Financial Performance - The Group recorded revenue of USD 29.4 million for 2022, a year-on-year decrease of 18.9% from USD 36.2 million in 2021[13]. - Gross profit for the year decreased by 29.1% year-on-year to USD 12.1 million[13]. - Basic earnings per share for the year was USD 17.9 cents, compared to USD 3.1 cents in 2021[13]. - For the year ended December 31, 2022, the Group recorded revenue of approximately USD 13.7 million from CAM, a decrease of about 35.2% year-on-year, accounting for approximately 46.5% of the Group's total revenue[35]. - Revenue from the Group's cloud services was approximately USD3.9 million, accounting for approximately 13.2% of total revenue, which is a decrease of around 3.9% year-on-year[49]. - Revenue from the Group's IC solutions was approximately USD11.9 million, representing approximately 40.3% of total revenue, with a year-on-year increase of 6.7%[52]. - The Group's profit for the year ended December 31, 2022, was USD57.1 million, a significant increase from USD9.9 million in the previous year, primarily due to gains from the sale of a subsidiary[73]. - Other income, mainly from government subsidies in research and development, was USD26.4 million, a decrease of 10.3% compared to 2021[61]. Market and Business Strategy - The Group will continue to focus on integrated circuit design solutions and explore new technologies and products in areas such as smart sensing technology solutions[17]. - The Group is actively developing cloud service and integrated circuit ("IC") solutions as new business lines[37]. - The Group aims to enhance operational management and industry integration while improving research and development levels to consolidate its position in the industry[27]. - The Group is innovating within the USB dongle product series and has secured orders from multiple cable operators in the domestic market[44]. - The Group aims to capture existing market share in the domestic cable network market and is exploring new product opportunities such as USB CAM[111]. - The Group will continue to explore product development and market expansion in the chip design field to seek solid and stable market growth points[113]. Research and Development - The Board resolved to scale down and cease the research and development of electronic design automation (EDA) products when appropriate, while remaining optimistic about the EDA industry's long-term prospects[16]. - Research and development expenses were approximately USD35.4 million, representing approximately 118.1% of total revenue, indicating a significant investment in innovation[52]. - The Group will improve its R&D incentive system and strengthen project development and management to establish a mature intellectual property system[115]. Financial Position and Cash Flow - As of December 31, 2022, the total cash and cash equivalents amounted to USD 48.2 million, an increase from USD 18.8 million as of December 31, 2021[78]. - The net current assets recorded were USD 25.4 million, up from USD 12.3 million in the previous year[78]. - The current ratio improved to 168.8% as of December 31, 2022, compared to 130.6% a year earlier[78]. - Bank borrowings decreased to USD 16.9 million from USD 28.4 million in 2021, while lease liabilities also fell to USD 1.7 million from USD 2.6 million[79]. - The gearing ratio was 9% as of December 31, 2022, down from 20.5% in the previous year[79]. Governance and Board Structure - The Board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[128]. - The Board is responsible for the overall leadership of the Group and monitors business performance and strategic decisions[129]. - Mr. Huang Xueliang serves as both Chairman and CEO, which the Board believes will provide strong and stable leadership for the Group[123]. - The Company has been in compliance with the principles and code provisions set out in the Corporate Governance Code during the year ended 31 December 2022[121]. - The Nomination Committee held one meeting to review the Board's structure, number, and composition, and assess the independence of non-executive Directors[155]. Audit and Compliance - The Audit Committee held two meetings in the year ended December 31, 2022, focusing on the integrity of financial statements and the effectiveness of risk management systems[177][179]. - The auditor's remuneration for audit and review services in 2022 was USD 312,000, a decrease of 38.8% from USD 510,000 in 2021[195]. - The total remuneration paid to the auditor and its affiliates was USD 398,000 in 2022, down 26.0% from USD 538,000 in 2021[195]. - The Company has mechanisms in place for independent professional advice to assist Directors in discharging their duties[138]. - The Company has not identified any significant uncertainties that may impact its ongoing operations[198].
国微控股(02239) - 2022 - 年度财报