GUOXIN MICRO(SZ:002049) Xin Lang Zheng Quan·2025-05-23 08:29Core Viewpoint - In 2024, Unisoc Microelectronics experienced a significant decline in revenue and net profit, primarily due to a sharp drop in its special integrated circuit (IC) business, despite maintaining high gross margins in this sector [1][5][9]. Group 1: Financial Performance - In 2024, the company achieved revenue of 5.511 billion yuan, a year-on-year decrease of 27.26%, and a net profit attributable to shareholders of 1.179 billion yuan, down 53.43% [1]. - The special IC business saw a revenue drop of 46.76%, significantly impacting overall performance [1][5]. - The smart security chip business, while facing a slight revenue decline of 7.61% in 2024, maintained strong profitability with a gross margin of 44.16% [5][9]. Group 2: Business Segments - The product structure includes smart security chips, special integrated circuits, and quartz crystal frequency devices, with smart security chips historically contributing over 40% of revenue, now reduced to 30%-40% [3]. - The special integrated circuit business, which includes over 700 product varieties, had its revenue share drop to 46.76% in 2024 after peaking at around 60% in previous years [3][5]. - The quartz crystal frequency device business has remained stable, generating revenue between 200-300 million yuan, accounting for less than 10% of total revenue [4]. Group 3: Market Dynamics and Future Outlook - The semiconductor industry faced an 8.2% decline in sales in 2023, impacting Unisoc Microelectronics' special IC sales and revenue [5]. - Despite the challenges, the company is focusing on emerging areas such as edge AI and automotive electronics for growth in 2025, while maintaining its position in traditional smart card security chips [8][9]. - As of Q1 2025, the company reported a revenue of 1.026 billion yuan, a decrease of 10.05%, but the decline in net profit was primarily due to reduced investment income from the transfer of equity [8].