2025 Annual Board of Directors Work Report
In 2025, StarChip Technology Co., Ltd. (hereinafter referred to as the "Company") Board of Directors strictly adhered to the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), relevant laws, regulations, normative documents, and the "Articles of Association," "Board of Directors Meeting Rules," and other regulations. With a sense of responsibility to all shareholders, the Board diligently and effectively exercised its powers, conscientiously implemented all resolutions of the Shareholders' Meeting, diligently carried out all work of the Board of Directors, promoted the improvement of the Company's corporate governance level and the development of the Company's various businesses, and ensured steady growth in the Company's operating performance. The report on the work of the Board of Directors for 2025 is as follows:
I. Company's Operating Performance in 2025
The Company is a world-leading designer and supplier of AI SoC for vision. Relying on the core framework of "Vision + AI" and the core technology advantages of "Perception + Computing + Connectivity," the Company's AI SoC for vision is integrated and widely deployed in various edge and terminal devices, including smart security, smart IoT, and smart automotive fields.
During the reporting period, the Company's R&D projects that received upfront investment began to yield results. Many new products, especially in the growth curve areas of automotive and robotics, were successfully launched and achieved large-scale production. Leveraging its in-depth global channel layout, the Company's main business has steadily improved, and the quality of its profitability has continued to optimize. Coupled with the tight supply environment for the storage industry in the second half of the year, the Company relied on its long-term strategic reserves of storage chips, combined with its "SoC chip + built-in storage" integrated solution and "turnkey" service advantages, and its forward-looking supply chain layout. This not only ensured stable production and operation but also further consolidated its market competitive advantage. Against this backdrop, the Company's operating performance showed a good trend of sequential quarter-on-quarter growth, with annual revenue and product shipments reaching record highs.
Specific performance details are as follows:
During the reporting period, the Company achieved operating revenue of approximately RMB 2.972 billion, a year-on-year increase of approximately 26.28%; net profit attributable to shareholders of the listed company was approximately RMB 308 million, a year-on-year increase of approximately 20.33%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately RMB 252 million, a year-on-year increase of approximately 39.20%.
The share-based payment expense recognized for the equity incentive plan was approximately RMB 33 million, which affected the net profit attributable to shareholders of the listed company by approximately RMB 28 million (after considering relevant tax effects). Therefore, the net profit attributable to shareholders of the listed company after deducting the impact of the aforementioned share-based payment expense was RMB 336 million.
Specifically, in the fourth quarter, operating revenue was approximately RMB 806 million, a year-on-year increase of approximately 49.01% and a quarter-on-quarter increase of approximately 5.60%. This marks the fourth consecutive quarter of quarter-on-quarter growth and achieved a historical high for the Company's quarterly and annual revenue. In the fourth quarter, net profit was approximately RMB 106 million, a year-on-year increase of approximately 76.91% and a quarter-on-quarter increase of approximately 29.10%. This also marks the fourth consecutive quarter of quarter-on-quarter growth and achieved a historical high for the Company's quarterly net profit since the first quarter of 2023.
The Company's overall gross profit margin was approximately 34.16% in the year, with the gross profit margin in the fourth quarter reaching approximately 36.15%, a quarter-on-quarter increase of 2.32% compared to the third quarter. In 2026, the Company will continue to improve operational efficiency and is confident that the growth in performance can be maintained for a considerable period.