Genew(SH:688418)2023-05-19 16:00Financial Performance - The company has not achieved profitability since its listing[4]. - The company reported a net profit attributable to shareholders of -215,334,424.01 CNY, with a net profit excluding non-recurring gains and losses of -227,626,836.56 CNY, indicating an expanded loss compared to the same period last year[30]. - The company's operating revenue for 2022 was CNY 532,469,377.49, representing a year-on-year increase of 14.68%[27]. - The main business revenue reached CNY 528,247,825.42, which is a 28.70% increase compared to the previous year, attributed to the company's focus on market expansion[29]. - The net cash flow from operating activities was a negative CNY 65,040,958.95, showing improvement from a negative CNY 230,130,275.96 in the previous year[27]. - The basic earnings per share for 2022 was -CNY 1.1152, compared to -CNY 0.5244 in 2021[28]. - The weighted average return on net assets was -20.88%, a decrease of 12.40 percentage points from the previous year[28]. - The company reported a significant loss of RMB 137,004,629.57, a decrease of 274.91% compared to a profit of RMB 78,329,794.44 in the previous period[159]. Research and Development - The research and development expenditure accounted for 35.67% of operating revenue, an increase of 4.62 percentage points from the previous year[29]. - The company increased its R&D personnel to 772, with R&D investment reaching 189.95 million yuan, a 31.77% increase from 144.15 million yuan in the same period last year[44]. - The company applied for a total of 713 patents, including 632 invention patents, and 394 software copyrights as of December 31, 2022[44]. - R&D investment totaled approximately ¥189.95 million, a 31.77% increase from the previous year, with a ratio of R&D investment to operating income rising by 4.62 percentage points to 35.67%[84]. - The company has developed a second-generation network management system, NuMax Cloud, utilizing a microservices architecture for flexible deployment[82]. - The company is focusing on satellite communication technologies, including narrowband and broadband integration, to enhance satellite communication capabilities within the 5G core network[82]. Market Expansion and Strategy - Tiscali Italia plans to expand its market presence by launching new 5G services in Q2 2023, targeting a 20% increase in market share[15]. - The company is committed to expanding its market presence both domestically and internationally, with sales growth across all product lines[29]. - The company is exploring potential acquisitions to strengthen its position in the telecommunications market, with a focus on companies specializing in satellite communications[15]. - The company is focused on continuous R&D in 5G satellite applications, edge computing, and other advanced technologies to maintain its technological leadership[45]. - The company aims to enhance user experience in satellite mobile communication systems through the integration of different satellite communication systems with 5G technology[87]. - The company plans to maintain high R&D investment and improve product development capabilities, focusing on various technologies including industrial internet and 5G applications[186]. Operational Risks and Governance - The company has detailed various operational risks and corresponding countermeasures in the report[4]. - The board of directors and supervisory board members have guaranteed the authenticity and completeness of the annual report[4]. - The company has not disclosed any special arrangements for corporate governance[9]. - The company has confirmed that there are no issues regarding independence or autonomous operational capabilities with its controlling shareholders[198]. - The company has implemented a management system for insider information to minimize the number of individuals with access to sensitive information[198]. Customer and Supplier Relations - The top five customers generated sales of 154.70 million RMB, accounting for 29.05% of total annual sales[141]. - The largest customer, China Telecom, contributed 44.53 million RMB, which is 8.36% of total annual sales[143]. - The top five suppliers had a procurement amount of 130.20 million RMB, representing 29.65% of total annual procurement[146]. - The company did not have any single customer accounting for more than 50% of total sales during the reporting period[146]. Technology and Innovation - The company has developed next-generation enhanced GPON technology, including XG-PON and XGS-PON, which supports asymmetric and symmetric 10G PON[16]. - The introduction of VoLTE technology has significantly reduced call setup times and improved voice quality for 4G users[17]. - The company is focusing on the development of O-RAN architecture, which allows seamless integration of hardware and software from different vendors[17]. - The company has achieved 100% domestic production of key components, including chips and passive components, ensuring supply chain security[79]. - The company has developed a large-capacity 10GPON technology that supports up to 272 10GPON ports and 100G uplink ports, meeting the deployment needs of telecom operators[79]. Financial Management - The company’s cash flow from operating activities was negative at CNY -65.04 million, indicating challenges in cash management[120]. - The company reported a significant increase in inventory, with a year-end balance of CNY 394,887,719.63, up 65.13% from the previous year, attributed to increased stockpiling[158]. - The goodwill increased dramatically to CNY 67,815,889.50, a rise of 2,238.56% due to the acquisition of a controlling subsidiary[158]. - The company experienced a 160.62% decrease in net cash flow from investing activities, totaling -CNY 57,303,699.87, primarily due to payments for the acquisition of a new holding company[156]. Industry Trends - The communication industry is experiencing growth driven by 5G and cloud infrastructure, with significant applications in various sectors such as smart cities and healthcare[60]. - The demand for new optical fiber broadband networks and equipment is continuously growing globally, with significant investments expected in the next three years as part of the "Double Gigabit" development plan[70]. - The transition from investment-driven growth to innovation-driven growth is anticipated in the telecommunications equipment industry, emphasizing the need for manufacturers to focus on research and development[71]. - The company anticipates accelerated domestic substitution processes in the telecommunications industry, driven by international market dynamics[180].