SUZHOU GOOD-ARK(SZ:002079)2023-04-07 16:00Financial Performance - The company raised a total of RMB 30,124.94 million through non-public issuance of common shares in 2021, with RMB 743.89 million utilized in the current period and RMB 25,534.06 million cumulatively used[5]. - The company reported a non-recurring gain from the increase in fair value of investments in listed companies, which may fluctuate based on stock price changes in 2023[33]. - The total compensation for directors, supervisors, and senior management during the reporting period amounted to 604.28 million RMB[104]. - The company reported a total revenue of 100% in its consolidated financial statements, indicating no discrepancies in financial reporting[147]. - There were zero significant defects identified in both financial and non-financial reports, reflecting strong internal controls[147]. - The company’s cash dividend policy remained unchanged during the reporting period[111]. - The company plans to distribute a cash dividend of 0.29 yuan per 10 shares, totaling approximately 23.43 million yuan, based on a total share capital of 807,886,616 shares as of December 31, 2022[137]. - The company has not proposed a cash dividend distribution plan despite having positive distributable profits for the parent company during the reporting period[136]. Market Trends and Opportunities - The power semiconductor market in China was approximately RMB 71.1 billion in 2021, expected to grow to RMB 110.2 billion by 2025, indicating a significant market expansion opportunity[22]. - The company focuses on power diode production and R&D, with plans to expand into MOSFET and IGBT packaging, which shows promising market prospects[23]. - The company aims to enhance its photovoltaic silver paste project through its wholly-owned subsidiary, targeting leadership in HJT, TOPCon, and PERC battery paste technologies[27]. - In 2023, the company will concentrate on two major sectors: "semiconductors" and "new materials," developing three key technology areas: chip technology, new materials technology, and advanced packaging technology[28]. - The semiconductor industry in China is supported by national funding and policies, contributing to its continuous growth and market expansion[41]. - The global photovoltaic industry is expected to continue rapid growth, with a forecast of 230 GW of new installations in 2022, marking a historical high[169]. - The average conversion efficiency of P-type monocrystalline batteries reached 23.2% in 2022, while N-type TOPCon batteries achieved an average efficiency of 24.5%[169]. - The market share of PERC battery cells is projected to decrease to 88% in the second half of 2022, with N-type battery cells accounting for a combined share of 37%[169]. Operational Risks and Challenges - The company faces risks related to the cyclical nature of the semiconductor industry, which could impact its operational performance[30]. - The company acquired a 45.2% stake in Suzhou Jinyin New Materials Co., Ltd., which has become a wholly-owned subsidiary, increasing management pressure on accounts receivable due to the photovoltaic industry's collection risks[32]. - The company has committed to improving its ESG levels in response to national "dual carbon" and "14th Five-Year Plan" initiatives, aiming for resource sharing and mutual benefits[28]. - The company has established emergency response plans for environmental incidents, which are filed with local environmental authorities and are regularly practiced[153]. Governance and Compliance - The company has implemented a comprehensive financial management system, ensuring independent financial decision-making and tax compliance[67]. - The company has been focusing on enhancing its governance structure by appointing new independent directors and ensuring compliance with regulations[70][71]. - The board of directors has been proactive in addressing company performance and strategic initiatives through regular meetings and resolutions[80]. - The company has established a strategic committee to oversee major decisions and ensure alignment with its long-term goals[82]. - The company has been transparent in its governance practices, regularly disclosing meeting resolutions and decisions to the public[80]. - The company has committed to strict compliance with relevant laws and regulations regarding related party transactions and will avoid or minimize such transactions whenever possible[177]. - The company guarantees that all information and documents related to the transaction are true, accurate, and complete, with no false records or misleading statements[178]. - The company has not faced any significant administrative penalties in the last three years related to environmental protection, intellectual property, product quality, labor safety, or personal rights[181]. Research and Development - The company plans to increase R&D investment in 2023, focusing on high-density chip products and new high-power packaging processes[56]. - The company has established a forward-looking technology research team to develop new materials, packaging, products, and processes[54]. - The company has developed a long-term training strategy to cultivate talent aligned with domestic and international market trends[58]. Environmental Compliance - The company has maintained compliance with environmental discharge standards, with specific metrics reported for wastewater and air emissions[123]. - The company achieved compliance with wastewater discharge standards, with chemical oxygen demand at 16 mg/L against a limit of 500 mg/L[151]. - The company reported a total phosphorus level of 0.40 mg/L, well below the regulatory limit of 8 mg/L[151]. - The company’s nitrogen oxides emissions from boiler exhaust were recorded at 35 mg/m³, significantly lower than the permissible limit of 150 mg/m³[151]. - The company has a blue rating in its environmental credit evaluation, indicating a good standing in environmental compliance[149]. - The company has committed to environmental protection policies and adheres to industry standards, including the GB21900-2008 for electroplating pollutants[149]. - The company has implemented strict monitoring and testing of pollutants according to local environmental regulations[174]. - There were no administrative penalties imposed on the company during the reporting period due to environmental issues[175]. Employee and Talent Management - The total number of employees at the end of the reporting period was 1,944, with 675 in the parent company[132]. - The company provided nearly 200 hours of training per employee, covering various skills and safety protocols[110]. - The company has established a dynamic distribution mechanism based on employee performance and capabilities, ensuring compliance with national labor regulations[133]. - The company has not reported any violations of labor protection, social security, or medical insurance regulations[133]. Subsidiary Performance - Suzhou Guder Electronics reported a revenue of 1,978.99 million RMB for 2022, representing a year-on-year growth of 16.84%[91]. - The net profit for Suzhou Minghao reached 278.765 million RMB in 2022, showing a significant increase due to improved internal quality and management systems[91]. - Guder Semiconductor USA achieved a revenue of 139.6323 million RMB in 2022, a 47.1% increase compared to the previous year[92]. - The net profit for Guder Semiconductor USA decreased by 38.63% to 3.9823 million RMB in 2022[92]. - The total assets of Suzhou Minghao amounted to 429.2982 million RMB as of December 31, 2022[91]. - Suzhou Guder's investment in Suzhou Minghao accounts for 21.63% of its registered capital, which is 78.602275 million RMB[91]. - The company plans to enhance its market expansion strategies and product development initiatives in the upcoming fiscal year[89]. - The company is committed to continuous improvement in its operational and financial performance through strategic investments and partnerships[89].