As a domestic processing chip manufacturer, Haiguang Information (688041) last year's performance increased by about 50% year-on-year. In a recent institutional survey, the company's executives introduced that the company continues to deepen the general computing market, and it is expected that with the deep integration of artificial intelligence and traditional industries in the future, the prosperity of the industry is constantly improving, and the company's business is expected to grow.

The annual report shows that in 2024, Haiguang Information will achieve operating income of 9.162 billion yuan, a year-on-year increase of 52.4%, and a net profit attributable to the parent company of 1.931 billion yuan, a year-on-year increase of 52.87%, basic earnings per share of 0.83 yuan, and a cash dividend of 1.7 yuan (tax included) for every 10 shares.

Haiguang's main products include high-end general-purpose processors (CPUs) and coprocessors (DCUs), and it is one of the few integrated circuit design companies with both high-end general-purpose processors and coprocessor R&D capabilities. Last year, the gross profit margin of the company's integrated circuit products was 63.7%, an increase of 4.03 percentage points year-on-year.

According to the company's executives, the company continues to deepen the general computing market, layout high-end processor products and comprehensive customer service, and cooperate with upstream and downstream enterprises in the domestic information technology industry to jointly develop product solutions with open security features, green environmental protection concepts and sustainable expansion potential. It is expected that with the advancement of the localization process, the company's development foundation will be more stable and promote the company to a higher stage of development.

In terms of software ecology, Haiguang DCU is designed based on a general-purpose graphics processor and has full-precision support capabilities, providing computing power support for scientific computing and artificial intelligence computing, and can fully support deep learning training, inference scenarios, and large model scenarios. The company's self-developed DTK software stack is currently one of the most complete ecosystems in China, which greatly reduces the difficulty of application migration.

Last year, the company's R&D investment totaled 3.446 billion yuan, a year-on-year increase of 22.63%, accounting for 37.61% of operating income, a decrease of 9.13 percentage points from the previous year.

Haiguang Information executives said that R&D is the source of the company's sustainable growth, and the company will still maintain the growth of R&D investment in the future to ensure technological advancement. According to reports, the decline in the proportion of R&D investment in revenue last year was mainly due to the large growth rate of revenue, which led to a decline in the proportion of R&D investment in revenue. The company's R&D investment continued to increase compared with the same period last year, and the company's R&D investment in the fourth quarter also increased significantly compared with the past, and the progress of R&D projects accelerated.

Among

the fundraising projects, the investment progress of "R&D of a new generation of Haiguang general processor", "R&D of a new generation of Haiguang coprocessor" and "construction of advanced processor technology R&D center" as of the end of the reporting period is about 80%, 79% and 81% respectively, and after last year's postponement and adjustment, it is expected that the project will reach a usable state in September 2025.

In addition, last year, Haiguang Information's inventory increased fourfold year-on-year, and sales expenses increased by nearly 60% year-on-year.

Company executives said that the increase in the company's inventory last year was mainly due to the company's initiative to increase inventory in response to the growth of market demand and ensure the stability of the supply chain. In terms of market operation, on the basis of further expanding the ecological construction and adaptation of Haiguang's high-end processors, the company will go deep into the key business applications of key industries, gain customer satisfaction and reputation, and continue to provide customers with the best solutions for Haiguang's products. The company has also cooperated with the leading independent software developers in the domestic industry to launch an industry all-in-one machine to increase market promotion.

According to the data, Haiguang Information has cooperated with mainstream server manufacturers to launch various forms of all-in-one products. Among them, the H3C UIS 3060 G5 Haiguang hyper-converged all-in-one machine is based on the Haiguang No. 2/3 processor, integrates computing virtualization, storage virtualization and network security functions, supports virtual machines, containers, bare metal and other multi-operating states, and can meet the high-density deployment needs of data centers in the fields of finance and government. In addition, in response to the localized deployment needs of AI large models, Haiguang has cooperated with leading enterprises to launch heterogeneous privacy computing all-in-one machines, integrating the high parallel computing power and cryptographic technology of Haiguang DCU to build a secure foundation for the circulation of data elements.