Netac(SZ:300042)2023-04-25 16:00Financial Performance - The company's operating revenue for 2022 was ¥1,772,140,185.83, a decrease of 7.36% compared to ¥1,912,861,727.66 in 2021 [22]. - The net profit attributable to shareholders for 2022 was ¥62,134,042.32, down 9.76% from ¥68,850,462.16 in 2021 [22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥43,821,486.88, a decrease of 10.63% from ¥49,032,569.30 in 2021 [22]. - The basic earnings per share for 2022 were ¥0.3101, down 9.75% from ¥0.3436 in 2021 [22]. - The diluted earnings per share for 2022 were also ¥0.3101, reflecting the same decrease of 9.75% from ¥0.3436 in 2021 [22]. - The weighted average return on equity for 2022 was 5.43%, a decline of 0.88% from 6.31% in 2021 [22]. - The total assets at the end of 2022 were ¥1,354,903,306.31, reflecting a growth of 7.74% from ¥1,257,582,143.66 at the end of 2021 [22]. - The net assets attributable to shareholders at the end of 2022 were ¥1,181,164,704.94, an increase of 5.56% from ¥1,118,985,767.46 at the end of 2021 [22]. - The total revenue for 2022 was approximately ¥1.77 billion, a decrease of 7.36% compared to ¥1.91 billion in 2021 [75]. - The revenue from flash application products was approximately ¥1.03 billion, accounting for 58.03% of total revenue, with a year-on-year increase of 2.82% [76]. Cash Flow and Investments - The net cash flow from operating activities increased significantly by 116.18% to ¥136,098,693.94 from ¥62,956,154.37 in 2021 [22]. - The net cash flow from operating activities rose by 116.18% to ¥136,098,693.94 in 2022, attributed to a decrease in inventory and other receivables [87]. - The net cash flow from investment activities increased by 1,183.43% to ¥155,876,058.92, due to the maturity of bank financial products [87]. - The cash and cash equivalents increased by 709.05% to ¥281,130,042.84, reflecting improved investment activity cash flow [87]. - As of the end of 2022, the company's cash and cash equivalents increased to ¥448,865,033.64, representing 33.13% of total assets, up from 9.20% at the beginning of the year, a change of 23.93% [89]. Market and Industry Outlook - The semiconductor storage industry is the largest sub-industry within the semiconductor sector, with a global market size of approximately $134.41 billion in 2022, accounting for about 28% of the total integrated circuit market [32]. - China's storage market is projected to grow at a CAGR of 12.6%, reaching a market size of ¥624 billion by 2025, driven by increasing demand in smartphones, PCs, and data centers [35]. - In 2022, global smartphone shipments declined by 11% to 1.21 billion units, marking the lowest level since 2013, which negatively impacted the NAND Flash and DRAM markets [37]. - The global NAND Flash capacity is expected to grow from 410 billion GB in 2020 to 1,481 billion GB by 2025, with mobile market demand growing at a 31% CAGR [38]. Product Development and Innovation - The company is focused on the development of solid-state storage, DRAM, embedded storage, and mobile storage products, catering to various applications including smartphones, servers, and IoT devices [42][43]. - The company launched new products including the PCIe 4.0 series NV5000-t/NV5000 solid-state drives and the S3000 series SATA solid-state drives during the reporting period [55]. - The company introduced the DDR4 gaming memory series "Yueying II" and the DDR5 memory series "Z" during the reporting period, continuing to lead the market [56]. - The company is developing high-performance storage solutions, including the P500 high-performance storage card and the NP700 storage card for Huawei users [57]. - The company is in the development phase for a new high-speed flash drive series with USB3.2 Gen2 interface, targeting enhanced product competitiveness [85]. Strategic Initiatives and Partnerships - The company plans to actively participate in the construction of the Shaoguan data center cluster as part of the national "East Data West Computing" project, aiming to enhance its technological capabilities and expand product applications [41]. - The company plans to establish a data center industry research institute in collaboration with the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences [72]. - The company is in the process of establishing a joint venture with Zhengyuan Semiconductor (Shenzhen) Co., Ltd. to build a storage chip packaging and testing factory [73]. - The company is expanding its sales channels by utilizing new media platforms and KOL resources to attract younger consumers [51]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and potential risks in future development [4]. - The company recognizes the risk of not sustaining technological innovation and will focus on developing products that align with changing consumer preferences, particularly targeting younger demographics [135]. - The company faces risks related to raw material price fluctuations, particularly for flash memory, which could impact cost control and operational performance [133]. - The company will enhance communication with suppliers and adjust procurement strategies to mitigate risks associated with raw material price volatility [134]. Governance and Compliance - The company has established a comprehensive governance structure that complies with relevant laws and regulations, ensuring no significant discrepancies exist in its governance practices [146]. - The company maintains independence from its controlling shareholders in terms of business operations, personnel, and asset management, ensuring no conflicts of interest [147]. - The company has a structured governance framework to ensure compliance and operational efficiency [158]. - The board's commitment to transparency is evident through the detailed reporting of attendance and voting records [184]. Shareholder Engagement and Dividends - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders, based on a total of 200,400,000 shares [4]. - The company aims to distribute at least 10% of the annual distributable profit in cash dividends, provided conditions are met [200]. - Over any three consecutive fiscal years, the total cash dividends distributed should not be less than 30% of the average annual distributable profit for those three years [200].