BEKEN(SH:603068)2021-08-30 16:00Financial Performance - The company's revenue increased by 192.27 million yuan, a growth of 58.43% compared to the same period last year[21]. - Net profit decreased by 17.06 million yuan, a decline of 34.12% year-on-year[21]. - Basic and diluted earnings per share fell to 0.22 yuan, down 38.89% from 0.36 yuan in the previous year[21]. - The weighted average return on net assets decreased to 1.64%, down 2.25 percentage points from 3.89% in the previous year[21]. - The company reported a basic earnings per share after deducting non-recurring gains and losses of 0.18 yuan, a decrease of 45.45% from 0.33 yuan[21]. - The company's revenue for the first half of the year reached ¥521,324,829.28, a 58.43% increase compared to ¥329,056,524.58 in the same period last year[22]. - Net profit attributable to shareholders decreased by 34.12% to ¥32,943,671.98 from ¥50,004,990.05 year-on-year[22]. - The company reported a total comprehensive income of ¥32,818,994.03, down from ¥50,074,890.43 in the previous year, reflecting a decrease of 34.5%[118]. Research and Development - Research and development expenses increased by over ¥45 million, exceeding 110% compared to the previous year, impacting net profit levels[23]. - The company has completed the R&D iteration of its new generation Bluetooth audio TWS products, which have been introduced to some customers[21]. - The company has successfully launched the world's first IoT chip supporting Wi-Fi 6, and its new generation 40nm Wi-Fi MCU chip has entered mass production, enhancing its competitive position in the market[42]. - Research and development expenses amounted to ¥86,580,370.89, a significant increase of 110.51% from ¥41,128,514.89 year-on-year, reflecting the company's commitment to innovation[48][49]. Sales and Market Position - The sales revenue of Wi-Fi MCU chip products continued to grow, significantly contributing to the overall revenue increase[21]. - The new generation of Wi-Fi chip products has improved gross margin and sales proportion, although supply remains insufficient due to industry capacity constraints[21]. - The sales of Bluetooth audio TWS new products are gradually ramping up, with expectations for continued performance contributions[21]. - The company has established a leading position in the domestic market for wireless ICs, particularly in consumer electronics and industrial applications[35]. Financial Management - The net cash flow from operating activities increased by ¥137,950,246.90, primarily due to higher sales revenue and good collection conditions[26]. - The company's cash and cash equivalents decreased by 18.46% to ¥1,098,427,513.62 from ¥1,347,065,540.56, as funds were reallocated for cash management purposes[51]. - The company has maintained a stable supply chain with key partners, ensuring production capacity and product quality amid a challenging semiconductor industry environment[45]. - The company reported a cash and cash equivalents balance of RMB 1,098,427,513.62 at the end of June 2021, compared to RMB 636,762,336.67 at the end of June 2020[125]. Shareholder and Equity Information - The company has established 100% ownership in several subsidiaries focused on integrated circuits, including locations in Hong Kong, Shenzhen, Beijing, and Zhejiang[55]. - The total number of shares after the non-public offering increased to 150,424,966 shares, with a registered capital increase of RMB 11,711,432[90]. - Beken Corporation holds 30,340,103 shares, representing 20.17% of total shares, with no restrictions on trading[93]. - The company has a total of 30,340,103 shares under lock-up conditions, with the earliest release in April 2022[96]. Risks and Challenges - The company faces risks in new product development due to long R&D cycles and potential misjudgment of market demand, which could delay product launches and affect cost recovery[57]. - The competitive landscape is intensifying, with significant competition from well-funded international firms and domestic chip design companies, potentially impacting market share and profitability[58]. - The company acknowledges the risk of talent loss in the highly competitive chip design industry, which could impact R&D capabilities and profitability[59]. Corporate Governance and Compliance - The company has established a comprehensive internal control system to ensure effective governance and product quality, which is critical for its sustainable development[46]. - The company has committed to not reducing shares below the IPO price during any planned reductions[73]. - The company guarantees that it will not exploit its position to harm Broadcom or its minority shareholders, nor seek undue benefits[76]. - The company will ensure that all transactions with Broadcom Integration are conducted at fair market prices, avoiding any potential conflicts[78]. Legal Matters - The company is involved in a significant lawsuit regarding patent infringement, claiming damages of RMB 98,113,882 from two defendants[81]. - The company has filed a patent infringement lawsuit in the U.S. against a competitor, seeking damages for losses incurred due to the infringement of its U.S. patent[81]. - There are no significant litigation or arbitration matters that have not been disclosed in the interim announcements[82]. Future Plans and Strategies - The company plans to continue investing in the IoT field to enhance sales revenue and gross margin of Wi-Fi series products[21]. - The company plans to invest RMB 100 million in a private equity fund to support the development of integrated circuits and artificial intelligence, enhancing its growth potential and shareholder value[84]. - The company aims to strengthen its core competitive advantages and expand its market presence to achieve dual improvements in revenue and profitability[74].