Financial Performance - The total revenue for HG Semiconductor Limited in 2024 was approximately RMB 753 million, representing a decrease of about 15% compared to the previous year[11]. - The net loss attributable to shareholders for the year expanded to approximately RMB 1.568 billion, primarily due to impairment losses on assets classified as held for sale, intangible assets, and property, plant, and equipment[11]. - The company's revenue for the year was approximately RMB 75.3 million, a decrease of about 15% compared to last year's RMB 88.6 million[24]. - The gross profit declined by approximately 9% to about RMB 7.8 million[23]. - Revenue from LED products was approximately RMB 739 million, accounting for 98.2% of total revenue, while revenue from GaN and other semiconductor products was approximately RMB 1.4 million, accounting for 1.8%[37]. - The sales cost decreased by approximately 15.7% to about RMB 675 million, reflecting a reduction in material costs due to decreased sales volume of LED products[38]. - Gross profit decreased from approximately RMB 85.3 million to RMB 78.8 million, with a gross margin increase from about 9.6% to 10.3%[39]. - Other income and gains increased by approximately 68.8% to about RMB 81 million, mainly due to increased government subsidies[40]. - The company reported a loss attributable to shareholders of approximately RMB 156.8 million for the year[24]. - The group recorded a loss of approximately RMB 1,831 million, compared to a loss of RMB 1,576 million in the previous year, primarily due to an increase in expected credit loss provisions[46]. - The net profit margin worsened to approximately -243.2% from -177.8% in the previous year, mainly due to the increase in expected credit loss provisions[47]. - The cash used in operating activities increased to RMB 697 million from RMB 232 million, primarily due to an increase in inventory[49]. - As of December 31, 2024, the group's current assets net value was approximately RMB 2,035 million, down from RMB 2,844 million the previous year[51]. - The return on equity decreased from approximately -21.9% to -31.7% due to increased expected credit loss provisions[52]. Production and Technology - The company installed two production lines at its semiconductor factory in Xuzhou, Jiangsu Province, to produce high-quality third-generation semiconductor products[12]. - The company successfully produced its own 6-inch GaN power device epitaxial wafers, achieving yield rates that meet international standards[12]. - The company has completed the installation and debugging of two production lines for GaN-related products at its semiconductor factory in Xuzhou, Jiangsu Province, which spans over 7,000 square meters[25]. - The company is preparing to produce its own 6-inch GaN power device epitaxial wafers and is working on an 8-inch GaN power device epitaxial wafer project expected to achieve technical validation in the second half of 2025[26]. - The company has successfully installed production lines for GaN-related products and is actively exploring sales channels with customers[29]. - The company anticipates that GaN chip products will enter the tape-out phase in Q4 2024 and expects to pass reliability testing and launch in 2025[29]. - The global market for GaN power devices is continuously growing, with significant potential in sectors such as electric vehicles, wireless charging, and 5G infrastructure[13]. - The semiconductor industry in China is experiencing rapid growth, driven by government support and increasing investments in new energy and electric vehicles[21]. Research and Development - HG Semiconductor has obtained a total of 17 patents, including four related to LED technology, with several more invention patents currently under review[12]. - HG Semiconductor plans to enhance its existing LED business while accelerating the research and production of GaN-related products to further develop its third-generation semiconductor industry chain[13]. - The company aims to build a strong research and development team by attracting top talent in the third-generation semiconductor field[13]. - The company aims to enhance its R&D capabilities and seeks strategic partnerships to upgrade its industry chain, focusing on becoming a comprehensive IDM enterprise in the GaN sector[32]. - Research and development costs increased to RMB 240 million from RMB 196 million[43]. Corporate Governance - The company has adopted the corporate governance code as its own governance guidelines and believes it has complied with these guidelines for the year ending December 31, 2024[89]. - The board consists of four executive directors and three independent non-executive directors as of December 31, 2024[91]. - The board is responsible for leading and monitoring the group, focusing on overall strategy, approving development plans and budgets, and overseeing financial and operational performance[92]. - The independent non-executive directors provide strategic direction and independent judgment on matters such as policy, development, performance, and risk management[93]. - The company has a commitment to maintaining good corporate governance standards to enhance transparency and accountability to shareholders and creditors[89]. - The board regularly reviews its functions to ensure they meet the group's needs[92]. - The company has established communication channels with shareholders and stakeholders, including annual general meetings and reports[137]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the company's operations in China, focusing on semiconductor product design, development, and sales[146]. - The company aims to reduce its benzene emissions by 5% by 2040, using 2020 as the baseline for measurement[156]. - The total greenhouse gas emissions increased by 145% from 2,441 tons of CO2 equivalent in 2023 to 5,975 tons in 2024[158]. - The company has achieved ISO 14001:2015 certification for its Zhuhai manufacturing facility, indicating compliance with international environmental management standards[153]. - The company has installed gas purification systems to control air pollutant emissions from its production activities[156]. - The company has implemented a waste management guideline to minimize the environmental impact of hazardous waste disposal[162]. - The company has established emergency plans to mitigate environmental impacts in case of pollution incidents[168]. - The company is committed to monitoring its carbon footprint and exploring additional methods to reduce environmental impact[172]. Employee and Workforce Management - The company employed 161 employees as of December 31, 2024, with total employee costs amounting to approximately RMB 59.4 million, an increase from RMB 35.0 million in the previous year[71]. - The total employee count in 2024 is 161, a 1.9% increase from 158 in 2023[174]. - Overall employee turnover rate is approximately 25%, with male turnover increasing by 36% to 19% and female turnover decreasing by 40% to 6%[178]. - The percentage of employees receiving training is 89%, with an average training duration of 23.3 hours per employee[180]. - The company has a commitment to maintaining a safe working environment, with no reported work-related fatalities or significant safety non-compliance cases in the past three reporting periods[179]. - The company emphasizes a balanced work-life approach to enhance overall productivity and employee well-being[175]. Strategic Partnerships and Future Plans - HG Semiconductor will actively seek strategic partnerships with other leading companies to achieve complementary advantages and mutual benefits[13]. - The company aims to explore market expansion opportunities through strategic partnerships and potential acquisitions[82]. - The company plans to conduct a rights issue in November 2024, offering shares at a subscription price of HKD 0.48 per share, aiming to raise approximately HKD 87.8 million[72]. - The company completed a placement in June 2023, raising a net amount of approximately HKD 35.1 million, fully utilized for enhancing R&D capabilities and general working capital[73].
宏光半导体(06908) - 2024 - 年度财报