Established in June 2010, Tailing Microelectronics (Shanghai) Co., Ltd. (hereinafter referred to as “Tailing Micro”), which focuses on the R&D, design and sales of wireless IoT system-level chips. Its products are widely used in various fields such as smart homes, smart hardware, and smart industrial systems, and has established cooperative relationships with many well-known brands. Since the release of the quarterly report, Tailingwei's stock price has been at the bottom for a long time. Recently, the consumer electronics and semiconductor sectors have re-emerged. In this context, what are Tailingwei's highlights? You might as well sort it out below.

I. FINANCIAL SUMMARY

2023 Financial Overview:

Revenue: Approximately RMB 636 million, a year-on-year increase of 4.40%.

Net profit attributable to shareholders of listed companies: approximately RMB 49.77 million, which is basically the same as the previous year.

Net profit after deducting non-recurring profit and loss: approximately RMB 22.91 million, a year-on-year decrease of 34.16%.

Net cash flow from operating activities: Approximately RMB 151 million, an increase of 552.70% over the previous year.

Financial overview for the first quarter of 2024:

Revenue: Approximately RMB 161 million, up 10.45% year on year.

Net profit attributable to shareholders of listed companies: loss of approximately RMB 4.4 million, a year-on-year decrease of 152.76%.

Net profit after deducting non-recurring profit and loss: loss of approximately RMB 4.94 million, a year-on-year decrease of 170.99%.

Net cash flow from operating activities: Approximately RMB 8.94 million, an increase of 34.33% over the previous year.

II. Financial analysis

Revenue growth: In 2023 and the first quarter of 2024, TailingMicro achieved revenue growth, demonstrating the company's ability to expand steadily in the IoT chip market.

Decline in net profit: Despite an increase in operating income, net profit for 2023 was the same as the previous year, and net profit was lost in the first quarter of 2024. This may be related to the company's increased investment in R&D, market strategy adjustments, or rising costs.

Cash flow: The net cash flow from the company's operating activities increased significantly in 2023, showing good cash flow management capabilities. However, net profit was lost in the first quarter of 2024, but net cash flow continued to grow, indicating that the company's cash flow situation has not been seriously affected.

R&D investment: The share of R&D investment in revenue increased to 33.49% in the first quarter of 2024, indicating that the company continues to increase investment in R&D. This may put pressure on short-term profits, but it has a positive impact on long-term competitiveness and market position improvement.

Balance and liability situation: As of March 31, 2024, the company's total assets declined slightly, and owners' equity attributable to shareholders of listed companies decreased slightly, but remained at a high level, reflecting the relative stability of the company's asset structure.

Shareholder structure: National Integrated Circuit Industry Investment Fund Co., Ltd. and others are major shareholders, reflecting the company's important position in the industry and support at the national level.

III. Risks and Opportunities

Risks: Increased market competition, long return cycles for R&D investment, and rapid iteration of technology updates may have an impact on the company's performance.

Opportunities: The rapid development of the IoT industry, national policy support, and the company's technology accumulation and market position within the industry have provided the company with broad development space.

IV. Concluding section

As a company specializing in the IoT chip field, Tailingwei faced the challenge of falling net profit in the first quarter of 2024, but the increase in operating income and good cash flow conditions showed the company's market competitiveness. The company is currently increasing investment in R&D, and is expected to achieve technological breakthroughs and market expansion in the future. Investors are advised to pay attention to the company's R&D progress and market strategy, as well as industry trends.