DKEM(SZ:300842)2023-04-26 16:00Financial Performance - The company achieved operating revenue of 3,766.674 million yuan, an increase of 33.83% compared to the previous year[4]. - The net profit attributable to shareholders was -173.239 million yuan, a decrease of 118.44% year-on-year[4]. - The company's operating revenue for 2022 was ¥3,766,673,993.15, representing a 33.83% increase compared to ¥2,814,456,026.02 in 2021[30]. - The net profit attributable to shareholders was -¥17,323,949.79 in 2022, a decrease of 118.44% from ¥93,935,699.23 in 2021[30]. - The net cash flow from operating activities improved by 24.10%, amounting to -¥196,882,465.77 in 2022 compared to -¥259,398,093.53 in 2021[30]. - Total assets increased by 48.11% to ¥3,355,189,075.52 at the end of 2022, up from ¥2,265,325,565.08 at the end of 2021[30]. - The company's basic earnings per share for 2022 was -¥0.17, down 118.09% from ¥0.94 in 2021[30]. - The weighted average return on equity was -1.87% in 2022, a decline of 12.51% from 10.64% in 2021[30]. - The company reported a total revenue of ¥1,155,514,238.69 in Q4 2022, with a net profit attributable to shareholders of -¥31,473,267.25[33]. - The revenue for the first three quarters of 2022 was ¥698,332,291.58 in Q1, ¥972,070,979.12 in Q2, and ¥940,756,483.76 in Q3[33]. Market and Industry Trends - The global photovoltaic market is expected to grow rapidly, with an estimated 1,500 GW of new installations from 2022 to 2027, driven by the transition to renewable energy[42]. - China's new photovoltaic installed capacity reached 87.41 GW in 2022, a year-on-year increase of 59.3%, maintaining its position as the world's largest market[43]. - The global demand for conductive silver paste is projected to grow significantly, supported by an annual average increase in global photovoltaic installations of 232-286 GW from 2022 to 2025[46]. - The company anticipates that the market share of TOPCon batteries will exceed 35% and HJT batteries will approach 20% by 2025, which will support long-term growth in the conductive silver paste market[46]. - The photovoltaic industry is influenced by macroeconomic factors and policy changes, which can lead to fluctuations in market demand for conductive silver paste[128]. Product Development and R&D - The company plans to enhance its R&D capabilities and maintain a technology-leading advantage in the solar photovoltaic sector, focusing on upgrading conductive silver paste products[7]. - R&D investment in 2022 was 11,492.73 million yuan, maintaining an industry-leading position[66]. - The company has developed a market-oriented R&D system, focusing on core technologies in glass, organic, and silver powder systems[47]. - The company is actively developing N-type high-efficiency battery technologies, including TOPCon, HJT, and new IBC batteries, to meet growing market demand[124]. - The company is focusing on the research, production, and sales of new electronic materials, primarily crystalline silicon solar cell conductive silver paste, which is crucial for photovoltaic power stations[128]. Supply Chain and Operational Efficiency - In 2023, the company aims to optimize supply chain processes to reduce product costs and improve operational efficiency[7]. - The company employs a procurement model based on production needs, considering historical purchasing data and maintaining a certain level of inventory to ensure supply stability[56]. - The production model is based on sales forecasts, allowing for rapid production and ensuring product supply to customers[57]. - The company utilizes a multi-supplier approach to enhance supply security and reduce procurement costs for key raw materials like silver powder[56]. - The company is increasing the use of domestically produced silver powder to enhance supply chain security and reduce costs, positively impacting profitability[71]. Financial Management and Governance - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[138]. - The company maintains complete independence from its controlling shareholder in terms of business operations, personnel, assets, and finances, with no guarantees provided to the controlling shareholder[139]. - The company has established a transparent performance evaluation and incentive mechanism for its directors and senior management[140]. - The company has a complete and independent financial management system, with dedicated accounting personnel and independent bank accounts[142]. - The company reported a total shareholding of 19,302,669 shares at the beginning of the period, with no changes during the reporting period[146]. Risks and Challenges - The company continues to face risks including intensified competition, exchange rate fluctuations, and cash flow challenges[8]. - The company is at risk of declining gross margins due to cost pressures from upstream suppliers and increased competition in the photovoltaic sector[130]. - The company may face negative cash flow from operating activities due to the timing of receivables and payables, which could impact its liquidity[131]. - The company has established a strict accounts receivable management system to mitigate collection risks associated with its expanding sales[132]. - The company faces risks from intensified market competition as domestic firms improve the quality and performance of conductive silver paste, potentially impacting pricing strategies[129]. Shareholder Returns and Dividends - The company will not distribute cash dividends or issue bonus shares for the reporting period[9]. - The board proposed not to distribute cash dividends or issue bonus shares for the year 2022 due to the negative net profit, aiming to ensure operational stability and long-term shareholder interests[186]. - Future dividend plans include a commitment to return 40% of net profits to shareholders over the next three years[175]. Internal Control and Compliance - The company identified internal control deficiencies related to inventory management and has taken corrective measures, including training and strengthening internal audit functions[195]. - The company received a warning from the Jiangsu Securities Regulatory Bureau regarding issues in stock incentive management, leading to the cancellation of unvested restricted stocks for ineligible participants[196]. - The company plans to enhance its internal control system in 2023, focusing on compliance with regulations and improving operational processes[196]. - The internal control self-assessment report was disclosed on April 27, 2023, indicating that 100% of the total assets and operating income of the evaluated units were included in the company's consolidated financial statements[200].