GigaDevice(SH:603986)2024-04-19 10:31Financial Performance - The company's operating revenue for 2023 was CNY 5,760,823,414.65, a decrease of 29.14% compared to CNY 8,129,992,424.99 in 2022[14]. - Net profit attributable to shareholders was CNY 161,141,224.88, reflecting a significant decline of 92.15% from CNY 2,052,884,263.32 in the previous year[14]. - Basic earnings per share dropped to CNY 0.24, down 92.26% from CNY 3.10 in 2022[15]. - The weighted average return on equity decreased to 1.06%, a reduction of 13.32 percentage points from 14.38% in the previous year[15]. - The company reported a total comprehensive income of CNY 341,790,363.76 for 2023, down from CNY 2,094,157,042.08 in 2022[195]. - The company reported a financial loss of CNY 612,708,672.97 due to asset impairment losses in 2023, compared to CNY 418,911,746.97 in 2022[194]. - The company achieved a main business revenue of 5.76 billion RMB in 2023, a decrease of 29.14% compared to 2022[39]. Shareholder Actions - The company repurchased shares amounting to ¥101,983,223, which represents approximately 63.29% of the net profit attributable to shareholders for the year 2023[2]. - The company plans to not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the 2023 fiscal year, with remaining undistributed profits carried forward to future years[2]. - The company paid cash dividends of 414 million RMB in 2023, compared to 708 million RMB in 2022[38]. - The company has implemented a stock option and restricted stock incentive plan, with 261 individuals having 24.99% of their restricted stocks released from restrictions, totaling 836,665 shares[107]. - The company plans to grant 10,813,400 stock options to 1,018 incentive targets at an exercise price of 86.47 RMB per share[107]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxinghua Certified Public Accountants[2]. - The company has appointed Zhongxinghua Certified Public Accountants as its auditing firm for the reporting period[12]. - The company’s financial reporting adheres to the regulations set by the China Securities Regulatory Commission, with no significant discrepancies noted[73]. - The internal control audit report for 2023 received a standard unqualified opinion[114]. - The company has established a comprehensive corporate governance structure, including a board of directors and various specialized committees[72]. Operational Highlights - The company is focused on the development of NOR Flash and NAND Flash technologies, which are key non-volatile memory technologies[6]. - The company operates under both IDM and Fabless business models, integrating design, wafer processing, packaging, and testing[6]. - The company achieved a record shipment of 2.533 billion NOR Flash units in 2023, representing a growth of 16.15%[21]. - The cumulative shipment of automotive-grade flash products exceeded 100 million units, indicating strong market demand[22]. - The company launched the GD25UF series low-voltage ultra-low power SPI NOR Flash products, targeting smart wearable devices and IoT applications[21]. Research and Development - R&D investment reached 1.067 billion yuan, accounting for approximately 18.52% of total revenue, with a workforce comprising 73.5% technical personnel[23]. - The company has 982 authorized patents as of the end of the reporting period, with 60 new patents granted in 2023[23]. - Research and development expenses for 2023 totaled CNY 369,880,878.60, compared to CNY 425,169,421.37 in 2022, reflecting a decrease of 13.0%[193]. - The company is investing 100 million in R&D for new technologies aimed at enhancing product performance and user experience[79]. Market Position and Strategy - The company is the world's leading fabless Flash supplier and ranks second in the global Serial NOR Flash market share as of 2023[29]. - The company has achieved a market ranking of 7th globally in the MCU market, being the top Chinese brand in the 32-bit Arm® MCU segment[29]. - The company is actively enhancing its ESG management level, having established a comprehensive ESG goal and evaluation system[25]. - The company aims to enhance product quality and R&D efficiency, focusing on becoming a leading manufacturer of NOR Flash products and expanding its market share[64]. - The company expects the semiconductor market to recover in 2024, driven by AI and digital economy applications[64]. Environmental and Social Responsibility - The company has not established a mechanism related to environmental protection and did not invest in environmental protection funds during the reporting period[115]. - The company achieved a solid waste disposal control rate of 100% and a solid waste centralized recycling rate of 100% in 2023[118]. - The company donated a total of 1.32 million yuan for social responsibility projects, benefiting 5,951 individuals[122]. - The company invested 1 million yuan in poverty alleviation and rural revitalization projects, benefiting 4,438 individuals[124]. - The company promotes a green supply chain by ensuring compliance with RoHS and REACH environmental standards[118]. Governance and Management - The company has established measures to prevent related party transactions, ensuring that any unavoidable transactions are conducted at fair market prices[130]. - The company has a commitment from its major shareholder to not misappropriate company interests during their tenure as controlling shareholder[130]. - The company has implemented a change in accounting policy effective January 1, 2023, which allows for a more objective reflection of financial status and operating results[139]. - The company has a structured compensation decision-making process approved by the shareholders' meeting and the remuneration and assessment committee[85]. - The company has a total of 33 directors and supervisors listed in the annual report, indicating a diverse governance structure[84].