CHIPPACKING(SH:688216)2023-05-16 16:00Financial Performance - The company reported a net loss for the year 2022, leading to a decision not to distribute cash dividends or issue bonus shares [4]. - The company has not achieved profitability since its listing, indicating ongoing financial challenges [6]. - The company's operating revenue for 2022 was approximately ¥540.38 million, a decrease of 33.23% compared to ¥809.36 million in 2021 [21]. - The net profit attributable to shareholders for 2022 was approximately -¥58.56 million, representing a decline of 143.51% from a profit of ¥134.59 million in 2021 [21]. - The net cash flow from operating activities was approximately -¥74.03 million in 2022, a decrease of 133.44% compared to ¥221.36 million in 2021 [21]. - The total revenue for the reporting period decreased by 33.23% compared to the previous year, primarily due to macroeconomic factors and cyclical fluctuations in the industry [24]. - The net profit attributable to shareholders decreased by 143.51% year-on-year, with a net profit excluding non-recurring gains and losses dropping by 158.79% [24]. - Basic and diluted earnings per share fell by 137.93%, while the basic earnings per share excluding non-recurring gains and losses decreased by 151.47% [25]. - The weighted average return on equity decreased by 23.45 percentage points, and the return on equity excluding non-recurring gains and losses decreased by 24.05 percentage points [26]. - The gross margin for 2022 was 3.42%, a decline of 28.68 percentage points year-on-year, attributed to increased competition and lower product prices [85]. Governance and Compliance - The audit report for the fiscal year was issued by Tianzhi International Accounting Firm, confirming the accuracy and completeness of the financial statements [6]. - There are no significant risks related to the company's governance or non-operational fund occupation by controlling shareholders [6]. - The board of directors and management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its content [6]. - The company has not indicated any special arrangements in corporate governance or significant events affecting its operations [5]. - The company has implemented a training plan focusing on new employee onboarding and skills enhancement for various levels of staff in 2023 [162]. - The internal control system has been continuously optimized, maintaining effectiveness in both financial and non-financial reporting without significant deficiencies [169]. - The company has conducted a comprehensive self-inspection regarding fundraising management, governance, and risk management, finding no major issues [172]. - The company has established a robust governance framework to protect the rights of shareholders and creditors, ensuring transparency and compliance with regulations [190]. Research and Development - The company is focused on the integrated circuit industry, specifically in advanced packaging technologies [10]. - The company is focusing on the development of advanced packaging technologies, including Chiplet and MEMS, to enhance product offerings [12]. - Significant investments were made in R&D projects, including technologies for 5G macro base stations and high-density packaging techniques [26]. - The company has developed advanced packaging technologies, including 5G MIMO base station GaN microwave RF power amplifier packaging technology and high-density matrix integrated circuit packaging technology [75]. - The company’s R&D investment totaled approximately ¥50.99 million in the reporting period, representing a decrease of 8.35% compared to the previous year, while the R&D investment as a percentage of revenue increased by 2.57 percentage points to 9.44% [64]. - The company has developed a manufacturing execution system (MES) integrated with ERP, achieving full-process digital management [38]. - The company has established an ISO 45001 occupational health and safety management system and received certification [191]. Market and Industry Trends - The company plans to expand its market presence in the semiconductor industry, particularly in high-performance applications such as 5G communications and power electronics [12]. - The demand for integrated circuits is expected to grow significantly due to advancements in sectors like electric vehicles, artificial intelligence, and 5G technology [48]. - The semiconductor industry is experiencing a cyclical downturn, with over 70% of demand coming from consumer electronics, which has significantly impacted the company's performance [80]. - The semiconductor packaging and testing industry is expected to grow due to rising demand from emerging applications such as IoT, automotive electronics, and AI [117]. - The company is positioned to benefit from the increasing domestic semiconductor market and the shift towards local production due to high import dependency [118]. Operational Efficiency and Cost Management - The company aims to improve operational efficiency and reduce costs in response to the declining revenue trend observed in 2022 [21]. - The company faced increased costs due to rising electricity prices and higher depreciation from rapid project implementations [24]. - The company has implemented lean production and Six Sigma management to improve product quality and reduce production costs [36]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5% in the upcoming year [138]. Investments and Future Plans - The company plans to increase packaging capacity by 1.61 billion units annually through the "High-Density Matrix Miniaturized Integrated Circuit Packaging and Testing Expansion Project" [39]. - The company is developing a chip packaging technology for overcurrent protection circuits, with a total investment of 483 million CNY [67]. - The company is working on a laser grooving technology for GaN wafers with a total investment of 500 million CNY [67]. - The company plans to enter the European market in 2023, targeting a revenue contribution of $100 million within the first year [140]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year [138]. Community and Environmental Responsibility - The company donated a total of 500,000 CNY for various charitable activities, including 60,000 CNY for educational support and 200,000 CNY for rural revitalization projects [187][189][188]. - The company has implemented measures to reduce energy consumption, including optimizing air conditioning and cooling systems in non-production areas [183]. - The company has established a comprehensive safety production management system and employee training mechanisms to ensure workplace safety and employee rights [174]. - The company has maintained compliance with environmental standards, with all waste and emissions testing results meeting regulatory requirements [186]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 1,655, with 69 in the parent company and 1,586 in subsidiaries [160]. - The company has a total of 11 employees holding shares, representing 0.67% of the total employee count and 0.85% of the total share capital [193]. - The company has established a performance evaluation mechanism for senior management based on annual operational goals [168]. - The company is committed to maintaining its internal control self-assessment reports, ensuring compliance and risk management [131].