Today, Loongson Zhongke released its annual performance forecast for 2023. In the forecast, Loongson Zhongke stated,During the reporting period, the cost of new products was effectively reduced, and Loongson CPU chips significantly improved the cost performance.The report shows that Loongson Zhongke expects to achieve annual operating income of approximately 508 million yuan in 2023.A year-on-year decrease of approximately 31.23%,Expected to be attributable to parent company ownersNet profit loss was about 310 million yuan.
Loongson Zhongke stated in the notice that the main reasons for the change in performance in this period are as follows:
(1) Decline in operating income
During the reporting period, affected by factors such as the macroeconomic environment and cyclical changes in the semiconductor industry, the company's traditional advantages in industrial control were temporarily stagnant due to internal customer management matters, the information-based e-government market was in an adjustment period and did not increase volume, and external competition continued to intensify. The company's operating income declined significantly year-on-year.
Based on confidence in the future development of the industry and the company, in the face of various unfavorable external factors, the company combines the overall financial situation and strategic layout, adheres to the goal of ecological construction unswervingly, and takes active actions without waiting or relying.Taking multiple measures simultaneously has shown certain positive results.
(2) Decline in gross profit margin
During the reporting period, the decline in sales of the company's products in the information field led to an increase in the fixed cost allocation of a single product, squeezing the gross profit margin. On the other hand, the company actively expanded market share, and the sales prices of some products were under pressure. The combination of these two factors resulted in a significant decline in the company's gross profit margin compared with the same period last year.
(3) Increase in costs during the period
During the reporting period,The company continues to increase investment in research and development,Continuous breakthroughs in simultaneous multi-threading technology, inter-chip interconnection technology, and GPGPU technology;And effectively reduce the cost of new products, Loongson CPU chips significantly improve the cost performance.
Basic software research and development has significantly improved the application ecosystem, overall enhanced the market competitiveness of Loongson CPU, and laid a solid foundation for subsequent sustainable development. At the same time, the company actively explored the market, and the overall period expenses increased significantly compared with the same period last year.
(4) Impact of non-recurring gains and losses
In 2023, the company's government subsidies that meet the conditions for profit and loss recognition will be lower than the same period last year.
(5) Impact of impairment losses
In 2023, affected by the pressure on the macroeconomic environment, the repayments from some customers were lower than expected, and the credit impairment losses accrued in accordance with the company's accounting policies increased significantly compared with the same period last year.