CETC Chips(SH:600877)2023-10-27 16:00Revenue Performance - The company's operating revenue decreased by CNY 185.36 million, a decline of 17.95% year-on-year, primarily due to a sluggish consumer electronics market and aggressive price reductions of 15%-30% on certain products[13] - Revenue from the 5G base station sector dropped by CNY 38.61 million, a significant decline of 67.76%[13] - The sales volume of the Beidou short message chip increased significantly, contributing to a year-on-year revenue growth of 87.39% in the electronic communication navigation sector[13] - New products, including industry satellite navigation and communication control chips, generated revenue of CNY 121.9972 million, accounting for 14.40% of total revenue, representing a growth of 1.97% compared to the previous year[13] - Operating revenue for the third quarter of 2023 was ¥279,749,692.55, representing a decline of 17.26% year-over-year[22] - The total operating revenue for the first three quarters of 2023 was ¥847,076,333.02, down from ¥1,032,437,885.72 in the same period of 2022, reflecting a decrease of about 17.92%[39] Profitability - The net profit attributable to shareholders, excluding non-recurring gains and losses, increased by 31.33% due to a 35.61% decrease in R&D expenses and a 3.18% increase in gross margin[7] - Net profit attributable to shareholders for the third quarter was ¥48,785,291.04, an increase of 16.56% compared to the same period last year[22] - The company reported a net profit of ¥102,794,969.39 for the year-to-date period, reflecting a decrease of 13.91% compared to the previous year[22] - The net profit attributable to shareholders decreased by ¥16,608,000, or 13.91%, compared to the same period last year[48] - The total comprehensive income for the first three quarters of 2023 was ¥102.79 million, down from ¥119.40 million in 2022, reflecting a decrease of about 13.9%[55] Cash Flow and Liquidity - Cash and cash equivalents increased by 69.91%, up CNY 335 million, mainly from the redemption of structured deposits and payments for project construction[7] - The company’s cash flow from operating activities for the year-to-date period was ¥53,006,612.76[22] - Cash flow from operating activities generated ¥53.01 million in the first three quarters of 2023, a significant improvement compared to a negative cash flow of ¥75.59 million in 2022[59] - The net increase in cash and cash equivalents for the first three quarters of 2023 was $347.2 million, a significant recovery from a decrease of $736.11 million in 2022[60] - The ending balance of cash and cash equivalents at the end of Q3 2023 was $805.92 million, a substantial increase from $193.86 million at the end of Q3 2022[60] Assets and Liabilities - The company's total assets as of September 30, 2023, amounted to ¥2,819,944,401.34, a decrease of 0.73% compared to ¥2,840,768,711.60 at the end of 2022[24] - The company’s equity attributable to shareholders increased by 4.76% to ¥2,262,736,713.90 compared to the end of the previous year[24] - The company's total liabilities decreased to ¥557,207,687.44 from ¥680,826,967.09, a reduction of about 18.09%[39] - The total equity attributable to shareholders increased to ¥2,262,736,713.90 from ¥2,159,941,744.51, marking an increase of approximately 4.76%[39] - As of September 30, 2023, the total current assets decreased to ¥2,530,581,736.81 from ¥2,678,872,929.12 as of December 31, 2022, representing a decline of approximately 5.52%[37] Research and Development - The company has accelerated the development of new products, including high-performance millimeter-wave frequency synthesizer chips and satellite communication SoCs, to adapt to market changes[34] - Research and development expenses decreased to ¥142.97 million in 2023 from ¥153.60 million in 2022, a decrease of approximately 6.9%[54] Other Financial Metrics - The average gross margin increased by 4.64% due to product upgrades and a decrease in raw material and processing costs, despite a reduction in gross profit by ¥8,609,700[48] - The company reported a decrease in other income by ¥678,770, or 23.75%, due to some government subsidy projects not reaching revenue recognition milestones[48] - The company’s financial expenses included interest expenses of ¥3.40 million in 2023, compared to ¥0.62 million in 2022, indicating an increase of approximately 448.4%[54] - The company reported a decrease in tax expenses to ¥2.09 million in 2023 from ¥2.94 million in 2022, a reduction of about 29%[54]