DKEM(300842)2023-04-26 16:00Financial Performance - Revenue for 2022 reached 3.77 billion yuan, a year-on-year increase of 33.83%[4] - Net profit attributable to shareholders was -17.32 million yuan, a year-on-year decrease of 118.44%[4] - Revenue in 2022 reached RMB 3,766,673,993.15, a 33.83% increase compared to 2021[30] - Net profit attributable to shareholders in 2022 was RMB -17,323,949.79, a decrease of 118.44% compared to 2021[30] - Operating cash flow in 2022 improved by 24.10% to RMB -196,882,465.77 compared to 2021[30] - Total assets in 2022 increased by 48.11% to RMB 3,355,189,075.52 compared to 2021[30] - Q4 2022 revenue was RMB 1,155,514,238.69, the highest among all quarters[32] - Q4 2022 net profit attributable to shareholders was RMB -31,473,267.25, the lowest among all quarters[32] - Q1 2022 operating cash flow was RMB 319,671,947.28, the highest among all quarters[32] - Q3 2022 operating cash flow was RMB -262,128,922.19, the lowest among all quarters[32] - Weighted average return on equity in 2022 was -1.87%, a decrease of 12.51 percentage points compared to 2021[30] - Revenue after deduction in 2022 was RMB 3,395,484,257.32, accounting for 90.14% of total revenue[30] - Total revenue in 2022 reached 3,766,673,993.15 yuan, a year-on-year increase of 33.83%[76] - Revenue from photovoltaic conductive silver paste accounted for 90.05% of total revenue, reaching 3,391,892,563.65 yuan, a year-on-year increase of 26.04%[76] - Domestic revenue accounted for 94.91% of total revenue, reaching 3,574,937,045.62 yuan, a year-on-year increase of 30.88%[76] - Overseas revenue increased by 130.98% year-on-year, reaching 191,736,947.53 yuan[76] - Sales volume of electronic specialty materials increased by 46.45% year-on-year, reaching 720,939.35 KG[80] - The top five customers accounted for 56.56% of total sales, with the largest customer contributing 13.98% of total sales[86] - The top five suppliers accounted for 88.60% of total procurement, with DOWA Electronics Materials Co., Ltd. contributing 35.71%[87] - R&D expenses increased by 17.05% year-on-year, reaching 114,927,298.16 yuan, driven by increased investment in technological innovation and product development[88] - Financial expenses surged by 820.82% year-on-year, reaching 112,737,526.17 yuan, mainly due to foreign exchange losses caused by exchange rate fluctuations[88] - Direct materials accounted for 88.77% of the cost of sales, reaching 3,049,536,227.42 yuan, a year-on-year increase of 27.13%[84] - R&D investment in 2022 was RMB 114.9 million, accounting for 3.05% of total revenue, a decrease of 0.44 percentage points compared to 2021[92] - The number of R&D personnel increased by 20.69% to 140 in 2022, with a significant increase in master's degree holders by 85.71%[92] - Investment losses amounted to -18.171 million yuan, a decrease of 54.39%, primarily due to silver futures and foreign exchange derivatives[99] - Fair value change gains were 9.126 million yuan, a decrease of 27.32%, mainly from floating gains on silver futures and foreign exchange derivatives[99] - Monetary funds increased by 15.38% to 866.002 million yuan, accounting for 25.81% of total assets, driven by expanded production and sales scale[100] - Accounts receivable increased by 2.10% to 894.165 million yuan, accounting for 26.65% of total assets, due to higher sales revenue[100] - Inventory decreased by 5.45% to 362.441 million yuan, accounting for 10.80% of total assets, with no significant changes[100] - Short-term borrowings decreased by 2.85% to 1.560 billion yuan, accounting for 46.50% of total assets, as the company expanded bank financing for raw material procurement[100] - Prepayments increased by 1.07% to 110.255 million yuan, accounting for 3.29% of total assets, due to increased prepayments for silver powder procurement[102] - Trade receivables increased by 16.10% to 678.632 million yuan, accounting for 20.23% of total assets, driven by increased domestic powder procurement[102] - Deferred income increased by 0.48% to 16 million yuan, due to government subsidies related to assets[103] - The company's financial assets at the beginning of the period were 151,758,790.00, with a fair value change of 13,979,595.00, and the ending balance was 82,437,010.82[104] - The company invested 35,000,000.00 in other equity tool investments, with no changes during the period[104] - The company's financial liabilities at the beginning of the period were 21,130,907.37, with a fair value change of 23,105,703.00, and the ending balance was 0.00[104] - The company's restricted assets at the end of the period totaled 1,088,820,363.72, including 628,049,523.53 in monetary funds and 460,770,840.19 in receivables[106] - The company's derivative investments for hedging purposes totaled 743,700.00, accounting for 0.79% of the company's net assets at the end of the period[109] - The company's foreign exchange derivative products had an initial investment of 0, a fair value change of 2,310.57, and an ending balance of 197.48, accounting for 0.21% of the company's net assets[109] - The company's silver futures contracts had an initial investment of 0, a fair value change of -1,397.96, and an ending balance of 546.22, accounting for 0.58% of the company's net assets[109] - The company incurred a total loss of -119.712 million yuan from foreign exchange derivatives and silver futures contracts during the reporting period[110] - The company's foreign exchange derivatives and silver futures contracts are closely related to daily business needs, aiming to hedge against exchange rate and raw material price fluctuations[110] - The company has established a "Financial Derivatives Trading Business Management System" to regulate and control risks associated with derivatives trading[110] - The company's financial derivatives trading is conducted with qualified financial institutions, and strict risk management measures are implemented to prevent credit and legal risks[110] - The company's financial derivatives trading is based on actual business needs, such as foreign currency bank loans, export receipts, and import payments, and is not for speculative purposes[110] - The company's financial derivatives trading is subject to hierarchical management, with clear responsibilities assigned to the finance department, internal audit department, and business departments to ensure effective risk control[110] - The company's financial derivatives trading is disclosed in accordance with the regulations of the Shenzhen Stock Exchange, ensuring transparency and compliance[111] - The company's financial derivatives trading is approved by the board of directors and shareholders, with the decision-making process complying with relevant laws and regulations[111] - The company's financial derivatives trading is aimed at enhancing financial stability and aligning with the company's operational development needs[111] - The company's financial derivatives trading is conducted within approved limits, with no speculative trading activities reported during the reporting period[112] - The company raised a total of RMB 399 million through its initial public offering, with a net amount of RMB 350.56 million after deducting issuance costs[115] - As of December 31, 2022, the company had RMB 40 million in undepreciated principal-guaranteed RMB financial products purchased with idle raised funds[115] - The investment progress of the 500-ton positive silver paste relocation and expansion project reached 70.52%, with a cumulative investment of RMB 138.1952 million[117] - The R&D center construction project achieved 100% investment progress, with a cumulative investment of RMB 105.6256 million[117] - The company used RMB 25.4606 million of raised funds to replace RMB 21.0749 million of self-raised funds previously invested in the raised funds projects[118] - The company used idle raised funds of RMB 40 million to purchase low-risk short-term financial products[119] - The company's net profit attributable to shareholders in 2022 was -17,323,949.79 yuan, indicating a loss[187] - The company's undistributed profit as of December 31, 2022, was 258,318,664.08 yuan[187] - The company did not propose a cash dividend for 2022 due to negative net profit and future cash flow considerations[187] Product and Market Development - Gross margin for conductive silver paste products declined slightly year-on-year but began to recover in H2 2022[6] - Increased sales of N-type TOPCon battery conductive silver paste contributed to margin recovery[6] - Focus on technological innovation and talent development to maintain competitive advantage[7] - Plans to expand market share in solar photovoltaic and semiconductor electronic sectors[7] - The company's conductive silver paste products have gained widespread recognition from leading photovoltaic manufacturers such as JinkoSolar, Trina Solar, JA Solar, Tongwei Solar, Aiko Solar, Jietai Technology, Hanwha Q CELLS, Chint New Energy, and Daqo New Energy, establishing a strong brand image of "high efficiency, stability, and reliability" in the domestic photovoltaic conductive silver paste market[48] - The company plans to strengthen its leadership in P-type battery conductive silver paste and enhance the performance and market leadership of N-type TOPCon battery conductive silver paste, while also developing and promoting next-generation photovoltaic battery metallization solutions for N-type HJT and new IBC batteries[48] - The company is expanding its product portfolio to include semiconductor packaging paste products, leveraging its shared conductive silver paste technology platform to cater to different thermal conductivity requirements in semiconductor chip packaging[50] - The DK91 series of conductive silver pastes, including DK91A, DK91B, and DK91M, are designed for various types of photovoltaic cells, offering features such as fine-line printing capability, wide sintering windows, and improved conversion efficiency[51] - The DK92 series, including DK92A, DK92B, and DK92K, are specialized for PERC and black silicon cells, with enhanced pull strength, low-temperature sintering characteristics, and compatibility with advanced printing technologies[53] - The DK93 series, including DK93A, DK93B, and DK93K, are tailored for LDSE (Laser Doped Selective Emitter) cells, offering lower contact resistance, improved production yield, and reduced silver paste usage per cell[53] - DK93T TOPCon-specific backside conductive silver paste is designed for N-type TOPCon high-efficiency cells, with a customized version available for new IBC cells[54] - DK81A series step-printing main grid paste has a low solid content (80-90%), reducing overall costs and is compatible with P-type PERC, N-type TOPCon, and new IBC cells[54] - DK71A N-type TOPCon front-side conductive silver-aluminum paste features excellent low-temperature sintering characteristics and is compatible with fine-line printing designs of <15um line width[54] - DK61A N-type HJT cell-specific low-temperature conductive silver paste has a body resistance of <5E-6 Ohm.cm and supports high-speed printing at ≥350mm/s[54] - DKeIF N-type HJT cell-specific low-temperature silver-coated copper paste has a copper content of 30-50% and supports high-speed printing at ≥350mm/s[55] - DK51A N-type HJT cell-specific low-temperature conductive silver paste has excellent welding and pulling strength, supporting high-speed printing at ≥350mm/s[55] - DECA100 component interconnect conductive silver paste is suitable for screen printing, stencil printing, and dispensing processes, with balanced shear strength and flexibility[55] - DECA200 chip bonding conductive silver paste has a conventional thermal conductivity (<10 W/m·K) and is used for high-reliability IC packaging and LED chip bonding[55] - DECA400 chip bonding conductive silver paste has a high thermal conductivity (10-30 W/m·K) and is used for high-power LED chip bonding and electronic component assembly[55] - DECA600 chip bonding conductive silver paste has ultra-high thermal conductivity (>100 W/m·K) and is used for high-power IC packaging and electronic component assembly[55] - N-type TOPCon battery conductive silver paste sales proportion significantly increased[64] - Low-temperature silver paste and silver-coated copper paste for N-type HJT batteries are in continuous supply and delivery phase[64] - Semiconductor chip bonding conductive silver paste products are transitioning from small to medium and large customer groups[64] - The company holds 18 invention patents and 51 utility model patents[66] - 36 invention patents and 2 utility model patents are currently under application[66] - The company has successfully developed and commercialized N-type TOPCon battery conductive silver paste, achieving a photoelectric conversion efficiency of over 25%[67] - The company has launched ultra-high thermal conductivity low-temperature sintered silver paste products with a thermal conductivity of over 100 W/m·K for power semiconductor packaging[67] - The company has completed product certification and batch verification for N-type HJT battery low-temperature silver paste and silver-coated copper paste in multiple leading industry enterprises[70] - The company has invested 400 million yuan in the construction of an electronic special materials project in Dongying, Shandong, including the production of 5,000 tons of silver nitrate, 2,000 tons of metal powder, and 200 tons of electronic-grade paste annually[72] - The company has increased the proportion of domestic silver powder usage to reduce costs and mitigate risks related to silver price and foreign exchange fluctuations[71] - The company has strengthened its market leadership in P-type battery conductive silver paste and N-type TOPCon battery conductive silver paste, with a significant increase in market share[69] - The company has been recognized with multiple industry awards, including the PVBL Excellent Supplier Award and the 2023 Golden Leopard Award for Technical Excellence and High-Quality Paste[68] - The company has expanded its product portfolio in the semiconductor electronics field, continuously optimizing customer structure and increasing shipments[70] - The company has enhanced its R&D capabilities and product competitiveness, particularly in advanced emitter processes and ultra-fine line printing technologies[70] - The company is developing N-type battery electrode conductive silver paste to improve market share and competitiveness in the N-type battery market[89] - A new type of solar cell conductive silver paste for ultra-fine line metallization is being developed to enhance market share in advanced printing[89] - The company is focusing on low-temperature conductive paste for heterojunction solar cells to increase market share in the heterojunction silver paste market[91] - Development of low-cost silver-coated copper powder and conductive paste for heterojunction cells aims to improve market share in low-cost heterojunction silver paste[91] - The company is advancing TOPCon silver-aluminum paste for boron-doped emitters to enhance market share in N-type high-efficiency cell silver paste[91] - R&D efforts include laser transfer printing technology for solar cell electrode grids to improve market competitiveness[91] - The company is developing ceramic substrate brazing paste to expand its presence in the semiconductor power device business[91] - R&D on metal nanomaterials for low-temperature sintering silver paste aims to reduce production costs and improve competitiveness in the photovoltaic and semiconductor markets[91] Industry Trends and Market Outlook - Global renewable energy capacity is expected to grow by 2400GW from 2022 to 2027, with solar PV accounting for 1500GW of new installations[41] - China's new PV installations in 2022 reached 87.41GW, a 59.3% increase year-on-year, with cumulative installations reaching 392.6GW[42] - Global PV installations are projected to grow at an annual rate of 232-286GW from 2022 to 2025, driven by downstream demand and technological advancements[45] - TOPCon battery market share is expected to exceed 35% by 2025, with HJT battery market share approaching 20%, supporting long-term growth in conductive silver paste demand[45] Corporate Governance and Management - The company has a board of directors consisting of 9 members, including 3 independent directors, all of whom comply with legal and regulatory requirements[140] - The company maintains independence in business operations, personnel, assets, and finance from its controlling shareholder[141] - The company has established a comprehensive performance evaluation and incentive mechanism for directors and senior management[142] - The company possesses complete and independent assets, including R&D, procurement, production, and sales systems, with clear ownership of related equipment, patents, trademarks, and non-patented technologies[143] - The company has an independent financial department with dedicated accounting personnel and a separate bank account, ensuring financial independence[144] - The company has a complete business system and independent market operation capabilities, with no reliance on shareholders or related parties for production and operation[144] - The company held 5 shareholder meetings in 2022, with participation rates ranging from 36.09% to 47.73%[145] - The company's governance structure includes a board of directors with four specialized committees: strategy, compensation and evaluation, audit, and nomination[140] - The company has a supervisory board consisting of 3 members, including 2 employee representatives, ensuring compliance with legal requirements[140] - The company strictly adheres to information disclosure regulations, ensuring timely and accurate information sharing with shareholders and investors[141] - The total number of shares held by directors, supervisors, and senior management is 19,302,669 shares, with no changes in holdings during the reporting period[148] - Zhang Li, the former Vice President and Board Secretary, resigned on December 16, 2022, due to retirement[149] - Shi Weili, the Chairman and General Manager, has been with the company since April 2013 and holds a Ph.D. from the State University of New York at Buffalo[150] - Zhang Hongwang, a Director, has been with the company since May 2013 and holds a Ph.D. from the State University of New York at Buffalo