Everdisplay Optronics (Shanghai) (SH:688538)2023-04-26 16:00Financial Performance - The company's operating revenue for 2022 was RMB 419,088.15 million, representing a 4.24% increase compared to RMB 402,054.66 million in 2021[22]. - The net profit attributable to shareholders of the listed company was a loss of RMB 160,179.21 million, compared to a loss of RMB 94,515.82 million in 2021[22]. - The net cash flow from operating activities was a negative RMB 2,894.43 million, a decrease of 130.76% from RMB 9,410.72 million in 2021[22]. - The total assets at the end of 2022 were RMB 3,089,323.23 million, down 6.78% from RMB 3,313,960.11 million at the end of 2021[22]. - The net assets attributable to shareholders of the listed company decreased by 9.16% to RMB 1,580,505.24 million from RMB 1,739,833.41 million in 2021[22]. - The company's net profit attributable to shareholders for 2022 was -1,601.79 million RMB, an increase in loss of 656.63 million RMB compared to the previous year[23]. - The basic and diluted earnings per share for 2022 were both -0.12 RMB/share, a decrease of 0.04 RMB/share from the previous year[24]. - The weighted average return on equity for 2022 was -9.65%, down 3.11 percentage points from the previous year[24]. - The company's operating cash flow for 2022 was -28.94 million RMB, a decrease of 123.05 million RMB compared to the previous year[24]. - Operating costs rose to CNY 485,807.61 million, reflecting a 6.92% increase from CNY 454,375.48 million[95]. - Financial expenses surged by 175.11% to CNY 37,696.29 million, primarily due to increased interest expenses from construction projects and rising borrowing costs[95]. Research and Development - The company invested 10.34% of its revenue in R&D in 2022, a slight increase of 0.11 percentage points from the previous year[23]. - The total R&D investment for the year was CNY 43,321.51 million, representing a 5.33% increase compared to the previous year, with R&D expenses accounting for 10.34% of revenue[65]. - A total of 106 new patents were granted during the reporting period, including 78 invention patents and 28 utility model patents, bringing the total to 1,113 patents[63]. - The company is focusing on developing new technologies and products through a structured management process, enhancing its competitive edge in the market[47]. - The company achieved a 30% reduction in product power consumption and a 300% increase in lifespan for OLED stacked device design technology, meeting high brightness and low power consumption requirements for display panels[61]. - The company is actively researching advanced technologies such as LTPO array technology and flexible process technology to enhance product value and competitiveness[74]. Market Position and Strategy - The company plans to continue focusing on market expansion and product innovation to enhance its competitive edge in the AMOLED display market[33]. - The company achieved significant breakthroughs in the smartphone market, with AMOLED semiconductor display panel shipments reaching a new high, supplying major models for brands like Huawei, Transsion, and Lenovo[35]. - The company is actively expanding its market presence in various sectors, including automotive, desktop, and industrial displays, to drive future growth[42]. - The company has established strategic partnerships with leading automotive brands for the development of custom AMOLED displays, enhancing its market presence in the automotive sector[53]. - The company is focusing on the development of new technologies, including efficient driving transistors and critical pixel compensation technology, with some technologies already in mass production[58]. - The company plans to accelerate the implementation of fundraising projects to enhance supply capacity and optimize product structure, thereby strengthening its competitive position in the AMOLED sector[128]. Operational Challenges - The company is facing various operational risks, which are outlined in the management discussion and analysis section[5]. - The company has not achieved profitability since its listing, and the reasons for this are detailed in the risk factors section of the report[4]. - The company faced challenges due to global economic downturns and increased competition, leading to a significant drop in product prices[23]. - The AMOLED semiconductor display panel industry is facing pressure due to oversupply and declining prices, but opportunities exist in the growing demand for mid-to-large size products[50][51]. - The company is exposed to risks from reliance on imported key equipment and raw materials, which may impact future production and operational performance[84]. Governance and Management - The company has established a governance structure with clear responsibilities among the shareholders' meeting, board of directors, and supervisory board, ensuring effective operation and decision-making[135]. - The company has implemented various internal control systems to enhance governance and protect shareholder rights, including the development of management regulations and internal policies[136]. - The company emphasizes the establishment of a sound internal control management system to improve governance and risk management capabilities, ensuring compliance with legal regulations[131]. - The company has a focus on integrating advanced technologies, as evidenced by its involvement in semiconductor and medical technology sectors[157]. - The leadership team includes individuals with extensive experience in various sectors, which may contribute to innovative strategies and market expansion[157]. Employee and Compensation - The total number of employees in the parent company is 4,196, with 2,614 in production, 1,390 in technology, and 77 in sales[175]. - The company has implemented an employee stock ownership plan to enhance employee motivation and creativity[179]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to CNY 12.96 million[161]. - The company has a performance-oriented compensation system, implementing semi-annual and annual performance evaluations[179]. - The company has a 100% coverage rate for labor contracts with all formal employees, ensuring compliance with labor laws[179]. Future Outlook - The company provided guidance for Q1 2023, expecting revenue to be between 1.6 billion and 1.8 billion, indicating a growth of 10% to 20%[146]. - The company is investing 200 million in R&D for new technologies in the upcoming fiscal year[146]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next year[151]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, driven by new product launches[151].