WINGTECH(600745)2024-04-22 11:38Financial Performance and Profit Distribution - Revenue for 2023 reached RMB 61.21 billion, a 5.40% increase compared to 2022[19] - Net profit attributable to shareholders in 2023 was RMB 1.18 billion, a decrease of 19.00% year-over-year[19] - Operating cash flow surged by 250.48% to RMB 5.82 billion in 2023[19] - Basic earnings per share (EPS) for 2023 was RMB 0.95, down 18.80% from 2022[20] - Weighted average return on equity (ROE) decreased by 0.92 percentage points to 3.18% in 2023[21] - Q4 2023 revenue was RMB 16.80 billion, the highest among all quarters[24] - Q4 2023 net profit attributable to shareholders was negative RMB 918.28 million, a significant decline[24] - Q4 2023 operating cash flow was RMB 1.34 billion, maintaining strong liquidity[24] - Total assets at the end of 2023 were RMB 76.97 billion, a slight decrease of 1.23% compared to 2022[19] - Shareholders' equity at the end of 2023 was RMB 37.17 billion, up 1.43% year-over-year[19] - Revenue for 2023 reached 61.213 billion yuan, a year-on-year increase of 5.40%[33] - Net profit attributable to shareholders of the listed company was 1.181 billion yuan, a year-on-year decrease of 19.00%[33] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.127 billion yuan, a year-on-year decrease of 28.58%[33] - Revenue for the reporting period reached 61,212,801,452.51 yuan, a year-on-year increase of 5.40%[89] - Net profit attributable to shareholders decreased by 19.00% year-on-year to 1,181,246,516.18 yuan[89] - Operating cash flow surged by 250.48% to 5,824,359,080.83 yuan, driven by increased cash receipts from sales and reduced cash payments for goods and services[90] - R&D expenses decreased by 9.95% to 3,056,846,700.15 yuan, reflecting a strategic adjustment in investment focus[90] - The company repurchased shares worth 199.979 million yuan (excluding transaction fees) in 2023, which is included in the cash dividend ratio calculation for 2023[3] - The proposed cash dividend for 2023 is 1.25 yuan per 10 shares (tax included), with a total cash dividend of approximately 354.7849 million yuan, accounting for 30.03% of the net profit attributable to shareholders in 2023[4] - The total share capital of the company as of the end of March 2024 is 1,242,809,481 shares, excluding 4,362,400 shares in the company's repurchase account[4] - The company's 2023 annual profit distribution plan includes a cash dividend of approximately 154.8059 million yuan (tax included), based on the share capital excluding repurchased shares[4] - The company's 2023 annual profit distribution plan is subject to approval at the shareholders' meeting[4] - The total cash dividend for 2023, including share repurchases, amounts to 354.7849 million yuan, representing 30.03% of the net profit attributable to shareholders[177] - The cash dividend amount of 154.8059 million yuan accounts for 13.11% of the net profit attributable to shareholders in the consolidated financial statements for 2023[177] - The company's cash dividend policy complies with the articles of association, with clear standards and proportions, and a complete decision-making process[175] Semiconductor Business - The company's semiconductor business focuses on automotive applications, with plans to increase the number of components and value per vehicle in the automotive sector[31] - The company's semiconductor and product integration businesses are enhancing synergy, particularly in areas like AI, automotive electronics, and consumer electronics[32] - Semiconductor business revenue decreased by 4.85% to 15.226 billion yuan, with a gross margin of 38.59%, and net profit decreased by 35.29% to 2.426 billion yuan[35] - Automotive sector accounted for 62.8% of semiconductor revenue, with a year-on-year growth of 22.95%[35] - R&D investment in semiconductor business increased by 37.20% to 1.634 billion yuan, accounting for 10.73% of sales[36][42] - The company holds a leading position in the global power discrete device market, ranking 5th globally and 1st in China[37] - Revenue from automotive, mobile & wearable devices, industrial & power, computing devices, and consumer sectors accounted for 62.8%, 6.9%, 21.7%, 4.8%, and 3.8% respectively[38] - The number of semiconductors used in a new energy vehicle is 3 times that of a traditional fuel vehicle, with power semiconductors being 5-10 times higher[39] - The company's semiconductor products are used in up to 1,000 chips per electric vehicle, compared to 400 chips per gasoline vehicle[41] - The company achieved mass production of SiC rectifiers and completed testing and verification of SiC MOSFETs for industrial and consumer applications[42] - The company's semiconductor business aims to achieve carbon neutrality for Scope 1 and Scope 2 emissions by 2035, with a broader goal of achieving carbon neutrality across all operations by 2050[56] - The company is advancing the use of wide-bandgap materials in its semiconductor business, which significantly reduces energy consumption and CO2 emissions compared to silicon-based materials[57] - The company's semiconductor business revenue from the automotive sector increased from 44% in 2021 to 62.8% in 2023, demonstrating strong competitive advantages in the automotive semiconductor field[74] - The company's semiconductor products are 90% compliant with automotive-grade standards, with all wafer factories certified to meet stringent automotive industry requirements[74] - The company has expanded its power discrete device product portfolio, covering low and high voltage MOSFET, IGBT, silicon rectifiers, SiC rectifiers and FET, GaN, etc., and has increased R&D investment in analog IC products[76] - The company's semiconductor business has passed AEC-Q100 and AEC-Q101 automotive certification tests, and uses PPB (Part Per Billion) as a standard for defect rate, which is continuously decreasing[80] - The company's semiconductor business is actively seizing opportunities in the AI field, with products such as GaN, MOSFET, rectifiers, PMIC, and voltage converters providing technical support for AI applications[79] - The company's semiconductor business saw a revenue decline of 4.85% to 15,225,556,511.28 yuan, with a corresponding decrease in gross margin by 4.07 percentage points[94] - The company plans to expand its semiconductor business globally, with a focus on power discrete devices, standard logic ICs, and analog ICs, aiming to become a top global semiconductor company[135] - The company is upgrading its semiconductor production facilities, including expanding capacity at its Hamburg wafer factory and upgrading facilities in Manchester, Cabuyao, and Seremban to enhance automation and meet global demand[135] Product Integration and Global Expansion - The company's product integration business is expanding globally, serving top-tier clients in mobile phones, tablets, laptops, IoT, home appliances, and automotive electronics[31] - Product integration business revenue reached 44.315 billion yuan, a year-on-year increase of 11.99%, with a gross margin of 8.37% and a net loss of 447 million yuan[50] - R&D investment for product integration business was approximately 2.65 billion yuan, a year-on-year decrease of 18.56%[50] - The company successfully expanded into European and North American operator markets and is collaborating with overseas customers on AI phone development[53] - The company has become a key supplier for a specific overseas customer's laptop manufacturing, with AI PC products starting global sales in early 2024[53] - The company has established R&D centers in Shanghai, Wuxi, Xi'an, Shenzhen, and Kunming, equipped with high-standard R&D and testing laboratories[51] - The company is advancing the intelligent and digital upgrade of its factories, aiming to transition from consumer electronics manufacturing to automotive-grade manufacturing[51] - The company has successfully entered the global small appliance market, particularly in the hair dryer segment, enhancing its international intelligent manufacturing capabilities[53] - The company's product integration business focuses on R&D and manufacturing of smart terminal products in consumer, industrial, and automotive sectors[71] - The company's overseas revenue from product integration business accounted for 68.17% in 2023, and is expected to exceed 70% in 2024 with the introduction of new overseas projects[85] - The company's product integration business has successfully expanded into various segments, becoming the preferred ODM partner for leading domestic and international brands[82] - The company's system integration business has established close cooperation with upstream industry partners, forming a comprehensive ecosystem and leading industry innovation[84] - The company has successfully expanded its product integration business from mobile ODM to multiple areas, including mobile, tablet, laptop, IoT, smart hardware, and automotive electronics, and is actively embracing the AI market[137] - The company aims to leverage AI, new energy vehicles, and energy storage technologies to drive industry transformation and capture significant market share in the AI-driven hardware upgrade wave[137] - The company is increasing R&D investment and has developed a clear roadmap for AI Phone and AI PC technologies, with AI PC projects already in mass production and AI Phone projects progressing with overseas customers[138] - Overseas customer revenue is expected to exceed 70% of total revenue in 2024, with a significant increase in ASP (Average Selling Price) per unit[138] - The company is actively evaluating opportunities to expand overseas manufacturing scale and aims to establish a secure global manufacturing system[138] - AI technology will be used to upgrade manufacturing facilities to automated and intelligent model factories[139] - The company is addressing supply chain risks by collaborating with upstream and downstream partners to improve R&D and production efficiency, and standardize equipment and processes[139] Environmental and Sustainability Initiatives - The company invested 0.27 billion yuan in environmental protection during the reporting period[184] - The company's subsidiaries, including Nexperia (China) Co., Ltd. and Huangshi Wintech Communications Co., Ltd., have no超标排放 (exceeding emission standards) in their wastewater and废气 emissions[184][185] - The company's pollution prevention facilities, such as wastewater treatment and废气处理设备, are operating normally across its subsidiaries[186] - The company and its subsidiaries have obtained multiple environmental impact assessment approvals and验收批复, ensuring compliance with environmental regulations[187][188] - The company reduced carbon dioxide equivalent emissions by 8,000 tons in 2023[197] - The company implemented 10 specific carbon reduction measures, including photovoltaic power generation projects, LED lighting, and advanced RTO processes for exhaust gas treatment[198] - The company's semiconductor business is currently undergoing a carbon emissions audit, with specific details to be disclosed in the 2023 Sustainability Report[198] - The company has a goal to achieve zero Scope 1 and Scope 2 emissions by 2035[194] - The company has established a global greenhouse gas emissions roadmap, approved by the CEO in June 2023[194] - The company has implemented ISO 14001 certified environmental management systems across its manufacturing facilities[196] - The company has developed a process to ensure materials do not contain harmful substances exceeding specific limits[193] - The company is a member of the Responsible Minerals Initiative and has updated its Conflict Minerals Statement in 2022[192] - The company has environmental emergency response plans in place at all production sites, compliant with ISO 14001:2015 standards[195] - The company has not received any serious complaints from authorities or NGOs regarding environmental issues from January to December 2023[195] - The company plans to disclose the 2023 Sustainability Report in the future[200] Corporate Governance and Leadership - The company's 2023 annual report has been audited by Zhonghua Certified Public Accountants (Special General Partnership) with a standard unqualified opinion[2] - The company's 2023 annual report is guaranteed to be true, accurate, and complete by the company's legal representative, chief financial officer, and accounting officer[2] - The company's 2023 annual report includes a risk warning about forward-looking statements, which do not constitute a substantive commitment to investors[5] - The company's 2023 annual report confirms that there is no non-operational occupation of funds by controlling shareholders or other related parties[6] - The company's 2023 annual report confirms that there are no violations of decision-making procedures in providing external guarantees[6] - Zhang Xuezheng received a total of 11.0657 million RMB in virtual stock from Nexperia in 2023[148] - Zhang Xuezheng serves as Chairman and CEO of Nexperia and Chairman and President of the listed company[148] - Huang Xiaohong was elected as an independent director on December 27, 2023[153] - Zhang Xuezheng has been serving as Chairman of the listed company since January 20, 2017[153] - Gao Yan was appointed as Vice President of the company on February 15, 2022[154] - Zhang Xuezheng holds the position of Executive Director at Wintech Technology Group Co., Ltd[155] - Shang Xiaogang served as an independent director of Hainan Shuangcheng Pharmaceutical Co., Ltd from February 2017 to January 2023[156] - Xiao Jianhua served as a partner at Zhongtong (Hainan) Accounting Firm from June 2022 to November 2023[156] - The remuneration of directors and supervisors is determined by the shareholders' meeting, while the remuneration of senior management is determined by the board of directors[157] - Zhang Xuezheng's remuneration is jointly determined by his roles at the listed company and Nexperia[157] - Total compensation for directors, supervisors, and senior management in 2023 was 19.32 million yuan[158] - The company held 14 board meetings in 2023, all conducted via teleconference[163] - The total number of employees at the parent company and major subsidiaries was 31,497, with 19,716 production staff and 6,374 technical staff[169] - The company's employee education breakdown includes 205 PhDs, 1,896 master's degree holders, and 10,296 bachelor's degree holders[170] - The company implemented a compensation policy combining monthly fixed salary, annual performance evaluation, and annual performance bonus[171] - Total labor outsourcing hours in 2023 were 33,690,392.04 hours, with total outsourcing payments of 752,781,914.85 yuan[172] - The company's audit committee held 3 meetings in 2023, focusing on annual reports and related party transactions[165] - The company's nomination committee held 1 meeting in 2023 to elect an independent director[167] - The company's compensation and assessment committee held 1 meeting in 2023 to discuss the stock option incentive plan[166] - The company's controlling shareholder and actual controller received an investigation notice from the China Securities Regulatory Commission during the reporting period[160] - The company's 2023 stock option incentive plan was approved by the board and shareholders, with the first grant registration completed on October 18, 2023[178] - The reserved portion of the 2023 stock option incentive plan was granted on October 25, 2023, and the registration was completed on January 9, 2024[179] - The company's senior management compensation is linked to company performance, subsidiary or department performance, and industry market competition levels[180] Market and Industry Trends - Global semiconductor industry sales in 2023 reached $526.8 billion, a decrease of 8.2% compared to 2022's record high of $574.1 billion[60] - China's semiconductor market experienced the largest decline in 2023, with sales dropping by 14%, while Europe was the only region to achieve growth, with a 4% increase[60] - Automotive IC sales grew by 23.7% in 2023, reaching a record $44.2 billion, driven by strong demand in the automotive sector[61] - The global power semiconductor market (including power ICs) is expected to grow to $50.2 billion in 2023, with China's market reaching 151.936 billion yuan, a year-on-year increase of 10.99%[61] - Global automotive sales in 2023 reached 89.18 million units, an 11.22% increase year-on-year, with new energy vehicle sales growing by 36.46% to 14.28 million units, representing a penetration rate of 16.01%[63] - China's new energy vehicle sales in 2023 reached 9.495 million units, a 37.9% increase year-on-year, with a penetration rate of 31.5%, accounting for over 60% of global sales[64] - The global power semiconductor market is projected to reach $26.274 billion by 2026, with MOSFET, IGBT, and SiC expected to dominate, holding market shares of 30%, 23%, and 19% respectively[62] - Global renewable energy capacity additions reached 510GW in 2023, a 50% increase compared to 2022[65] - Wind and solar power are projected to account for 95% of renewable energy generation in the next five years, surpassing hydropower by 2024 and nuclear power by 2025-2026[65] - China's new energy storage installations in 2023 reached 22.6GW/48.7GWh, a growth of over 260% compared to 2022[65] - The power semiconductor market for photovoltaic, wind power, and energy storage in China reached 6.579 billion yuan, 3.188 billion yuan, and 696-905 million yuan respectively in 2023[65] - Global smartphone shipments in 2023 were 1.16 billion units, a 3.2% year-on-year decline, with China's shipments at 271 million units, down 5.0%[67] - Global PC shipments in 2023 were 247 million units, a 13% year-on-year decline, with China's shipments at 41.2 million units, down 17%[67] - Global smartwatch shipments in 2023 were 70.7 million units, a 9% year-on-year decline, with the market share expected to rise from 38% in 2023 to 44% by 2025[68] - The penetration rate of