Company Information - The company's registered address is located at Tianma Building, Liuxian Avenue, Minzhi Street, Longhua District, Shenzhen, with a postal code of 518131[7] - The company's stock is listed on the Shenzhen Stock Exchange under the stock code 000050[7] - The company's legal representative is Peng Xuhui[7] - The company's official website is http://www.tianma.com[7] - The company's electronic mailbox is sztmzq@tianma.cn[7] - The company's board secretary is Chen Bingxia, and the securities affairs representative is Hu Qian[8] - The company's contact address is Building 64, Majialong Industrial City, Nanshan District, Shenzhen[8] - The company's telephone number is 0755-86225886, and the fax number is 0755-86225772[8] - The company's electronic mailbox for securities affairs is sztmzq@tianma.cn[8] Financial Performance - Revenue for 2022 was RMB 31.45 billion, a decrease of 6.87% compared to the adjusted revenue of RMB 33.77 billion in 2021[13] - Net profit attributable to shareholders in 2022 was RMB 112.52 million, a significant increase of RMB 146.91 million compared to the adjusted net loss of RMB 34.39 million in 2021[13] - Operating cash flow for 2022 was RMB 3.91 billion, an increase of 18.98% compared to the adjusted operating cash flow of RMB 3.29 billion in 2021[13] - Total assets at the end of 2022 were RMB 80.99 billion, an increase of 7.01% compared to the adjusted total assets of RMB 75.68 billion at the end of 2021[14] - Shareholders' equity at the end of 2022 was RMB 30.06 billion, a slight decrease of 0.19% compared to the adjusted shareholders' equity of RMB 30.12 billion at the end of 2021[14] - Basic earnings per share for 2022 was RMB 0.0458, an increase of RMB 0.0598 compared to the adjusted basic loss per share of RMB -0.0140 in 2021[13] - Weighted average return on equity for 2022 was 0.37%, an increase of 0.48 percentage points compared to the adjusted return on equity of -0.11% in 2021[13] - The company's revenue after deducting certain items was RMB 30.91 billion in 2022, compared to RMB 33.15 billion in 2021[16] - Revenue for Q1 was 8.68 billion yuan, Q2 was 7.06 billion yuan, Q3 was 8.48 billion yuan, and Q4 was 7.23 billion yuan[18] - Net profit attributable to shareholders was 79.00 million yuan in Q1, 291.12 million yuan in Q2, -8.55 million yuan in Q3, and -249.05 million yuan in Q4[19] - Non-operating income from government subsidies in 2022 was 1.43 billion yuan, a significant increase from 865.92 million yuan in 2021[20] - Domestic sales accounted for 59.12% of total revenue, a decrease of 22.49% year-over-year[36] - International sales accounted for 40.88% of total revenue, an increase of 31.46% year-over-year[36] - Direct sales accounted for 82.57% of total revenue, a decrease of 16.93% year-over-year[36] - Distribution sales accounted for 17.43% of total revenue, an increase of 118.61% year-over-year[36] - Revenue for 2022 was 31.45 billion yuan, a decrease of 6.87% year-over-year[35] - Net profit attributable to shareholders was 112.52 million yuan, an increase of 146.91 million yuan compared to the previous year[35] - Total assets at the end of 2022 were 80.99 billion yuan, an increase of 7.01% compared to the previous year[35] Dividends and Share Capital - The company did not distribute cash dividends, issue bonus shares, or convert capital reserve into share capital for the year 2022[2] - The company's total share capital increased to 2.46 billion shares in 2022, with the controlling shareholder holding 11.86% of the shares[11] - The company's total share capital increased to 2,457,747,661 shares after the non-public issuance of 409,624,610 new shares on September 10, 2020[158] - The company issued 409,624,610 additional shares through a private placement to investors, increasing the total share capital to 2,457,747,661 shares[159] - The total share capital of the company increased to 2,457,747,661 shares after the private placement of 409,624,610 new shares in 2020[160] - The company issued 409,624,610 new shares through a private placement to 20 investors, increasing the total share capital to 2,457,747,661 shares[162] R&D and Innovation - The company holds a leading global market share in automotive displays, LTPS smartphones, industrial products, and rigid OLED smart wearables[23] - The company invested in a new automotive display R&D center in Wuhu, Anhui, to enhance its R&D capabilities in the automotive sector[25] - The company's innovation center focuses on advanced OLED technologies, including foldable displays, HTD, CFOT, MLP, and under-display cameras[24] - The company actively participates in the formulation of national and industry standards for various display technologies, including OLED and flexible displays[25] - The company's R&D strategy includes collaboration with universities, research institutes, and industry partners to drive innovation and technology integration[25] - The company has invested 33 billion yuan in Xiamen to build a G8.6 new display panel production line and 8 billion yuan in Wuhu for a new display module production line[26] - The company has invested 1.1 billion yuan in Xiamen to establish a full-process Micro-LED pilot line, aiming to become a leading innovation platform in the Micro-LED industry[26] - The company has developed advanced technologies such as 2160Hz ultra-high frequency PWM dimming, In-cell active pen technology, and LCD CUP full-screen solutions[32] - The company is focusing on emerging markets and applications, including AIoT, smart home, smart wearables, and sensors, while deepening cooperation with existing clients[27] - The company has a strong presence in the automotive display market, with products covering thousands of models from global mainstream brands[27] - The company has established a joint venture with Tongfu Microelectronics to develop advanced packaging technologies, accelerating the commercialization of related products[32] - R&D expenses increased by 36.73% year-over-year to RMB 2,732,057,566.14 in 2022, primarily due to increased R&D investment[46] - R&D investment in 2022 increased by 44.25% to RMB 2,983,239,544.03 compared to 2021[49] - R&D personnel increased by 2.72% to 6,414 in 2022, with a higher proportion of employees aged 41-50, up by 35.20%[48] - Capitalized R&D expenditure surged by 258.67% to RMB 251,181,977.89 in 2022[49] - Mini LED technology development reached mass production, enhancing competitiveness in automotive displays[47] - Flexible OLED low-power technology is in small-scale trial production, aiming for mass production to boost flagship product competitiveness[47] - DMS & 3D gesture integration development is in engineering samples phase, targeting mass production to enhance automotive electronics competitiveness[47] - ACRUS ultra-high contrast automotive display technology, a proprietary solution, is in trial production for mass production, enhancing product competitiveness[47] Production and Operations - The company has over 3,000 clients in the medical and industrial control markets, with products covering leading enterprises in various industries[27] - The company has established a comprehensive production line layout, including 2nd to 6th generation TFT-LCD lines, 5.5th and 6th generation AMOLED lines, and TN/STN lines[33] - The TM18 production line achieved the first batch of flexible AMOLED product shipments to international brand customers in August 2022, setting a new industry record for delivery speed[33] - The company is accelerating the construction of the Xiamen 6th generation AMOLED production line (TM18), the 8.6th generation TFT-LCD production line, and the Wuhu new display module production line[33] - The company established 4 new subsidiaries in 2022: Wuhu Tianma Automotive Electronics Co., Ltd., Tianma Microelectronics Technology Co., Ltd., Tianma (Wuhu) Microelectronics Co., Ltd., and Jiangsu Tianhua Automotive Electronics Co., Ltd.[41] - The company invested RMB 13,000 million to establish Wuhu Tianma Automotive Electronics Co., Ltd., which completed its business registration in January 2022[41] - The company invested RMB 5,000 million to establish Tianma Microelectronics Technology Co., Ltd., which completed its registration in May 2022[41] - The company invested RMB 25,000 million to establish Tianma (Wuhu) Microelectronics Co., Ltd., holding a 52.08% stake in the joint venture with a total registered capital of RMB 4,800 million[41] - The company invested RMB 5,500 million to establish Jiangsu Tianhua Automotive Electronics Co., Ltd., holding a 55% stake in the joint venture with a total registered capital of RMB 10,000 million[41] - The top 5 customers accounted for 31.29% of total annual sales, with a combined sales amount of RMB 9,694,918,216.64[42][43] - The top 5 suppliers accounted for 19.50% of total annual procurement, with a combined procurement amount of RMB 4,143,282,539.88[44][45] - The company has established a joint venture with Tongfu Microelectronics to develop advanced packaging technologies, accelerating the commercialization of related products[32] - The company has established several joint ventures and subsidiaries for new display technology projects, including an 8.6th generation new display panel production line[113] - The company established two joint ventures: Xiamen Tianma Optoelectronics Co., Ltd. with registered capital of RMB 1.98 billion and Tianma New Display Technology Research Institute (Xiamen) Co., Ltd. with registered capital of RMB 50 million[178] - The company completed the establishment of a joint venture company to invest in the construction of a new 8.6-generation display panel production line[197] - The company announced the establishment of a joint venture project company to invest in the construction of a new display module production line[197] - The company completed the establishment registration of a joint venture in July 2022[199-056] Market and Industry Trends - Global smartphone display demand in 2022 was 1.37 billion units, a 20.8% year-on-year decline, but is expected to grow to 1.66 billion units by 2028[70] - Global automotive display demand in 2022 was 193 million units, a 2.7% year-on-year increase, projected to reach 247 million units by 2028[70] - Global IT display demand in 2022 was 632 million units, a 15% year-on-year decline, but is expected to grow to 698 million units by 2028[70] - Global smart wearable display demand in 2022 was 259 million units, a 17% year-on-year increase, projected to exceed 400 million units by 2028[71] - The company's "2+1+N" strategy focuses on mobile and automotive displays as core businesses, IT displays as a key growth area, and industrial, niche markets, and non-display businesses as value-added segments[71] - The company aims to maintain its global leadership in automotive displays, targeting growth in new energy vehicles and the Chinese market, while enhancing competitiveness in Mini-LED and OLED products[72] - The display panel industry faces short-term challenges due to macroeconomic conditions, leading to reduced demand and falling product prices[73] - The company is focusing on emerging markets and new application areas to drive growth[73] - The company is enhancing its risk management and business continuity management to respond to external environmental changes[73] - The company is building a talent development system to retain and motivate key technical personnel[74] - The company has mastered advanced technologies including TN/STN, TFT-LCD, AMOLED, and Micro-LED, among others[74] - The company plans to increase investment in R&D for new technologies and products, focusing on AMOLED and Micro-LED[74] - The company is strengthening its intellectual property strategy to mitigate risks and enhance competitiveness[74] Corporate Governance and Investor Relations - The company maintains independence in business, personnel, assets, organization, and finance from its controlling shareholder and actual controller[81] - The company has established a comprehensive and smooth information exchange channel for investor relations management[79] - The company's board of directors has four specialized committees: strategy, audit, nomination and remuneration, and risk management[79] - The company has implemented a hierarchical and classified performance incentive system to motivate employees[80] - The company ensures transparency and accuracy in information disclosure, adhering to relevant laws and regulations[80] - The company's governance structure complies with legal and regulatory requirements, with no significant differences[80] - The total number of shares held by directors, supervisors, and senior management at the end of the period is 38,100 shares[87] - No changes in shareholdings were reported for any of the current directors, supervisors, or senior management during the period[84][86][87] - Dong Hai resigned from his position as director and member of the Strategic Committee on April 12, 2022, and no longer holds any position in the company[87] - Zhu Jun, Wang Susheng, Chen Zetong, and Chen Han left their positions as independent directors on July 7, 2022, due to the expiration of the ninth board term[88] - Zhang Guangjian left his position as chairman of the supervisory board on July 7, 2022, due to the expiration of the ninth supervisory board term[88] - Cao Yuhe resigned from his position as General Counsel on October 24, 2022, and no longer holds any position in the company[88] - Li Peiyin was elected as a director of the 10th Board of Directors on July 8, 2022[89] - Luo Guizhong was elected as a director of the 9th Board of Directors on April 28, 2022[89] - Cheng Wei was elected as a director of the 9th Board of Directors on April 6, 2022[89] - Liang Xinqing was elected as an independent director of the 10th Board of Directors on July 8, 2022[89] - Zhang Hong was elected as an independent director of the 10th Board of Directors on July 8, 2022[89] - Tong Yixing was elected as an independent director of the 10th Board of Directors on July 8, 2022[90] - Wang Mingchuan was elected as the Chairman of the 10th Supervisory Board on July 8, 2022[90] - Zheng Chunyang was appointed as the General Legal Counsel on October 24, 2022[90] - Dong Hai resigned as a director of the 9th Board of Directors on April 28, 2022[90] - Zhu Jun, Wang Susheng, Chen Zetong, Chen Han, and Zhang Guangjian left their positions due to the expiration of the 9th Board of Directors and Supervisory Board terms on July 8, 2022[90] - The company's independent directors include Liang Xinqing, Zhang Jianhua, Zhang Hong, and Tong Yixing, who bring extensive experience in technology, law, and finance[93] - The company's board of supervisors includes Wang Mingchuan, Jiao Yan, Lin Xiaoxia, Liu Wei, and Chen Dan, with diverse backgrounds in finance, law, and risk management[94] - Senior management includes Wang Lei, Wang Bin, Zheng Chunyang, Zhu Yanlin, and Jiang Huawei, with expertise in engineering, finance, legal affairs, and operations[95] - Chi Yunfeng and Chen Bingxia are part of the senior management team, contributing to the company's operations and strategic development[96] - Several executives hold positions in shareholder units, such as China Aviation Technology International Holding Co., Ltd., indicating strong ties with key stakeholders[97] - The total pre-tax remuneration for directors, supervisors, and senior management in 2022 was 19.8064 million yuan[106] - The chairman's pre-tax remuneration was 2.5564 million yuan, and the general manager's was 2.589 million yuan[104] - Independent directors received an allowance of 61,200 yuan each, with the exception of Zhang Jianhua, who received 128,000 yuan[104] - The vice president with the highest pre-tax remuneration was Wang Lei, receiving 2.691 million yuan[104] - The total pre-tax remuneration for the board secretary was 1.2321 million yuan[106] - The pre-tax remuneration for the chief financial officer was 1.8378 million yuan[104] - The pre-tax remuneration for the chief legal officer was 130,000 yuan[104] - The pre-tax remuneration for the employee representative supervisors was 518,900 yuan and 440,500 yuan respectively[104] - The pre-tax remuneration for the departing chief legal officer, Cao Yuhe, was 1.66 million yuan[106] - The company's executive compensation structure includes basic salary, performance salary, special rewards, and tenure incentives[101] - The company held a total of 12 board meetings during the reporting period, with detailed resolutions and announcements published on the official website[108][109] - All directors attended the board meetings, with most participating via teleconference, and no director missed two consecutive meetings[110] - The company's independent directors did not have any instances of failing to attend two consecutive board meetings[111] - The board of directors did not raise any objections to the company's matters during the reporting period[111] - The company adopted all reasonable suggestions proposed by the directors[112] - The Strategic Committee held 4 meetings, approving proposals such as the establishment of subsidiaries and joint ventures for new display panel and module production lines[113] - The Audit Committee held 4 meetings, reviewing the 2021 internal audit summary and 202