RAYITEK(SH:688323)2024-03-22 16:00Financial Performance - The company reported a profit distribution plan for 2023, which includes no cash dividends, no stock bonuses, and no capital reserve transfers to share capital [5]. - The company has not achieved profitability since its listing, indicating ongoing financial challenges [4]. - The company's operating revenue for 2023 was CNY 275,928,076.04, a decrease of 8.55% compared to CNY 301,711,595.69 in 2022 [22]. - The net profit attributable to shareholders for 2023 was CNY -19,603,013.62, representing a decline of 150.43% from CNY 38,874,082.10 in 2022 [23]. - The cash flow from operating activities decreased by 32.01% to CNY 61,066,979.78 in 2023, down from CNY 89,820,784.12 in 2022 [23]. - The basic earnings per share for 2023 was CNY -0.11, a drop of 150.00% compared to CNY 0.22 in 2022 [24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -21,888,027.48, a decline of 174.98% from CNY 29,191,277.51 in 2022 [23]. - The comprehensive gross profit margin for the year was 26.52%, a decrease of 11.72 percentage points year-on-year [108]. - The company achieved operating revenue of 275.93 million RMB, a year-on-year decrease of 8.55% [91]. - The net profit attributable to the parent company was -19.60 million RMB, a year-on-year decline of 150.43% [91]. - The net profit attributable to the parent company after deducting non-recurring gains and losses was -21.89 million RMB, a year-on-year decrease of 174.98% [91]. Audit and Compliance - A standard unqualified audit report was issued by Da Xin Accounting Firm, ensuring the accuracy of the financial statements [5]. - There are no non-operating fund occupations by controlling shareholders or related parties, ensuring financial integrity [7]. - The company has not violated decision-making procedures for external guarantees, indicating compliance with regulations [7]. - The company has ensured compliance with governance regulations, with no significant discrepancies noted in its governance practices [166]. - The company’s financial decisions and reports have been approved without any dissenting opinions from shareholders [166]. Operational Risks and Challenges - The company has detailed various operational risks in the report, which investors should be aware of [4]. - The report includes a forward-looking statement risk declaration, cautioning investors about potential uncertainties in future plans [6]. - The company faced risks of significant performance decline due to reduced demand in the global electronic consumer market and increased competition [91]. - The company faces risks related to technological innovation and product development, with a typical R&D cycle exceeding 2 years, which may lead to market share loss if new products fail to meet market demands [92]. - The company is sensitive to macroeconomic fluctuations, as its downstream industries are affected by economic cycles, which could negatively impact future growth if not managed properly [100]. Research and Development - Research and development expenses accounted for 11.67% of operating revenue in 2023, an increase of 2.71 percentage points from 8.96% in 2022 [24]. - The company achieved a total R&D investment of ¥32,195,452.75 in the current year, representing a 19.06% increase from ¥27,041,087.07 in the previous year [74]. - The company obtained 7 new patents during the reporting period, including 6 invention patents and 1 utility model patent, bringing the total to 33 patents [71]. - The company emphasizes the importance of high-quality R&D talent, with a team experienced in industry trends and customer needs [89]. - The company is actively engaged in research on transparent polyimide materials for flexible display applications [1]. Market and Product Development - The company specializes in high-performance PI films, with products widely used in strategic emerging industries such as flexible circuit boards, consumer electronics, and 5G communications, filling domestic gaps in the market [41]. - The company has developed a range of PI film products, including thermal control, electronic, and electrical PI films, becoming one of the suppliers with the most diverse product offerings globally [55]. - The company is positioned to benefit from the dual opportunities of domestic substitution and new application developments in the flexible circuit board market, which has the lowest localization rate [60]. - The company aims to enhance its product layout capabilities and supply assurance for electronic products through the new production capacity from the Jiaxing project, focusing on new products like TPI and COF PI [38]. - The company plans to accelerate the launch of new products in the fields of 5/6G low dielectric substrates and flexible electronics [139]. Governance and Management - The company has a comprehensive governance structure in place, with all board members present at the meeting [5]. - The company held two shareholder meetings during the reporting period, with all resolutions passed and no proposals rejected [168]. - The company has maintained a consistent governance structure, with no significant changes in the board composition during the reporting period [171]. - The company has appointed a new chairman, Song Shuqing, effective from July 18, 2023, following the resignation of the previous chairman [173]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 773.52 million CNY, with a net increase of 27,631 shares held by one director [173]. Financial Position and Investments - The company's total assets increased by 5.64% to CNY 2,447,368,795.73 at the end of 2023, up from CNY 2,316,606,578.30 at the end of 2022 [23]. - The net assets attributable to shareholders decreased by 3.12% year-on-year, totaling 999.36 million yuan [34]. - The company has significant assets under restriction, with a total book value of 720,806,194.08, primarily due to bank guarantees and pledges [129]. - The company reported a significant increase in investment, with a total investment of 4,192.15 million RMB in the current period, up 146.42% from 1,701.23 million RMB in the same period last year [152]. - The company has established stable partnerships with major raw material suppliers to mitigate risks associated with price fluctuations, allowing for timely adjustments in procurement strategies [147].