Goertek : Annual Report 2022

Goertek Inc. Annual Report 2022

Goertek Inc.

Annual Report 2022

April 2023

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Goertek Inc. Annual Report 2022

Annual Report 2022

Section Ⅰ Important Notes, Contents and Interpretations

The Board of Directors, the Board of Supervisors, directors, supervisors and senior management of the Company guarantee that the information presented in this report shall be together be wholly liable for the truthfulness, accuracy and completeness of its contents and free of any false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities.

Jiang Bin, the person in charge of the Company, and Li Yongzhi, the person in charge of accounting and the accounting department (accounting supervisor) guarantee that the financial report in this annual report is authentic, accurate and complete.

All directors have attended the board meeting to review the annual report.

The future plans and some forward-looking statements mentioned herein are planned matters which shall not constitute a substantial commitment of the Company to investors. Therefore, both investors and relevant persons should maintain their risk awareness and understand the differences among plan, forecast and commitment. Please pay attention to investment risks.

The Company faces the risks in market, operation and management. Investors are kindly reminded to pay attention to possible investment risks. For details, see "Section III Management Discussion and Analysis, XI Outlook for the Future Development of the Company" in this report.

The profit distribution proposal considered and approved by the Board of Directors of the Company is as follows: based on the total share capital registered on the record date of equity distribution minus the repurchased shares in the Company's specific securities repurchase account, the Company will distribute cash dividend of RMB 1.00 (tax inclusive) for per 10 shares to all the shareholders, as well as 0 bonus shares (tax inclusive), and there is no conversion of capital surplus into share capital.

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Goertek Inc. Annual Report 2022

	Contents
Section Ⅰ	Important Notes, Contents and Interpretations	2
Section Ⅱ	Company Information and Financial Highlights	7
Section III	Management Discussion and Analysis	11
Section IV	Corporate Governance	37
Section V	Environmental and social responsibilities	63
Section VI	Important Matters	65
Section VII	Changes in Shares and Information about Shareholders	78
Section VIII	Information of Preference Shares	85
Section IX	Information on the Bonds	86
Section X	Financial Report	87

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Goertek Inc. Annual Report 2022

Directory of Reference Files

1. Financial statements with signatures and seals of the legal representative, the person in charge of accounting and the person in charge of accounting department (accounting supervisor);
2. The originals of 2022 annual report and its abstract signed by the legal representative of the Company;
3. The originals of the auditor's report with the seal of Zhongxi Certified Public Accountants (special general partnership) Co., Ltd. and the signature and seal of the certified public accountants;
4. The originals of all company documents and announcements publicly disclosed in newspapers designated by China Securities Regulatory Commission (CSRC) during the reporting period.

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				Goertek Inc. Annual Report 2022
			Interpretations
	Terms	Refers to		Content of interpretation
	Company, the Company, Goertek Inc.	Refers to		Goertek Inc.
	Goertek Group	Refers to		Goertek Group Co., Ltd., Controlling shareholder of the Company
	Weifang Goertek	Refers to		Weifang Goertek Electronics Co., Ltd., wholly owned subsidiary of the
		Company
	Goertek Microelectronics	Refers to		Goertek Microelectronics Inc. controlled subsidiary of the Company
	Weifang Goertek Microelectronics	Refers to		Weifang Goertek Microelectronics Co., Ltd., controlled subsidiary of the
		Company
	Goertek Optical	Refers to		Goertek Optical Technology Co., Ltd., controlled subsidiary of the Company
	Goertek Technology (Vietnam)	Refers to		Goertek Technology Vina Company Limited, wholly owned subsidiary of the
		Company
	ODM	Refers to		Original Design and Manufacturing
	JDM	Refers to		Joint Design and Manufacturing
				The micro electro-acoustic components that transform electrical signal into
				acoustic signal, generate driving force through the magnetic line cutting of voice
	Micro speaker	Refers to		coil in magnetic field, to drive the diaphragm vibration, which then pushes the
		air for sounding. Compared with the micro receiver, it's characterized by higher
				power, wide frequency response and high fidelity, which is generally used for
				playing the sound.
				Based on micron/nano technology, Micro electro mechanical system (MEMS)
				is a technology developed for designing, processing, manufacturing, measuring
	MEMS	Refers to		and controlling micron/nano materials. MEMS can integrate mechanical
		components, optical system and electric control system of driving components
				into a whole unit of microsystem, featured with miniaturization, intelligence,
				multi-function, high integration and being suitable for mass production.
				The acoustic component composed of one or several micro speakers and other
	Speaker module	Refers to		electronic devices, which are assembled together through an injection molded
				housing.
	Smart wearable devices	Refers to		A portable device that can be worn or carried directly, or integrated into the
		user's clothes or accessories.
				A computer simulation system that can create and experience virtual world by
	Virtual Reality/VR	Refers to		using computer to generate a simulation environment into which immerses the
				users.
				A technology that skillfully integrates virtual information with the real world.
				By making extensive use of multimedia, 3D modeling, real-time tracking and
				registration, intelligent interaction, sensing and other technical means, it
	Augmented Reality/AR	Refers to		applies the computer-generated text, images, 3D models, music, video and
				other virtual information to the real world after simulation. These two kinds of
				information complement each other to achieve "augmentation" of the real
				world.
				The new types of smart wireless earphones represented by TWS (True Wireless
				Stereo) earphones connect the left and right earphones with smart phones or
	Smart wireless earphones	Refers to		other terminal devices through Bluetooth technology to form an independent
				stereo system, which realizes touch control, voice control, body information
				collection and other functions by adding various sensors.
				Also known as SiP (System in Package) packaging module at the system level,
	Microsystem module	Refers to		it integrates multiple chips and passive components into the same package
				through advanced packaging technologies such as 3D packaging, to form a

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