Costar Group(002189)2023-04-26 16:00Market Share and Competitive Position - The company's market share in the projection optics sector is the highest globally, with TIR prisms and color combination prisms holding a 65% global market share[7] - The company's market share in coastal defense products has reached 67%, with significant breakthroughs in the "Belt and Road" market[7] - The company is the largest projector manufacturer in mainland China, with a complete design, R&D, production, and testing capability for DLP and 3LCD projection display products[6] - The company has a leading global market share in digital optical precision components and is a key supplier to major brands like Epson, Fuji, Canon, Sony, and Nikon[14] R&D and Innovation - The company's annual R&D investment accounts for more than 5% of total revenue, with new product contribution rates maintained above 50%[8] - The company has developed large-aperture ultra-precision high-power laser optical components, which have entered the national engineering optical component support system catalog[10] - The company has dozens of new products and technologies under development, including various types of night vision scopes, infrared scopes, and integrated telescopes[10] - The company has a competitive advantage in optical component technology, including magnetron sputtering, ion beam-assisted deposition, and vacuum evaporation coating technologies[8] - The company has a strong patent portfolio, with a leading number of invention patents in the industry[10] - The company is focusing on the development of intelligent systems, expanding from single scopes to intelligent system integration products, such as smart helmets and smart glasses[4] - The company developed a physical vapor deposition carbon-based ultra-hard functional film technology, achieving domestic substitution and reaching international advanced levels[34] - The company completed the development of a vacuum plasma spraying target material technology, solving industry pain points and achieving full supply to multiple customers[34] - The company is developing an AR 2D diffractive waveguide with a large FOV (56°) and full-color capabilities, targeting the growing demand for micro-optical devices in the metaverse industry[34] - The company is advancing the development of an AR-HUD vehicle head-up display system, aiming to break through high-cost-performance and miniaturization design technologies[34] - The company is developing a high-precision 3D bioprinter using low-cost, high-performance optical engine technology, targeting the 3D printing market[34] Financial Performance - The company's Q4 2022 operating revenue was 757.92 million yuan, with a net loss attributable to shareholders of 161.14 million yuan[19] - Total revenue in 2022 decreased by 20.43% to 3,285,114,518.49 RMB compared to 2021[23] - Revenue from optical components increased by 3.76% to 888,843,635.62 RMB, accounting for 27.06% of total revenue[23] - Revenue from photoelectric defense and key area monitoring dropped significantly by 74.41% to 266,492,782.31 RMB[23] - Domestic revenue decreased by 29.20% to 2,627,184,853.48 RMB, while overseas revenue increased by 57.31% to 657,929,665.01 RMB[23] - Sales volume of optical components decreased by 24.90% to 14,544,000 units, and production volume decreased by 24.23% to 14,606,000 units[26] - Sales volume of projector units decreased by 14.81% to 284,700 units, and production volume decreased by 15.70% to 284,100 units[26] - Raw material costs decreased by 11.01% to 2,437,126,304.00 RMB, accounting for 78.93% of total operating costs[28] - Labor costs decreased by 26.82% to 284,266,195.27 RMB, accounting for 9.21% of total operating costs[28] - R&D expenses in 2022 were 193,438,102.28 RMB, a slight decrease of 0.67% compared to 2021[33] - R&D investment accounted for 5.89% of total revenue in 2022, an increase of 1.17% compared to 2021[36] - Operating cash flow decreased by 136.21% YoY to -146,808,042.98 yuan, mainly due to new projects not reaching the repayment period[37] - Investment cash flow decreased by 22.71% YoY to -178,278,588.73 yuan[37] - Financing cash flow decreased by 95.21% YoY to -4,455,011.92 yuan, primarily due to increased repayment of loans in the previous period[37][38] - Net increase in cash and cash equivalents decreased by 509.01% YoY to -326,828,067.82 yuan[37] - Monetary funds decreased by 8.58% YoY to 656,014,669.72 yuan, accounting for 18.03% of total assets[43] - Accounts receivable increased by 12.20% YoY to 1,207,073,019.49 yuan, accounting for 33.18% of total assets, due to new projects not reaching the repayment period[43] - Inventory decreased by 4.00% YoY to 453,298,986.24 yuan, accounting for 12.46% of total assets[43] - Short-term borrowings increased by 3.20% YoY to 397,902,470.72 yuan, accounting for 10.94% of total assets[43] - Contract liabilities increased by 4.67% YoY to 252,866,014.86 yuan, accounting for 6.95% of total assets[43] - Long-term borrowings decreased by 5.27% YoY to 18,000,000.00 yuan, accounting for 0.49% of total assets, mainly due to the transfer of 200 million yuan to non-current liabilities due within one year[43] Strategic Investments and Partnerships - The company established a joint venture, Zhongguang (Hangzhou) Intelligent Optoelectronics Technology Co., Ltd., with a total investment of 300 million RMB[30] - Top 5 customers accounted for 61.83% of total annual sales, with a combined sales amount of 2,031,268,812.46 RMB[31] - Top 5 suppliers accounted for 27.66% of total annual procurement, with a combined procurement amount of 853,931,893.36 RMB[32] - The company invested RMB 100 million in the establishment of Hangzhou Zhiyuan Research Institute, holding a 3.84% stake[49] - The investment in Hangzhou Zhiyuan Research Institute resulted in a loss of RMB 1.33 million[49] - The company's total investment in Hangzhou Zhiyuan Research Institute and other projects amounted to RMB 280 million, with a total loss of RMB 1.33 million[50] - In 2022, the company spent RMB 8.18 million on fundraising investment projects, with a net interest income of RMB 193,500[55] - As of December 31, 2022, the balance of the fundraising account was RMB 11.46 million[55] - The company reported no significant non-equity investments during the reporting period[51] - The company did not engage in any securities investments during the reporting period[52] - The company did not engage in any derivative investments during the reporting period[53] - In 2021, the company spent RMB 12.85 million on fundraising investment projects, with a net interest income of RMB 375,500[55] - As of December 31, 2021, the balance of the fundraising account was RMB 19.44 million[55] - The total amount of funds raised through the non-public issuance in 2019 was RMB 350.63 million, with a net amount of RMB 336.60 million after deducting underwriting fees[57] - In 2019, the company spent RMB 21.71 million from the raised funds, including RMB 14.03 million for underwriting fees and RMB 7.68 million for project construction[57] - As of December 31, 2019, the balance in the special account for raised funds was RMB 332.99 million[57] - The investment progress of the intelligent optoelectronic reconnaissance and key defense system production line project reached 66.72% by the end of the reporting period[59] - The investment progress of the dual-use optoelectronic technology innovation platform construction project exceeded expectations, reaching 103.69% by the end of the reporting period[59] - The investment progress of the projection display system supporting capacity construction project was 40.25% by the end of the reporting period[59] - The payment of intermediary fees accounted for 70.13% of the total commitment[59] - The total amount of funds raised and used for committed investment projects was RMB 351.06 million, with RMB 251.01 million already utilized[59] - The unused raised funds remain in the special account for raised funds[61] - No significant changes occurred in the feasibility of the raised fund investment projects during the reporting period[59] Industry Trends and Market Outlook - The Chinese projector market is expected to exceed 5.57 million units in 2023, with a year-on-year growth of 10.3%, and the compound annual growth rate (CAGR) is projected to remain above 18% through 2027[12] - DLP projector technology market share continues to decline, while LCD market competition intensifies, with laser and LED light sources increasingly overlapping in the home projector market[12] - Global smartphone shipments are expected to rebound to over 280 million units in 2023, following a significant decline in 2022[13] - The camera market is projected to stabilize at 6-7 million units in 2023, with mirrorless and DSLR cameras gaining market share[13] Corporate Governance and Leadership - The company maintains complete independence in business, personnel, assets, organization, and finance, with no interference from the controlling shareholder[90] - The company has an independent R&D, procurement, production, and sales system, capable of independent market operations[90] - The company owns all assets related to production and operations, including factories, machinery, and intangible assets, with clear ownership[90] - The company has established a sound corporate governance structure, including a shareholders' meeting, board of directors, and supervisory board[90] - The company has an independent labor, personnel, and salary management system, with no overlapping personnel with the controlling shareholder[91] - The company has an independent financial department, accounting system, and bank accounts, with no intervention from the controlling shareholder in financial decisions[91] - The 2022 first extraordinary general meeting had a 43.48% investor participation rate[92] - The 2022 second extraordinary general meeting had a 2.36% investor participation rate[93] - The 2022 third extraordinary general meeting had a 3.39% investor participation rate[93] - The 2021 annual general meeting had a 45.95% investor participation rate[93] - Chairman Li Zhichao holds 90,000 shares, with 29,700 shares reduced due to the company's restricted stock incentive plan not meeting the conditions for lifting restrictions[95] - General Manager Wei Quanqiu holds shares with a tenure starting from June 7, 2021, and ending on September 16, 2025[95] - Director Gao Wei holds shares with a tenure starting from April 10, 2019, and ending on September 16, 2025[95] - Director Wan Yi holds shares with a tenure starting from January 12, 2022, and ending on September 16, 2025[95] - Director Peng Rengang holds shares with a tenure starting from September 15, 2022, and ending on September 16, 2025[95] - Director Xu Bin holds shares with a tenure starting from April 10, 2019, and ending on September 16, 2025[95] - Independent Director Jiang Huilin holds shares with a tenure starting from April 10, 2019, and ending on September 16, 2025[95] - Independent Director Liu Shuwei holds shares with a tenure starting from April 10, 2019, and ending on September 16, 2025[95] - Independent Director Wang Tengjiao holds shares with a tenure starting from April 10, 2019, and ending on September 16, 2025[95] - Vice President Zhang Dongyang holds 6,600 shares, with 20,000 shares reduced due to the company's restricted stock incentive plan not meeting the conditions for lifting restrictions[96] - The company's restricted stock incentive plan's second unlocking period did not meet the conditions for unlocking, resulting in the repurchase and cancellation of some restricted shares[97] - On June 17, 2022, Wei Quanqiu resigned from his positions as Chief Accountant, Financial Officer, and Board Secretary due to internal company adjustments[97] - On June 17, 2022, Duan Yongsheng resigned from his positions as Director, Member of the Strategy and Investment Committee, Member of the Special Equipment Committee, and Member of the Compensation and Assessment Committee due to reaching the retirement age[98] - On June 17, 2022, Fu Yong resigned from his position as Vice President due to a job transfer[99] - On September 15, 2022, the company completed the election of the sixth board of supervisors, with Zhang Shouqi, Yang Taili, and Deng Jimeng no longer serving as supervisors[99] - Yang Kai was appointed as Chief Accountant, Financial Officer, and Board Secretary on June 17, 2022, replacing Wei Quanqiu[100] - Li Zhichao, the current Chairman of the Board, has extensive experience in the optical industry, having served as General Manager and Chairman of Lida Optoelectronics Co., Ltd[102] - Gao Wei, a current Director, holds a Ph.D. and has a background in national defense technology and quality management, currently serving as a Director at several subsidiaries of China Ordnance Equipment Group[103] - Jiang Huilin, an Independent Director, is a member of the Chinese Academy of Engineering and has a distinguished academic career, currently serving as the Academic Committee Director at Changchun University of Science and Technology[105] - Zhu Guodong, the current Chairman of the Supervisory Board, has a long history in production and management roles within the motorcycle and industrial sectors, currently serving as a Supervisor at several subsidiaries[106] Future Plans and Strategic Goals - The company plans to focus on advanced optics and new photoelectric technologies, aiming to develop strategic and long-term projects[70] - The company will further integrate into the military and automotive ecosystems, aiming to expand revenue in emerging fields such as AR/VR[72] - The company aims to stabilize OEM business and increase the proportion of ODM and OBM business to achieve quality and efficiency improvements[73] - The company will leverage local government and enterprise resources to expand project bidding and revenue in the new energy sector[73] - The company will accelerate the development of "four new" products, focusing on overcoming key technological challenges and domestic substitution[73] - The company will implement automation and intelligent production to build advanced manufacturing capabilities[73] - Accelerate the construction of world-class enterprises[74] - Strengthen the introduction of core and scarce talents, with more than 6 PhDs and no less than 20% of graduates from double first-class universities to be introduced annually[75] - Optimize the human resource control model and reshape the salary and performance management system[75] - Strengthen the construction of R&D technical teams, with no less than 1051 R&D personnel per 10,000 employees and no less than 22% of R&D personnel holding postgraduate degrees[75] - Deepen reforms, enhance management, open channels, and control risks[76] - Strengthen strategic control and resource allocation, focusing on the "133" strategic goal[77] - Strengthen marketing platform construction and business synergy, focusing on advanced optics and new photoelectric development[78] - Strengthen supply chain construction, aiming to reduce annual procurement costs by no less than 50 million yuan[78] - Adhere to compliant operations and strengthen risk management[79] - Strengthen party building and promote the integration of party work with production and operation[80] Investor Relations and Shareholder Information - Inquired about the company's plans for developing projection lenses or technology reserves for lithography machines[82] - Asked if the company has any layout in the digital economy field[82] - Inquired about the company's products applied in EDR devices[82] - Asked if the company has 3D holographic projection technology and related products[82] - Inquired about the company's 2022 stock dividend plan[82] - Asked about the development status of the company's optoelectronic business segment[82] - Inquired if the company has machine vision technology[82] - Asked if the company's optical technology is applicable to 6G and terahertz technology[82] - Inquired about the company's products applied in periscope lenses and related technology reserves[82] - Asked about the company's future profit growth points[82] Financial Statements and Key Metrics - Revenue in 2022 decreased by 20.43% to RMB 3,285,114,518.49 compared to 2021[126] - Net profit attributable to shareholders in 2022 was RMB -185,417,183.99, a decrease of 226.27% compared to 2021[126] - Net cash flow from operating activities in 2022 was RMB -146,808,042.98, a decrease of 136.21% compared to 2021[126] - Basic earnings per share in 2022 were RMB -0.71, a decrease of 226.79% compared to 2021[126] - Weighted average return on equity in 2022 was -12.59%, a decrease of 22.21 percentage points compared to 2021[126] - Total assets at the end of 2022 were RMB 3,638,178,260.59, a decrease of 1.15% compared to the end of 2021[126] - Shareholders' equity at the end of 2022 was RMB 1,346,258,636.56, a decrease of 15.33% compared to the end of 2021[126] - The company plans not to distribute profits for 2022, including no cash dividends, no stock dividends, and no capital reserve to share capital[132] - The company's main business includes precision optical components, optical lenses, digital projection products, and solar energy products[124] - The company's independent directors actively participated in corporate governance and decision-making, and all proposals were adopted during the reporting period[122] - The company's total intangible assets at the end of the period amounted to RMB