GalaxyCore (SH:688728)2023-04-28 16:00Financial Performance - GalaxyCore Inc. reported a significant increase in revenue, achieving a total of RMB 1.5 billion for the fiscal year 2022, representing a year-over-year growth of 25%[10]. - In 2022, the company's operating revenue was CNY 5,943,796,651, a decrease of 15.10% compared to CNY 7,000,561,264 in 2021[19]. - The net profit attributable to shareholders was CNY 438,821,904, down 65.13% from CNY 1,258,447,129 in the previous year[19]. - The basic earnings per share for 2022 was CNY 0.18, a decline of 66.67% compared to CNY 0.54 in 2021[20]. - The company reported a net loss of CNY 116,615,001 in Q4 2022, following a profit in the previous quarters[22]. - The company achieved total revenue of RMB 594,379.67 million in 2022, a decrease of 15.10% compared to the previous year[49]. - The net profit attributable to the parent company was RMB 43,882.19 million, down 65.13% year-on-year[49]. - The total assets increased by 36.45% to CNY 18,152,179,905 at the end of 2022, up from CNY 13,303,645,703 at the end of 2021[19]. Research and Development - The company is actively investing in R&D for new products, with a budget allocation of RMB 200 million, focusing on advanced CMOS image sensors and display driver integration technologies[10]. - The company's R&D expenditure as a percentage of operating revenue increased to 9.18% in 2022, up from 7.43% in 2021[21]. - The company achieved a total R&D investment of ¥545,401,908 in 2022, representing a 4.83% increase from ¥520,290,957 in the previous year[42]. - The company filed 147 new intellectual property applications during the reporting period, including 136 invention patents, with a total of 993 applications filed to date[41]. - The company is developing a high-performance 1.12um BSI CMOS image sensor to support video HDR, with an investment of RMB 4,500 million[44]. Market Strategy and Expansion - GalaxyCore Inc. plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2023[10]. - The company is exploring potential acquisitions to enhance its technology portfolio, with discussions ongoing for a strategic partnership with a leading semiconductor manufacturer[10]. - The company plans to shift its focus from secondary cameras to primary cameras, enhancing customer loyalty and increasing profit margins through customized products[84]. - The company is committed to sustainability, with plans to reduce carbon emissions by 15% over the next three years through energy-efficient manufacturing processes[10]. Governance and Compliance - The board of directors has confirmed the authenticity, accuracy, and completeness of the annual report, assuming legal responsibility for any misstatements or omissions[2]. - The company operates under a governance model that differs from typical A-share listed companies due to its status as a red-chip enterprise[2]. - The company has established a profit distribution management system approved by the shareholders' meeting, ensuring the protection of minority investors' interests[92]. - The company has a clear governance structure in place, ensuring effective operation and decision-making processes to protect shareholder interests[87]. - The company has established various internal control systems to meet management needs and continuously improves them[131]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report[3]. - The company faces risks related to raw material supply and outsourcing processing, particularly if wafer prices or outsourcing costs rise significantly[52]. - The company is at risk of core technology leakage, which could undermine its competitive position in the semiconductor industry[51]. - Ongoing US-China trade tensions may hinder the company's operations and require it to seek alternative solutions for technology and supply chain management[57]. Employee and Remuneration - The total pre-tax remuneration for the chairman, Zhao Lixin, was CNY 1.8 million for the reporting period[95]. - The total pre-tax remuneration for the independent director, Cao Wei, was CNY 0.95 million for the reporting period[95]. - The company reported a total of 1,443 employees, with 458 in technical roles and 214 in sales[115]. - The remuneration for independent directors is a fixed amount, while non-independent directors do not receive separate allowances if they hold no other positions[105]. Sustainability and Social Responsibility - The company is committed to sustainability, with plans to reduce carbon emissions by 25% by 2025[161]. - The company has established a dedicated department for hazardous waste management to ensure compliance with environmental regulations[134]. - The company made donations totaling 4 million yuan to support educational development and poverty alleviation initiatives[139]. - The company emphasizes ESG as a cornerstone for sustainable development and integrates it into corporate culture[131].