2022-03-20 16:00Financial Performance - The company's operating revenue for 2021 was CNY 257,726.23 million, representing a 52.42% increase compared to CNY 169,089.68 million in 2020 [21]. - The net profit attributable to shareholders of the listed company reached CNY 51,446.68 million, a significant increase of 287.20% from CNY 13,286.79 million in the previous year [21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 44,420.31 million, reflecting a 1,013.88% increase from CNY 3,987.90 million in 2020 [21]. - The net cash flow from operating activities was CNY 60,220.49 million, up 174.16% from CNY 21,965.27 million in 2020 [21]. - The total assets at the end of 2021 were CNY 416,501.42 million, a 55.49% increase from CNY 267,860.30 million at the end of 2020 [21]. - The net assets attributable to shareholders of the listed company increased to CNY 314,024.57 million, a 62.69% rise from CNY 193,025.24 million in 2020 [21]. - The company achieved operating revenue of approximately 2.577 billion yuan, an increase of 52.42% compared to the previous year [22]. - The net profit attributable to shareholders was approximately 514 million yuan, representing a year-on-year increase of 287.20% [22]. - The basic earnings per share were 0.69 yuan, a significant increase of 263.16% compared to the previous year [22]. - The weighted average return on equity rose to 20.77%, an increase of 13.62 percentage points from the previous year [22]. Research and Development - The company is focusing on the development of new technologies and products, including NFC, MCU, and FPGA solutions [12]. - The company maintained a strong R&D investment of approximately 749 million yuan, an increase of 41.46% year-on-year [23]. - Research and development investment accounted for 29.06% of operating revenue, a decrease of 2.25 percentage points from the previous year [22]. - The company invested approximately 749 million CNY in R&D during the reporting period, accounting for 29.06% of total revenue [33]. - The company applied for 47 invention patents and obtained 31 during the reporting period, enhancing its intellectual property portfolio to a total of 210 invention patents [58][59]. - Total R&D investment increased by 41.46% year-on-year, reaching CNY 74,892.45 million, driven by higher personnel costs and increased focus on advanced process product development [60][61]. - The company is focusing on developing core technologies such as data encryption methods and temperature measurement methods, which are crucial for enhancing product security and performance [54][56]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the annual report, with no significant omissions or misleading statements [2]. - The company has not violated decision-making procedures for external guarantees [7]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report [7]. - The company does not have any special arrangements for corporate governance [7]. - The governance practices comply with the requirements of the Company Law and the Securities Law, ensuring no significant discrepancies with regulatory standards [116]. - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and senior management to ensure clear responsibilities and effective operations [115]. - The company has established a category shareholders' meeting system to protect the interests of shareholders in different markets [115]. Market Expansion and Strategy - The company plans to expand its market presence and explore potential mergers and acquisitions to enhance growth opportunities [12]. - The company is actively developing new products in the fields of white goods, motor drives, and IoT, with successful AEC-Q100 certification for its LG series MCU [32]. - The company is focusing on innovations in NFC and RFID technologies to meet the growing demand for accurate identification and security in the context of IoT [49]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach, targeting companies with complementary technologies [129]. - The company plans to maintain and enhance its market presence while exploring new customer segments and applications in emerging markets [113]. Environmental, Social, and Governance (ESG) - The company is committed to adhering to RoHS and REACH regulations to ensure compliance with environmental standards [13]. - The company has established an Environmental, Social, and Governance (ESG) Committee to oversee relevant matters [148]. - The company is committed to sustainability initiatives, with plans to reduce carbon emissions by 20% by 2025 [129]. - The company has not faced any administrative penalties for environmental issues during the reporting period [178]. - The company actively promotes ESG initiatives and has set up a dedicated committee to oversee environmental, social, and governance strategies [177]. Risks and Challenges - The company has disclosed potential risks in the "Management Discussion and Analysis" section, specifically in the "Risk Factors" subsection [3]. - The company faces risks related to new product development and talent retention, which could impact its competitive edge in the rapidly evolving semiconductor industry [71]. - The company faced risks related to high supplier concentration and cyclical fluctuations in capacity utilization, which could adversely affect production and profitability [73]. - The company reported an investment loss of approximately -271.36 million RMB, reflecting a significant increase in losses compared to the previous year [82]. Shareholder and Management Compensation - Total pre-tax compensation for CEO Shi Lei was 369.11 million CNY [124]. - The total pre-tax compensation for Vice President Yu Jun was 269.68 million CNY [124]. - The total pre-tax compensation for Chief Engineer Cheng Junxia was 130.82 million CNY [124]. - The total pre-tax compensation for Vice President Diao Linshan was 164.42 million CNY [124]. - The total pre-tax compensation for CFO Fang Jing was 105.59 million CNY [124]. - Total remuneration for all directors, supervisors, and senior management amounted to RMB 13.28 million [137]. Financial Management - The company reported a net cash outflow from investment activities of 1,182.80 million RMB, a significant increase of 470.49% compared to the previous year [99]. - The company's cash and cash equivalents at the end of the period amounted to 801.65 million RMB, a 81.90% increase compared to the previous period [100]. - The company has established long-term partnerships with major wafer manufacturers and packaging testing firms, but still faces supply chain risks under the Fabless model [74]. - The company reported a contract liability of RMB 12,627.48 million, an increase attributed to strong downstream market demand and increased customer prepayments [101]. Product Development and Innovation - The company is enhancing its product value by building an intelligent computing platform based on FPGA products, exploring new application areas [33]. - The company has established a comprehensive product line in security and identification chips, including RFID, smart cards, and security chips, making it one of the most complete suppliers in China [34]. - The company is focusing on new applications in software and system security, IoT security, and AI security, leveraging its expertise in chip safety [33]. - The company is transitioning its FPGA products from 28nm process technology to 16nm and is developing next-generation FPGA products on a 7nm process [45]. Employee and Workforce Management - The company has a total of 830 R&D personnel, accounting for 54.21% of the total workforce, with an average salary of RMB 52.89 thousand per person [67]. - The R&D personnel's total compensation increased to RMB 43.90 million from RMB 34.46 million in the previous period, reflecting a focus on talent retention [67]. - The company has established a comprehensive performance evaluation system for employees, which influences salary adjustments based on performance [162].