TIANMA(000050)2023-07-04 16:00Financial Performance - The company's operating revenue for 2022 was ¥31,447,476,894.80, a decrease of 6.87% compared to ¥33,765,532,901.58 in 2021[13]. - The net profit attributable to shareholders for 2022 was ¥112,521,171.81, a significant decrease from ¥1,542,457,101.05 in 2021[13]. - The net cash flow from operating activities was ¥3,912,600,159.94, representing an 18.98% decrease from ¥5,052,998,088.05 in the previous year[13]. - The total assets at the end of 2022 were ¥80,989,353,510.79, an increase of 7.01% from ¥75,682,270,760.24 at the end of 2021[14]. - The net assets attributable to shareholders at the end of 2022 were ¥30,064,180,184.29, a slight decrease of 0.19% from ¥30,122,551,816.18 at the end of 2021[14]. - The basic earnings per share for 2022 was ¥0.0458, down from ¥0.6276 in 2021[13]. - The diluted earnings per share for 2022 was also ¥0.0458, reflecting the same decline as the basic earnings per share[13]. - The weighted average return on equity for 2022 was 0.37%, a decrease from 4.51% in 2021[13]. - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a figure of -¥1,388,508,491.55 for 2022[13]. - The company achieved a total revenue of CNY 31,447,476,894.80 in 2022, a decrease of 6.87% compared to 2021[36]. - The net profit attributable to shareholders increased to CNY 11,252.12 million, a significant rise of CNY 14,691.07 million year-on-year[35]. - The revenue from the electronic components industry was CNY 30,979,885,602.15, accounting for 98.51% of total revenue, down 6.85% from the previous year[36]. - The company reported a gross margin of 30% for 2022, which is an improvement from 28% in 2021[99]. Investment and R&D - The company has a dedicated innovation center focused on new product and technology development[5]. - The company invested in a new automotive display R&D center in Wuhu, Anhui, to enhance its capabilities in complex module development[25]. - The company is focusing on advanced technology R&D, including OLED technology, with an emphasis on foldable displays and under-screen cameras[24]. - Research and development (R&D) investment increased by 44.25% to approximately ¥2.98 billion in 2022, accounting for 9.49% of operating revenue, up from 6.12% in 2021[50]. - The company is focusing on developing low-power technologies for flexible OLEDs and Mini LED technology to enhance product competitiveness and market share[48]. - The company plans to expand its market presence through new product applications, including in-vehicle entertainment systems and high-resolution displays[48]. - The company has launched a new line of OLED displays, which is expected to contribute an additional 1 billion yuan in revenue in 2023[99]. - The company is actively pursuing new technologies such as high refresh rates and integrated touch control for large displays to meet market trends[48]. Market Position and Strategy - The company maintained the global market share leader in automotive displays, LTPS smartphones, and rigid OLED wearables, according to Omdia[23]. - The company is leveraging structural opportunities in the display market driven by the proliferation of 5G and AIoT technologies[22]. - The company aims to maintain its leading position in mobile displays and expand its presence in the automotive and IT display sectors[72]. - The strategic plan for 2023 includes a focus on innovation, market demand orientation, and enhancing operational efficiency[71]. - The company is committed to increasing R&D investment to improve product technology and added value[73]. - The company is actively exploring emerging market opportunities and conducting in-depth research on segmented markets to capture new application areas[74]. Corporate Governance and Management - The company has established a comprehensive governance structure that adheres to relevant laws and regulations, ensuring effective decision-making processes[82]. - The company has implemented a transparent information disclosure system, ensuring that all disclosures are accurate, complete, and timely[82]. - The board of directors is composed of qualified members who meet the necessary professional knowledge and skills requirements, ensuring compliance with legal and regulatory standards[81]. - The company has established a performance evaluation and incentive mechanism that categorizes personnel by business type, enhancing employee engagement and focus on operational results[82]. - The company has a clear succession plan in place, as evidenced by the structured terms and recent transitions in board membership[91]. - The company has committed to ensuring that all board members and senior management do not engage in unfair benefit transfers or misuse company assets[170]. - The company has established risk management measures to ensure the safety of deposits with the financial services provider[188]. Social Responsibility and Environmental Impact - The company emphasizes its commitment to corporate social responsibility (CSR) and environmental sustainability[7]. - The company is actively involved in educational support initiatives, including partnerships with local schools to provide cultural and skills training for students in poverty-stricken areas[149]. - The company achieved a 100% completion rate for environmental protection tax payments, benefiting from tax reductions or exemptions as per government regulations[145]. - The company has continuously upgraded its pollution prevention facilities to meet the increasing environmental standards and regulations[145]. - The total wastewater discharge for Tianma Microelectronics was 1.22 tons for COD, 0.13 tons for ammonia nitrogen, and 1.07 tons for nitrogen oxides, all within the emission standards[139]. - The company has established automatic online monitoring systems for key pollutants such as COD, ammonia nitrogen, and VOCs to ensure real-time compliance with emission standards[143]. Risks and Challenges - The company has detailed macroeconomic risks, market risks, technological risks, and intellectual property risks in the report[2]. - Potential risks include macroeconomic uncertainties, trade protectionism, and geopolitical tensions affecting global economic recovery[73]. - The company recognizes the risks associated with market demand fluctuations and competitive pricing pressures in the display industry[74]. - The global display industry is facing challenges due to geopolitical conflicts and inflation, leading to weak terminal demand and oversupply[22]. Subsidiaries and Expansion - The company operates several wholly-owned subsidiaries, including Shanghai Tianma and Chengdu Tianma, which contribute to its overall operations[5]. - The company added 4 new subsidiaries during the reporting period, including Wuhu Tianma Automotive Electronics Co., Ltd. and Tianma (Wuhu) Microelectronics Co., Ltd.[41]. - The company has established several new subsidiaries, including Xiamen Tianma Display Technology Co., Ltd. with an investment of CNY 105,000,000, accounting for 15% equity[60]. - The company is currently fulfilling commitments related to the lock-up period for shares held by Hubei Changjiang Tianma Private Placement Investment Fund, which will end on September 10, 2023[161]. Financial Management and Compliance - The company has a complete and independent financial management system, ensuring no interference from controlling shareholders in financial decision-making[83]. - The company has implemented changes in accounting policies effective from January 1, 2022, in accordance with the Ministry of Finance's interpretations, impacting asset sales and loss contracts[172]. - The company has not reported any instances of non-standard audit reports during the reporting period[171]. - The company has not engaged in any violations regarding external guarantees during the reporting period[171].