Dosilicon(SH:688110)2023-04-14 16:00Investment and Production - The company reported a total investment of 19,940 million RMB for the 19nm NAND Flash series, with 1,047.82 million RMB invested in the current period and a cumulative investment of 4,209.27 million RMB[12]. - The 24nm NAND Flash series has a total investment of 7,500 million RMB, with 1,197.46 million RMB in the current period and a cumulative investment of 5,589.04 million RMB, with some products already in mass production[12]. - The 28nm NAND Flash series also has a total investment of 7,500 million RMB, with 2,499.92 million RMB invested in the current period and a cumulative investment of 6,272.70 million RMB, with some products already in mass production[12]. - The 48nm NOR Flash series has a total investment of 6,500 million RMB, with 1,628.25 million RMB in the current period and a cumulative investment of 5,813.76 million RMB, with some products already in mass production[12]. - The company’s SLC NAND Flash products are produced using 38nm and 24nm processes, with some new products reaching mass production standards[61]. - The NOR Flash products have been developed on a 48nm process, with samples of 512Mb and 1Gb available for customers[61]. - The company has expanded its product line to include DRAM products, with LPDDR4x and PSRAM samples completed and verified by customers[61]. - The company’s automotive-grade products have passed AEC-Q100 testing, suitable for stringent automotive applications[61]. - The NAND Flash products are produced using a 2xnm process, with plans to advance to 1xnm, while NOR Flash is produced at 48nm and DRAM at 25nm[79]. Research and Development - The company has filed 63 new invention patents in the current year, bringing the total to 150, with 69 patents granted[26]. - The company plans to enhance SLC NAND Flash technology by reducing costs and power consumption, and improving data reading speed and reliability[23]. - The company is focusing on developing new memory technologies such as FeRAM, RRAM, and MRAM for applications in smartphones, tablets, and AI[23]. - The R&D team consists of 130 personnel, accounting for 55.56% of the total workforce, highlighting the company's focus on talent acquisition and development in the semiconductor field[47]. - The company has seen an increase in R&D personnel and equipment compared to the previous period, reflecting its commitment to innovation[56]. - Research and development expenses increased by 47.46% to approximately ¥110 million from ¥75 million in the previous year[125]. - The company has established a "R&D-Transformation-Innovation" technology development cycle to enhance its R&D capabilities[116]. - The company plans to continue optimizing its R&D personnel structure to enhance innovation capabilities and improve R&D efficiency[87]. - The company is committed to continuous R&D innovation and process upgrades to maintain the technological advancement of its existing products[197]. Financial Performance - In 2022, the company achieved operating revenue of 1.146 billion CNY, a year-on-year increase of 1.03%[61]. - The net profit attributable to shareholders was 185 million CNY, a decrease of 29.17% compared to the previous year[61]. - The company’s total assets reached 4.324 billion CNY, reflecting a year-on-year growth of 3.47%[61]. - R&D expenses amounted to 110 million CNY, accounting for 9.63% of the operating revenue, an increase of 3.03 percentage points year-on-year[61]. - The company reported a significant decline in cash flow from operating activities, reporting a net cash flow of -261,017,608.56 CNY, a decrease of 322.10% compared to 117,522,087.87 CNY in 2021[88]. - Basic earnings per share were 0.42 CNY, down 45.45% from 0.77 CNY in the previous year[91]. - The weighted average return on equity decreased to 4.74%, down 24.75 percentage points from 29.49% in 2021[91]. - The company reported a net cash outflow from operating activities of approximately ¥261 million, a significant decrease from a net inflow of ¥118 million in the previous year[125]. - The company reported a revenue of 31,011.28 million KRW and a net profit of 4,572.66 million KRW from its subsidiary Fidelix Co., Ltd.[194]. Market and Customer Relations - The direct sales model revenue grew by 25.84% in 2022, while the distribution model revenue decreased by 59.21%, indicating a shift towards deeper customer collaboration[41]. - The company has established a stable supply chain by collaborating with major partners like SMIC and Powerchip, enhancing production efficiency and product quality[46]. - The company has established a stable cooperation with major packaging and testing factories, enhancing production efficiency and product yield through deep technical collaboration[64]. - The company has participated in 69 roadshows in 2022, establishing good relationships with major investors and brokers[67]. - The top five customers contributed a total sales revenue of 72,787.36 million RMB, accounting for 63.60% of the annual total sales, with no sales to related parties[134]. - The largest customer, Customer 1, accounted for 26.29% of total sales, with sales of 30,089.53 million RMB[135]. - The company has introduced LG Electronics, Inc. as a new major customer, indicating a diversification in its customer base[152]. Risks and Challenges - The company faces risks related to core technology leakage, which could adversely affect its R&D and operational capabilities[48]. - The company operates under a Fabless model, relying heavily on a few major foundries and testing factories, which poses a risk if there are significant changes in supplier relationships or costs[74]. - The company faces risks from macroeconomic fluctuations and increased competition, which could impact sales revenue and profit margins[77]. - The company’s inventory at the end of the reporting period was valued at 668.25 million yuan, accounting for 15.46% of total assets, with a provision for inventory impairment of 167.57 million yuan due to market price declines[77]. Strategic Goals - The company aims to develop more advanced SLC NAND Flash chips with international leading technology levels for communication devices, security monitoring, wearable devices, and mobile terminals[12]. - The company aims to enhance its international operations and adapt to changing market conditions to sustain growth and market share[79]. - The company aims to become a leading domestic storage chip design enterprise, focusing on providing a comprehensive range of storage chip products including NAND Flash, NOR Flash, DRAM, and MCP to meet growing storage demands[197]. - The company plans to enhance its product process technology and maintain a stable supply chain, collaborating with foundries to share R&D capabilities and integrate technology resources[198]. - The company will continue to optimize its product structure and expand into diversified markets, focusing on high-value-added products, particularly in automotive-grade storage chips[198].