GOODIX(603160)2023-04-26 16:00Financial Performance - 2022 net profit attributable to shareholders was -747.64 million yuan, a significant decrease compared to the previous year[4] - Revenue in 2022 decreased by 40.77% year-on-year to RMB 3,383,952,172.00[20] - Net profit attributable to shareholders in 2022 was RMB -747,641,878.56, a decrease of 186.94% compared to 2021[20] - Operating cash flow in 2022 was RMB -905,611,561.96, a decrease of 381.44% compared to 2021[20] - Total assets at the end of 2022 decreased by 12.12% year-on-year to RMB 9,426,673,348.88[21] - Basic earnings per share in 2022 were RMB -1.63, a decrease of 185.34% compared to 2021[22] - Weighted average return on equity in 2022 was -9.07%, a decrease of 19.25 percentage points compared to 2021[22] - Revenue in Q4 2022 was RMB 863,182,562.89, with a net loss attributable to shareholders of RMB -648,139,075.32[24] - Revenue for 2022 was RMB 3.384 billion, a year-on-year decrease of 40.77%, with a comprehensive gross margin of 46.20%, down 1.99 percentage points[29] - Net profit attributable to shareholders of the parent company in 2022 was RMB -748 million, a year-on-year decrease of 186.94%[29] - Total revenue decreased by 40.96% year-over-year to 3,310,399,881.65 yuan, with a corresponding decrease in operating costs by 38.39% to 1,816,340,014.88 yuan[57] - Gross profit margin decreased by 2.29 percentage points to 45.13% compared to the previous year[57] - Revenue from fingerprint recognition chips dropped significantly by 55.43% to 1,587,503,238.01 yuan, with a gross margin decrease of 8.27 percentage points to 36.79%[57] - Domestic sales revenue fell by 54.55% to 1,599,991,647.27 yuan, while export sales revenue decreased by 18.02% to 1,710,408,234.38 yuan[57] - Production volume of integrated circuit chips decreased by 31.68% to 928,678,498 units, and sales volume dropped by 42.59% to 749,594,481 units[58] - Net cash flow from operating activities was negative at -905,611,561.96 yuan, a decrease of 381.44% compared to the previous year[65] - Net cash flow from investing activities increased by 233.64% to 1,225,510,898.76 yuan, primarily due to the recovery of financial products[65] - The company's financial assets decreased by 97.13% to 50,829,056.97 yuan, primarily due to the redemption of bank wealth management products[66] - Accounts receivable decreased by 63.71% to 401,100,400.59 yuan, mainly due to a reduction in revenue[67] - Inventory increased by 84.23% to 1,795,453,857.80 yuan, primarily due to stockpiling[67] - Development expenditures increased by 100.78% to 582,711,337.36 yuan, mainly due to increased capitalization of R&D[67] - The company's investment in Meidi Kai (stock code: 688079) resulted in a loss of RMB 2,398.20 million, with the final book value dropping to RMB 361.50 million[75] - The company's investment in SMIC (stock code: 688981) resulted in a loss of RMB 6,994.54 million, with the final book value dropping to RMB 0.00[75] - The company sold 24% of its stake in Silicon Radar GmbH for a total transaction value of approximately USD 7.68 million (RMB 53.48 million)[78] - The company sold 100% of its stake in Keli Germany GmbH for a transaction value of [79] Business Operations and Strategy - The company's main business focuses on integrated circuit design, IoT, and AI technologies[11] - Key products include fingerprint recognition chips, touch control chips, and low-power Bluetooth solutions[12] - The company operates in a Fabless model, focusing on design without manufacturing operations[11] - Major customers and partners include leading smartphone manufacturers and semiconductor companies[11] - The company is actively involved in emerging technologies such as AR, VR, and UWB[12] - The company aims to become a global leading IC design company by deepening diversified product layouts and accelerating new product development[85][86] - Strategic focus on the automotive electronics sector, leveraging existing products[87] - The company's fingerprint sensor maintains a leading global market share and is undergoing mass production debugging with domestic and international brand customers[39] - The new generation of health sensors is set to enter mass production, offering comprehensive physiological monitoring including body composition and skin electrical activity[40] - The company's OLED touch control chips for foldable screens have successfully entered the market, breaking the previous single-product monopoly and preparing for larger, thinner foldable/rollable phone applications[41] - The company's audio amplifiers and solutions have achieved breakthroughs in medium-power products, surpassing key performance indicators of international competitors' latest products[43] - The company's BLE (Bluetooth Low Energy) products saw a year-over-year growth of over 200% in 2022, driven by high performance, low power consumption, and excellent RF capabilities[45] - The company is actively expanding its presence in the medical-grade application market, with related projects steadily progressing[40] - The company's touch control chips for automotive applications have gained recognition from mainstream clients, with shipments rapidly increasing, especially for large-sized screens[41] - The company's TWS SoC solutions have been mass-produced for well-known headphone brands, featuring low power consumption, high audio performance, and advanced digital signal processing[43] - The company is deepening its collaboration in the security ecosystem and plans to launch a strongbox solution based on the latest Android SE Ready Alliance specifications in 2023[44] - The company's products and solutions are widely used by global brands such as Samsung, Google, Amazon, Dell, Huawei, OPPO, vivo, Xiaomi, and BYD[50] - The company's BLE products saw significant shipment growth, expanding into markets such as smart tracking, smart travel, and smart home[47] - The company's CarVoice software solution has been adopted by multiple commercial projects, including brands like Nissan, GAC, Hyundai, FAW, and SAIC[47] - The company's touchscreen control chips have successfully entered overseas markets, with increasing market share in high-end flexible and foldable screens[47] Corporate Governance and Compliance - The financial report was audited by Da Hua Certified Public Accountants with a standard unqualified opinion[3] - The company strictly complies with the "Company Law", "Securities Law", "Guidelines for Corporate Governance of Listed Companies" and the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange to strengthen information disclosure and improve corporate governance structure[98] - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, and the appointment of senior management is open and transparent in accordance with relevant laws and regulations[99] - The company has set up four special committees under the board of directors: audit committee, strategy committee, nomination committee, and remuneration and assessment committee, which have played a professional role in the company's operation and management[98] - The company strictly implements the requirements of laws and regulations in the election of directors and supervisors, and the number and composition of the board of directors and supervisors comply with legal requirements[98][99] - The company has not provided guarantees or used company assets as collateral for the controlling shareholder and actual controller, and there is no direct or indirect non-operational occupation of funds and assets[100] - The company held 5 general meetings of shareholders during the reporting period, all of which passed all proposals without any rejected proposals[103] - The company's registered address has remained unchanged since 2005, located at 13th Floor, Block B, Tengfei Industrial Building, Futian Free Trade Zone, Shenzhen[16] - The company's actual controller, shareholders, and related parties fulfilled their commitments related to the initial public offering, including share lock-up and non-competition agreements[163][164] - The company's chairman, Zhang Fan, committed to avoiding any form of competition with the company's business during his tenure and holding period[165] - The company's major shareholder, Huifa International, committed to avoiding any business that competes with the company's core technologies and products[165] - MediaTek completed the acquisition of MStar Semiconductor in 2014, obtaining 99.99% ownership of MStar Taiwan[166] - MStar Taiwan's touch and fingerprint chip businesses, which compete with Goodix, were required to operate independently for 3 years post-acquisition[166] - MediaTek committed to divesting MStar Taiwan's competitive assets within 3-6 months after gaining control, with the process expected to start by March 2017[167] - The Ministry of Commerce lifted merger restrictions on MediaTek's acquisition of MStar in February 2018[168] - MStar Taiwan and Ilitek stopped accepting new orders for competitive products starting October 9, 2018[168] - MediaTek and Goodix actively clarified the scope of competitive businesses and determined commitment execution plans post-restriction removal[168] - The company implemented Accounting Standards Interpretation No. 15 from January 1, 2022, with no significant impact on financial statements[171] - Accounting Standards Interpretation No. 16 was adopted, effective January 1, 2023, also with no significant financial statement impact[172] - The company renewed its contract with Dahua Certified Public Accountants (Special General Partnership) as its 2022 audit firm, with an audit fee of RMB 1.3 million (inclusive of tax)[175] - The company provided guarantees to its subsidiaries totaling RMB 1,024,318,400 during the reporting period, with a guarantee balance of RMB 3,425,378.32 at the end of the period, accounting for 0.04% of the company's net assets[185] - The company was involved in a major patent infringement lawsuit, which was dismissed by the Guangdong Shenzhen Intermediate People's Court on November 15, 2022, with no adverse impact on the company's current or future profits[180] - The company and its controlling shareholders maintained good credit status during the reporting period, with no defaults on court judgments or significant unpaid debts[181] - The company's internal control audit was conducted by Dahua Certified Public Accountants (Special General Partnership) at a cost of RMB 250,000[174] - The company provided a cumulative guarantee of up to 13.5 million was provided for Goodix Hong Kong's payment obligations to UMC for integrated circuit manufacturing services, valid from April 1, 2020, to July 30, 2023[188] - The company guaranteed up to 45.5 million signed with OCBC Bank, valid until December 16, 2029[188] - A guarantee of 13.5 million, 35 million were provided for Goodix Singapore's payment obligations to UMC, Powerchip, and TSMC respectively, with a maximum validity of 40 months[189] - The company invested 195 million in bank wealth management products using idle funds, all of which have been fully recovered[190] - A 165,309.65 in actual收益[191] - A 932,688.51 in actual收益[191] - A 358,438.36 in actual收益[193] - A 544,464.61 in actual收益[193] Shareholder and Employee Matters - 2022 year-end distributable profit was 5.69 billion yuan[4] - 2022 share repurchase amount was 499.69 million yuan[4] - No cash dividend distribution or capital reserve conversion to share capital planned for 2022[4] - The company's global employee count reached 1,800, with over 80% being R&D personnel and over 50% holding a master's degree or higher[48] - The company has accumulated over 6,900 international and domestic patents as of December 31, 2022[49] - The company implemented a differentiated salary strategy in 2022 based on employee contributions, effectively motivating value creation while controlling labor costs[126] - The company launched the "Microchip Program" in 2022, providing leadership training for junior managers to enhance management capabilities and talent development[127] - The company distributed a cash dividend of RMB 100,051,152.74 for the 2021 fiscal year, with a per-share dividend of RMB 0.22 (tax included)[131] - In 2022, the company repurchased 5,476,515 shares, accounting for 1.19% of the total shares, with a total repurchase amount of RMB 499,694,105.24[132] - The company's net profit attributable to shareholders in 2022 was RMB -747,641,878.56, leading to no cash dividend distribution for the year[134] - The company's R&D expenses for 2020, 2021, and 2022 were RMB 1.754 billion, RMB 1.692 billion, and RMB 1.537 billion, respectively[134] - The company's total cash dividend and repurchase amount for 2022 was RMB 499,694,105.24, accounting for -66.84% of the net profit attributable to shareholders[137] - The company's undistributed profits at the end of 2022 were RMB 5,693,175,216.45, which will be used for R&D, market expansion, and other operational needs[134] - The company completed the cancellation of 478,697 stock options held by 31 incentive recipients on March 30, 2022[138] - By March 31, 2022, 1,031,094 shares from the second exercise period of the 2018 stock option incentive plan were exercised and registered, accounting for 61.06% of the total exercisable stock options[138] - On May 6, 2022, the company completed the cancellation of 45,522 stock options held by 5 incentive recipients[138] - 232 incentive recipients were eligible to exercise 1,574,239 stock options in the third exercise period, with the exercise period running from May 23, 2022, to May 22, 2023[138] - By June 30, 2022, 1,031,094 shares from the second exercise period were exercised and registered, accounting for 61.06% of the total exercisable stock options, while 0 shares from the third exercise period were exercised[138] - The exercise price of the 2018 stock option incentive plan was adjusted from 82.47 yuan per share to 82.25 yuan per share due to the 2021 annual profit distribution of 0.22 yuan per share (tax included)[138] - 657,436 stock options from the 2018 stock option incentive plan expired without being exercised and were canceled[139] - 74,284 stock options held by 11 incentive recipients were canceled on August 19, 2022[139] - 0 shares were exercised and registered in the third exercise period of the 2018 stock option incentive plan as of September 30, 2022, accounting for 0% of the total exercisable options[139] - 145,544 stock options held by 15 incentive recipients were canceled on November 1, 2022[139] - 34,986 stock options held by 5 incentive recipients were canceled on November 21, 2022[139] - 0 shares were exercised and registered in the third exercise period of the 2018 stock option incentive plan as of December 31, 2022, accounting for 0% of the total exercisable options[139] - 48,385 restricted shares held by 12 incentive recipients were repurchased and canceled on May 20, 2022[139] - 495,287 restricted shares held by 101 incentive recipients were released from restrictions and became tradable on June 20, 2022[139] - 15,596 restricted shares held by 3 incentive recipients were repurchased and canceled on September 20, 2022[139] - The company completed the repurchase and cancellation of 124,200 restricted shares held by 2 incentive recipients on May 20, 2022[140] - On June 20, 2022, 75,400 restricted shares held by 6 incentive recipients were unlocked and became tradable[140] - The company canceled 310,226 stock options held by 24 incentive recipients on March 30, 2022[140] - As of March 31, 2022, 92,354 stock options were exercised and shares were transferred, accounting for 19.82% of the total exercisable stock options[140] - On June 23, 2022, the company canceled 118,638 stock options held by 9 incentive recipients[140] - 56 incentive recipients were eligible to exercise 298,235 stock options in the third exercise period from July 11, 2022, to June 19, 2023[140] - As of June 30, 2022, 92,354 stock options were exercised and shares were transferred in the second exercise period, accounting for 19.82% of the total exercisable stock options[140] - No stock options were exercised in the third exercise period as of June 30, 2022[140] - The company completed the cancellation of 373,537 stock options from the 2019 stock option and restricted stock incentive plan on August 19, 2022[141] - The company canceled 15,249 stock options held by 3 incentive recipients on August