Financial Analysis of Allwinner Technology in 2024

1. Asset Structure Analysis

The total assets in 2024 amount to 3.545 billion yuan (2023: 3.532 billion yuan), a year-on-year increase of 0.37%, with overall fluctuations being minor. The asset composition is primarily current assets (71.78%), with non-current assets accounting for 28.22%. The main items are as follows:

Cash and cash equivalents:1.740 billion yuan (49.10%), of which restricted funds are 1.465 billion yuan (mainly time deposits);

Inventory:557 million yuan (15.72%);

Other equity investments:395 million yuan (11.14%);

Intangible assets:192 million yuan (5.43%);

Other non-current financial assets:179 million yuan (5.04%).

Key Observations:

The proportion of cash and cash equivalents is nearly50%, indicating ample liquidity;

Accounts receivable and notes receivable total only41.6191 million yuan, with a short collection cycle, reflecting the company’s strong bargaining power in the industry chain.

2. Liability Structure Analysis

The total liabilities in 2024 amount to 552 million yuan (2023: 569 million yuan), a year-on-year decrease of 3.01%. Among these:

Current liabilities:477 million yuan (86.44%), mainly accounts payable (153 million yuan, 27.77%) and short-term loans (105 million yuan, 19.06%);

Non-current liabilities:75 million yuan (13.56%).

Key Observations:

The scale of interest-bearing liabilities is extremely small (only short-term loans of105 million yuan, with no long-term loans), indicating low financial risk.

3. Profit and Loss Statement Analysis

Operating income:In 2024, it is 2.288 billion yuan (2023: 1.673 billion yuan), a year-on-year increase of 36.76%. Quarterly, Q2 has the highest income (653 million yuan).

Net profit excluding non-recurring items:In 2024, it is 115 million yuan (2023: 7 million yuan), a year-on-year increase of 1,538.72%.

Net profit:In 2024, it is 167 million yuan (2023: 23 million yuan), a year-on-year increase of 626.15%.

Financial expenses:-44.7397 million yuan (mainly due to interest income from time deposits, with an interest rate of about 3%, which is reasonable).

4. Cash Flow Analysis

Cash flow from operating activities:In 2024, it is 196 million yuan (2023: 188 million yuan), remaining stable;

Cash flow from investing activities:In 2024, it is 1 million yuan (2023: -1.130 billion yuan), with no significant investment expenditures in 2024;

Cash flow from financing activities:In 2024, it is -163 million yuan (2023: 28 million yuan), mainly due to dividends or debt repayments.

5.Financial Indicator Analysis

Indicator

2023

2024

Change

Debt-to-asset ratio

16.12%

15.58%

↓0.54pct

Gross profit margin

32.41%

31.19%

↓1.22pct

Net profit margin

1.37%

7.29%

↑5.92pct

ROE

0.78%

5.57%

↑4.79pct

Inventory turnover days

160.59 days

113.5 days

↓47.09 days

Accounts receivable turnover days

10.6 days

7.57 days

↓3.03 days

Key Observations:

Debt repayment ability: The debt-to-asset ratio is extremely low (<16%), indicating a robust financial structure;

Profitability: Significant improvement in net profit margin and ROE, indicating enhanced profit quality;

Operational efficiency: Faster inventory and accounts receivable turnover, optimizing operational efficiency.

6. Operational Situation

Main business: Integrated circuit design (smart terminal application processor chips).

Sales distribution: Domestic (70.13%), overseas (29.86%);

Sales model: Distribution (82.29%), direct sales (17.71%).

Progress in segmented fields:

Smart platform: Completed the tape-out of the next-generation chip, achieving full coverage of tablet products;

Robotics/Industrial control: Launched the dedicated chip MR536 (enhanced perception capability, mass production within six months);

Smart vision: Released low-power wireless security chip;

Smart decoding display: Launched the second-generation projection chip and ultra-miniature projection chip.

7. Conclusion

Allwinner Technology, as a leading domestic smart processorSoC chip designer, presents the following financial characteristics:

✅ Ample funds: High proportion of cash and cash equivalents, healthy cash flow;

✅ Low debt operation: Interest-bearing liabilities only 105 million yuan, debt-to-asset ratio <16%;

✅ Profit growth: Net profit increased over six times, ROE exceeded 5%;

✅ Strong bargaining power in the industry chain: Fast accounts receivable turnover (7 days), accounts payable of 153 million yuan.

Outlook: The company has a solid technological layout in the smart chip field, with significant performance improvement expected in 2024, and is likely to continue growing based on its R&D advantages.

(Note: All data is compiled based on publicly available annual report information)

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