Core competitiveness analysis
Upholding autonomous innovation technology development strategies and enhancing intellectual property accumulation the company has accumulated extensive experience in the development of high performance simulation integrated circuit products, building on years of research and development inputs and technology accumulation, and creating an autonomous core of technology. Companies have been pursuing autonomous innovation technology r & d strategies and intellectual property rights have grown steadily. During the reporting period, companies launched more than 300 new products with fully autonomous intellectual property rights, with comprehensive performance indicators up to the internationally advanced level of comparable products, which can be widely applied in applications such as industrial control, automobile electronics (885545), communications equipment, consumer electronics and medical instruments. By the end of the reporting period, the company had cumulatively obtained 195 licensed patents (of which 163 were invention patents), registered 194 integrated circuit chart designs and approved 115 registered trademarks. The company focuses on research and development of analog chips, product performance and quality versus world-class analogue manufacturers, and some key performance indicators are better than similar products abroad. For example, the company has introduced high performance simulation chip products such as the industry's ultra-low-energy operating amplifiers and comparators, the ultra-low-power conversions of dc/dc and the decompression of dc/dc converters, high-precision low-noise instrument amplifiers, ldos with small seals of large currents with high resistance to interference, high-efficiency lithium batteries (885710), chargers, 24 high-precision adcs, large dynamic-relation current-volt converters, high-precision baseline circuits, high-precision temperature sensors (885946) and high-precision electrical current sensors (885946). In addition, simulated chips have characteristics of generality, diversity, long life cycles and wide application. More than 4,600 salesable products are currently developed by companies on their own, covering 30 product categories and meeting the diversified needs of clients. At the same time, companies continue to pay close attention to market developments, particularly in emerging areas, by pre-positioning and accumulating relevant technologies, and have made some progress in the areas of automobiles electronics (885545), green energy, smart manufacturing (885941), smart phones, communications, goods networking (885312), smart homes (885478), wearable equipment, drones (885564) and artificial intelligence (885728), following up on the advantages of product performance and rapid market response, reaching out to customers in order to capture business opportunities in an accurate and timely manner and further expand domestic and external market shares. 3. Advanced quality management systems and production processes to ensure product excellence the company has established a complete quality assurance system in accordance with the most stringent standards of the industry, following a quality management approach that is “technically advanced, of reliable quality, customer satisfaction and continuous improvement” and that imposes strict standards on the quality of each product, choosing, on the one hand, as a supplier, crystal-verticry and containment plants with high reliability and good rates, and, on the other hand, a full set of high standards for each new product, guaranteeing its quality while enriching the product line. In addition, the development of new products by companies has gradually become multifunctional, high-end, complex, with more new products taking more advanced production and packaging forms, such as a new generation of high-pressure bcds with lower-conductive electrical resistance, 90 nm simulation and hybrid signal processes, and wcsp seals. Firms have always had stringent requirements for such indicators as the reliability, resistance to interference, the probabilities of production and stability of chips products, which are at the forefront of domestic and foreign industry and have greater market competitiveness. The company has been continuously accredited with iso 9001 and iso 14001 quality and environmental management systems. The alignment of quality/environmental management system requirements with international standards provides stronger support for continued development and continuous optimization. 4. Consolidate upstream and downstream resources and bring together the best talent in the industry. At the same time, the business of the company continues to grow through distribution and direct marketing channels. High-quality upstream and downstream resources provide companies with good industry brand recognition. The core members of the company's technology r & d team, the production management team and the marketing team are highly qualified international experts with many years of work and management experience in internationally renowned semiconductor companies and are among the core competitiveness of the company. Companies have consistently focused on building their workforce and reserves. During the reporting period, companies actively introduced talent in a variety of ways, with significant growth in r & d teams, marketing teams, etc., especially the participation of some senior r & d staff, which has led to an increase in corporate r & d capacity, expansion of product lines and further increase in the technical content of products. The successful implementation of the corporate equity incentive scheme has stimulated staff motivation and dynamism, increased corporate cohesion and contributed to sustained and rapid corporate growth. The company, led by its core team, promotes a corporate culture of “people-centred, hard-working innovation, team spirit, commitment” and sustains the development, production and marketing of excellent analog chips that are highly compatible with business culture and values, laying a solid foundation for the company's rapid development in the future。
Iii. Corporate risks and responses
1. The risk of sustaining the capacity for continuous innovation is becoming the most important component of the core competitiveness of firms that model integrated circuit design (884226) with increased competition in the market and increasing demand from end-users for product individualization, the constant upgrading of technologies involved in analogue integrated circuit design (884226) industries, the emergence of new technologies, new products, and the increasing scientific content of products and continuous innovation capabilities. Only if it remains at the forefront of technological innovation and accelerates the process of industrialization of r & d results can the analogue of integrated circuit firms achieve higher levels of profitability. If companies fail to keep pace with the evolution of technology development for integrated circuits, pay due attention to customer diversification needs, expand new product lines, or follow-up research and development inputs are insufficient, which may lead to the sustainability of the supply of products adapted to market demand, companies will be exposed to the risk of declining market competitiveness due to the inability to maintain a sustained capacity for innovation, and their products may be subject to a significant decline in mĀori rates or even elimination from the market due to their inability to meet new market demand. Since its inception, companies have attached great importance to the development and building of autonomous innovation capabilities. The core members of the company's r & d team are senior r & d staff with extensive r & d innovation experience, while a cadre of young people with an autonomous sense and ability to innovate has been created and brought together to form a very strong and dynamic r & d team of young and young people. The company's research and development teams closely follow the latest developments, new technologies and new methods in the field of international analogue chip technology, while closely communicating with the marketing sector, capturing client demand and industry trends, continuously introducing new products and technologies that meet market expectations and maintaining the technological sophistication and innovation of products. Companies will continue to increase their investment in research and development, increase their recruitment of all categories of talent and insist on long-term corporate development through continuous innovation. The business income and profit growth of integrated circuit design (884226) companies is mainly based on the development and marketing of new products, so that integrated circuit design (884226) companies need to continuously expand their research and development inputs and introduce new products. The r & d risks of new products come mainly from the following aspects: (1) the development cycle of new products is longer, usually one to several years, and at the product setting stage there is a risk of miscalculation of market demand and development direction, which may lead to mispositioning of new products by firms to fail to meet market demand; (2) the risk of miscalculation of the firm's own strengths, mainly in terms of its ability to develop technology, may lead to delays in the completion or even suspension of the company's r & d project; and (3) at the marketing stage of new products, there are market opening risks arising from factors such as premature product programmes and changes in the application environment, which may lead to late product sales, ineffective recovery costs and may affect the subsequent development planning of the company's new products. In order to reduce the risks of new product development, companies have developed a sound feasibility assessment system and technology development management process, and all r & d projects must be initiated with adequate advance market surveys, analysis and assessment of benefits before they can be implemented through rigorous auditing procedures, while rigorous and effective process management is implemented for research projects and timely adjustments to market changes. The integrated circuit design (884226) industry is a technology-intensive industry, and human resources are one of the core competitiveness of enterprises. Since its establishment, the company has been constantly attracting highly qualified and highly qualified people to join forces to strengthen the combined strengths of its research and development teams, while stabilizing and expanding its workforce through a wide range of differentiated incentives, including remuneration, employee benefits, equity incentives, but there is still a risk of a loss of skilled personnel due to increased market competition and the higher threshold for entering the analogue integrated circuit design (884226) sector, which has increased competition for talent in the sector. In the face of this risk, the company will, on the one hand, expand its efforts to recruit qualified personnel at all levels from the outside, while at the same time strengthening its internal training, improving its training mechanisms and improving the performance of its technical staff. On the other hand, companies will continue to strengthen their business culture and increase corporate cohesion. Raw materials and the risk of price fluctuations for sealing. Crystal circle is the main raw material for the company's products, and the company has established long-term and stable cooperation with the globally recognized crystal circle manufacturer, tsm, while gradually increasing the number of partners of the crystal round industries. The impact on business performance would be greater if future prices for corporate round purchases were to fluctuate significantly. Sealing is an important part of the production of the company's products. The company selects the closure manufacturer for long-term cooperation and reduces the cost of the sealing by means of improved layout, optimization of sealing types and optimization of testing procedures. If there were to be significant price changes in the future, this would have a significant impact on the company's performance. On the one hand, domestic analogues of integrated circuits are growing rapidly, market competition is increasing, and intra-industry producers are actively opening up markets based on the consolidation of their own strengths, giving priority to the capture of market shares. The application market involved in the company's products may be affected by the loss of part of the market share as competitors develop more competitive products. On the other hand, the wider application of firms ' products, particularly r & d inputs to emerging areas, may affect the future development of companies if there is a miscalculation or if new products are not effectively promoted and the expected benefits are not achieved. By increasing r & d inputs, expanding r & d teams to ensure that sufficient resources are available and technologies are built up to develop new products with technological advantages, the company's high-end analogue chip products are more competitive in terms of performance, quality, type and quantity; at the same time, the company's market, marketing and technical support teams work in depth with a wide range of clients to effectively capture the core needs of their clients and the direction in which the market evolves, and to plan a new generation of products that meet customer needs and are in line with market trends, thus remaining in a strong market competitive position. 6. The risk of rising labour costs in the country, as the process of industrialization and urbanization continues and the quality of the labour force gradually improves, and the steady increase in the wage levels of employees has become a necessary trend. Rising labour costs will directly increase the cost of enterprises and squeeze their profit margins. A failure by future companies to reduce the pressure on rising labour costs in a timely manner, including by increasing revenues or raising the mĀori rate, will have a significant negative impact on the sustainability of companies. The company will further refine its pay and benefits system, employing a variety of incentives, including equity incentives, to pursue development while at the same time reasonably controlling expenditure. The business of the company is divided mainly into internal and external sales, where: internal sales are settled in renminbi; and foreign currency is settled in foreign currency. Foreign currency assets and liabilities of companies and foreign currency transactions are denominated mainly in united states dollars and subject to uncertainty over exchange rate movements, and exchange rate fluctuations may pose exchange risk for future operations. The company implemented equity incentive schemes in 2018, 2021 and 2022, and the costs of the three equity incentive schemes will be recognized in instalments during the period 2019-2026, in proportion to the reduction in sales, and their amortization will have an impact on the net profits over the years of effectiveness, without taking into account the incentive effects of the scheme on company performance. Companies will strive to improve business efficiency, stimulate the motivation of management teams, maximize the positive impact of equity incentive schemes on corporate development, and reduce the negative impact of incentive schemes on increased corporate cost costs. The investment operations of investment funds may be affected by a variety of external factors, such as macroeconomic, industrial policy and changes in the market environment, with a certain degree of uncertainty about returns and risks of failure to achieve investment objectives, under-expected returns or losses. The company is a limited partner in the investment fund and has limited liability to the partnership up to the amount of its contribution. Companies will follow up on the operations of investment funds in a timely manner, follow up on the investment project implementation process and urge fund managers to strictly enforce controls to protect against investment risks arising from irregularities, inter alia. The semiconductor integrated circuit industry is closely linked to people's production and lives and is deeply involved in global competition and cooperation, and is therefore influenced by macroeconomic conditions at home and abroad, patterns of industrial development and macroeconomic factors such as friction in international trade. The weakening of the global economy and the slowdown in domestic economies can have negative effects and downward pressures on the entire industry. At the same time, the semiconductor integrated circuit industry itself has certain cyclical characteristics. Companies maintain stable growth over the long term by continuously increasing their r & d inputs, intensifying technological innovation and product core competitiveness, deepening technological pre-suspection and technology reserves; adapting their product structures to industry development characteristics and future trends; actively expanding their market applications and client groups; responding to market changes and responding quickly to shocks from macroeconomic environments and sectoral fluctuations。
