Feitian(SZ:300386)2024-04-02 16:00Financial Performance - The company reported a revenue of 738.55 million yuan, a decrease of 14.88% compared to the same period last year[4]. - The net loss attributable to shareholders was 171.78 million yuan, an increase in loss of 42.28% year-on-year[4]. - The increase in loss was primarily due to a decline in main business revenue and rising expenses, along with losses from a subsidiary, leading to a goodwill impairment of 21.18 million yuan[4][10]. - The company's operating revenue for 2023 was ¥738,554,024.76, a decrease of 14.88% compared to ¥867,682,665.08 in 2022[27]. - The net profit attributable to shareholders for 2023 was ¥171,778,655.98, representing a decline of 42.28% from ¥120,989,733 in the previous year[27]. - The company reported a total revenue after deducting sales of materials of ¥733,260,541.19 for 2023, compared to ¥864,649,308.63 in 2022[30]. - The company reported a quarterly operating revenue of ¥221,286,543.42 in Q4 2023, with a net profit attributable to shareholders of -¥62,286,854.57[32]. - The company has experienced negative net profits for the last three accounting years, raising concerns about its ability to continue as a going concern[30]. - The company reported a total revenue of 229.4 million in 2023, showing an increase from 226.4 million in the previous year, representing a growth of approximately 1.3%[98]. Revenue Breakdown - The revenue from the smart terminal system was CNY 251.52 million, accounting for 34.06% of total revenue, a decrease of 14.55% year-on-year[48]. - The revenue from USB Key products was CNY 213.73 million, representing 28.94% of total revenue, down 22.56% year-on-year[49]. - The revenue from chip products was CNY 148.07 million, making up 20.05% of total revenue, a decrease of 11.50% year-on-year, with subsidiary Hongsi Electronics contributing CNY 98.06 million[49]. - Domestic revenue fell by 23.62% to ¥421,787,455.63, while international revenue slightly increased by 0.42% to ¥316,766,569.13[51]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly, reaching -¥11,568,182.9, a 93.25% increase compared to -¥171,318,990 in 2022[27]. - The net cash flow from operating activities increased by 93.25% year-on-year, primarily due to a reduction in cash paid for goods and services[68]. - The total cash inflow from investment activities rose by 96.83% compared to the previous year, mainly due to a decrease in net investments in cash management[68]. - The company's cash and cash equivalents at the end of the period were ¥313.38 million, representing 17.99% of total assets, down from 22.47% at the beginning of the year[72]. Goodwill and Impairment - The company has recognized a goodwill impairment of 21.18 million yuan, with a remaining goodwill balance of 70.24 million yuan, indicating potential future impairment risks[10]. - As of December 31, 2023, the goodwill balance for Feitian Chengxin is 102.29 million yuan, with an impairment of 21.18 million yuan recognized in the current year[193]. - The total goodwill impairment recognized in 2022 was 10.88 million yuan, resulting in a carrying value of 70.24 million yuan at the end of 2023[193]. - The impairment assessment was based on discounted cash flow forecasts, which involved significant judgments regarding revenue growth rates and gross margin fluctuations[193]. Research and Development - The company aims to develop new types of chips and expand its market presence as part of its strategic initiatives[11]. - The company is developing the F310 smart POS product, aiming to integrate multiple payment methods and expand market reach[66]. - The company is working on a lightweight low-cost IoT security chip, expected to reduce costs by over 50% compared to the previous generation[67]. - The company has a workforce of over 700 employees, with nearly half being technical personnel, ensuring a strong R&D capability[45]. - R&D investment in 2023 was ¥72,510,373.69, representing 9.82% of operating revenue, down from 11.08% in 2022[66]. Market Strategy and Future Outlook - The company plans to maintain its existing product market while developing new products to cultivate new growth points due to the shrinking demand for USB Key and OTP products[5]. - The company aims to expand its market presence in the next-generation security chip and system business, focusing on identity authentication products[41]. - The company plans to leverage industry opportunities to turn losses into profits and establish a competitive position in the information security market[41]. - The company is focusing on expanding its market presence and enhancing its product offerings, particularly in hardware development, as indicated by the appointment of Zhang Yingkui as the Director of Hardware Development Department in 2023[103]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring proper operational conduct without any violations[92]. - The company maintains complete independence in assets, personnel, finance, and operations, with no guarantees provided to the controlling shareholder[93]. - The company has a well-defined personnel management system, ensuring independent management of labor, compensation, and social security[93]. - The company has established a complete governance structure, including a shareholders' meeting, board of directors, and supervisory board, operating independently[93]. Employee and Management Changes - The company experienced a change in management, with several key personnel leaving, including the resignation of Vice General Manager Ma Guowei on March 24, 2023, and Secretary of the Board Wu Bi on September 6, 2023[99]. - The total remuneration for the company's directors, supervisors, and senior management in 2023 amounted to 7.4131 million yuan[107]. - The company has a total of 16 directors, supervisors, and senior management personnel[107]. - The company has maintained a stable management structure, with key positions filled by experienced professionals in the technology and finance sectors[102]. Environmental and Social Responsibility - The company has not faced any administrative penalties due to environmental issues during the reporting period[132]. - There were no significant environmental protection issues reported, and the company is not classified as a key pollutant discharge unit[132]. Shareholder Information - The total number of shareholders increased from 31,679 at the end of the previous month to 32,482 by the end of the reporting period[174]. - Huang Yu holds 30.31% of the shares, totaling 126,700,046 shares, with no changes during the reporting period[174]. - The top ten shareholders include Huang Yu, Lu Zhou, and Li Wei, with their combined holdings reflecting significant ownership concentration[175].