Financial Performance - Revenue for the year ended December 31, 2021, reached RMB 9,452.4 million, a 52.8% increase from RMB 6,185.1 million in 2020[25]. - Gross profit for 2021 was RMB 933.4 million, representing a 33.6% increase from RMB 698.6 million in 2020[25]. - Profit for the year increased by 120.0% to RMB 412.4 million, up from RMB 187.4 million in 2020[25]. - Profit attributable to equity shareholders of the Company rose by 140.4% to RMB 296.2 million, compared to RMB 123.2 million in the previous year[25]. - Basic earnings per share (EPS) for 2021 was RMB 0.213, a 139.3% increase from RMB 0.089 in 2020[25]. - The Group recorded a revenue of approximately RMB 9,452.4 million for the year ended December 31, 2021, representing an increase of approximately 52.8% compared to RMB 6,185.1 million in the corresponding period of 2020[42]. - The net profit after tax increased by 120.0% compared to the corresponding period in 2020, with a gross profit of approximately RMB 933.4 million, reflecting a year-on-year increase of approximately 33.6%[42]. - For the year ended December 31, 2021, the Group's profit amounted to approximately RMB 412.4 million, an increase of approximately RMB 225.0 million compared to RMB 187.4 million in 2020[60]. - Profit attributable to equity shareholders was approximately RMB 296.2 million, representing an increase of approximately RMB 173.0 million compared to RMB 123.2 million in 2020[60]. - The Group's revenue included approximately RMB 9,406.0 million from direct sales, RMB 9.2 million from software licensing services, RMB 10.6 million from the Group's marketplace, and RMB 26.6 million from IngFin Financing Services[60]. Market and Industry Trends - The demand for chips is expected to grow due to the explosive growth of 5G applications across various industries, providing substantial profit opportunities for the Group[30]. - The national policy in China strongly supports technology development, which is expected to further boost the AIoT industry and chip demand[30]. - The strong demand for chips is driven by accelerated industrial digitization and domestic 5G construction, contributing to the Group's significant revenue growth[42]. - The Ministry of Industry and Information Technology predicts that the total number of 5G base stations will exceed 2 million in 2022, driving demand for chips and contributing to the Group's growth[49]. - The semiconductor industry is expected to see total sales grow by 11% in 2022, surpassing US$680.6 billion, driven by the rise of AIoT applications[49]. - The automotive semiconductor industry is projected to grow at a CAGR of 12.3% by 2025, driven by the increasing demand for in-vehicle electronics due to the rise of electric vehicles and autonomous driving[53]. - The iPaaS market is projected to reach US$6.1 billion by 2025, with a CAGR of 36.4% from 2020 to 2025, providing significant growth opportunities for the Group[49]. Strategic Initiatives - The Group continues to focus on the chip and AIoT smart hardware market, leveraging its dual-platform model of "Comtech and Ingdan" to drive significant revenue growth[29]. - The Group aims to create a closed loop of "Chips-Devices-Cloud" AIoT ecosystem, deploying services in five major verticals: Vehicle-to-everything, Smart Home, Robotics, Smart Manufacturing, and Smart Medical[29]. - The Group plans to continue leveraging its platforms to serve the entire 5G industry chain, aiming for rapid business growth[30]. - The Group aims to strengthen the integration of its chip applications with OpenHarmony solutions to enhance its position in the AIoT industry[37]. - The Group's strategic dual-platform approach of "Comtech and Ingdan" is designed to capture AIoT business opportunities in China[37]. - The Group plans to enhance revenue streams from Ingdan by developing it into a key iPaaS technology integration platform, focusing on smart cars, smart homes, robotics, smart manufacturing, and smart medtech[56]. - The Group aims to deepen its penetration in IC sales and smart hardware modules, leveraging its proprietary products and technology for increased profitability[42]. Investments and Financial Support - The Bank of China (Shenzhen) granted a credit facility of RMB 300 million in early 2022, affirming the Group's development potential in the chip industry[38]. - The Group received additional capital injection from the Guangdong Provincial Industrial Development Fund, reflecting the provincial government's confidence in its business[38]. - The Group plans to independently list its subsidiary "Comtech" on A shares in Mainland China, aiming to expand its presence in the domestic capital market[38]. - The Group has obtained approval for the proposed A Share listing of Comtech in Mainland China, which will further expand its development in the domestic capital and chip market[45]. - The Group's investment in Comtech supports its rapid development in the trillion-RMB domestic chip market[120]. Operational Performance - Cost of revenue for the year ended December 31, 2021, was approximately RMB 8,519.0 million, representing an increase of approximately 55.3% from approximately RMB 5,486.5 million for the year ended December 31, 2020[60]. - Gross margin decreased from 11.3% in 2020 to 9.9% in 2021, primarily due to a change in sales mix with a higher proportion of IC components sales[62]. - Selling and distribution expenses decreased by approximately RMB 16.0 million or 20.0% to RMB 63.8 million in 2021, driven by reduced marketing costs[62]. - Research and development expenses decreased by approximately RMB 38.6 million or 19.8% to RMB 156.0 million in 2021, mainly due to reduced spending on AIoT products and technologies[62]. - Administrative and other operating expenses increased by approximately RMB 22.9 million or 10.7% to RMB 237.4 million in 2021, primarily due to increased amortization of intangible assets[64]. Corporate Governance and Compliance - The Group has complied with all relevant laws and regulations during the year ended December 31, 2021, with no material breaches reported[129]. - The company has received annual confirmations of independence from all independent non-executive directors, who are considered independent[165]. - No significant contracts were entered into between the company or its subsidiaries and the controlling shareholders during the year ended December 31, 2021[163]. - The company did not engage in any business that competes or might compete with the group during the year ended December 31, 2021[161]. Future Outlook - The Group anticipates continued high growth in its business, driven by strong support from national policies and the booming chip industry[38]. - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets despite market challenges[92]. - The Group's core business is expected to continue its high growth trajectory post-A-share listing[123].
硬蛋创新(00400) - 2021 - 年度财报