GalaxyCore (688728)2024-04-26 11:56Financial Performance - The company has not yet achieved profitability since its listing [4]. - The company reported a significant increase in revenue, achieving a total of 75 million, focusing on the development of advanced CMOS image sensors and display technologies [15]. - The company achieved a total R&D expenditure of ¥795,380,198 in 2023, representing a significant increase of 45.83% compared to ¥545,401,908 in the previous year [51]. - Research and development expenses accounted for 16.93% of operating revenue in 2023, an increase of 7.75 percentage points from 9.18% in 2022 [24]. - The company is focused on achieving high-performance image sensors with a total investment of 8,000 million RMB for the high-performance 1.0um pixel product, with 203 million RMB invested so far [54]. - The company is currently developing a second-generation 0.7um BSI CMOS image sensor with a total investment of 15,000 million RMB, of which 14,036 million RMB has been invested to meet the demand for 32M BSI CMOS image sensors [53]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025 [15]. - The company is exploring partnerships with major tech firms to integrate its technologies into their products, aiming for a 15% increase in collaborative projects [15]. - The company plans to enter two new international markets by mid-2024, aiming for a 15% increase in global sales [139]. - The company aims to enhance customer loyalty by transitioning its product applications from secondary cameras to primary cameras [117]. - The company is implementing new strategies to enhance operational efficiency and reduce costs [135]. Corporate Governance - The company operates under a governance model that differs from typical A-share listed companies due to its status as a red-chip enterprise [6]. - The company has not disclosed any special arrangements in corporate governance [8]. - The company’s board of directors has the authority to decide on operational policies, investment plans, and profit distribution, without requiring shareholder meeting approval for most matters [129]. - The company’s articles of association and governance rules have been revised to clarify the responsibilities and procedures of the shareholders' meeting and board of directors [129]. - The company’s board includes independent directors who are responsible for ensuring compliance with the listing rules and protecting shareholder interests [132]. Risks and Challenges - The company faces risks related to raw material supply and outsourcing processing, which could adversely affect product shipment and profitability due to price increases or supply shortages [66]. - The company is exposed to foreign exchange risks, with exchange gains and losses recorded as -53.13 million RMB, 139.73 million RMB, and 7.21 million RMB for the years 2021, 2022, and 2023 respectively [69]. - The company may face risks related to tax incentives, as its subsidiary may not continue to qualify for tax benefits after the expiration of current policies [68]. - The company is at risk of knowledge property litigation due to the nature of the semiconductor and integrated circuit design industry, which is knowledge-intensive [74]. Sustainability and Environmental Impact - The company is committed to sustainability, with plans to reduce carbon emissions by 20% over the next three years [15]. - The company has established a comprehensive environmental management system to ensure sustainable business activities and harmony with the natural environment [197]. - The total amount of general solid waste generated in 2023 was 2,405.48 tons, while hazardous waste totaled 1,608.07 tons, with all pollutant emissions meeting environmental permit requirements [196]. - The company invested 19.71 million yuan in environmental protection during the reporting period [187]. Employee and Compensation Policies - The company has implemented an employee stock option plan with a total of 124,677,905 shares allocated, representing 4.79% of the total share capital [171]. - The total remuneration for all directors and senior management at the end of the reporting period amounted to 11.05 million RMB [145]. - The company’s compensation policy for directors and senior management is based on their employment contracts and the company's compensation management system [145]. - The employee training program focuses on enhancing professional skills and management capabilities, aligning personal development with company growth [161]. Future Guidance - The company provided guidance for 2024, projecting a revenue growth of 20% to $600 million, driven by new product launches and market expansion [15]. - Future guidance suggests a stable performance with expectations to maintain or slightly increase revenue in the next fiscal year [135]. - The company plans to increase R&D investment, particularly in circuit design and process innovation, to reduce reliance on foundries and shorten development time for high-pixel products [120].