C*Core Technology(SH:688262)2022-04-21 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2021, representing a year-over-year growth of 25%[19]. - The company's operating revenue for 2021 was CNY 407,386,798.41, representing a 56.99% increase compared to 2020[32]. - The net profit attributable to shareholders for 2021 was CNY 70,204,594.27, reflecting a growth of 53.47% year-over-year[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 82.13% to CNY 43,801,025.88 in 2021[32]. - The net cash flow from operating activities for 2021 was CNY 83,914,165.90, a 6.06% increase from the previous year[32]. - The company's total assets grew by 418.92% year-over-year to CNY 2,977,711,602.83 by the end of 2021[32]. - The net assets attributable to shareholders increased by 494.73% to CNY 2,804,065,362.75 at the end of 2021[32]. - Basic earnings per share for 2021 were CNY 0.39, up 56.00% from CNY 0.25 in 2020[32]. - The company achieved sales revenue of 40,738.68 million yuan in 2021, up from 25,949.31 million yuan in 2020, representing a year-over-year growth of approximately 57.5%[126]. - The net profit for 2021 was 7,020.46 million yuan, an increase from 4,574.46 million yuan in 2020, indicating a growth of approximately 53.4%[126]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 60,000,000 CNY, which accounts for 85.46% of the net profit attributable to shareholders[7]. - The board of directors has approved the profit distribution plan, pending approval from the annual general meeting[7]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm Tianye[6]. - There are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures for external guarantees[10]. - The company has confirmed that all directors attended the board meeting[6]. - The company is committed to complying with regulatory requirements and improving corporate governance to protect investor rights[185]. Research and Development - The company is investing RMB 200 million in R&D for new semiconductor technologies in 2022[22]. - The R&D expenditure as a percentage of operating revenue decreased by 10.38 percentage points to 21.96% in 2021[32]. - The company has filed 11 patents in 2021, with a total of 175 applications and 118 granted patents as of December 31, 2021[97]. - Total R&D investment for the year was approximately ¥89.47 million, representing a 6.61% increase from the previous year, with R&D expenses accounting for 21.96% of operating revenue[99]. - The company has increased its R&D personnel to 158, representing 57.9% of the total workforce, up from 54.88% in the previous year[111]. Market and Product Development - The company expects a revenue growth of 30% for the upcoming fiscal year, projecting total revenue to reach RMB 1.56 billion[22]. - New product launches are anticipated to contribute an additional RMB 300 million in revenue in 2022[22]. - The company aims to address the domestic "chip shortage" in the automotive industry by actively developing automotive electronic chips[58]. - The company is actively pursuing customized chip design services in key national demand areas, focusing on domestic substitution and new client acquisition[46]. - The company has established strategic partnerships with major clients in the automotive electronics sector, enhancing its market presence and product recognition[49]. Risks and Challenges - The company has detailed potential risks in the annual report, which can be found in the management discussion and analysis section[5]. - The company’s reliance on government subsidies accounted for 7.56% of total revenue and 43.84% of total profit in the reporting period, highlighting potential risks if subsidy policies change[130]. - The company is facing competitive risks from ARM and emerging RISC-V architecture, which may impact its market share and operational performance[124]. - The company faced risks related to R&D failures, including potential impacts on product development and delivery timelines[133]. - The company is exposed to risks from rapid technological changes and the need to meet evolving customer demands in the integrated circuit industry[134]. Supply Chain and Procurement - The company’s supply chain is concentrated, with the top five suppliers accounting for 53.39% of total purchases in 2021, indicating a risk if any supplier faces disruptions[128]. - The company's top five customers accounted for 47.84% of total sales, with no related party transactions reported[154]. - The top five suppliers contributed to 53.39% of total procurement, with no related party transactions reported[155]. Strategic Goals and Future Plans - The company aims to become a competitive player in the embedded CPU field, focusing on key application areas such as information security, automotive electronics, industrial control, edge computing, and network communication[176]. - The company plans to leverage its advantages in self-controlled embedded CPU technology and SoC chip design platform technology to continuously launch a series of high-end self-developed chips and module products[176]. - In 2022, the company will focus on the domestic CPU replacement opportunity, emphasizing the development of embedded CPU IP licensing and custom chip design services in key areas[179]. - The company will strengthen brand building and expand new markets and customers, enhancing customer loyalty and maintaining a good brand image[180]. - The company will actively engage in collaboration with leading technology firms to enhance product quality and industry position[181].