The main business revenue has increased significantly, and Rockchip's net profit is expected to increase by 65% ​​in 2020

On January 27, Rockchip released its performance forecast, stating that the company expects to achieve a net profit attributable to shareholders of listed companies of RMB 286.5898 million to RMB 337.7666 million in 2020, an increase of RMB 81.8828 million to RMB 133.0596 million compared with the same period last year, a year-on-year increase of 40.00% to 65.00%.

Regarding the main reasons for the performance growth, Rockchip stated that the company has a rich historical accumulation and certain competitive advantages in product areas such as artificial intelligence Internet of Things (AIoT, such as various industry applications), audio/video (such as smart speakers, tablets, smart TV boxes), and market demand accelerated quarter by quarter in 2020, bringing about a significant increase in revenue in this field.

At the same time, the company quickly responded to the market changes brought about by the epidemic, actively expanded the incremental markets at home and abroad under the epidemic, such as smart education, remote office, smart home, and smart access control, and achieved a significant growth in the above fields. In addition, Rockchip's products in new fields such as smart security and optoelectronics were put into mass production in the fourth quarter, becoming a new growth factor.

It is worth mentioning that during the reporting period, Rockchip granted stock options and restricted stocks to about 20% of the company's core employees, amortizing share-based payment expenses of about 32 million yuan. At the same time, the company is expected to incur a total exchange loss of about 27 million yuan due to exchange rate fluctuations throughout the year.