Kiwi Instruments(SH:688045)2023-03-24 16:00Financial Performance - The company plans not to distribute profits for the fiscal year 2022, with no cash dividends or stock bonuses, and will carry forward the undistributed profits to the next year[6]. - The company has not achieved profitability since its listing, indicating ongoing financial challenges[5]. - The company's operating revenue for 2022 was CNY 525.82 million, a decrease of 40.72% compared to CNY 886.95 million in 2021[21]. - The net profit attributable to shareholders for 2022 was CNY 37.96 million, down 84.16% from CNY 239.70 million in 2021[21]. - The net cash flow from operating activities was negative CNY 51.36 million, a decline of 127.85% compared to a positive CNY 184.39 million in 2021[22]. - Basic earnings per share for 2022 were CNY 0.61, a decrease of 86.83% from CNY 4.63 in 2021[23]. - The weighted average return on equity decreased to 3.87% in 2022, down 69.01 percentage points from 72.88% in 2021[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 19.25 million, a decline of 91.79% from CNY 234.43 million in 2021[21]. - The gross profit margin decreased by 15.25 percentage points to 27.96% compared to 2021[88]. - The revenue from driver ICs fell by 42.59% year-on-year, while AC-DC revenue decreased by 38.63%[91]. Audit and Governance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants[6]. - The board of directors and supervisory board members have confirmed the authenticity, accuracy, and completeness of the annual report[4]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has not disclosed any special arrangements for corporate governance[9]. - The company has a stable governance structure, with no major discrepancies from regulatory requirements[130]. - The company has engaged in effective communication with investors through various channels, enhancing transparency and trust[130]. - The company has not faced any significant legal or regulatory issues that could impact its operations or governance[130]. - The company has maintained independence from its controlling shareholders, with no significant competition or adverse effects reported[130]. - The company has not faced any penalties from securities regulatory agencies in the past three years[150]. Research and Development - The company's R&D expenditure as a percentage of operating revenue rose to 21.92%, an increase of 12.14 percentage points from 9.78% in 2021[23]. - The company expanded its workforce by 47.91%, adding 81 R&D personnel, bringing the total to 229[36]. - The company achieved a total R&D investment of ¥115,243,270.17 in 2022, representing a 32.85% increase from ¥86,745,874.27 in the previous year[65]. - R&D investment accounted for 21.92% of total revenue, an increase of 12.14 percentage points compared to 9.78% in the previous year[65]. - The company has obtained a total of 132 domestic and international patents, including 36 invention patents, as of December 31, 2022[61]. - The company has developed 19 core technologies that enhance product features such as high integration, low harmonic distortion, and low power consumption[57]. - The company is in the continuous research phase for three major projects, including AC-DC power management control chips with a total investment of ¥30 million[68]. - The company is actively researching high-voltage smart LDO and ultra-low static power LDO chips to enhance its product offerings[42]. - The company has initiated the "ISO26262" certification for functional safety management systems in road vehicles during the reporting period, enhancing its quality management system[200]. Market and Industry Trends - The global integrated circuit market size reached $354.6 billion in 2020 and $383.8 billion in 2021, with a year-on-year growth of 8.2%[46]. - The projected global integrated circuit market size for 2022 is $408 billion, reflecting a year-on-year growth of 6.3%[46]. - China's integrated circuit market size grew from ¥541.1 billion in 2017 to ¥1,045.8 billion in 2021, with a compound annual growth rate (CAGR) of 19%[47]. - The Chinese power management chip market size surpassed $13.2 billion in 2021, accounting for approximately 36% of the global market share[48]. - The expected growth for China's power management chip market is projected to reach $23.5 billion by 2025, with a CAGR of 15% from 2020 to 2025[48]. - The power management chip industry is experiencing a trend towards high reliability, energy efficiency, high integration, and high frequency[50]. - The power management chip market is experiencing trends towards high efficiency, low power consumption, and digitalization, driven by the rise of IoT and smart devices[55]. Strategic Initiatives - The company plans to enhance its product offerings by increasing R&D investment in new products such as DC-DC, battery management chips, and motor drive control chips[126]. - The company aims to establish a large reliability testing center in Chengdu to support ISO26262 automotive electronic safety standard certification[126]. - The company intends to strengthen its R&D team by attracting high-end technical talent in the integrated circuit field to enhance its technological capabilities[127]. - The company plans to pursue industrial investments and acquisitions to promote external growth opportunities aligned with its strategic development[128]. - The company is committed to continuous R&D investment to support new product development and market expansion despite the challenges faced in the current economic environment[77]. Employee and Compensation - The total number of employees in the parent company and major subsidiaries is 318, with 229 technical staff and 34 sales personnel[160]. - The company has implemented a competitive and fair compensation policy to enhance employee satisfaction and support high-quality development[161]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to RMB 5.0249 million[148]. - The total remuneration for core technical personnel at the end of the reporting period was RMB 4.1363 million[148]. - The average salary of R&D personnel decreased to 34.22万元 from 37.56万元 in the previous year, while total R&D personnel compensation rose to 7,835.79万元 from 5,558.32万元[72]. Environmental, Social, and Governance (ESG) - The company emphasizes ESG principles and integrates them into its business operations, focusing on environmental protection and social responsibility[181]. - The company has achieved ISO14001 environmental management system certification, establishing a comprehensive environmental management framework[189]. - The company operates under a Fabless model, with no industrial waste generated during the R&D process, primarily consuming office electricity, water, and paper[185]. - The company has implemented energy-saving measures, including advocating for paperless offices and promoting low-carbon commuting among employees[190]. - The company promotes sustainable practices in its daily operations, utilizing energy-efficient lighting and recyclable materials in office renovations[192]. Shareholder Relations - All proposals at the 2022 Annual General Meeting were approved without any rejections, indicating strong shareholder support[133]. - The company has a clear cash dividend policy that aligns with its articles of association and shareholder resolutions[164]. - The company confirmed a share-based payment expense of 40.60 million RMB for the 2022 Restricted Stock Incentive Plan[175]. - The company has not proposed a cash profit distribution plan despite being profitable, with undistributed profits planned for future use[165].