Lontium(SH:688486)2023-04-10 16:00Financial Performance - The company achieved operating revenue of CNY 240,937,598.29 in 2022, a year-on-year increase of 2.61%[21]. - The net profit attributable to shareholders was CNY 69,205,460.39, representing a decrease of 17.68% compared to the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 56,770,204.57, down 20.08% year-on-year[21]. - The net cash flow from operating activities decreased by 59.33% to CNY 37,427,044.09, primarily due to increased procurement expenses[23]. - The company's total assets at the end of 2022 were CNY 359,687,379.31, an increase of 8.56% from the previous year[21]. - The net assets attributable to shareholders increased by 14.80% to CNY 316,162,198.27 at the end of 2022[21]. - The basic earnings per share decreased to CNY 1.33, down 17.90% from the previous year[22]. - The total revenue for the year reached 18,429.50 million RMB, with a net profit of 10,589.41 million RMB[86]. - The total revenue for the year 2022 reached 26,646.015 million, reflecting a significant growth compared to previous years[157]. Dividend Policy - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares, totaling approximately 20.78 million RMB, which represents 30.02% of the net profit attributable to shareholders for 2022[5]. - The cash dividend distribution plan has been approved by the board and the supervisory board, pending approval from the annual general meeting[189]. - The proposed cash dividend is CNY 3.00 per 10 shares (including tax), totaling CNY 20,777,658.60 (including tax), which represents 30.02% of the net profit attributable to shareholders[188][192]. - The company has established a differentiated cash dividend policy based on its development stage, with a minimum cash dividend ratio of 80% for mature companies without major capital expenditures[186]. - The cash dividend amount will remain unchanged even if the total share capital changes before the dividend distribution date[188]. Research and Development - The R&D expenditure accounted for 22.99% of operating revenue, an increase of 1.76 percentage points compared to the previous year[22]. - The total R&D investment for the year was ¥55,401,406.48, representing an increase of 11.14% compared to the previous year[71]. - The company has developed several core technologies, including high-speed mixed-signal circuit technology and high-speed data transmission chip technology, both of which are at a leading level domestically[67]. - The company has achieved significant advancements in its core technologies, with high-speed interface transmission protocol processing technology and high-bandwidth digital content protection technology reaching international advanced levels[66]. - The company is actively developing new products to meet the growing demand in downstream markets such as security monitoring and AR/VR, focusing on high-definition video bridging and processing chips[35]. Market Position and Competition - The semiconductor industry is experiencing a structural demand shift, with strong demand in automotive and high-performance computing sectors, while consumer electronics face inventory pressure[33]. - The company ranks sixth in global sales of video bridge chips and eighth in high-speed signal transmission chips as of 2020, indicating strong market presence[92]. - The company has successfully entered the supply chains of renowned domestic and international companies, including Foxconn, Cisco, and Facebook[39]. - The company faces risks related to technology iteration and potential R&D failures, which could impact its market competitiveness[95]. - The company is exposed to foreign exchange risks due to overseas procurement and sales, which could lead to substantial exchange rate losses if currency fluctuations occur[105]. Governance and Compliance - The company has established a governance structure including a general meeting of shareholders, a board of directors, independent directors, a supervisory board, and senior management to ensure effective and stable operations[149]. - The company has developed various governance rules, including those for shareholder meetings, board meetings, and related party transactions, to enhance operational transparency and accountability[149]. - The company has not reported any significant differences in governance practices compared to regulations set by the China Securities Regulatory Commission[150]. - The company has implemented a robust internal control system to ensure compliance with laws and regulations, enhancing operational efficiency and risk management[194]. - The company has not faced any penalties from securities regulatory authorities in the past three years[168]. Risks and Challenges - The company faces high customer concentration risk, with the top five customers accounting for a significant portion of total revenue, which could negatively impact operations if any major customer changes their purchasing strategy[99]. - The company operates under a Fabless model, relying heavily on a few key suppliers for wafer production and packaging, leading to high supplier concentration risk[98]. - The company is at risk of intensified market competition as domestic chip design capabilities improve, potentially impacting its market position and performance[98]. - The company has a large inventory balance with a turnover rate lower than industry peers, posing a risk of significant inventory write-downs if market demand decreases[102]. - The company may face legal risks related to intellectual property, which could affect its competitive advantage and operational stability if infringements occur[107]. Employee and Management - The company has a total of 114 R&D personnel, accounting for 67.85% of total employees, with an average salary of 37.17 thousand[89]. - The company emphasizes employee training and development, implementing annual training plans to improve overall employee competence and support long-term growth[181]. - The total remuneration for core technical personnel at the end of the reporting period amounted to 847,600 RMB[167]. - The company has a competitive salary system and provides various benefits, including welfare holidays and training development, to enhance employee motivation and creativity[180]. - The company has a diverse board with a mix of independent and executive directors, ensuring balanced governance[156]. Future Outlook - Future guidance indicates a projected revenue increase of 35% for the upcoming fiscal year, driven by new product launches and market expansion strategies[157]. - The company aims to enhance product performance and maintain technological advancement by upgrading existing products and pursuing AEC-Q100 certification for automotive applications[35]. - The company plans to enhance new product promotion and optimize product and customer structure in response to market challenges[111]. - The company aims to establish a global R&D center and customer service network to support its internationalization strategy[142]. - The company is focusing on the automotive electronics sector, with several products already available for in-vehicle display control and video transmission chips under development[143].