Bestechnic (Shanghai) (SH:688608)2024-03-27 16:00Financial Performance - The company achieved a revenue of 2.176 billion yuan in the reporting period, representing a year-on-year growth of 46.57%[16] - The net profit attributable to shareholders was 124 million yuan, with a year-on-year increase of 0.99%, while the net profit excluding non-recurring gains and losses grew by 135.96% to 29 million yuan[16] - The comprehensive gross margin for the year was 34.20%, a decrease of 5.17 percentage points compared to the previous year[16] - The revenue from smart Bluetooth products reached CNY 1.169 billion, with a year-on-year increase of 59.28%[133] - The company's operating revenue for the reporting period reached ¥2,176,277,305.68, representing a year-on-year increase of 46.57% compared to ¥1,484,798,365.59[153] - The company's cash flow from operating activities was ¥469,733,582.19, a significant recovery from a negative cash flow of -¥360,022,777.67 in the previous year[153] - The investment cash flow was 350,891,907.90, a decrease of 52.47% from 738,323,320.27 last year[116] Research and Development - The company invested 550 million yuan in R&D, an increase of 25.04% year-on-year, with R&D personnel accounting for 85.80% of the total workforce[24] - The company filed 115 new invention patent applications during the reporting period, with 52 patents approved, bringing the total to 488 applications and 195 approvals[24] - The company is expanding its R&D centers across multiple cities, enhancing its research capabilities[24] - The R&D team has grown to 592 members, representing 85.80% of the total workforce, with total compensation for R&D personnel amounting to $31.39 million in the current period[82] - The company has a workforce of 592 technical personnel, accounting for 85.80% of the total number of employees[147] - The company's R&D expenses amounted to ¥549,919,033.94, which is a 25.04% increase from ¥439,780,877.40 in the previous year[153] Product Development and Innovation - The BES2700 series wearable chips were widely recognized in the market and have been applied in various domestic and international brand products[23] - The company launched the BES2700iBP watch chip, which significantly reduces standby and operating power consumption compared to the previous generation[23] - The new generation of the BES2800 smart wearable chip, utilizing advanced 6nm FinFET technology, has successfully entered the market promotion phase and is expected to achieve mass production in 2024[41] - The company has upgraded its dual Mic noise cancellation algorithm, enhancing call quality by effectively distinguishing user voice from environmental noise, which is crucial for user experience[43] - The company has launched the first single-chip main control for sports smartwatches, integrating advanced technologies such as Bluetooth, low power consumption, and high integration[83] - The new generation of adaptive ANC algorithms improves active noise cancellation capabilities for open cavity headphones, allowing users to customize ANC settings based on personal preferences[68] - The company has developed a new generation IBRT solution that supports multi-point connections, enhancing the user experience for TWS products[66] - The company is focusing on integrating low-power display technology and health monitoring capabilities into its smartwatch SoC chip project, with an investment of $100 million[80] - The company has made significant advancements in smart audio and voice technology, including a keyword recognition algorithm that enhances voice interaction accuracy in noisy environments[76] - The company has combined Wi-Fi and TWS technologies to develop low-latency multi-box technology for home theater and multi-room smart speaker systems, ensuring high-quality audio transmission[77] Market Trends and Projections - The global sales of wearable wrist devices in 2023 are projected to reach 186 million units, with a growth rate of 2%[28] - The company anticipates a growth rate of 10% for wearable wrist devices in 2024, driven by renewed interest in smartwatches[28] - The wearable wristband device market is projected to grow by 10% in 2024, driven by increased interest in smartwatches, with a 17% expected growth in shipments[194] Competitive Position and Risks - The company maintains a diverse customer base, including major global brands such as Samsung, OPPO, Xiaomi, and Huawei, which strengthens its competitive advantage[57] - The company faces risks from intensified competition in the smart audio and video SoC chip market, particularly from larger international firms[99] - The company has a high dependency on core technology talent, with risks of talent loss if competitive incentives are not maintained[122] - The revenue from chips used in smart wearable products constitutes a significant portion of total sales, indicating a relatively single application risk[123] - The company faces risks related to supply chain concentration, as a significant portion of procurement costs is tied to a limited number of suppliers[124] - The company is exposed to inventory impairment risks due to potential market demand fluctuations and increased competition[128] Talent and Management - The company launched a restricted stock incentive plan in August 2023, granting up to 2.087693 million shares to attract and retain talent, aligning interests among shareholders, the company, and core team members[56] - The company is strengthening talent reserves and development[199] - Efforts are being made to improve the company's management system[200] Intellectual Property - The company holds a total of 225 patents, including 195 invention patents and 23 utility model patents, establishing a strong intellectual property barrier[145] - The company added 125 new patent applications, with 57 patents granted, bringing the total to 524 applications and 225 granted[102] Financial Health and Assets - The company's cash and cash equivalents at the end of the period were 2,545,006,229.10 RMB, representing 38.85% of total assets, a 37.95% increase from the previous period[184] - Accounts receivable increased to 402,418,966.51 RMB, accounting for 6.14% of total assets, reflecting a 50.22% growth due to increased revenue[184] - Inventory decreased to 657,779,365.39 RMB, representing 10.04% of total assets, a reduction of 30.47% as a result of ongoing inventory destocking efforts[184] - The company has seen a significant increase in the proportion of accounts payable, which rose to 287,170,167.47 RMB, accounting for 4.38% of total assets, a 55.53% increase compared to the previous period[184] - The company's fixed assets increased to 78,395,628.06 RMB, representing 1.20% of total assets, a 38.42% increase due to new acquisitions[184] - The company's other non-current assets increased to 280,485,507.73 RMB, accounting for 4.28% of total assets, a 38.10% increase due to new large-denomination certificates of deposit[184] Strategic Vision - The company's vision is to become the most innovative SoC chip design company, focusing on low-power wireless edge intelligent control platform chips for the AIoT market[195] - The smart wearable market is a key strategic focus, with the BES2700 series wearable control chip rapidly scaling production and applied in TWS earbuds, smartwatches, and smart glasses[198] - The new generation 6nm BES2800 control chip has successfully entered the market promotion stage[198] - The company aims to enhance its technological capabilities by continuously launching competitive chip products and solutions[195] - There is a commitment to accelerate product upgrades and enrich product structure[196]