FHM(SZ:300613)2022-04-14 16:00Financial Performance - The company's revenue for 2021 reached ¥1,717,003,045.46, representing a 181.36% increase compared to ¥610,247,904.24 in 2020[42]. - Net profit attributable to shareholders for 2021 was ¥363,867,737.60, a significant increase of 315.01% from ¥87,676,221.95 in the previous year[42]. - The net profit after deducting non-recurring gains and losses was ¥340,342,590.11, up 343.27% from ¥76,779,747.37 in 2020[42]. - The total assets of the company at the end of 2021 were ¥2,910,330,581.72, a 100.07% increase from ¥1,454,667,086.24 at the end of 2020[42]. - The net assets attributable to shareholders increased by 37.46% to ¥1,835,451,220.37 from ¥1,335,270,822.25 in 2020[42]. - The basic earnings per share for 2021 were ¥3.03, reflecting a 315.07% increase compared to ¥0.73 in 2020[42]. - The weighted average return on equity for 2021 was 23.02%, an increase of 15.93% from 7.09% in 2020[42]. - The net cash flow from operating activities for 2021 was negative at -¥18,097,517.70, a decline of 109.48% from ¥190,991,349.25 in 2020[42]. - The total revenue for the first quarter was approximately ¥211.88 million, while the fourth quarter revenue was approximately ¥437.31 million, showing a significant fluctuation throughout the year[46]. - The net profit attributable to shareholders for the third quarter was approximately ¥130.48 million, with a decrease to approximately ¥94.68 million in the fourth quarter[46]. - The net cash flow from operating activities was negative ¥130.18 million in the first quarter, but turned positive at ¥149.36 million in the third quarter[46]. - The company reported a government subsidy of approximately ¥39.53 million for the year, significantly higher than the previous year's amount of approximately ¥8.88 million[49]. Market Position and Strategy - The company is focused on expanding its market presence and developing new technologies in the integrated circuit sector[31]. - Future outlook includes continued investment in research and development to enhance product offerings and market competitiveness[31]. - The integrated circuit industry is experiencing strong downstream demand and tight upstream supply, which is expected to drive growth opportunities for domestic design companies[56]. - The company is positioned to benefit from national policies promoting the integrated circuit industry, which include tax incentives and support for research and development[58]. - The demand for AI chips is experiencing explosive growth, driven by advancements in AI applications and technologies[57]. - The company aims to further increase sales and market share by continuously expanding its application fields and deepening product applications[76]. - The company has achieved significant growth in chip sales revenue and quantity, with a steady increase in market share, particularly in the IPC SoC market[62]. - The demand for 4K and 8K ultra-high-definition SoC chips is rapidly increasing, driven by the transition from standard definition to high definition[63]. - The AI penetration rate is continuously rising, with integrated AI processors becoming a key development direction for video monitoring chips[63]. - The company has established a comprehensive product matrix and solutions in image signal processing, high-definition video encoding/decoding, and AI algorithms, enhancing its competitive edge[64]. - The company provides a complete set of solutions in the smart security field, including front-end ISP, transmission link RX, and back-end main control XVR SoC, which are widely recognized by leading industry clients[65]. - The company is a strategic partner for the three major telecom operators in the video IoT chip sector, providing competitive video chip solutions[66]. - The automotive sector has seen the company develop a complete range of automotive-grade video chip products, with multiple chips passing AEC-Q100 certification[66]. - The security market is expanding into various industries such as finance, education, and transportation, driven by advancements in AI technology[73]. Research and Development - The company is committed to continuous innovation in product development to maintain its competitive edge in the rapidly evolving integrated circuit design market[14]. - The company has a strong focus on R&D, with 84.4% of its 391 employees being R&D personnel, and 43.48% holding a master's degree or higher[84]. - The company is committed to advancing AI ISP technology and high-performance multi-core heterogeneous SoC architecture design as part of its future R&D focus[79]. - The company has developed a comprehensive product line for smart security, smart IoT, and smart automotive applications, enhancing its competitive edge[87]. - The company is developing high-performance AI edge computing chips aimed at various applications, enhancing market competitiveness and expanding into new markets[112]. - The new generation of high-definition network camera SoC chips is being upgraded to meet higher customer demands in bandwidth, power consumption, and speed[112]. - The automotive image signal processing chip project is in the R&D phase, targeting the growing market demand for automotive electronics[112]. - The company plans to enhance its research in image signal processing, video coding and decoding, ultra-low power SoC design technology, and artificial intelligence algorithms to improve SoC design capabilities[169]. Risk Management - The company has a high customer concentration risk, which could adversely affect operations if major customers change their procurement strategies or if the company loses key clients[9]. - The company faces risks related to high supplier concentration and potential fluctuations in raw material prices, particularly for wafers, which are critical to its products[10]. - The company acknowledges the risk of management challenges due to its expanding asset scale and workforce, necessitating adjustments in resource integration and internal controls[15]. - The company is actively working to mitigate risks associated with the COVID-19 pandemic, which continues to impact global operations[6]. - The company emphasizes the importance of maintaining stable relationships with suppliers to ensure production needs are met amid high demand[10]. - The company plans to enhance its internal control systems and management processes to adapt to its rapid growth and ensure operational efficiency[15]. Governance and Compliance - The company strictly adheres to relevant laws and regulations to ensure a sound governance structure and improve governance levels[178]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards[180]. - The company maintains an independent business system and operational capabilities, with no illegal occupation of funds by controlling shareholders[179]. - The company has established a comprehensive internal control system to manage risks and ensure normal business operations[182]. - The company emphasizes information disclosure and investor relations, ensuring timely and accurate information dissemination[182]. - The company has independent research, procurement, and sales systems, with no competition with controlling shareholders[185]. - The financial department operates independently, with a sound financial accounting system and no interference from controlling shareholders[186]. - The company has a clear asset ownership structure, with complete control over its assets, independent of major shareholders[185]. - The company actively engages with stakeholders to promote sustainable and healthy development[184]. - The actual governance situation aligns with the regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[184]. Shareholder Engagement - The participation rate in the first extraordinary shareholders' meeting in 2021 was 62.67%[187]. - The second extraordinary shareholders' meeting in 2021 had a participation rate of 40.65%[187]. - The annual shareholders' meeting for 2020 had a participation rate of 59.81%[187]. - The third extraordinary shareholders' meeting in 2021 had a participation rate of 62.13%[187]. - The fourth extraordinary shareholders' meeting in 2021 had a participation rate of 26.42%[191]. - The chairman and general manager, Yang Xiaoqi, increased his shareholding by 3,055,937 shares, bringing his total to 9,174,137 shares[191]. - Vice General Manager Wan Jianjun increased his shareholding by 30,828 shares, totaling 92,548 shares[191]. - The company experienced changes in its board members, with several resignations and appointments in 2021[196]. - The company has a governance structure that does not include differential voting rights arrangements[188]. - The company does not have any preferred shareholders requesting an extraordinary shareholders' meeting during the reporting period[188]. - Three independent directors completed their terms on May 20, 2021[199]. - The company appointed a new board secretary, Li Qiang, on August 25, 2021, with a term until the end of the third board's term[199]. - Li Qiang resigned from the board secretary position on January 11, 2022, due to personal reasons[199]. - The company elected three new independent directors on May 20, 2022[199]. - Yang Xiaoqi, the current chairman and general manager, founded the company in 2004 after holding various managerial positions[200]. - Gong Hongjia has been serving as a director since 2002 and has extensive experience in the technology sector[200].