Lion(SH:605358)2022-03-09 16:00Dividend and Share Capital - The company plans to distribute a cash dividend of 5.5 RMB per 10 shares, totaling approximately 251.53 million RMB (including tax) based on a total share capital of 457,329,972 shares as of December 31, 2021[3]. - The company intends to increase its share capital by 4.8 shares for every 10 shares held, resulting in an additional 219,518,387 shares, bringing the total share capital to 676,848,359 shares[3]. - The company has a policy to distribute at least 10% of its distributable profits as cash dividends, with higher percentages based on its development stage and capital expenditure plans[114]. - The company emphasizes a stable and continuous profit distribution policy, considering the long-term interests of all shareholders and sustainable development[113]. - The company has committed to ensuring that cash dividends are distributed within two months after the shareholders' meeting approves the profit distribution plan[116]. Financial Performance - The company achieved operating revenue of 254,091.62 million RMB in 2021, a year-on-year increase of 69.17%[15]. - Net profit attributable to shareholders reached 60,030.34 million RMB, up 197.24% compared to the previous year[15]. - The basic earnings per share (EPS) was 1.46 RMB, reflecting a growth of 165.45% year-on-year[16]. - The weighted average return on equity (ROE) increased to 20.09%, up 7.81 percentage points from the previous year[16]. - The company reported a net cash flow from operating activities of 43,752.86 million RMB, an increase of 41.15% year-on-year[15]. Audit and Compliance - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants[2]. - The company has committed to ensuring the accuracy and completeness of its financial reports, as stated by its responsible executives[2]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4]. - The company has not violated decision-making procedures for external guarantees[4]. - The company has not faced any issues with a majority of directors being unable to guarantee the authenticity of the annual report[4]. Market and Industry Trends - The company experienced strong demand driven by national policy support and rapid development in the semiconductor and clean energy sectors[17]. - The semiconductor industry saw a global sales increase of 25% in 2021, reaching a record high of $583.5 billion[27]. - The global semiconductor wafer shipment area reached a new high of 14 billion square inches, with a growth rate of 13.9% in 2021[29]. - The global market size for 5G RF front-end is projected to grow from $0 in 2018 to $5.5 billion by 2022[30]. - The company anticipates continued strong demand for semiconductor foundry services due to the rise of electric vehicles, IoT, and 5G infrastructure[68]. Research and Development - Research and development expenses increased by 104.04% to 22,906.23 million RMB, indicating a strong focus on new product and technology development[38]. - The company has a comprehensive technology innovation system and has successfully completed several national key scientific research projects[34]. - The company has over 400 R&D and technical personnel, ensuring a robust talent pool for innovation and quality management[36]. - The company is focused on developing 12-inch silicon wafers for integrated circuits, targeting a production process suitable for 40-14nm technology[73]. - The company has achieved core technology breakthroughs in compound semiconductor RF chips and has begun to realize large-scale production and sales[78]. Operational Strategy - The company is focused on expanding its market presence and developing new technologies, although specific details were not disclosed in the provided content[4]. - The company is committed to sustainable high-quality development amidst external uncertainties and industry challenges[22]. - The company is in the ramp-up phase for its 12-inch silicon wafer project, which is currently experiencing high fixed costs and is not yet profitable[45]. - The company is focusing on expanding production capacity and improving operational efficiency to enhance profitability in the upcoming periods[45]. - The company has established stable, long-term partnerships with major semiconductor manufacturers, enhancing its supply chain resilience[140]. Governance and Shareholder Engagement - The company has established independent financial and operational systems, ensuring no shared bank accounts with the controlling shareholder[83]. - The company continues to prioritize the protection of minority shareholders' rights during shareholder meetings through a combination of on-site and online voting[86]. - The company has a clear policy for the appointment and remuneration of its management team, reflecting its commitment to transparency and accountability[95]. - The company has undergone a board re-election, resulting in the appointment of new directors and supervisors, including Chen Pingren as General Manager[96]. - The company has a structured decision-making process for determining the remuneration of directors and senior management, based on industry standards and internal regulations[95]. Environmental Responsibility - The company has established a detailed inspection and maintenance system for wastewater and air pollution control facilities, ensuring effective operation[129]. - The company reported a total pollutant discharge of 94.68 thousand tons, with all monitored pollutants meeting the required standards[126]. - The company has implemented ISO 14001 environmental management system certification across its subsidiaries, ensuring compliance with environmental regulations[140]. - The company actively engages in community service activities, including pandemic response and environmental initiatives[141]. - The company has successfully maintained compliance with environmental standards across multiple discharge points, demonstrating commitment to environmental responsibility[128].