Financial Data and Key Metrics - 2023 revenue was approximately 470-480 million RMB, with hardware business growth exceeding 50%, while software business declined due to delayed project settlements caused by customer financial conditions and budget arrangements [1] - 2024 revenue is expected to be around 700 million RMB, with software revenue projected at 250-300 million RMB and hardware revenue at 450 million RMB, with hardware growth slowing to 20% due to reduced orders from a single customer [4] Business Line Data and Key Metrics Hardware Business - Main products include T4200S and T4000 test machines, with T4200S sales expected to remain flat and T4000 sales projected at 20-30 units, targeting total sales of 100-110 units [5] - Hardware revenue target for 2024 is approximately 450 million RMB, with T4200S priced at 4-5 million RMB and T4000 at 2 million RMB [5] Software Business - EDA software licensing revenue target for 2024 is 60-70 million RMB, showing growth compared to last year [6] - Project-based business is expected to reach 100 million RMB due to accumulated delays from last year [6] - DFT design services, following the acquisition of Shanghai Ruixing, are expected to generate 40 million RMB in revenue [6] - Data analysis software revenue target is 70-80 million RMB, though customer financial conditions may introduce uncertainty [6] Market Data and Key Metrics - The domestic DFT tool market is dominated by Mentor and Cadence, with a market space of approximately 100 million USD, and the company aims for 70-100 million RMB in DFT revenue over the next 2-3 years [10] - Overseas markets include Singapore, where a subsidiary was established to promote data analysis software, and South Korea, where hardware products are under validation with Samsung and SK Hynix, with potential orders expected by year-end [16][24] Company Strategy and Industry Competition - The company is focusing on EDA software development and data analysis software, with plans to expand its workforce to 650 employees, primarily in these areas [32] - The company aims to become a Chinese equivalent of Mentor, with ongoing development of CMOS simulation software and other tools [32] - The company is optimistic about future opportunities in advanced process equipment and materials, particularly in yield improvement services, despite current challenges [9][28] Management Commentary on Operating Environment and Future Outlook - Management acknowledges the significant operational pressure this year but remains optimistic about 2024, with potential impacts from overseas trade policies and domestic Fab expansion [35] - The company sees strong demand for WAT testing equipment in advanced processes and expects sustained demand from both domestic and international Fab expansion plans [35] Other Important Information - The company's headcount increased from 318 to 500 in 2023, leading to higher fixed costs and a Q1 loss [7] - Mid-year report growth may be limited due to timing differences in order fulfillment and acceptance, with full-year data needed for a clearer picture [11] Q&A Summary EDA Software Licensing - EDA software licensing revenue is projected at 60-70 million RMB, with uncertainty due to customer order timing and amounts [12] Data Analysis Software - Data analysis software revenue target is 70-80 million RMB, with potential uncertainty due to customer financial conditions [13] DFT Business - DFT business is progressing well, with a revenue target of 40 million RMB for 2024 and 70-100 million RMB in the next 2-3 years [20][27] Overseas Market Expansion - Overseas markets, including Singapore and South Korea, are under development, with potential orders expected by year-end [16][24] Staff Expansion and Profit Expectations - The company plans to increase headcount to 650, with a net profit target of 200 million RMB, or 240 million RMB excluding share-based payments [31] Storage Localization Progress - The company is supplying to ChangXin and expects significant volume this year, while collaboration with ChangCheng is progressing more slowly [23] Future Business Outlook - The company remains optimistic about future opportunities, particularly in advanced process equipment and materials, despite current challenges [35]
广立微20240619