BEKEN(SH:603068)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 reached RMB 10.95 billion, an increase of 35.40% compared to 2020[23]. - Net profit attributable to shareholders was RMB 584.64 million, representing a 75.98% increase year-over-year[23]. - The net cash flow from operating activities increased by RMB 103.72 million, a growth of 164.40% compared to the previous year[25]. - Basic and diluted earnings per share rose to RMB 0.39, up 62.50% from RMB 0.24 in 2020[24]. - The company's operating cash flow increased by 164.40% to 166.81 million RMB, demonstrating improved financial health[52]. - The company achieved a revenue of 1,094.99 million RMB in 2021, representing a year-on-year increase of 35.40%[51]. - The net profit attributable to shareholders reached 58.46 million RMB, up 75.98% compared to the previous year[51]. - The main business cost was 810.49 million RMB, reflecting a year-on-year increase of 31.25%, attributed to increased sales volume and advanced manufacturing processes[54]. - Gross margin improved to 25.98%, an increase of 2.34 percentage points compared to the previous year[56]. Research and Development - Research and development expenses increased by approximately RMB 100 million, an increase of about 80% year-over-year, impacting net profit levels[25]. - In 2021, the company's R&D expenses amounted to 217.65 million yuan, representing a 78.02% increase compared to the previous year[33]. - The core team consists of 282 R&D personnel, accounting for 87.58% of the total workforce, emphasizing the focus on research and development[47]. - The company holds a total of 127 patents in the wireless RF field as of December 31, 2021, showcasing its technological strength[46]. - The company has developed a new generation of 22nm TWS headphone chips, offering ultra-low power consumption and advanced audio processing capabilities[32]. - The company achieved significant growth in the sales of its 40nm Wi-Fi chips, with improved gross margins for its Wi-Fi product series[32]. Corporate Governance - The board of directors and supervisory board confirm the accuracy and completeness of the annual report[4]. - The company has established three specialized committees under the board: Audit Committee, Compensation and Assessment Committee, and Nomination Committee, ensuring independent oversight[86]. - The company has implemented governance measures to maintain the independence of its assets, personnel, and operations, with no significant differences from regulatory requirements[88]. - The company held a total of 4 shareholder meetings in 2021, all conducted in compliance with relevant laws and regulations[85]. - The board of directors consists of 5 members, including 2 independent directors, and held 8 meetings in 2021, adhering to legal and regulatory requirements[86]. Risk Management - There are no significant risk events reported during the reporting period[8]. - The company has detailed potential risks and countermeasures in the management discussion and analysis section of the report[8]. - The company faces risks related to product development, including potential misjudgments in market demand and the rapid pace of technological change in the integrated circuit industry[81]. - Competition from well-funded international firms and domestic chip design companies poses a significant market risk, potentially impacting the company's market share and profitability[82]. - The company operates under a Fabless model, relying on external manufacturers for chip production, which may expose it to supply chain risks, especially during periods of high demand[83]. Market Expansion and Strategy - The company plans to leverage its existing technology and market resources to expand into smart transportation, smart home, and wearable IoT markets[42]. - The wireless data transmission chips are expected to have a broad market outlook due to the growth of IoT, with applications in various fields including highway ETC systems and wireless peripherals[42]. - The company plans to improve the technology and performance of Bluetooth, Wi-Fi, and ETC products, while actively expanding into international markets to capture more market share[79]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of $200 million allocated for potential deals[99]. - Market expansion efforts include entering three new international markets, projected to increase overall market share by 5%[99]. Shareholder and Compensation Policies - The company plans to distribute a cash dividend of RMB 0.2 per share (including tax) for the 2021 fiscal year[5]. - The total pre-tax remuneration for key management personnel amounted to 7.5347 million yuan, with stock incentive expenses included[93]. - The company has established a stock option and restricted stock incentive plan for 2021, with 2.13 million stock options and 860,000 restricted shares granted to eligible participants[124]. - The company has implemented a performance evaluation mechanism for senior management, linking their compensation to the company's asset status and profitability[126]. - The company plans to dynamically adjust employee compensation in response to market conditions and inflation, anticipating an overall increase in salary levels[117]. Legal and Compliance - The company is involved in a significant lawsuit regarding patent infringement, seeking damages of RMB 98,113,882 from the defendants[159]. - The company initiated a patent infringement lawsuit against LITONG Technology Co., Ltd. for willful infringement of its overseas patent (U.S. Patent No. 9197228) and is seeking compensation for losses incurred due to the infringement, including reasonable attorney fees and other related costs[160]. - The audit report confirms that the financial statements of Broadcom Integrated Circuit (Shanghai) Co., Ltd. fairly reflect its financial position as of December 31, 2021, and its operating results for the year 2021[199]. - The audit was conducted in accordance with Chinese CPA auditing standards, ensuring independence and adherence to ethical responsibilities[200]. Employee and Workforce Development - The company has expanded its workforce to 322 employees by the end of 2021, an increase of 100 employees from the previous year[34]. - The company has a total of 16 PhD holders and 142 master's degree holders, reflecting a highly educated workforce[115]. - The company has established a comprehensive training system to develop strong product R&D and management talent[118]. - The company has implemented a differentiated compensation policy, combining base salary and bonuses to attract and retain talent[116]. Financial Position and Assets - The total assets at the end of 2021 were RMB 233.26 billion, a 7.10% increase from the previous year[23]. - Total liabilities increased from RMB 18,961.68 million in 2020 to RMB 30,616.54 million in 2021, indicating a rise of approximately 61.5%[182]. - The asset-liability ratio improved from 8.70% in 2020 to 13.13% in 2021, showing a stronger financial position[182]. - The company reported a total of RMB 41,450,000 in bank wealth management products funded by raised capital and RMB 23,000,000 from self-owned funds, with no overdue amounts[165].