fulfillment of Commitments This section details the various commitments made by the company's controlling shareholder, actual controller, directors, and senior management in the context of major asset restructuring, initial public offering, and refinancing, including maintaining the listed company's independence, regulating related-party transactions, avoiding horizontal competition, measures to mitigate dilution of immediate returns, and share lock-up, stating that all commitments were strictly fulfilled during the reporting period - The controlling shareholder and actual controller committed to maintaining the listed company's independence in personnel, assets, finance, organization, and business[139][140][141] - The controlling shareholder and actual controller committed to regulating related-party transactions, avoiding improper benefit transfers, and legally fulfilling recusal obligations[142][144] - The controlling shareholder and actual controller committed to avoiding horizontal competition, not directly or indirectly engaging in businesses identical to the company's scope of operations[145] - The listed company's directors, senior management, controlling shareholder, and actual controller committed to implementing compensatory measures, not overstepping authority to interfere with company operations, not encroaching on company interests, and restricting job-related consumption[146][153][155] - Controlling shareholder Yu Renrong committed that within two years after the share lock-up period expires, the reduction in shares will not exceed 5%, and the reduction price will not be lower than the offering price[151] - All commitments were strictly fulfilled during the reporting period, with no unfulfilled situations[138] 10. Significant Related-Party Transactions This section discloses related-party transactions during the reporting period with associate companies Jiangsu Weida Semiconductor Co., Ltd. and Xinghao Communication Technology (Zhejiang) Co., Ltd. for goods purchase/sale and service provision, as well as related-party leases with Shanghai Weicheng Apartment Management Co., Ltd. and Xinghao Communication Technology (Zhejiang) Co., Ltd Table of Goods Purchased/Services Received | Related Party | Related Transaction Content | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Weida Semiconductor Co., Ltd. | Semiconductor chips | 4.50 million | 1.96 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Semiconductor chips | 4.16 million | 0 | Table of Goods Sold/Services Provided | Related Party | Related Transaction Content | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Weida Semiconductor Co., Ltd. | Semiconductor chips | 0.30 million | 0.02 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Provision of services | 0.50 million | 0.76 million | Related-Party Leases as Lessor | Lessee Name | Type of Leased Asset | Lease Income Recognized in Current Period (RMB) | Lease Income Recognized in Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Shanghai Weicheng Apartment Management Co., Ltd. | Buildings and structures | 4.36 million | 4.51 million | | Xinghao Communication Technology (Zhejiang) Co., Ltd. | Buildings and structures | 0.02 million | 0.66 million | 11. Significant Contracts and Their Fulfillment This section discloses significant guarantees provided by the company for its subsidiaries during the reporting period. The company provided loan guarantees and non-financing letter of guarantee for Shanghai OmniVision Integrated Circuit Group Co., Ltd., with the total guarantee amount accounting for 0.41% of the company's net assets, and all guarantees were provided for guaranteed parties with an asset-liability ratio exceeding 70% Company Guarantees for Subsidiaries | Indicator | Amount (RMB) | | :--- | :--- | | Total Guarantee Amount for Subsidiaries in Current Period | 387.18 million | | Total Guarantee Balance for Subsidiaries at Period-End (B) | 106.42 million | | Total Guarantee Amount (A+B) | 106.42 million | | Total Guarantee Amount as % of Company's Net Assets (%) | 0.41 | | Debt Guarantee Amount Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 106.42 million | - The company provided loan guarantees and non-financing letter of guarantee for Shanghai OmniVision Integrated Circuit Group Co., Ltd.[182][183] 12. Explanation of Progress in Use of Raised Funds The company's convertible bond fundraising project, 'Wafer Color Filter and Micro-Lens Packaging Project,' was fully completed and closed in 2024. The company has permanently supplemented working capital with a cumulative RMB 382.14 million (including interest income) of remaining raised funds and completed the closure of relevant special fundraising accounts to maximize fund utilization efficiency - The company's convertible bond fundraising project, "Wafer Color Filter and Micro-Lens Packaging Project," has been completed and closed[163] - The company has permanently supplemented working capital with a cumulative RMB 382.14 million (including interest income) of remaining raised funds and completed the closure of relevant special fundraising accounts[163] Part VI Share Changes and Shareholder Information This section provides an overview of the company's share capital changes, detailed shareholder information, and the shareholding status of its directors and senior management 1. Share Capital Changes During the reporting period, the company's total share capital increased by 1,047,114 shares due to autonomous exercise of stock options and conversion of convertible corporate bonds, reaching a total share capital of 1,217,170,649 shares, with minimal impact on earnings per share and net assets per share Table of Share Changes | | Number Before Change | Percentage Before Change (%) | Change in Current Period (+, -) Subtotal | Number After Change | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Unrestricted Tradable Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | | 1. RMB Ordinary Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | | III. Total Shares | 1,216,123,535 | 100.00 | 1,047,114 | 1,217,170,649 | 100.00 | - During the reporting period, the company's incentive recipients exercised and completed share transfer registration for a total of 1,044,901 shares, with a corresponding increase in the company's total share capital[168] - The number of shares formed by the conversion of the company's "Will Convertible Bonds" was 2,213 shares, with a corresponding increase in the company's total share capital[169] 2. Shareholder Information As of the end of the reporting period, the total number of ordinary shareholders was 144,124. Among the top ten shareholders, Yu Renrong held 27.40% as the largest shareholder, and Hong Kong Securities Clearing Company Limited held 13.37%. Yu Renrong and his concerted party, Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership), collectively held 33.57% of the company's shares, with some shares held by Yu Renrong and Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership) being pledged - As of the end of the reporting period, the total number of ordinary shareholders was 144,124[171] Top Ten Shareholders' Shareholding Status | Shareholder Name | Number of Shares Held at Period-End (shares) | Percentage (%) | Status of Pledge, Mark, or Freeze | Number of Shares (shares) | | :--- | :--- | :--- | :--- | :--- | | Yu Renrong | 333.47 million | 27.40 | Pledged | 173.71 million | | Hong Kong Securities Clearing Company Limited | 162.71 million | 13.37 | None | 0 | | Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership) | 74.13 million | 6.09 | Pledged | 56.90 million | | Ningbo Oriental Institute of Technology Education Foundation | 47.10 million | 3.87 | None | 0 | | Qingdao Rongtong Minhe Investment Center (Limited Partnership) | 25.76 million | 2.12 | None | 0 | | Industrial and Commercial Bank of China - SSE 50 ETF | 16.69 million | 1.37 | None | 0 | | Shanghai Will Semiconductor Co., Ltd. Repurchase Special Securities Account | 15.13 million | 1.24 | None | 0 | | China Construction Bank Corporation - HuaXia CSI Semiconductor Chip ETF | 14.71 million | 1.21 | None | 0 | | Industrial and Commercial Bank of China - Huatai-PineBridge CSI 300 ETF | 12.85 million | 1.06 | None | 0 | | Goldman Sachs International - Proprietary Funds