Actions(SH:688049)2024-03-25 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year 2023, representing a 15% year-over-year growth[24]. - The company achieved operating revenue of 520.10 million yuan in 2023, a year-on-year increase of 25.41%[25]. - Net profit attributable to shareholders reached 65.06 million yuan, up 21.04% compared to the previous year[26]. - The basic earnings per share increased to 0.53 yuan, reflecting a growth of 20.45% year-on-year[26]. - The net profit excluding non-recurring gains and losses reached 51.13 million RMB, up 64.16% year-on-year[36]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management and pricing strategies[24]. - The company's gross margin for main business improved to 43.69%, an increase of 4.45 percentage points year-on-year[26]. - The company reported a total R&D expenditure of 165.4 million RMB, representing a year-over-year increase of 32.62%[76]. - The company’s operating revenue for the current period is CNY 520,099,364.94, representing a 25.41% increase compared to CNY 414,703,877.23 in the previous year[104]. Dividends and Capital Structure - The company plans to distribute a cash dividend of 2 RMB per 10 shares and to increase capital by converting 2 shares for every 10 shares held, resulting in a total cash dividend of 24,136,404.40 RMB (including tax) and a capital increase of 24,136,404 shares[6]. - The total share capital after the proposed capital increase will be 146,136,404 shares, subject to adjustments based on any changes in share capital prior to the record date[6]. - The company plans to maintain the distribution ratio per share despite potential changes in total share capital due to various corporate actions[176]. - The total amount of dividends, including cash and stock, is CNY 25,725,259.07, accounting for 39.54% of the net profit attributable to ordinary shareholders[179]. Research and Development - The company invested 150 million RMB in R&D for new technologies, focusing on enhancing its DSP and EDA capabilities[24]. - Research and development expenses accounted for 31.80% of operating revenue, up from 30.07% in the previous year[26]. - The company applied for 37 new invention patents and received approval for 34 patents during the reporting period, bringing the total number of patents to 318 globally[79]. - The company is developing high-performance audio processing chips, with an investment of 15 million RMB and 10.86 million RMB spent to date[81]. - The company has ongoing projects focused on enhancing Bluetooth communication technology and low-latency audio solutions, with a total investment of 1 million RMB in the current phase[80]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 30% market share in the region by 2025[24]. - The company provided guidance for 2024, projecting a revenue growth of 20% and aiming to reach 1.44 billion RMB[24]. - The company is actively expanding into IoT and AIoT markets, focusing on indoor positioning and energy harvesting technologies[42]. - The company plans to enhance its wireless communication technology portfolio, including UWB and WIFI6, to meet market demands[41]. - The company aims to enhance its market share in international mainstream brands and provide high-quality, high-value domestic alternative chip products[135]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the financial report, ensuring compliance with legal responsibilities[4]. - There are no special arrangements for corporate governance that apply to the company[7]. - The company has established a comprehensive internal control system that ensures the authenticity and fairness of financial reporting, with no significant defects reported during the period[181]. - The company has held 10 board meetings, 8 supervisory board meetings, and 1 shareholders' meeting during the reporting period, ensuring effective governance practices[141]. - The company is focused on maintaining strong governance through the election of qualified board members and supervisors[149][150]. Risks and Challenges - The company has outlined various risks in its operations and has provided measures to mitigate these risks, emphasizing the importance of investor awareness[4]. - The company faces risks related to high customer concentration, with significant reliance on its top five clients[96]. - The company operates under a Fabless model, outsourcing wafer manufacturing and testing, which exposes it to risks from rising costs and supply shortages[97]. - International trade tensions pose risks to the company's operations, particularly due to reliance on suppliers using U.S. technology[101]. - The company relies heavily on core technical talent, with risks associated with talent retention and competition in the industry[94]. Product Development and Innovation - The company successfully launched multiple new products, including low-latency wireless audio solutions and smartwatches, contributing to revenue growth[26]. - The company is advancing its AI SoC architecture to a CPU+DSP+NPU model, enhancing AI capabilities for smart audio and wearable products[40]. - The company has introduced a battery-free solar energy collection Bluetooth voice remote control solution based on the ATB111X chip, which has ultra-low leakage power consumption below 100nA, currently in the productization phase with brand clients[73]. - The company’s proprietary audio DSP processing technology includes dynamic range control and virtual bass technology, enhancing audio quality and reducing noise and distortion[71]. - The company has established partnerships with three major telecom operators to enhance distribution channels and customer reach[24]. Employee and Community Engagement - The total number of employees at the parent company and major subsidiaries is 334, with 235 being technical personnel[171]. - The company has established a training management system to enhance employee skills and adapt to market needs[173]. - The company made a donation of 3.00 million yuan to Zhejiang University Education Foundation to support economically disadvantaged students[195]. - The company is committed to ESG initiatives, emphasizing environmental responsibility and employee rights, with 132 party members actively participating in various educational and community activities[185]. Financial Health and Cash Flow - The net cash flow from operating activities turned positive at 155.09 million yuan, significantly improving from a negative cash flow in the previous year[27]. - The company’s top five customers accounted for 61.92% of total sales, with no related party transactions reported[116]. - The company has a high supplier concentration, which could impact production if suppliers face operational difficulties[97]. - The company’s actual controller, Mr. LO, CHI TAK LEWIS (resigned), and Mr. YE WEITING hold shares in the company through Zhuhai Ruisheng Investment Partnership[150].