Lanqi Technology (688008) disclosed its 2023 annual report on April 10. In 2023, the company achieved total operating income of 2.286 billion yuan, a year-on-year decrease of 37.76; net profit attributable to the parent was 0.451 billion yuan, a year-on-year decrease of 65.30; non-net profit was 0.37 billion yuan, a year-on-year decrease of 58.11; net cash flow from operating activities was 0.731 billion Yuan, an increase of 6.16 year-on-year; during the reporting period, Lanqi Technology's basic earnings per share was 0.4 Yuan, and the weighted average return on equity was 4.44. The company's annual profit distribution plan for 2023 is: it is proposed to distribute 3 yuan (including tax) to all shareholders for every 10 shares.

based on the closing price on April 9, lanqi technology's current price-to-earnings ratio (TTM) is about 112.02 times, the price-to-book ratio (LF) is about 4.96 times, and the price-to-sales ratio (TTM) is about 22.1 times.

The company's recent price-to-earnings (TTM), price-to-book (LF), and price-to-sales (TTM) historical charts are shown below:

statistics show that the compound growth rate of Lanqi Technology's total operating income in the past three years is 7.82, ranking 13th among the 15 companies in the digital chip design industry that have disclosed 2023 data. The compound annual growth rate of net profit in the past three years is -25.80%, ranking 12/15.

According to the annual report, the company is a leading international data processing and interconnection chip design company, dedicated to providing high-performance, low-power chip solutions for cloud computing and artificial intelligence. At present, the company has two major product lines, the interconnection chip product line and the Zinji server platform product line. In the era of artificial intelligence, the demand for computer "computing power" and "storage power" is growing rapidly, and the system puts forward higher demand for "transportation capacity. Lanqi Technology is an enterprise that provides high-performance "capacity" for computing and intelligent computing. The company's many high-speed interconnection chip products can effectively enhance the "capacity" of the system and will play an important role in the future era of artificial intelligence.

by product, in 2023, the company's main business, interconnection chip revenue was 2.185 billion yuan, down 20.11 percent from the same period last year, accounting for 95.57 percent of operating income, and Jinji server platform revenue was 0.094 billion yuan, down 90.01 percent from the same period last year, accounting for 4.09 percent of operating income.

by the end of 2023, the total number of employees of the company was 767, an increase of 19.66 over the same period last year. Per capita income generation is 2.9801 million yuan, per capita profit generation is 587900 yuan, and per capita salary is 765100 yuan, which are -47.98%, -71.00% and 29.76% respectively compared with the same period last year.

In 2023, the company's gross profit margin was 58.91, an increase of 12.47 percentage points year-on-year; the net profit margin was 19.74, a decrease of 15.64 percentage points from the same period last year. In terms of single-quarter indicators, the company's gross profit margin was 57.44 in the fourth quarter of 2023, up 1.00 percentage points from the same period last year and down 7.36 percentage points from the previous quarter, while the net profit margin was 28.55, down 9.41 percentage points from the same period last year and up 3.11 percentage points from the previous quarter.

By product, the gross profit margin of the interconnect chip and the Jinji server platform in 2023 is 61.36 and 4.01, respectively.

during the reporting period, the total sales amount of the company's top five customers was 1.713 billion yuan, accounting for 75.21 of the total sales amount, and the total purchase amount of the company's top five suppliers was 0.911 billion yuan, accounting for 79.08 of the total annual purchase amount.

Data show that the company's weighted average return on net assets in 2023 was 4.44, down 9.74 percentage points from the same period last year; the company's return on invested capital in 2023 was 2.79, down 10.55 percentage points from the same period last year.

In 2023, the company's net cash flow from operating activities was 0.731 billion yuan, an increase of 6.16 year-on-year; net cash flow from financing activities -0.372 billion yuan, a year-on-year decrease of 0.102 billion yuan; net cash flow from investment activities -0.574 billion yuan, the same period last year It was 63.445 million yuan.

Further statistics found that the company's free cash flow in 2023 was -73.8242 million yuan, compared with 807.2752 million yuan in the same period last year.

In 2023, the Company's operating income cash ratio was 110.96 per cent and its net cash ratio was 162.17 per cent.

in terms of operating capacity, in 2023, the turnover rate of the company's total assets was 0.21 times, compared with 0.37 times in the same period last year (the industry average in 2022 was 0.49 times, and the company ranked 35/45 in the same industry); The turnover rate of fixed assets was 4.04 times, compared with 13.14 times in the same period last year (the industry average in 2022 was 16.27 times, and the company ranked 27/45 in the same industry); the Company's accounts receivable turnover rate and inventory turnover rate were 7.41 and 1.54 times, respectively.

In 2023, the company's period expenses were 0.765 billion yuan, a decrease of 6.1156 million yuan from the same period last year; but the period expense rate was 33.45, an increase of 12.46 percentage points from the same period last year. Among them, sales expenses increased by 4.43 year-on-year, management expenses decreased by 14.46 year-on-year, research and development expenses increased by 21.0 year-on-year, and financial expenses changed from -81.2795 million yuan to -0.18 billion yuan in the same period last year.

Significant changes in assetsBy the end of 2023, the company's inventory had decreased by 34.67 compared with the end of the previous year, accounting for 2.40 percentage points of the company's total assets. Construction in progress increased by 266.64 compared with the end of last year, accounting for 1.54 percentage points of the company's total assets. Monetary funds decreased by 2.16 compared with the end of last year, accounting for 1.25 percentage points of the company's total assets. Fixed assets increased by 17.54 compared with the end of last year, accounting for 0.85 percentage points.

In terms of major changes in liabilities, as of the end of 2023, the company's taxes and fees payable decreased by 69.36 from the end of the previous year, accounting for 0.87 percentage points of the company's total assets; accounts payable decreased by 33.50 from the end of the previous year, accounting for the company's total assets Decrease by 0.62 percentage points; the salary payable to employees decreased by 20.38 from the end of the previous year, accounting for 0.40 percentage points in the company's total assets; other payables (including interest and dividends) decreased by 41.27 compared with the end of the previous year, accounting for 0.25 percentage points of the company's total assets.

From the perspective of inventory changes, as of the end of 2023, the book value of the company's inventory was 0.482 billion yuan, accounting for 4.73 of net assets, a decrease of 0.256 billion yuan from the end of the previous year. Among them, the provision for inventory decline is 0.229 billion yuan, with a provision ratio of 32.19.

For the whole year of 2023, the company's R & D investment was 0.682 billion billion yuan, an increase of 21.00 percent over the same period last year; R & D investment accounted for 29.83 percent of operating income, an increase of 14.49 percentage points over the same period last year.

In terms of solvency, the company's gearing ratio at the end of 2023 was 4.59, down 2.51 percentage points from the end of the previous year, and the interest-bearing gearing ratio was 0.12, up 0.01 percentage points from the end of the previous year.

In 2023, the company's current ratio was 21.21 and its quick ratio was 19.98.

The annual report shows that at the end of 2023, among the company's top ten tradable shareholders, China Electronics Investment Holdings Co., Ltd. held the most shares, accounting for 7.24. The list of the top ten circulating shareholders remains unchanged from the third quarter of 2023. In terms of specific shareholding ratio, Huaxia SSE Science and Technology Innovation Board 50-component trading open-end index securities investment fund, E Fund SSE Science and Technology Innovation Board 50-component trading open-end index securities investment fund, Xingquan Herun hybrid securities investment fund, Guolian Zhongzheng full index semiconductor products and equipment trading open-end index securities investment fund has increased, china Electronics Investment Holdings Limited, INTEL CAPITAL CORPORATION, Zhuhai Rongying Equity Investment Partnership (Limited Partnership), WLT Partners, L.P., Hong Kong Securities Clearing Company Limited, Huaxia Guozheng Semiconductor Chip Traded Open Index Securities Investment Fund holdings declined.

In terms of chip concentration, as of the end of 2023, the total number of shareholders of the company was 35000, a decrease of 5756 from the end of the third quarter, a decrease of 14.13; the average market value of the shares held by each household rose from 1.3884 million yuan at the end of the third quarter to 1.9128 million yuan, an increase of 37.77.

Indicator notes:

P/E

= Total market cap/net profit. When the company loses money when the P/E ratio is negative, it is not practical to use the P/E ratio to value, often using the P/E ratio or the price-to-sales ratio as a reference.

Price-to-Book Ratio

= Total market capitalization/net assets. The P/E valuation method is mostly used for companies with volatile earnings and relatively stable net assets.

Market-to-sales ratio

= Total market value/operating income. The price-to-sales valuation method is usually used for growth companies that are losing money or making small profits.

The P/E and P/S ratios in this article are calculated using TTM, which is based on data for the 12 months to the most recent financial report (including forecasts). The price-to-book ratio is calculated using the LF method, which is based on the most recent financial report data.

When the P/E ratio is negative, the current decile is not displayed, which will cause the line chart to be interrupted.