ASR(SH:688220)2022-04-25 16:00Financial Performance - The company reported R&D expenses of 1,028.43 million yuan, which is a significant factor contributing to its ongoing net losses[3]. - The company has not distributed profits for the fiscal year 2021 due to negative retained earnings, aiming to ensure normal operations and sustainable development[5]. - The company has not yet achieved profitability since its listing, indicating a long R&D cycle and high capital investment requirements[3]. - The company is experiencing a trend of narrowing net losses alongside rapid revenue growth[3]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 20% year-over-year growth[12]. - The net profit attributable to shareholders for 2021 was a loss of approximately ¥589.39 million, a reduction in loss of 74.67% compared to the previous year[25]. - The company's operating revenue for 2021 was approximately ¥2.14 billion, representing a year-on-year increase of 97.69%[24]. - The company reported a net cash flow from operating activities of approximately -¥638.87 million in 2021[24]. - The company achieved a total revenue of RMB 2,136.89 million, representing a year-on-year growth of 97.69%[32]. - The company’s revenue from core business activities was approximately ¥2.14 billion, reflecting strong market growth and competitive product advantages[25]. Research and Development - The company invested RMB 1,006.91 million in R&D, an increase of 34.82% year-on-year[33]. - Research and development expenses increased to $300 million, reflecting a 10% increase aimed at innovation and new technology[12]. - The company has established a comprehensive R&D system for baseband technology from 2G to 5G, enhancing its competitive edge in wireless communication[33]. - The company has developed a comprehensive wireless communication technology portfolio, covering 2G to 5G baseband technologies, with 95 authorized patents[79]. - The company has applied for 56 invention patents and obtained 24 authorized invention patents in 2021, bringing the total to 95 authorized invention patents by the end of the year[66][67]. - The company is currently in the R&D phase for several new products, including a high-integration 5G industrial IoT chip and a new navigation positioning chip[74]. - The company has successfully mass-produced around 30 new chips and has over 30 chips under development[80]. - The company’s core competitiveness is supported by a highly skilled R&D team, with over 70% holding master's degrees or higher[80]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[12]. - A strategic acquisition of a smaller tech firm was completed, which is anticipated to contribute an additional $200 million in revenue annually[12]. - The company plans to invest $500 million in expanding its manufacturing capabilities over the next two years[12]. - The company is actively expanding into the "5G + smart terminal" market, with ongoing developments in 5G communication and smart IPC chip projects[137]. - The company aims to enhance its technology level and maintain competitive advantages in the rapidly growing 5G and AIoT markets[133]. - The company has diversified its product offerings, including multi-mode cellular baseband chips and IoT chips based on WiFi, LoRa, and Bluetooth technologies[134]. - The company plans to continue strategic acquisitions to enhance its technical capabilities and enter new markets[134]. Operational Risks and Management - The company has outlined various operational risks and corresponding mitigation strategies in its report[4]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[7]. - The company faces risks related to new product development failures, particularly in the highly competitive baseband chip market[84]. - The company has established a strong local support capability to quickly respond to market trends and customer needs[82]. - The company faces management risks due to rapid expansion, requiring enhanced internal controls and management systems[88]. - The company has implemented a matrix management system to enhance project efficiency by integrating personnel from various departments based on project needs[44]. Corporate Governance - The company has established a comprehensive corporate governance system in compliance with relevant laws and regulations, significantly enhancing its operational standards[139]. - The board of directors has set up four specialized committees to improve decision-making quality and ensure compliance with legal requirements[139]. - The company has maintained independence from its controlling shareholders in terms of business operations and financial activities[142]. - The company has not engaged in any related party transactions that could harm the interests of the company and its shareholders[141]. - The company has ensured timely and accurate information disclosure to protect investors' rights[140]. - The company has a remuneration and assessment committee that formulates the remuneration policies for directors and senior management[158]. Sustainability and Social Responsibility - The company has initiated a new sustainability strategy, aiming for a 50% reduction in carbon emissions by 2025[12]. - The company emphasizes the importance of ESG as a cornerstone for sustainable development, focusing on balancing stakeholder needs and corporate social responsibility[177]. - The company actively engages in employee training and welfare activities to enhance employee satisfaction and retention[185]. Product Development and Innovation - The company is investing in research and development for next-generation communication technologies, including 5G applications[17]. - The company has developed a new type of low-power technology chip solution for low-power wide-area IoT applications, with a total investment of ¥55,500,000, and has completed the project[72]. - The company has developed a high-precision RTK algorithm with centimeter-level positioning accuracy, utilizing industry-leading carrier phase differential technology[65]. - The company has developed a commercial 5G enhanced mobile broadband terminal chip platform with a total investment of ¥500,000,000, of which ¥198,669,997.74 has been invested in the current period[71]. Financial Management - The company’s financing activities generated a net cash inflow of 412.12 million RMB, a decrease of 73.80% compared to the previous year[100]. - The company reported a negative distributable profit of -2,159.74 million yuan at the end of 2021, leading to a decision not to distribute profits for the year[172]. - The company has a total of 31 employees with a doctoral degree and 650 with a master's degree, indicating a strong emphasis on educational qualifications[169]. - The company has a total of 914 technical personnel, reflecting a focus on research and development capabilities[169].