The result of the research is that the sales volume, the percentage of R&D personnel, the percentage of top 5 customers and the percentage of top 5 suppliers have a significant influence on the company's profitability. Moreover, this study shows that the percentage of employees in R&D has the greatest influence on the profitability of companies.
- Background
- problem Statement
- Research Questions
- Research Objectives
- Significance of Study
- For Academic
- For IC Corporations
- Scope and Limitations
- Scope
- Limitations
- Organization of the Study
Is there any influence of the net profit in relation to the percentage of personnel in R&D. So the time period of this study is the beginning of the Sino-US trade war.
- Integrated Circuit Industry
- Current Situation of Industry Development in China
- Independent Variables
- Sales Volume
- The Percentage of personnel in R&D
- The percentage of Top 5 Customers
- The percentage of Top 5 Suppliers
- Dependent Variables
- Net Profit
- ROAE
- Previous study
- Research Gap
Different customers contribute a lot to the profit of the corporation, and the corporation should attach great importance to high-value customers and customers with high-value potential. Major customers” are partner customers of the corporation and customers that create 80% profit for the corporation. The supplier supplies the relevant material directly to the corporation, and the quality of the material supplied is directly related to the quality of the products in the entire corporation's production process.
On the other hand, the company's production can be more stable, and the procurement of materials is critical for the company. More net profit means that the business efficiency of the company is good and the company is in a rising phase. On the contrary, if the net profit is small, it indicates that the operational efficiency of the company is very poor.
The net income certified under current corporate accounting standards is not a representation of the company's value, nor does it reflect the company's true operating performance.
- Research Method
- Research Framework
- Theoretical Framework
- Hypotheses
- Operational Definitions
- Research Instrument
- Sampling
- Regression Models
The scope of this study includes six variables, four of them are independent variables, namely sales volume, Percentage of Personnel in Research and Development, Percentage of Top 5 Customers, Percentage of Top 5 Suppliers. Financial factors include sales volume, percentage of R&D personnel, percentage of top 5 customers, percentage of top 5 suppliers. H2: The percentage of R&D personnel has a significant impact on net profit H3: The percentage of top 5 customers has a significant impact on net profit H4: The percentage of top 5 suppliers has a significant impact on net profit H5: Sales volume has a significant impact on ROAE.
H6: The percentage of R&D staff has a significant effect on ROAE H7: The percentage of top 5 customers has a significant effect on ROAE H8: The percentage of top 5 suppliers has a significant effect on ROAE H9: Net profit has a significant effect on the percentage of R&D staff H10: ROAE has a significant effect on the percentage of R&D staff. Net profit refers to the amount of the company's current profit after deducting income tax, i.e. the company's profit after taxation. All variables in this article are from the company's annual report, including sales volume, percentage of R&D personnel, percentage of top 5 customers and suppliers.
X2= The Percentage of Staff in R&D X3= The Percentage of Top 5 Customers X4= The Percentage of Top 5 Suppliers ɛ = error.
Corporate Profile
In September 1998, the corporation was successfully listed on the Shanghai Stock Exchange (SH600171), becoming the first listed corporation in China's integrated circuit industry. After years of development, Shanghai Belling has become an important integrated circuit design corporation within the country's planning layout, with a state-level corporation technology center. In line with the mission of "Create a better life with the chip", the corporation will continue to increase investment in research and development, and focus on the development of industrial control and automotive electronic core chips, providing high-performance, high-reliability integrated circuits and power devices to provide customers with system solutions.
Silan Microelectronics is mainly engaged in the design, manufacture and sale of integrated circuits and semiconductor microelectronics related products. With the support of the National Integrated Circuit Industry Fund and local governments, the company has strategically established a development plan for the 8-inch chip project to fully promote the development of special process development and production platforms. The Company is committed to providing highly reliable, high quality solutions, products and related services to customers in the fields of information detection, information processing and information delivery.
Hardware and software products and services are effectively integrated into Unisplendour Corporation's top-level leadership design, enabling the information system to exhibit optimized and integrated performance.
Descriptive Analysis
- Corporate Profitability Analysis
- Top 5 Customers Analysis
- Top 5 Suppliers Analysis
Net profit refers to the amount of the actual profit of the corporation after deducting income tax, that is, profit after corporate tax. One is the 25% income tax rate for general corporations, so 25% of total profits must be paid to the state treasury; the other is the preferential tax rate for foreign-funded corporations and some high-tech corporations. When the operating conditions of the corporation are equal, the operating efficiency of the corporation with a lower income tax rate is better.
Net cash flow is an indicator in the statement of cash flows that refers to the inflows (income) of cash and cash equivalents less the balance of the outflows (expenses) during a specified period, reflecting the company's net increase or decrease in cash and cash equivalents during the period. The calculation of the net cash flow during the operating period is based on the realization of the payment system. In conclusion, the share of the top five customers can roughly determine the dependency of customers on companies.
To conclude, the percentage of top five suppliers can roughly judge the corporation's dependence on suppliers.
Multiple Regression Equation
It means that each Percentage of Top 5 Customers that increases by 1, and the Net Profit will decrease by 2.16e+09. The result: H6 rejected, this comparison shows that the percentage of personnel in R&D has a positive and no significant influence on the ROAE. The meaning: if the percentage of R&D personnel increases by 1, the ROAE increases by 0.1427281.
Result: H7 is accepted, this equation shows that the percentage of top 5 customers has a positive and significant impact on ROAE. This means that every percentage of the top 5 customers increases by 1 and the ROAE will increase by 0.0965428. Result: H8 was rejected, this equation shows that the percentage of top 5 suppliers has a negative and not significant impact on ROAE.
It means that each Percentage of Top 5 Suppliers that increases by 1 and the ROSE will decrease by 0.0717665.
Conclusion
Therefore, this study would like to conclude that only the percentage of the top 5 customers can completely affect the company's profitability (both net profit and ROAE), the other three factors can also affect the company's profitability, but the degree of influence is less than the percentage of the top 5 customers.
Extended Research Model
Coefficient of regression of Y1 if net profit = 5.52e-11; the multiple regressions give the result that net profit has an influence of 5.52e-11 on the percentage of personnel in R&D. It means that for every 1 increase in value of net profit and the other variables held constant, the percentage of personnel in R&D will increase by 5.52e-11. The result: H10 rejected, this comparison shows that ROAE has a positive and no significant influence on the percentage of personnel in R&D. The meaning: if the ROAE increases by 1, the percentage of personnel in R&D will increase by 0.3649695.
Regression coefficient of Y2 as ROAE, the multiple regressions give the result that ROAE has an influence of 0.3649695 in relation to the percentage of personnel in R&D. This means that for every 1 value increase of ROAE and the other variables remain constant, then the percentage of personnel in R&D will increase by 0.3649695.
Conclusion for Extended Research Model
Meaning: If net profit increases by 1, the Percentage of R&D Personnel will increase by 5.52e-11. Therefore, this study found that net profit and ROAE can affect the proportion of R&D personnel, but the degree of influence of net profit is higher than ROAE.
Conclusion
The percentage of the top 5 suppliers has a significant impact on the net profit, this means that the sales volume can affect the net profit effectively, so it can affect the company's profitability, either. The percentage of personnel in R&D has no significant impact on ROAE, this means that sales volume cannot affect ROAE effectively, so it cannot affect the profitability of the company either. The percentage of top 5 customers has a significant influence on ROAE, this means that sales volume can affect ROAE effectively, so it can either affect the profitability of the company.
The percentage of the top 5 suppliers does not have a significant impact on ROAE, which means that sales volume cannot effectively affect ROAE and therefore cannot affect the profitability of the company. Net profit has a significant effect on the percentage of employees in research and development, which means that net profit can effectively affect the percentage of employees in research and development. ROAE has no significant effect on the percentage of R&D personnel, which means that sales volume cannot effectively affect the percentage of R&D personnel.
In addition, this study shows that the percentage of personnel in R&D is the highest.
Recommendation
- For Academic
- For IC Industry
Through this finding, this study confirms that in China IC industry, the percentage of personnel in R&D plays an important role in generating its profitability, therefore this study encourages the future researcher to emphasize the human capital characteristics that will be needed to sustain IC corporations in China in the future. The government should also give some better policies to the IC industry, such as reducing the income tax in the IC industry and giving some financial support to corporations with promising prospects. The relationship between customer and supplier innovation search embeddedness, R&D investment and firm performance.
Empirical research on the relationship between corporate R&D investment and corporate performance - based on excavated data of listed companies in Shanghai and Shenzhen.
