Giantec Semiconductor(SH:688123)2020-04-16 16:00Financial Performance - The company's operating revenue for 2019 was CNY 513,371,895.61, representing an 18.78% increase from CNY 432,192,234.81 in 2018[30]. - The net profit attributable to shareholders for 2019 was CNY 95,106,151.48, a 24.95% increase compared to CNY 76,115,342.30 in 2018[30]. - The net profit after deducting non-recurring gains and losses for 2019 was CNY 97,911,555.97, showing a 2.69% increase from CNY 95,346,260.17 in 2018[30]. - The company's total assets at the end of 2019 were CNY 1,415,897,723.66, a 252.06% increase from CNY 402,178,891.26 at the end of 2018[30]. - The net assets attributable to shareholders at the end of 2019 were CNY 1,328,307,256.42, reflecting a 299.19% increase from CNY 332,752,811.74 at the end of 2018[30]. - The basic earnings per share for 2019 was CNY 1.05, up 25.00% from CNY 0.84 in 2018[32]. - The company achieved a total revenue of 7,239.50 million RMB, with a gross profit of 5,478.59 million RMB, indicating a strong performance in the semiconductor market[137]. - The company achieved an annual revenue of 513.37 million RMB, representing a year-on-year growth of 18.78%[160]. - The net profit attributable to shareholders was 95.11 million RMB, an increase of 24.95% compared to the previous year[160]. Research and Development - The company's R&D expenditure as a percentage of operating revenue was 11.24% in 2019, down from 14.67% in 2018[34]. - The total R&D investment for the reporting period was ¥57,707,719.93, accounting for 11.24% of the operating revenue[126]. - The company has developed 25 core technologies related to its main business, covering EEPROM chips, voice coil motor driver chips, and smart card chips, with 21 technologies reaching a mature and stable stage[122]. - The company has filed for or obtained patents for 20 core technologies, ensuring protection of its intellectual property[122]. - The company has a strong R&D team, with a total of 64 personnel, of which 46.88% hold a master's degree or higher, and the average salary for R&D personnel is 457,679.22 RMB[140][142]. - The company is focusing on expanding its product offerings in the audio amplifier chip and micro motor driver chip markets, leveraging its strong analog and mixed-signal R&D capabilities[146]. Market Position and Competition - The company ranked third globally in EEPROM product supply in 2018, holding approximately 8.17% market share, and ranked first among domestic EEPROM companies[50]. - The company became the leading supplier of smartphone camera EEPROM products in 2018, capturing about 42.72% of the global market share in this segment[50]. - The company holds a dominant position in the smartphone camera EEPROM market with a 42.72% share, making it the largest supplier in this segment[104]. - The voice coil motor driver chip business has a global market share of approximately 0.63%, indicating significant room for growth[109]. - The company faces significant competition in the voice coil motor driver chip market, with major players holding a combined market share of 75.5%[109]. - The company is exposed to risks from macroeconomic fluctuations and trade tensions, which could impact demand for its products[178]. Corporate Governance and Compliance - The company has disclosed potential risks in the "Discussion and Analysis of Operating Conditions" section, urging investors to review these risks[7]. - The company received a standard unqualified audit report from Lixin Certified Public Accountants[8]. - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[6]. - There are no non-operating fund occupations by controlling shareholders or related parties[11]. - The company does not have any special arrangements for corporate governance[10]. - The company has not violated decision-making procedures for external guarantees[11]. - The annual report includes a forward-looking statement risk declaration, reminding investors of investment risks[10]. Sales and Production - The company reported quarterly revenues of 111.69 million RMB, 127.92 million RMB, 142.17 million RMB, and 131.59 million RMB for Q1, Q2, Q3, and Q4 of 2019, respectively[42]. - The sales volume of the company's main products in the reporting period was 1.715 billion EEPROM chips, 57 million voice coil motor driver chips, and 471 million smart card chips, representing year-on-year growth of 35.91%, 133.62%, and 65.82% respectively[159]. - The corresponding sales revenue for these products was 452.51 million yuan, 12.21 million yuan, and 47.61 million yuan, with year-on-year growth of 17.38%, 105.76%, and 23.30% respectively[159]. - The company's EEPROM product revenue accounted for over 80% of total revenue in the past three years, driven by the upgrade of smartphone camera modules and the development of IoT[161]. - The company has established long-term stable partnerships with leading smartphone camera module manufacturers, with its EEPROM products applied in major brands like Samsung, Huawei, and Xiaomi[166]. Risks and Challenges - The company faces risks from intensified market competition and potential price declines in its products due to aggressive pricing strategies from competitors[168]. - The company is committed to maintaining a stable supply chain despite fluctuations in downstream market demand, ensuring consistent product availability[165]. - The company experienced a decline in cash flow from operating activities, with a net cash flow of CNY 73,773,739.34 in 2019, down 18.10% from CNY 90,078,171.54 in 2018[30]. - The gross margin for the integrated circuit segment decreased by 5.09 percentage points to 40.78% due to a reduction in the average selling price of EEPROM products[187]. Investment and Future Plans - The company plans to enhance its R&D capabilities and increase investment in product development to adapt to changing market demands[40]. - The company plans to expand its R&D investment to enhance existing product lines and explore new markets such as automotive electronics and DDR5 memory[164]. - The company is actively pursuing technology upgrades and design improvements to optimize chip area and significantly reduce chip costs, enhancing market competitiveness[145].