WG Tech(SH:603773)2023-04-26 16:00Financial Performance - The company reported a loss for the fiscal year 2022 and will not distribute profits or increase capital reserves due to this performance [5]. - The company's operating revenue for 2022 was CNY 1,398,681,082.76, representing a 33.21% increase compared to CNY 1,049,995,306.70 in 2021 [25]. - The net profit attributable to shareholders for 2022 was a loss of CNY 328,247,730.23, a significant decline from a loss of CNY 26,862,904.82 in 2021, marking a decrease of 1,121.94% [25]. - The basic earnings per share for 2022 was -CNY 2.0195, compared to -CNY 0.1692 in 2021, reflecting a decrease of 1,093.34% [27]. - The total assets at the end of 2022 were CNY 2,605,370,387.87, a decrease of 23.60% from CNY 3,220,329,187.39 at the end of 2021 [26]. - The net cash flow from operating activities for 2022 was -CNY 172,735,584.39, a decline of 289.79% compared to CNY 91,015,280.30 in 2021 [25]. - The company reported a net asset attributable to shareholders of CNY 1,375,784,656.76 at the end of 2022, down 10.18% from CNY 1,531,730,778.39 at the end of 2021 [26]. Audit and Compliance - The company received a standard unqualified audit report from Zhongqin Wanxin Accounting Firm [4]. - The board of directors and management confirm the accuracy and completeness of the annual report, with no false records or misleading statements [9]. - The company has not violated decision-making procedures for external guarantees [8]. - There are no non-operational fund occupations by controlling shareholders or related parties [7]. Strategic Focus and Future Plans - The company emphasizes that future plans and strategies mentioned in the report do not constitute a commitment to investors, highlighting investment risks [6]. - The company is focused on long-term development goals while considering short-term operational realities [5]. - The company has a commitment to maintaining shareholder long-term interests despite the current financial losses [5]. - The company plans to focus on expanding its market presence and enhancing product development in the upcoming fiscal year [19]. - The company aims to explore potential mergers and acquisitions to strengthen its market position and drive growth [19]. Research and Development - The company increased its R&D investment to ¥85,911,200, a 67.72% increase compared to the previous year, accounting for 6.14% of operating revenue [38]. - The company has applied for 546 national patents, including 209 invention patents and 337 utility model patents, with a total of 428 patents granted [39]. - The company is currently engaged in research and development of new technologies to improve operational efficiency and product offerings [19]. - The company has developed ultra-thin glass substrates with a minimum thickness of 0.025mm, which are considered important for flexible display applications [77]. Market Trends and Industry Insights - The global smartphone shipment in 2022 was 1,202 million units, a decline of 11.4% year-on-year, with China's shipments at 286 million units, down 13.3% [40]. - The Mini LED backlight market was valued at $820 million in 2021 and is anticipated to grow to $7 billion by 2025 [48]. - The global Micro LED market is expected to reach $3.5 billion by 2025 and $10 billion by 2027 [50]. - The market size for automotive displays is projected to grow from approximately $8.4 billion in 2021 to $12.8 billion by 2025, reflecting a CAGR of 11.1% [45]. Corporate Governance - The company emphasizes compliance with legal regulations and aims to enhance corporate governance and transparency in operations [121]. - The company has established a governance structure with clear responsibilities among the shareholders' meeting, board of directors, supervisory board, and management team, ensuring compliance with relevant laws and regulations [127]. - The company has set up four specialized committees within the board: strategy, audit, nomination, and remuneration and performance assessment, with defined powers and decision-making procedures [127]. - The company reported no significant differences in governance practices compared to regulatory requirements [127]. Environmental Responsibility - The company achieved a total wastewater discharge of 149.4 tons, which is compliant with the standards [177]. - The company reported a chemical oxygen demand (COD) level of 29.62 mg/L, well below the limit of 500 mg/L [177]. - The ammonia nitrogen concentration was recorded at 0.99 mg/L, significantly lower than the maximum allowable level of 35 mg/L [177]. - The company has established an emergency response plan for environmental incidents, with drills conducted on March 29, September 27, and December 30, 2022 [182]. Employee and Management Practices - The company has established a competitive compensation management system, including basic salary, position salary, and performance salary, to promote employee development [159]. - The company has strengthened its training programs, focusing on safety production, business skills, organizational management, and corporate culture, enhancing the quality and skills of management and frontline employees [160]. - The total remuneration for all directors, supervisors, and senior management for the year amounted to RMB 4.4456 million (pre-tax) [146]. - The company has a diverse management team with extensive experience in finance and technology, enhancing its operational capabilities [143].