Smartsens Technology (Shanghai) (SH:688213)2023-04-28 16:00Financial Performance - The company reported a revenue of 248,298.73 million RMB in 2022, a decrease of 7.67% year-on-year[3]. - The net profit attributable to shareholders was -82.748 million RMB, a decline of 120.77% compared to the previous year[3]. - The company's operating revenue for 2022 was ¥2,482,987,309.22, a decrease of 7.67% compared to ¥2,689,327,871.83 in 2021[24]. - The net profit attributable to shareholders for 2022 was -¥82,748,036.47, representing a decline of 120.77% from ¥398,333,247.81 in the previous year[24]. - The net cash flow from operating activities for 2022 was -¥1,523,989,386.87, compared to -¥1,261,896,357.18 in 2021[25]. - The comprehensive gross profit margin for the main business was 22.14%, down 6.98 percentage points from 2021[83]. - The company reported a quarterly operating revenue of ¥828,509,758.90 in Q4 2022, with a net loss of -¥41,089,072.92 for that quarter[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥115,976,526.67, a decline of 129.57% from ¥392,160,445.96 in 2021[25]. Market Demand and Challenges - The significant loss was attributed to a sharp decline in market demand for security equipment and smartphones, impacting the company's core business[3]. - The company faced substantial financial expenses due to exchange losses and increased interest expenses, with the RMB depreciating approximately 9.17% against the USD during the year[3]. - The company experienced significant foreign exchange losses due to the depreciation of the RMB against the USD in 2022[25]. - The company faced a significant decline in demand for security equipment and smartphones, leading to a decrease in annual revenue and gross margin compared to the previous year[66]. Research and Development - R&D expenses increased significantly as the company continued to prioritize technology and product development despite market challenges[3]. - The company emphasizes the importance of ongoing R&D efforts, achieving multiple research outcomes despite market pressures[3]. - Research and development expenses accounted for 12.37% of operating revenue in 2022, an increase of 4.74 percentage points from 7.63% in 2021[26]. - The company has significantly increased its R&D investment by 49.69% in 2022, totaling approximately ¥307.25 million, which accounts for 12.37% of its revenue[54][55]. - The company is actively pursuing research and development in new technologies, including 360° panoramic view systems and driver monitoring systems[16]. - The company has filed for 118 new invention patents in the reporting period, with a total of 443 applications and 178 granted patents[52]. Product Development and Market Position - The company is focused on developing Advanced Driving Assistance Systems (ADAS) and has made advancements in night vision technology, which allows for full-color images in low-light conditions[16]. - The company aims to expand its market presence and enhance its product offerings through strategic partnerships and technological innovations, particularly in the semiconductor sector[16]. - The company successfully built a comprehensive automotive electronics product system, with multiple new automotive-grade CIS products launched for various applications, gaining significant market recognition and trust from customers[39]. - The company has established a strong foundation in the automotive industry with adherence to global quality management standards such as IATF 16949 and ISO26262:2018[16]. - The company aims to optimize its product matrix and enhance user experience to increase market share in smart security, consumer electronics, and automotive electronics[36]. - The company has become a leading supplier of CMOS image sensors in smart security, consumer electronics, and automotive electronics, ranking 6th in overall CIS shipment volume in 2021 and 1st in global security CIS shipments in 2020 and 2021[112]. Strategic Partnerships and Collaborations - The company has established strategic partnerships with foundries like TSMC and Samsung, ensuring a stable supply chain and production capacity[64]. - The company is focused on attracting and retaining core technical talent to maintain its innovation capabilities in a competitive industry[70]. - The company has established strong partnerships with major automotive manufacturers, which are expected to further expand in the future[49]. Governance and Shareholder Relations - The company has established a solid governance structure, ensuring efficient and stable operations in compliance with relevant laws and regulations[125]. - The company has established various internal control systems to protect the rights of minority shareholders, including measures for independent directors and information disclosure management[133]. - The company maintains a strict adherence to information disclosure requirements, ensuring transparency and compliance with regulations[133]. - The company has three independent directors who are empowered to supervise and propose significant decisions, enhancing the protection of minority shareholders' interests[133]. Future Outlook and Growth Projections - The company anticipates a recovery in the smart security industry in 2023 due to improving economic policies and decreasing inventory levels among downstream customers[37]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $1.875 billion[148]. - The company plans to invest approximately ¥850 million in the "Global Headquarters Park Project" to enhance R&D capabilities and attract global talent[106]. - The semiconductor market is expected to recover in 2024, with a growth rate of 5% to 10% anticipated[44]. Employee and Executive Compensation - The total compensation for key executives amounted to 98,313,100, with a significant portion attributed to core technical personnel totaling 23,968,900[139]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to CNY 35.20 million[152]. - The company has established a comprehensive performance evaluation system for senior management, linking performance to compensation[175]. Environmental and Social Responsibility - The company invested 5.95 million yuan in environmental protection during the reporting period[179]. - The company made donations totaling 487,000 yuan to support educational initiatives at Tsinghua University and Zhejiang University[188]. - The company has implemented measures to promote energy conservation and emission reduction within its operations[183].