ArcSoft(SH:688088)2021-04-25 16:00Dividend and Share Capital - The company plans to distribute a cash dividend of 2.60 RMB per 10 shares, totaling approximately 105.44 million RMB, which accounts for 41.93% of the net profit attributable to shareholders for 2020[7]. - The total share capital as of April 23, 2021, is 406 million shares, with 447,873 shares in the repurchase account not participating in the dividend distribution[7]. - The company has not indicated any changes in its total share capital that would affect the dividend distribution prior to the record date[7]. Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the fiscal year, representing a 20% year-over-year growth[26]. - The company's operating revenue for 2020 was ¥683.19 million, representing a year-on-year increase of 21.03% compared to ¥564.48 million in 2019[34]. - Net profit attributable to shareholders for 2020 was ¥251.46 million, up 19.53% from ¥210.37 million in 2019[34]. - The net profit after deducting non-recurring gains and losses was ¥196.42 million, an increase of 18.15% from ¥166.25 million in 2019[34]. - The net cash flow from operating activities decreased by 38.80% to ¥127.87 million, down from ¥208.94 million in the previous year[37]. - The weighted average return on equity decreased by 2.97 percentage points to 9.70% in 2020, down from 12.67% in 2019[38]. Research and Development - The company is investing 200 million CNY in R&D for new technologies, particularly in computer vision and biometric systems[26]. - Research and development expenses accounted for 37.98% of operating revenue, an increase of 3.23 percentage points from 34.75% in 2019[36]. - The company increased its R&D investment by 32.28% year-on-year, totaling approximately ¥259.47 million in the current year compared to ¥196.16 million in the previous year[143]. - The total number of patents increased by 53 during the reporting period, with 21 invention patents granted, bringing the cumulative total to 164[142]. - The company has established a core R&D team with a high proportion of master's and doctoral degree holders, enhancing its competitive advantage in technology[159]. Market Expansion and Product Development - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[26]. - New product launches are expected to contribute an additional 300 million CNY in revenue, with a focus on AI and IoT technologies[26]. - The company is expanding its product offerings from the smartphone sector to the automotive and AIoT industries, leveraging its existing technology and brand advantages[164]. - The company has developed three market-ready optical under-display fingerprint products, with an investment of ¥1.52 million this period and a total of ¥2.67 million to date[152]. Technology and Innovation - The company’s main business focuses on computer vision technology, providing algorithm licensing and system solutions, with major clients including Samsung, Huawei, Xiaomi, OPPO, and vivo[53]. - The company has developed a comprehensive product line for smartphone visual algorithms, including features such as depth camera shooting, 3D modeling, and AR/VR applications[53]. - The company is committed to continuous research and development in computer vision, aiming to maintain its position as a leading AI enterprise globally[53]. - The company has developed a smart optical super zoom solution featuring a periscope long-focus camera with continuous zoom capabilities[62]. - The company has upgraded its facial recognition technology to enhance security and user experience, including the ability to distinguish between live individuals and images[71]. Strategic Acquisitions and Partnerships - A strategic acquisition of a smaller tech firm was completed, expected to enhance the company's capabilities in AR and VR technologies[26]. - The company has established long-term partnerships with major players in the industry, ensuring rapid response to customer technical demands[163]. Risks and Challenges - The company has outlined potential risks in its operations, which are detailed in the report's section on risk factors[5]. - The rapid technological iteration cycle in the smartphone market is approximately 1-2 years, posing a risk of falling behind if the company fails to update its technology timely[188]. - The company faces risks related to core technology leakage despite having a strict confidentiality system in place[192]. - The company must continuously attract and retain high-level talent to support its growth in the competitive computer vision industry[199]. - The company’s management capabilities must adapt to the rapid expansion of its business scale and new industry challenges[200]. Customer and Revenue Insights - The top five customers contributed 383.55 million yuan in sales, accounting for 56.14% of the total annual sales[194]. - The company’s revenue from the intelligent driving business reached 65.93 million yuan in 2020, representing a year-on-year growth of 310.61%[193].