Lion(SH:605358)2024-04-22 12:58Customer Loyalty and Market Expansion - The company plans to enhance customer loyalty through strong technology, timely delivery, stable quality, and attentive service, focusing on both existing major clients and new market opportunities in 2023[5]. - The company aims to expand its customer base in the 12-inch product segment while leveraging its advantages in heavily doped products[5]. - Market expansion efforts include entering three new international markets by Q3 2024, aiming for a 10% market share in each[75]. - The company is positioned to capitalize on strategic opportunities in the integrated circuit industry, which is deemed crucial for national security and modernization[2]. Financial Investments and Capital Allocation - The company has approved an investment of RMB 1,130 million to increase capital in its subsidiary Jinrui Hong Microelectronics, with RMB 941.66 million allocated as new registered capital[7]. - The company has completed an investment of RMB 32.94 million in working capital, achieving 98.9% of its operational management target[32]. - The company plans to use raised funds to increase capital in subsidiaries Jinruihong Technology and Jinruihong Microelectronics for project implementation[78]. - The company has utilized surplus raised funds to supplement working capital amounting to CNY 5.5995 million, with remaining surplus funds of CNY 37.5999 million as of December 31, 2023[66]. Revenue and Growth Projections - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[75]. - The company reported a 20% increase in quarterly revenue, reaching $200 million for Q1 2023[75]. - New product launches are expected to contribute an additional $30 million in revenue by the end of Q2 2023[75]. - The company has set a performance guidance of $800 million in total revenue for the fiscal year 2023[75]. Research and Development - The company is investing in R&D for new technologies, with an allocated budget of $50 million for the upcoming year[75]. - The semiconductor power device chip production capacity will be maximized through technological upgrades, focusing on increasing the market share of trench products, FRD, and IGBT products[167]. - The company aims to enhance the yield and production efficiency of compound semiconductor RF chips, ensuring the achievement of annual sales targets[167]. Environmental Responsibility and Compliance - The company is committed to environmental responsibility by adhering to ISO standards and continuously improving its environmental management systems[190]. - The company has established wastewater and waste gas treatment facilities, ensuring compliance with environmental standards[179]. - The company has implemented measures to reduce carbon emissions by 288.80 tons through energy recovery and the use of clean energy technologies[191]. - The company achieved compliance with all major pollutants, including COD at 68 mg/L against a limit of 500 mg/L, and ammonia nitrogen at 7.0 mg/L against a limit of 35 mg/L[155]. Governance and Management - The company has established independent financial accounting and management systems, ensuring financial independence from the controlling shareholder[128]. - The company has mechanisms in place to ensure minority shareholders can express their opinions and protect their rights[137]. - The company has a cash dividend policy that mandates at least 10% of the distributable profit to be distributed as cash dividends each year[93]. - The company has appointed two new deputy general managers, Feng Kun and Tian Daxi, to enhance management capabilities[77]. Market Trends and Industry Outlook - The global semiconductor market revenue is expected to reach approximately $52.01 billion in 2023, a decrease of 9.4% year-on-year, with a projected growth of 13.1% to $58.84 billion in 2024[19]. - The semiconductor industry is expected to benefit from supportive national policies and the acceleration of 5G network construction and new energy vehicle development, maintaining a rapid growth trend[3]. - The semiconductor industry is experiencing growth due to emerging sectors like electric vehicles and artificial intelligence, providing significant market opportunities for the company's semiconductor products[145]. Employee and Operational Management - The total number of employees in the company and its major subsidiaries is 2,889, with 1,675 in production, 786 in technology, and 30 in sales[107]. - The company held 11 board meetings during the year, including 1 in-person meeting and 8 conducted via communication methods[80]. - The board of directors convened 11 meetings during the reporting period, adhering to the established rules and procedures[124].