SICC CO.(SH:688234)2023-04-26 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥417 million, a decrease of 15.56% compared to ¥494 million in 2021[18]. - The net profit attributable to shareholders for 2022 was approximately -¥175 million, representing a decline of 294.80% from a profit of ¥90 million in 2021[18]. - The net cash flow from operating activities for 2022 was -¥58.8 million, a decrease of 153.12% compared to ¥110.7 million in 2021[18]. - The total assets at the end of 2022 were approximately ¥5.87 billion, an increase of 124.02% from ¥2.62 billion at the end of 2021[18]. - The net assets attributable to shareholders at the end of 2022 were approximately ¥5.25 billion, an increase of 136.27% from ¥2.22 billion at the end of 2021[18]. - The revenue after deducting non-main business income for 2022 was approximately ¥417 million, down 15.22% from ¥492 million in 2021[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2022 was approximately -¥258 million, a decline of 2,087.09% from a profit of ¥13 million in 2021[18]. - The basic earnings per share decreased by 278.26% to -0.41 yuan per share[20]. - The weighted average return on equity decreased by 7.59 percentage points to -3.46%[20]. - The gross profit margin was negative due to product capacity adjustments, impacting overall profitability[70]. Research and Development - The company is focusing on the development of SiC and GaN semiconductor materials, which are critical for future technology advancements[12]. - The company aims to improve its product offerings through ongoing research and development initiatives in advanced semiconductor technologies[12]. - The company's R&D expenditure accounted for 30.59% of operating revenue, an increase of 15.66 percentage points from the previous year[20]. - R&D expenses for 2022 amounted to 127.56 million RMB, reflecting a commitment to advancing technology and innovation[31]. - The company achieved total R&D investment of ¥127,559,473.26 in the current year, representing a 72.99% increase compared to ¥73,736,131.22 in the previous year[54]. - The company applied for a total of 14 new patents during the reporting period, including 12 invention patents and 2 utility model patents[52]. - The company has developed high-purity silicon carbide powder with an active impurity concentration controlled below 0.05 ppm, ensuring high crystal purity and electrical performance[44]. - The company has made significant advancements in defect control technology during the silicon carbide single crystal growth process, addressing issues such as micropipes and polytype inclusions[46]. - The company has established a comprehensive talent training system, focusing on employee development and satisfaction[151]. Market Position and Strategy - The company maintained a market share in the semi-insulating silicon carbide substrate sector, ranking among the top three globally for four consecutive years[30]. - The company is actively exploring overseas markets by establishing a research and sales center in Japan[35]. - The company plans to expand its market presence and explore potential mergers and acquisitions to enhance growth opportunities[12]. - The company is committed to building a strong talent pool to support its R&D and production needs, implementing professional training programs and talent retention strategies[100]. - The company aims to enhance its production capacity and market share to narrow the gap with leading international firms, leveraging over a decade of R&D investment and technological innovation[99]. Governance and Compliance - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[5]. - The company has confirmed that there are no violations of decision-making procedures for external guarantees[5]. - The company has maintained a high level of corporate governance, holding six board meetings and three shareholder meetings during the reporting period, with all resolutions passed[102]. - The company has established a comprehensive internal control system for its subsidiaries, enhancing management and operational efficiency[136]. Risks and Challenges - The company has outlined various operational risks and corresponding mitigation measures in the report[3]. - The company faces risks related to potential declines in performance due to macroeconomic factors affecting new capacity progress and increased salary expenses from hiring for new production lines[66]. - The company is at risk of knowledge leakage and talent loss, which could negatively impact its core competitiveness if internal controls are not effectively executed[67]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. Sustainability and Social Responsibility - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 20% over the next three years[109]. - The company actively participates in social responsibility initiatives, including a donation of 30,000 RMB for environmental projects[138]. - The company has established a complete pollution treatment system, ensuring all pollutant emissions meet the required standards[143]. - The company has implemented energy consumption management measures, optimizing production processes to reduce overall energy consumption[141]. Shareholder and Financial Management - The company did not distribute cash dividends or bonus shares for the 2022 profit distribution plan, focusing on sustainable development and capital needs[4]. - The company has not proposed any capital reserve conversion into share capital for the 2022 fiscal year[4]. - The cumulative undistributed profits as of December 31, 2022, were -251.20 million RMB, indicating accumulated losses[70]. - The company has not proposed any cash profit distribution plans despite having positive distributable profits, indicating a focus on reinvestment[132]. - The company has committed to compensating investors for losses incurred due to unfulfilled commitments, with specific measures outlined for accountability[178].