C*Core Technology(SH:688262)2024-04-26 10:17Financial Performance - The company's revenue for 2023 decreased by 9.65% year-on-year, primarily due to fluctuations in the semiconductor industry cycle and a decline in IP licensing revenue[21]. - The sales revenue and gross margin of self-developed chips and modules decreased year-on-year, influenced by inventory destocking and price adjustments in the chip market[21]. - The basic earnings per share for 2023 was -0.50 CNY, compared to 0.22 CNY in 2022 (adjusted) and 0.32 CNY (unadjusted) in 2022[20]. - The diluted earnings per share for 2023 was also -0.50 CNY, reflecting the same trend as basic earnings per share[20]. - The company has not yet achieved profitability since its listing, indicating ongoing financial challenges[2]. - The company reported a non-operating income of -19,494.09 million RMB, compared to -41,158.37 million RMB in the previous year, with total operating income at 200,717.37 million RMB[50]. - The company’s net profit attributable to shareholders was CNY -168.75 million, representing a decline of 325.08% year-on-year[75]. - The average gross margin for the reporting period was 21.54%, down 22.28 percentage points from 43.82% in the same period last year[75]. Strategic Focus and Growth Plans - The company plans not to distribute cash dividends or issue bonus shares for the 2023 fiscal year, pending approval at the annual shareholders' meeting[4]. - The company is focusing on expanding its custom services despite the challenges faced in the semiconductor market[21]. - The company aims to leverage its R&D capabilities to develop new technologies and products in the coming years[40]. - The company is actively exploring strategic partnerships and potential acquisitions to bolster its growth trajectory[40]. - The company plans to provide updated performance guidance in the next earnings call, reflecting its optimistic outlook for the upcoming fiscal year[40]. - The company is investing in talent development and innovation to sustain its competitive advantage in the semiconductor market[40]. - The company is planning to enter two new international markets by Q3 2024, aiming to enhance its global footprint[48]. - The company is exploring potential acquisitions to bolster its technology portfolio and expand its capabilities[43]. Research and Development - The company has significantly increased R&D investment and expanded its R&D team, leading to a 48.63% increase in sales expenses to CNY 55.39 million[75]. - The company is focusing on the development of embedded CPU technology and has launched several new products in automotive electronics and high-reliability storage control chips[74]. - The company’s R&D expenses reached CNY 283.38 million, an increase of 86.18% compared to the previous year, while investment income decreased by 45.72% to CNY 19.47 million[97]. - The company is enhancing its supply chain management and production processes to improve product quality and reduce costs, supporting overall performance and market competitiveness[168]. - The company is focusing on high-end chip product development to capture new market opportunities amid increased competition in the information security industry[118]. - The company has increased its R&D personnel and optimized the structure of its R&D team to enhance technological capabilities and support new product development[198]. Market Presence and Customer Engagement - The company is focused on expanding its market presence and enhancing its product offerings in the semiconductor sector[40]. - The company has launched a new product line that is projected to contribute an additional 10 million in revenue over the next year[48]. - Customer satisfaction ratings have improved to 90%, reflecting the effectiveness of recent service enhancements[47]. - The company has reported a growing shipment volume of the CCM4201S and CCM4202S chips in the fingerprint module and smart lock sectors, indicating strong demand from key clients[124]. - The company has established strategic partnerships with leading customers in the automotive engine sector to define new products and achieve domestic substitution[104]. Corporate Governance and Compliance - The board of directors and supervisory board were present at the meeting, ensuring governance and oversight[3]. - The company emphasizes the importance of risk awareness in its forward-looking statements regarding future plans and strategies[5]. - The company has taken corrective measures to address issues related to revenue recognition and internal controls following regulatory scrutiny[54]. - The company faced regulatory scrutiny for recognizing revenue prematurely, with a warning issued by the Jiangsu Securities Regulatory Bureau[176]. Product Development and Innovation - The company has launched new generation automotive information security chip products, enhancing performance and meeting customer demands for higher computing power and security levels[106]. - The company is actively developing automotive-grade MCU chips, with the CCFC3007PT and CCFC3008PT chips expected to enter mass production in Q2 2024[132]. - The company has successfully developed high-performance edge computing and network communication integrated controller chips, which can replace foreign products like NXP's MPC8548 series[164]. - The company has introduced the cost-effective security biometric recognition chip CCM4101, enhancing its product offerings in the biometric recognition field[118]. - The company has completed the development and promotion of the CCP903T and CCP907T series chips, along with related products such as quantum password cards and U shields, to support customer application development and mass production[190]. Financial and Operational Metrics - The company reported a total of 26,247,060 shares held by directors and senior management, with an increase of 10,576,988 shares compared to the previous period[37]. - The company’s chairman, Zheng Zha, holds 16,448,900 shares indirectly through various investment partnerships[37]. - The total number of shares held by the chairman increased by 5,321,752 shares due to capital reserve conversion, with a total pre-tax remuneration of 177.91 million RMB[64]. - The company has a backlog of orders amounting to CNY 579 million as of December 31, 2023, with CNY 42 million in automotive electronics and industrial control, CNY 48 million in information security, and CNY 489 million in edge computing and AI[77]. - The company has established a comprehensive quality management system for automotive electronic chips, ensuring product quality and enhancing supply chain stability through rigorous supplier management and monthly evaluations[192].