CETC Chips Technology Inc. (600877.SH) issued a profit warning, expecting a net profit of 55 million to 73 million yuan in 2024, a decrease of 68.81% to 76.50% year-on-year.

CETC Chips Technology Inc. (600877.SH) announced that the company expects to achieve a net profit attributable to its shareholders of approximately 55 to 73 million yuan in 2024, a decrease of 161.05 to 179.05 million yuan compared to the previous year, representing a decrease of 68.81% to 76.50% year-on-year. The company also anticipates a net profit attributable to its shareholders, excluding non-recurring gains and losses, of approximately 30 to 40 million yuan in 2024, a decrease of 157.40 to 167.40 million yuan compared to the previous year, representing a decrease of 79.74% to 84.80% year-on-year. Since 2024, the consumer market at home and abroad has been in a stage of recovery, but the company has seen a slowdown in demand in traditional market sectors such as 5G base stations, consumer toy markets, security markets, and photovoltaic bypass protection switch markets, both domestically and internationally. In addition, there is insufficient demand, and market competition is fierce, with intensified competition in the mid-to-low-end product sectors leading to a general price decline, putting significant pressure on the company's performance. On the other hand, the company continues to focus on core technology accumulation and new product development, with R&D expenses accounting for approximately 5 percentage points higher in 2024 compared to the previous year. In the field of security electronics, overall demand release is lagging behind, resulting in a significant decrease in revenue in 2024, with gross profit decreasing by approximately 63 million yuan compared to the previous year. Some projects in the intelligent power supply sector are in a phase of technological upgrading, leading to a reduction in gross profit of about 24 million yuan. The high-precision dam monitoring project faced increased difficulty in product sales due to changes in bidding policies, resulting in a significant decrease in revenue in 2024, with gross profit decreasing by approximately 23 million yuan compared to the previous year. The BeiDou short message SoC product is one of the company's key products in the satellite communication terminal field, which has been implemented in various mobile phones, tablets, smart watches, and new energy vehicles. However, in 2024, the delays in industry access permits affected the relevant phone models of all new customers, leading to a far lower annual sales of the company's BeiDou short message SoC products than initially expected.