Feitian(SZ:300386)2023-03-29 16:00Financial Performance - The company achieved operating revenue of 867.68 million yuan, an increase of 11.34% compared to the same period last year[4]. - The net profit attributable to shareholders was a loss of 120.99 million yuan, with the loss increasing year-on-year due to a decline in overall gross margin and impairment of goodwill related to Hongsi Electronics[4]. - The company's operating revenue for 2022 was ¥867,682,665.08, an increase of 11.34% compared to ¥779,305,235.51 in 2021[31]. - The net profit attributable to shareholders was -¥120,989,733.14 in 2022, representing a decrease of 147.57% from -¥48,871,197.45 in 2021[31]. - The cash flow from operating activities showed a significant decline, with a net outflow of -¥171,318,990.69 in 2022 compared to a positive inflow of ¥8,917,580.37 in 2021, marking a change of -2,021.14%[31]. - The total assets at the end of 2022 were ¥1,889,811,168.34, down 7.31% from ¥2,038,813,808.93 at the end of 2021[31]. - The basic earnings per share for 2022 was -¥0.29, a decrease of 141.67% from -¥0.12 in 2021[31]. - The company reported a net loss of ¥121,053,657.06 for the year, impacting cash flow significantly[73]. Goodwill and Impairment - The company recorded a goodwill impairment of 10.88 million yuan, with a remaining goodwill balance of 91.41 million yuan, indicating potential future impairment risks if Hongsi Electronics' profitability declines[10]. - The goodwill balance as of December 31, 2022, was CNY 102.29 million, with an impairment provision of CNY 10.88 million, resulting in a carrying value of CNY 91.41 million[192]. - The impairment assessment of goodwill involved significant judgments, particularly in estimating revenue growth rates and discount rates[192]. Market and Product Development - The market demand for USB Key and OTP products is rapidly declining, significantly impacting the company's performance, prompting a shift towards new product development and market expansion[5]. - The company plans to focus on developing new chip technologies and expanding its market presence, despite the risks associated with new business development not meeting expectations[11]. - The company plans to actively expand its next-generation security chip, device, and system business, aiming to turn losses into profits[42]. - The smart terminal business saw significant growth, with successful procurement projects for cloud speakers and printers in 2022[44]. - Revenue from the smart terminal system reached ¥294.37 million, accounting for 33.93% of total revenue, with a year-on-year increase of 36.12%[56]. - Chip products generated revenue of ¥167.32 million, representing 19.28% of total revenue, with a significant increase of 65.75% year-on-year[56]. - The company is focusing on developing low-cost, low-power IoT security chips to enhance its market position in IoT applications[68]. Research and Development - The company is conducting market research and risk management to mitigate risks associated with new business ventures and R&D investments[8]. - The company is optimizing its R&D direction to enhance innovation capabilities, acknowledging the uncertainties and potential non-realization of R&D investments[9]. - R&D expenses increased by 6.94% year-on-year to ¥96,142,949.54, reflecting ongoing investment in innovation[67]. - The number of R&D personnel increased to 194 in 2022, representing a growth of 22.78% compared to 158 in 2021[69]. - R&D expenditure amounted to ¥96,142,949.54 in 2022, accounting for 11.08% of operating revenue, a slight decrease from 11.54% in 2021[69]. Governance and Compliance - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant laws and regulations[95]. - The company maintains complete independence in its business operations, personnel management, asset control, and financial decision-making, with no reliance on shareholders for production activities[96][97]. - The company has a complete and independent financial institution with sufficient accounting personnel and a separate accounting system[97]. - The company has not reported any violations of laws or regulations in its governance practices[95]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating that the financial statements fairly represent the company's financial position as of December 31, 2022[188]. Future Outlook - The company has set a performance guidance for 2023, aiming for a revenue growth of approximately 10% compared to 2022[101]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 15% market share within the next two years[101]. - The company has set a future outlook with a revenue target of 1.5 billion yuan for the next fiscal year, indicating a growth expectation of 25%[135]. - New product developments are underway, focusing on enhancing the security features of their offerings, which is expected to drive future sales[101]. Employee and Management - The total number of employees at the end of the reporting period was 956, with 844 in the parent company and 112 in major subsidiaries[122]. - The total employee compensation included in operating costs for 2022 was CNY 24.5345 million, accounting for 4.22% of total operating costs, a decrease of 1.28% from the previous year[123]. - The company organized 22 internal training sessions in 2022, with a total of 871 participants, enhancing employees' business knowledge and skills[124]. - The company’s remuneration policy emphasizes fairness and competitiveness, linking employee performance closely to compensation[123]. Legal Matters - The company is involved in a patent infringement lawsuit with a claimed amount of CNY 1 million (approximately USD 0.15 million) related to patent number 2007103037[149]. - The court ruled to invalidate the patent rights in a decision dated June 20, 2022, which declared the patent completely ineffective[150]. - The company reported a breach of contract case against Beijing Digital Certification Co., Ltd. involving an amount of CNY 722.11 million (approximately USD 109.5 million)[150].