S-KING(SH:688328)2023-04-21 16:00Financial Performance - The company reported no profit distribution for the fiscal year 2022, with no cash dividends or stock bonuses planned[5]. - The company has not achieved profitability since its listing, indicating ongoing investment in growth and development[4]. - The company's operating revenue for 2022 was approximately ¥588.81 million, a decrease of 35.36% compared to ¥910.92 million in 2021[21]. - The net profit attributable to shareholders was a loss of approximately ¥35.84 million, down 164.30% from a profit of ¥55.74 million in the previous year[24]. - The cash flow from operating activities showed a net increase of 124.18%, reaching approximately ¥20.25 million compared to a negative cash flow of ¥83.74 million in 2021[25]. - The basic earnings per share for 2022 was -¥0.44, a decline of 160.27% from ¥0.73 in 2021[22]. - The weighted average return on equity decreased to -4.79%, down 12.83 percentage points from 8.04% in the previous year[22]. - The net profit excluding non-recurring items was CNY -49.83 million, a decline of 198.85% compared to the previous year[35]. Governance and Compliance - The audit report issued by Da Hua Certified Public Accountants confirmed the financial statements' accuracy and completeness[5]. - The company has a comprehensive governance structure in place, with all board members present at the meeting[5]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The governance structure has been optimized to ensure compliance with legal requirements, safeguarding the rights of shareholders and maintaining operational independence[134]. - The company has established a transparent information disclosure system to enhance shareholder rights and prevent insider trading[136]. Research and Development - The company's R&D expenditure as a percentage of operating revenue rose to 14.13%, an increase of 5.96 percentage points from 8.17% in 2021[22]. - The company invested CNY 83.18 million in R&D in 2022, representing 14.13% of total revenue, with semiconductor equipment R&D spending increasing by 35.75% to CNY 21.10 million[38]. - The company has developed fully automatic bonding lines for flexible cover glass, primarily used in 3-10 inch smartphones and tablets, utilizing OCA for complete adhesion[42]. - The company has established a postdoctoral innovation practice base to enhance talent development in collaboration with the Shenzhen Institute of Advanced Technology[82]. - The company has a total of 238 R&D personnel, representing 23.75% of the total workforce[77]. - The company has increased R&D investment to develop new products such as probe stations and high-precision solid crystal machines, leading to higher R&D expenses[83]. Market and Industry Trends - The semiconductor equipment industry is experiencing significant growth, with China's semiconductor equipment market becoming the largest globally, driven by increasing demand for new chips and advanced processes[51]. - The global advanced packaging market is projected to reach $65.1 billion by 2027, with a compound annual growth rate (CAGR) of 9.63% from 2021 to 2027, highlighting the growing demand for advanced packaging testing equipment[56]. - The flat panel display industry is expected to expand significantly due to the rise of new applications in smart homes and cities, with increased investment in production lines and equipment upgrades[52]. - The investment in China's optoelectronic display industry was approximately 363.6 billion RMB in 2022, indicating robust growth and innovation in MiniLED and MicroLED technologies[57]. - The company is focusing on technological innovation in MiniLED and MicroLED display technologies to maintain its industry competitiveness[57]. Risk Factors - The company has outlined various risk factors in its management discussion, emphasizing the importance of investor awareness[4]. - The company faced challenges due to a slowdown in the semiconductor industry and reduced demand in the consumer electronics market, impacting revenue from semiconductor equipment[23]. - The company's main business costs are heavily influenced by raw material prices, which account for over 70% of total costs[86]. - The company is at risk of losing core technical personnel, which could adversely affect its R&D capabilities and business development[85]. Strategic Initiatives - The company aims to capture market opportunities in semiconductor equipment and expand its product offerings in Mini/Micro-LED and OLED technologies[38]. - The company plans to expand its product line and invest in key components to enhance its business scope, which has led to increased management expenses by 26.44% to CNY 61.45 million[94]. - The company is actively pursuing patent protection for its technological innovations, reflecting its commitment to maintaining a competitive edge in the market[63]. - The company aims to enhance production efficiency and reduce labor costs through automation technologies in its manufacturing processes[62]. Shareholder Relations - The company has a dividend policy that mandates a cash distribution of at least 10% of the distributable profit when the net profit is positive and undistributed profits are available[175]. - The company maintains a stable cash dividend policy, ensuring transparency and protection of minority shareholders' rights, with no modifications made during the reporting period[159]. - The company actively engages with investors through various channels, including two earnings explanation meetings held on May 18, 2022, and August 31, 2022[184]. - The company has established a dedicated investor relations section on its website, providing essential information such as company announcements and contact details for investors[184]. Future Outlook - The company provided guidance for 2023, projecting revenue growth of 15% to 1.725 billion, driven by new product launches and market expansion efforts[143]. - Future guidance indicates a projected revenue growth rate of over 20% for the next fiscal year, driven by new product launches and technological advancements[142]. - The company plans to invest in new manufacturing facilities to increase production capacity by 50% over the next two years[142]. - The company is focusing on expanding its market presence in the semiconductor and display equipment sectors, capitalizing on the growth of advanced packaging and OLED technologies[126].