BEKEN(SH:603068)2023-04-26 16:00Financial Performance - The company's operating revenue for 2022 was RMB 713,221,412.08, a decrease of 34.87% compared to RMB 1,094,992,693.75 in 2021[24]. - The net profit attributable to shareholders of the listed company was a loss of RMB 236,653,148.16, representing a decline of 626.91% from a profit of RMB 44,913,801.58 in the previous year[24]. - The cash flow from operating activities showed a net outflow of RMB 201,766,292.07, a decrease of 220.95% compared to an inflow of RMB 166,812,462.30 in 2021[24]. - Total assets at the end of 2022 were RMB 2,019,656,840.36, down 13.42% from RMB 2,332,606,162.08 at the end of 2021[24]. - The company's total equity attributable to shareholders was RMB 1,799,855,261.00, a decrease of 11.18% from RMB 2,026,440,778.09 in the previous year[24]. - The company achieved a consolidated revenue of RMB 713.22 million in 2022, a decrease of 34.87% year-on-year[53]. - The net profit attributable to the parent company's shareholders was RMB -238.06 million, which includes a provision for inventory impairment of RMB 149 million and share-based payment of RMB 44 million[53]. - The operating cost was 529,865,165.67 RMB, down 34.62% year-on-year, reflecting the decline in revenue[54]. - The company reported a total production of 39,720.68 thousand units, with a sales volume of 30,251.04 thousand units, reflecting a decrease of 30.31% in production and 45.68% in sales compared to the previous year[59]. Research and Development - R&D expenses increased by 70 million RMB, representing a year-on-year growth of 32%[31]. - In 2022, the company's R&D expenses amounted to 287.69 million yuan, an increase of 32.18% compared to the previous year, with R&D expenses accounting for 40.34% of total revenue[35]. - The company focused on the development of wireless connection chips, including Wi-Fi, Bluetooth, and high-precision positioning chips, to enhance product competitiveness[32]. - The company launched several new products, including the smallest Wi-Fi MCU chip and the lowest power consumption Wi-Fi 6 MCU chip, and initiated the development of Wi-Fi 7 chips[32]. - The company has achieved significant breakthroughs in the security and connectivity of its products, with multiple chips certified by the Matter certification and HarmonyOS[33]. - The company has achieved AEC-Q100 automotive certification for several chip products, entering the automotive OEM market and maintaining a leading position in technology and market[34]. - The company’s wireless communication IC products have a leading market share in various segments of domestic consumer electronics and industrial applications[34]. Market Conditions and Challenges - The company faced challenges from macroeconomic conditions, supply chain constraints, and weak downstream market demand, impacting sales and profits[32]. - Revenue from the mainland region dropped by 40.03%, primarily due to the overall economic situation in 2022[58]. - The sales revenue from wireless data transmission products decreased by 41.46%, while wireless audio products saw a smaller decline of 17.05%[57]. - The competitive landscape is intensifying, with significant competition from well-funded international firms and domestic chip design companies, which may impact the company's market share[83]. Governance and Compliance - The board of directors held a total of 5 meetings in 2022, complying with legal and regulatory requirements[88]. - The company has established three specialized committees: the nomination committee, the remuneration and assessment committee, and the audit committee, all of which are accountable to the board[88]. - The company does not have significant differences in governance compared to regulatory requirements, indicating strong compliance[88]. - The company’s independent directors constitute more than half of the board, enhancing oversight and governance[88]. - The audit committee includes at least one independent director who is a qualified accounting professional, ensuring compliance with governance standards[88]. - The company has not reported any major changes in competition or business operations that would affect its independence[88]. Employee and Talent Management - The company’s total employee count reached 355 by the end of 2022, with a net increase of 33 employees compared to the previous year[36]. - The company employs 355 staff, with 317 being R&D personnel, accounting for 89.30% of the workforce[47]. - The company has implemented various incentive measures to retain its core technical team, although talent retention remains a challenge due to competitive pressures in the industry[84]. - The company has established a comprehensive training program aimed at developing strong product R&D and management talent to meet future growth needs[114]. Future Outlook and Strategy - The company aims to maximize brand value and expand into IoT markets such as smart transportation, smart home, and wearable technology, leveraging its existing technology and market resources[42]. - The company is actively developing new products and applications to drive future sales growth despite the current decline in demand[55]. - The company plans to continuously improve the technology and performance of Bluetooth, Wi-Fi, and ETC products, while actively expanding into overseas markets to capture more market share[81]. - The company aims to enhance its competitive advantage in wireless data transmission and audio chip products over the next three years, positioning itself as a leader in the domestic integrated circuit design industry[80]. Financial Management and Investment - The company has established a cash dividend policy, ensuring a minimum of 80% of profits are distributed as cash dividends during mature stages without major capital expenditures[115]. - The company has made a private equity investment of 100 million in a fund managed by a related party, with a total fund size of 1.125 billion[76]. - The company will establish a special account for raised funds to ensure dedicated use and strict control over all aspects of fund utilization[136]. - The company has committed to actively implement fundraising projects that align with its main business and future development strategy[136]. Audit and Internal Control - The audit opinion confirmed that the financial statements fairly present the company's financial position and results of operations for the year ended December 31, 2022[191]. - The company has established a comprehensive internal control system to ensure product quality and customer service quality, which are fundamental to its survival and development[38]. - The company is committed to addressing any identified internal control deficiencies during the audit process[199]. - The management is responsible for ensuring the financial statements are prepared in accordance with accounting standards and for maintaining effective internal controls[197].