On the evening of February 26, Fudan Microelectronics (688385) released its 2024 annual performance report, and the company's operating income was about 3.590 billion yuan, a year-on-year increase of about 1.51%. The company's net profit attributable to the owners of the parent company was about 573 million yuan, a year-on-year decrease of about 20.43%; The net profit attributable to the owners of the parent company was about 464 million yuan, a year-on-year decrease of about 18.94%.

Since last year, the semiconductor industry has shown an initial recovery trend, why has the company's performance declined in this context? Fudan Microelectronics attributed the main factors affecting its performance to two parts: first, the impact of revenue and gross profit on net profit. In 2024, the company actively expanded new products and new markets, and adjusted the sales prices of some products in a timely manner to consolidate or expand its market share according to the market situation, and the sales volume and operating income increased. Affected by the decline in product sales prices and the adjustment of product structure, the company's comprehensive gross profit margin decreased by 5.26 percentage points during the reporting period, and the gross profit decreased by about 156.2232 million yuan.

The second is the impact of expenses on net profit. In terms of R&D expenses, in 2024, the company will continue to maintain a large R&D investment, continue to carry out technology iteration and new product research and development, continuously enrich product types to meet more application fields, and strengthen product research and development based on diversified supplier processes. During the reporting period, R&D expenses were about 1,030,651,500 yuan, an increase of about 20,053,900 yuan over the same period last year.

In terms of provision for impairment losses, during the reporting period, the company's credit impairment losses increased by about 32.0373 million yuan compared with the previous year, mainly due to the increase in the balance of accounts receivable from highly reliable customers, and the impairment loss of assets increased by about 35.2486 million yuan compared with the previous year, mainly due to the decrease in the net realizable value of some products in the inventory.

According to the disclosure, Fudan Microelectronics is mainly engaged in the design, development and testing of VLSI integrated circuits, and is an enterprise with a wide range of product lines among domestic chip design enterprises, with four major product lines of security and identification, non-volatile memory, smart meter chips and field programmable gate array (FPGA), and provides customers with chip testing services through its holding subsidiary Hualing Co., Ltd.

In

the investor relations activities disclosed from February 13 to 21 this year, the company elaborated on the research and development, application and prospects of related products. Among them, the situation of FPGA series products has attracted a lot of attention. For example, in response to the question raised by investors about whether the company's next-generation FPGA products and next-generation PSoC products will be massed in 2025, Fudan Microelectronics said that at present, the next-generation FPGA products and intelligent reconfigurable chip products based on the advanced 1xnm FinFET process have completed sample testing, and have been sold in small batches for some imported customers, and the yield improvement work has been carried out simultaneously, and the product genealogy work is also being promoted. Future sales should comprehensively consider factors such as customer application and production capacity.

In the face of the decline in the gross profit margin of the FPGA product line, Fudan Microelectronics responded: "The company's FPGA products will adjust the price according to the market, and at the same time, it will also enter some application scenarios with relatively low gross profit margins. Since the beginning of this year, the sales volume of FPGA products has increased a lot. Subsequently, the company will also work hard in production costs and new product development, strive to maintain the stability of the gross profit margin of the main products, and actively promote the market expansion of new products. ”

At the same time, Fudan Microelectronics also shared the recent situation of the storage product line. According to Zheng Kezhen, the company's storage products are mainly EEPROM, NOR, NAND products. In the field of consumer electronics, the competitive pressure will be greater in 2024, and the business unit will actively respond by improving service capabilities, adjusting prices, controlling costs, etc., and the sales volume will increase to a certain extent; In the highly reliable market, based on the company's technology accumulation and market reputation, it has maintained good competitiveness.