Company Overview and Financial Performance - The company specializes in electronic component distribution, chip design, manufacturing, and software development. In 2024, it achieved a total revenue of CNY 534,637.40 million and a net profit of CNY 6,027.50 million, marking a dual growth in both revenue and profit [2]. - R&D investment for 2024 reached CNY 9,944.85 million, a year-on-year increase of 155.99%. The R&D personnel accounted for 31.85% of the total workforce, totaling 201 individuals [2]. Revenue Growth Drivers - The growth in revenue for 2024 was primarily driven by the mobile and automotive electronics sectors, with chip manufacturing revenue reaching CNY 4.35 billion, a 25.12% increase from the previous year [3]. - The first quarter of 2025 saw a significant improvement in gross profit, attributed to a strategic adjustment in product mix towards higher-margin products [3]. Impact of Tariff Policies - The company reported minimal impact from US-China tariff policies, as most of its brand agents are sourced from TSMC, and it is actively promoting domestic brand representation [4]. - The company is adapting to tariff changes through strategic business adjustments and domestic brand promotion, keeping the overall impact manageable [4]. Chip Design and Manufacturing - The chip division focuses on traditional and new products, with stable revenue from established markets and growth in automotive display chips and MEMS technology [5][6]. - The company has a strong technical foundation in MEMS products, with plans to expand its product line, including 4mm and 8mm MEMS micro-mirrors [7]. R&D Investment Focus - R&D efforts are concentrated on display driver chips and MEMS micro-mirrors, with significant investments aimed at enhancing competitiveness in the consumer electronics display market [7]. - The company plans to increase R&D spending to support the development of new products and maintain technological advantages [7]. Revenue Structure Adjustment - The company aims to achieve internal growth in its distribution business while increasing the sales proportion of its chip manufacturing segment, which rose from CNY 348 million (7.02%) in 2023 to CNY 435 million (8.14%) in 2024 [8]. - The goal is to significantly increase the chip manufacturing segment's contribution to overall revenue over the next 3 to 5 years [8]. Industry Chain Integration Plans - The company is exploring acquisition opportunities to accelerate its semiconductor business and enhance its domestic industry layout [9][10]. - Plans include establishing a self-owned R&D team and localizing the entire supply chain to improve operational efficiency and market responsiveness [10].

Financial Data and Key Metrics Changes - In Q4 2023, revenue was $1.678 billion, up 3.6% sequentially, while gross margin decreased to 16.4%, down 3.4 percentage points sequentially [5][12] - For the full year 2023, revenue was CNY 6.322 billion, down 13% year-over-year, with a gross margin of 19.3% [6][13] - EBITDA for Q4 was RMB 1.011 billion, with an EBITDA margin of 60.2%, while full year EBITDA was RMB 4.064 billion, with an EBITDA margin of 64.3% [6][8] Business Line Data and Key Metrics Changes - Revenue from CMOS image sensors (CIS) and image signal processors (ISP) increased by over 60% sequentially, while revenue from display driver ICs (DDIC) and touch display driver ICs (TDDI) increased by nearly 30% sequentially [12][13] - The company reported strong competitiveness in the 40nm and 55nm markets [13] Market Data and Key Metrics Changes - By region, revenue distribution was 80% from China, 16% from America, and 4% from Eurasia [14] - Wafer revenue by size was 26% from 8-inch and 74% from 12-inch wafers, while revenue by application was distributed as follows: Smartphones 27%, Computers and Tablets 27%, Consumer Electronics 25%, Connectivity and IoT 12%, and Industrial and Automotive 10% [14] Company Strategy and Development Direction - The company plans to continue progress on 12-inch fabs and capacity building projects, with capital expenditure expected to remain flat compared to the previous year [15][16] - The company aims for revenue growth not less than the industry average, targeting mid-single-digit percentage growth year-over-year for 2024 [16] Management's Comments on Operating Environment and Future Outlook - The company experienced a downturn in the semiconductor industry in 2023, with high inventories and macroeconomic challenges impacting demand [10][15] - Management noted that while there are signs of recovery in certain areas, the overall market demand is not strong enough for a comprehensive rebound [15] - The company emphasized its resilience due to its local manufacturing capabilities and market advantages in China [18] Other Important Information - Capital expenditure for 2023 was RMB 7.47 billion, and the company generated RMB 3.358 billion in cash from operating activities [7][8] - The company reported a total asset value of RMB 47.8 billion, with total liabilities of RMB 16.9 billion and total equity of RMB 30.8 billion [7] Q&A Session Summary Question: What are the revenue contributions from different product lines? - Revenue contributions were noted as follows: 30% from BCD analog power, 25% from high voltage drivers, 20% from microcontrollers (MCUs), 10% from memory, and 10% from CMOS imagers [22] Question: What is the outlook for the semiconductor market? - The company indicated that the semiconductor market is facing challenges from macroeconomic factors, geopolitical tensions, and inventory issues, which may hinder a strong recovery [15][17]