SM Micro(SH:688699)2023-04-07 16:00Financial Performance - In 2022, the company's total revenue was CNY 684.62 million, a decrease of 45.28% compared to CNY 1,251.20 million in 2021[24]. - The net profit attributable to shareholders was CNY 10.63 million, down 98.36% from CNY 647.24 million in the previous year[24]. - The net cash flow from operating activities was negative CNY 115.27 million, a decline of 129.43% compared to CNY 391.63 million in 2021[24]. - The company's total assets as of December 31, 2022, were CNY 1,719.95 million, a decrease of 8.84% from CNY 1,886.72 million at the end of 2021[26]. - The net assets attributable to shareholders were CNY 1,526.78 million, down 9.55% from CNY 1,687.95 million in 2021[26]. - The basic earnings per share for 2022 were CNY 0.10, a decrease of 98.30% from CNY 5.88 in 2021[25]. - The comprehensive gross profit margin for 2022 was 24.62%, down 40.99 percentage points from the previous year[93]. - The company's operating revenue for the reporting period was CNY 684.62 million, a decrease of 45.28% compared to CNY 1.25 billion in the same period last year[91]. - Operating costs increased by 18.45% to CNY 518.96 million, up from CNY 438.11 million year-on-year[91]. - The company experienced a 129.43% decline in net cash flow from operating activities, resulting in a negative cash flow of CNY 115.27 million[91]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 10 RMB per 10 shares to all shareholders, totaling 110,064,640 RMB (including tax) based on a total share capital of 110,064,640 shares as of December 31, 2022[5]. - The board of directors has approved the profit distribution plan, which is subject to approval at the annual general meeting[5]. - The profit distribution plan has been approved by the board and requires shareholder meeting approval[161]. - The cash dividend payout ratio for the year was 1,035.65%, with no capital reserve conversion to share capital or bonus shares issued[165]. - The company maintained compliance with profit distribution policies, ensuring the protection of minority shareholders' rights[162]. Research and Development - Research and development expenses accounted for 17.08% of total revenue, an increase of 9.50 percentage points from 7.58% in 2021[25]. - The total R&D investment for 2022 was approximately ¥116.94 million, a 23.36% increase from the previous year's ¥94.80 million[68]. - The company has a total of 342 applied integrated circuit layout design rights, with 236 obtained[66]. - The company has established a strong R&D team with 265 patents, including 148 invention patents, positioning itself as a leader in the LED driver IC sector[56]. - The company has developed new technologies that reduce LED screen power consumption by over 35%[12]. - The company is actively expanding its product offerings and enhancing its technological capabilities through ongoing R&D efforts[69]. - The company aims to achieve significant advancements in energy-saving technologies and product reliability in its ongoing R&D efforts[77]. - The company has achieved advancements in dimming control technology, allowing for brightness or color temperature adjustments without the need for specialized dimming modules, thus lowering production costs[62]. Market and Industry Trends - The global LED display driver chip market grew from $18.2 million in 2016 to $33.5 million in 2020, with a CAGR of 16.48%, and is projected to reach $85.1 million by 2023[52]. - The global market for Mini LED backlight devices is expected to grow from 17 million units in 2022 to nearly 75 million units by 2027, driven by cost reductions and diverse applications[55]. - The demand for LED display technology is expected to grow significantly in professional applications, particularly in security and military sectors, due to advancements in technology and cost reductions[59]. - The LED industry is experiencing rapid growth driven by favorable policies such as ultra-high-definition display, "East Data West Computing," and "dual carbon" strategies, with significant opportunities arising from emerging markets and expanding application fields[60]. - The dual push from both replacement and incremental markets is expected to create strong market conditions for the LED industry[60]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no special arrangements for corporate governance or other significant matters applicable[8]. - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[8]. - The company has established a compensation and assessment committee to review the performance of directors and senior management annually[145]. - The company has a structured approach to managing its investment projects and has made adjustments to the internal structure of its fundraising projects[147]. - The company has implemented a comprehensive information disclosure management system to ensure transparency and protect shareholder rights[188]. Risks and Challenges - The company has outlined risks faced in the report, urging investors to pay attention to these factors[4]. - The company faces risks related to core technology leakage, which could weaken its competitive advantage and operational performance[83]. - The company is exposed to liquidity risks due to prepayments to suppliers for capacity reservation, which may lead to long-term capital occupation[86]. - Future performance growth remains uncertain due to potential market fluctuations and inventory digestion challenges[80]. - The semiconductor industry is influenced by macroeconomic factors, with potential adverse effects from geopolitical tensions and inflation impacting product sales[89]. Environmental and Social Responsibility - The company has achieved ISO14001 environmental management system certification and strictly adheres to environmental protection laws and regulations[173]. - The company promotes paperless office practices and energy-saving activities to minimize resource and energy consumption, thereby reducing carbon emissions[174]. - The company has implemented a rainwater and sewage diversion system to ensure wastewater treatment meets the A-level standards of the GB/T31962-2015[172]. - The company has not established an environmental protection mechanism and did not invest any funds in environmental protection during the reporting period[169]. - The company has not faced any penalties from securities regulatory agencies in the past three years[147]. Strategic Initiatives - The company aims to enhance market competitiveness by increasing R&D investment and expanding market reach in response to intensified competition[86]. - The company is actively seeking new profit growth points by expanding sales channels and transitioning products from consumer electronics to automotive electronics applications[126]. - The company plans to enhance R&D investment and establish a technology market team to drive product upgrades and meet market demands[124]. - The company aims to solidify its competitive advantage in the LED driver IC sector and become a leading enterprise globally[123]. - The company is committed to improving corporate governance and internal control systems to ensure compliance with relevant laws and regulations[131].