2022 年第三季度报告 单位：元 币种：人民币 证券代码：688183 证券简称：生益电子 生益电子股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | --- | --- | |----------------------------|----------------|----------------------------------------|------------------|-----------------------------------------------| | 项 ...

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,799,064,686.54, representing a 6.53% increase compared to CNY 1,688,750,675.15 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2022 was CNY 160,986,341.08, a 24.86% increase from CNY 128,934,594.64 in the previous year[22]. - The net cash flow from operating activities increased significantly to CNY 379,552,500.64, up 271.82% from CNY 102,078,954.40 in the same period last year[22]. - The company's total assets at the end of the reporting period were CNY 6,541,764,204.26, reflecting a 1.77% increase from CNY 6,428,296,588.39 at the end of the previous year[22]. - The basic earnings per share for the first half of 2022 was CNY 0.19, an increase of 11.76% compared to CNY 0.17 in the same period last year[23]. - The company reported a 50.14% increase in net profit attributable to shareholders after deducting non-recurring gains and losses, amounting to CNY 156,188,238.60 compared to CNY 104,024,942.82 in the previous year[22]. - The weighted average return on net assets for the first half of 2022 was 4.09%, an increase of 0.10 percentage points from 3.99% in the same period last year[23]. Research and Development - The R&D expenditure as a percentage of operating revenue was 5.60%, up 0.35 percentage points from 5.25% in the previous year[23]. - R&D investment totaled approximately ¥100.76 million in the first half of 2022, representing a 13.55% increase from the previous year[63]. - The R&D personnel count has increased to 809, up from 649 in the previous year, with R&D staff now making up 15.61% of the total workforce[77]. - The company has filed 30 new invention patents and obtained 23 new invention patents in the first half of 2022, totaling 219 invention patents[54]. - The company has developed advanced PCB technologies for 5G base stations and high-speed optical modules, achieving international advanced levels[55]. - The company is focusing on advanced technologies in the network field, with significant investments in 5G-related PCB technologies, including a 30 million yuan project for high-speed BGA packaging[67]. - The R&D projects include a focus on high-density interconnects and advanced materials for 5G applications, with a total expected investment of 46 million yuan for high-speed material PCB technology[75]. Market and Industry Trends - The global PCB market is projected to reach $101.56 billion by 2026, with a CAGR of 4.6% from 2021 to 2026[45]. - The Chinese PCB market is expected to grow from $441.50 million in 2021 to $546.05 million by 2026, with a CAGR of 4.3%[47]. - The demand for automotive PCBs is projected to grow from $8.2 billion in 2021 to $11.8 billion by 2026, with a CAGR of 7.5%[51]. - The penetration rate of new energy vehicles is projected to reach 50% by 2030, significantly impacting the PCB industry[44]. - The demand for HDI boards is increasing, particularly in high-density consumer electronics, with a projected CAGR of 4.9% over the next five years[47]. - The company’s automotive electronics sales increased from 1% to 8% of total sales in 2021, continuing to rise in the first half of 2022[44]. Environmental Management - The company has implemented a comprehensive environmental monitoring system, ensuring all monitored parameters meet regulatory standards[149]. - The factory has received multiple environmental protection approvals for its construction projects, including the approval for a new multilayer printed circuit board project with a capacity of 150,000 Ft²/month[135]. - The company has achieved compliance with wastewater discharge standards, with a chemical oxygen demand (COD) concentration of less than 80 mg/L and total discharge of 7.942 tons[127]. - The company has reduced carbon emissions by a total of 2,800 tons of CO2 equivalent through various energy-saving projects during the reporting period[150]. - The factory's noise pollution control facilities are functioning well, ensuring that noise emissions remain within acceptable limits as of the first half of 2022[133]. - The company has established emergency response plans for environmental incidents, with no emergencies reported in the first half of 2022[148]. Corporate Governance and Compliance - The controlling shareholder, Shengyi Technology, committed to not transferring or managing shares held prior to the IPO for 36 months from the listing date[153]. - The company will comply with the China Securities Regulatory Commission's requirements regarding lock-up periods[155]. - The company has not faced any issues with timely and strict compliance with these commitments[161]. - The company will ensure compliance with relevant laws and regulations regarding the use of raised funds[177]. - The company has committed to protecting the rights of small and medium investors by implementing a series of management systems[177]. Strategic Initiatives - The company successfully established a wholly-owned subsidiary in Hong Kong to enhance its overseas market expansion, with export sales accounting for 40.36%, up from 29.40% year-on-year[85]. - The company plans to strengthen market expansion and promotion efforts for existing products and businesses, aiming to increase the scale of its main operations and profitability[177]. - The company will increase R&D investment and enhance talent development to improve product competitiveness and profitability[177]. - The company is advancing the Dongcheng Phase IV project, which focuses on high-density printed circuit boards for 5G applications, expected to begin trial production in Q4 2022[88].

2022 年第一季度报告 单位：元 币种：人民币 证券代码：688183 证券简称：生益电子 生益电子股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 报表信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|----------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期 增减变动幅度 (%) | | 营业收入 | 860,364,945.33 | 7. ...

Financial Performance - The company's operating revenue for 2021 was CNY 3,647,394,627.95, a slight increase of 0.38% compared to the previous year[23]. - Net profit attributable to shareholders decreased by 39.83% to CNY 264,273,119.32 in 2021[23]. - The net cash flow from operating activities fell by 49.73% to CNY 421,454,567.51[23]. - The basic earnings per share dropped by 50.00% to CNY 0.33[23]. - The total operating revenue was 3,647,394,627.95 RMB, a year-over-year increase of 0.38%[113]. - The net profit attributable to shareholders was 264,273,119.32 RMB, a decrease of 39.83% year-over-year[116]. - Operating cash flow net amount decreased by 49.73% to 421,454,567.51 RMB[113]. Dividend Distribution - The company plans to distribute a cash dividend of 1.60 CNY per 10 shares, totaling approximately 133.09 million CNY, which represents 50.36% of the net profit attributable to shareholders for 2021[6]. - In the previous year, the company distributed a cash dividend of 3.30 RMB per 10 shares (including tax), totaling 274,500,987.75 RMB[196]. Corporate Governance - The company has received a standard unqualified audit report from Huaxing Accounting Firm[5]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not experienced any violations of decision-making procedures regarding external guarantees[7]. - The company has not reported any special arrangements for corporate governance[7]. - The company has confirmed that all board members attended the board meeting[5]. - The company has established a governance structure to ensure efficient operations and compliance with relevant regulations[149]. - The audit committee held multiple meetings to review important financial reports and proposals, including the annual audit report and profit distribution plan[187]. Research and Development - Research and development expenses accounted for 5.20% of operating revenue, an increase of 0.9 percentage points from the previous year[23]. - The total R&D expenditure for 2021 was approximately ¥189.58 million, representing a 21.37% increase from the previous year, and accounting for 5.20% of total revenue[79]. - The company has invested over 30 years in R&D, resulting in 13 core technologies in the PCB manufacturing field, maintaining a strong competitive edge[70]. - The company is currently involved in significant R&D projects, including a high-isolation transceiver antenna array design for 5G communications, supported by national key R&D plans[71]. - The company has completed several key R&D projects, including a selective gold-plated composite surface treatment PCB with an investment of ¥16,000,000, achieving a cumulative investment of ¥11,886,733.38[83]. - The company has made significant advancements in 5G-related PCB technologies, with multiple projects completed in high-frequency and high-speed materials[83]. Market Position and Strategy - The company focuses on high-end applications in the PCB market, including communication, network, automotive, and consumer electronics sectors[42]. - The company is actively involved in the development of high-end server products, having passed multiple PCB product certifications for these products[58]. - The company is positioned to benefit from the growing applications of HDI technology in consumer electronics, particularly in smartphones and laptops[53]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a budget of 500 million RMB allocated for this purpose[165]. - The company aims to strengthen its international market presence and enhance its overseas marketing service network[145]. Operational Efficiency - The company aims to improve operational efficiency through lean TPM (Total Productive Maintenance) projects, focusing on cost reduction and efficiency enhancement across various processes[36]. - The company has implemented a comprehensive quality management system to enhance product quality and process control[34]. - The company emphasizes automation and digital transformation to enhance management and manufacturing capabilities, creating a virtuous cycle of improvement[98]. Risks and Challenges - The company faced challenges from rising raw material costs and a decrease in demand from telecommunications clients due to the adjustment of the 5G construction cycle[32]. - The company is exposed to macroeconomic risks due to uncertainties in international economic trends and potential impacts from trade tensions and the COVID-19 pandemic[109]. - The company faces risks related to technological innovation, as it operates in a technology-intensive industry where maintaining competitive advantages is critical[99]. Employee and Management - The total number of employees in the parent company is 4,028, with a combined total of 5,037 employees across the parent and major subsidiaries[191]. - The total remuneration for core technical personnel at the end of the reporting period was CNY 670.05 million[177]. - The company has established a competitive salary and incentive system, considering factors such as profitability and local living standards[192]. - The company emphasizes talent development as a key focus for 2021, implementing various training programs to enhance employee skills[195]. Financial Position - Cash and cash equivalents at the end of the period were 1,163,314,673.29 RMB, making up 18.10% of total assets, a significant increase of 636.68% compared to the previous period[132]. - Fixed assets reached 2,592,670,722.11 RMB, accounting for 40.33% of total assets, with a growth of 33.37% from the previous period[132]. - The total debt has been reduced by 10% to 300 million, improving the company's financial stability[171].

Financial Performance - The company's operating revenue for Q3 2021 was ¥978,255,252.27, an increase of 8.16% compared to the same period last year[4]. - The net profit attributable to shareholders for Q3 2021 was ¥53,616,493.41, a decrease of 44.12% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2021 was ¥45,839,775.09, down 51.04% from the previous year[4]. - Total operating revenue for the first three quarters of 2021 was CNY 2,667,005,927.42, a decrease of 5.1% compared to CNY 2,810,583,223.93 in the same period of 2020[38]. - Operating profit decreased significantly to CNY 163,881,083.88, down 63.5% from CNY 449,358,931.89 in the previous year[38]. - The net profit for the current period is ¥182,551,088.05, a decrease from ¥392,933,851.08 in the previous period, representing a decline of approximately 53.6%[40]. - The total comprehensive income for the current period is ¥182,384,025.58, down from ¥391,664,221.06, indicating a decrease of about 53.5%[40]. - The basic and diluted earnings per share for the current period are both ¥0.23, compared to ¥0.59 in the previous period, reflecting a decline of approximately 61.0%[40]. Research and Development - The total R&D investment for Q3 2021 was ¥47,926,195.72, representing 4.90% of operating revenue, an increase of 0.12 percentage points year-on-year[8]. - Research and development expenses rose to CNY 136,667,179.03, an increase of 4.4% compared to CNY 130,369,620.36 in the same period last year[38]. Assets and Liabilities - The total assets at the end of Q3 2021 were ¥6,283,904,865.71, an increase of 37.46% compared to the end of the previous year[8]. - The equity attributable to shareholders at the end of Q3 2021 was ¥3,822,122,197.06, up 96.84% year-on-year[8]. - Total liabilities decreased to CNY 2,461,782,668.65 from CNY 2,629,614,528.99, a reduction of 6.4%[35]. - The company's equity attributable to shareholders decreased slightly from 1,941,769,208.16 to 1,939,300,238.13, showing a reduction of 2,468,970.03[53]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥360,250,176.77, down 33.31% compared to the previous year[4]. - Cash flow from operating activities for the first three quarters of 2021 is ¥360,250,176.77, down from ¥540,171,643.46 in the same period of 2020, a decrease of about 33.4%[43]. - Cash flow from investing activities shows a net outflow of ¥638,730,665.62, an improvement from a net outflow of ¥783,563,363.72 in the previous year[44]. - Cash flow from financing activities has increased significantly to ¥1,379,204,457.66, compared to ¥163,868,078.49 in the previous period, indicating a substantial increase[44]. Market Conditions and Challenges - The company faced challenges due to macroeconomic conditions and supply shortages, leading to a decrease in demand for high-value products[11]. - The company anticipates a potential decline in operating results for the year 2021 compared to the previous year due to macroeconomic conditions[25]. Inventory and Receivables - Accounts receivable increased to RMB 991,340,908.00 from RMB 860,978,899.39 year-over-year, indicating a growth in sales or credit terms[29]. - Inventory levels rose to RMB 702,653,450.15 compared to RMB 554,949,105.56 at the end of 2020, reflecting increased production or stockpiling[29]. - The company reported a total current asset of RMB 3,129,094,983.83, up from RMB 1,757,652,640.72 in the previous year, showing strong liquidity[29]. Shareholder Information - The number of unrestricted circulating shares released from lock-up was 6,450,011 shares, effective from August 25, 2021[24]. - The company has not reported any significant changes in shareholder relationships or actions that would affect voting rights among the top shareholders[23].

Financial Performance - Revenue for the first half of 2021 was CNY 1,688,750,675.15, a decrease of 11.41% compared to CNY 1,906,157,016.14 in the same period last year[25]. - Net profit attributable to shareholders was CNY 128,934,594.64, down 56.59% from CNY 296,986,016.45 in the previous year[25]. - Net cash flow from operating activities was CNY 102,078,954.40, a decline of 72.80% compared to CNY 375,255,150.84 in the same period last year[25]. - Basic earnings per share decreased by 62.22% to CNY 0.17 from CNY 0.45 in the same period last year[28]. - The company's performance has decreased compared to the same period last year due to a slowdown in customer order demand and rising raw material costs[29]. - Basic earnings per share, diluted earnings per share, and basic earnings per share after deducting non-recurring gains and losses have decreased compared to the same period last year, mainly due to an increase in total share capital and a decline in net profit[29]. - The decline in revenue is primarily due to a reduction in demand for communication equipment products during the industry's adjustment period[81]. Assets and Liabilities - Total assets increased by 36.00% to CNY 6,216,964,789.03 from CNY 4,571,383,737.15 at the end of the previous year[25]. - Net assets attributable to shareholders rose by 94.06% to CNY 3,768,205,229.54 from CNY 1,941,769,208.16 at the end of the previous year[25]. - Cash and cash equivalents at the end of the period amounted to ¥1,319,069,337.74, representing 21.22% of total assets, a significant increase of 735.31% compared to ¥157,913,230.04 from the previous year[87]. - Fixed assets reached ¥2,614,358,643.32, accounting for 42.05% of total assets, with a year-on-year increase of 34.49% due to the completion of the first phase of the Ji'an Shengyi project[87]. - The company's capital reserve increased to ¥2,253,374,938.51, which is 36.25% of total assets, reflecting a 406.60% rise from ¥444,800,017.41 in the previous year due to the premium from the initial public offering[87]. Research and Development - R&D expenditure as a percentage of revenue increased by 0.68 percentage points to 5.25% from 4.57% in the previous year[28]. - The company has obtained 173 invention patents and established 8 industry standards, showcasing its strong R&D capabilities[49]. - The company is actively developing high-end PCBs for 5G energy systems and intelligent automotive radar control systems[49]. - R&D expenses amounted to approximately ¥88.74 million, a 1.82% increase from the previous period, representing 5.25% of total revenue[53]. - The company is currently developing 13 projects, with total expected investments ranging from ¥12 million to ¥40 million for each project, focusing on advanced PCB technologies for 5G and high-end applications[56][58]. Market and Industry Trends - The global PCB industry is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2025, reaching a market value of $86.325 billion by 2025[44]. - The PCB market in mainland China is expected to grow at a CAGR of 5.6%, reaching $46.044 billion by 2025[45]. - The demand for high-frequency and high-speed PCBs is anticipated to increase significantly due to the expansion of 5G infrastructure[43]. - The automotive electronics sector is projected to see PCB usage increase to four times that of traditional fuel vehicles by 2025, driven by the rise of electric and intelligent vehicles[48]. Environmental Compliance - The company reported wastewater pollution monitoring compliance, with a total allowable discharge of 3,000 tons/day for wastewater at the Dongguan East City factory[102]. - The company operates its own wastewater treatment system for certain pollutants, including silver and nickel[102]. - The company has achieved compliance with industrial noise emission standards as per GB12348-2008[111]. - The company has received multiple environmental impact assessment approvals for its new projects, including a PCB manufacturing project with a capacity of 150,000 Ft²/month[117]. - The company has constructed wastewater and sewage treatment systems with a total processing capacity of 4,500 m³/d, achieving compliance in all pollutant discharges[123]. Shareholder and Corporate Governance - The company commits to not infringe on its interests during its tenure as a controlling shareholder and will not interfere with the company's management[152]. - The company has established a clear strategy to avoid conflicts of interest and ensure fair dealings with related parties[138]. - The company guarantees compliance with relevant laws and regulations regarding share reduction, including advance notice requirements[136]. - The company has committed to resolving related party transactions in accordance with regulations[138]. - The company will ensure compliance with commitments made during its initial public offering, including compensation for any losses incurred by investors due to non-compliance[157].

2021 年第一季度报告 公司代码：688183 公司简称：生益电子 生益电子股份有限公司 2021 年第一季度报告 1 / 23 2021 年第一季度报告 目录 | --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | |--------------|-------| | | | | 重要提示 | | | 公司基本情况 | | | 重要事项 | | | 附录 | | 2 / 23 2021 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人邓春华、主管会计工作负责人唐慧芬及会计机构负责人（会计主管人员 ...

Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.63 billion, an increase of 17.35% compared to CNY 3.10 billion in 2019[25]. - The net profit attributable to shareholders for 2020 was approximately CNY 439.23 million, a slight decrease of 0.44% from CNY 441.18 million in 2019[25]. - The net cash flow from operating activities reached approximately CNY 838.34 million, representing a significant increase of 219.25% compared to CNY 262.60 million in 2019[25]. - Basic earnings per share for 2020 remained stable at CNY 0.66, unchanged from 2019[28]. - The weighted average return on net assets decreased to 24.72% in 2020, down by 3.90 percentage points from 28.62% in 2019[28]. - Operating revenue for the fourth quarter of 2020 was CNY 822,918,709.06, with a net profit attributable to shareholders of CNY 46,299,882.28[29]. - The company reported a total of CNY 19,787,651.57 in non-recurring gains and losses for 2020, compared to CNY 449,136.87 in 2019[33]. - The total operating revenue reached CNY 3,633,501,932.99, representing a year-on-year growth of 17.35%[102]. - Operating costs amounted to CNY 2,641,721,847.76, reflecting a year-on-year increase of 21.47%[102]. - The gross margin for the electronic components segment was 26.02%, down by 2.87 percentage points year-on-year[108]. Assets and Liabilities - The net assets attributable to shareholders of the listed company at the end of 2020 were CNY 1,941,769,208.16, an increase of 12.76% compared to CNY 1,722,107,078.75 at the end of 2019[28]. - Total assets at the end of 2020 reached CNY 4,571,383,737.15, reflecting a 21.86% increase from CNY 3,751,451,931.12 at the end of 2019[28]. - The company's cash and cash equivalents at the end of the reporting period were 157.91 million RMB, which is 3.45% of total assets, down 22.07% from the previous period[128]. - The company's short-term borrowings increased to 1,165.30 million RMB, representing 25.49% of total assets, an increase of 81.53% compared to the previous period[128]. - The company's total assets at the end of the reporting period were 4,580.00 million RMB, with a significant increase in construction in progress, which reached 747.01 million RMB, accounting for 16.34% of total assets[128]. - The company's retained earnings at the end of the reporting period were 698.94 million RMB, representing 15.29% of total assets, an increase of 32.44% from the previous period[131]. Research and Development - Research and development expenses accounted for 4.30% of operating income in 2020, a decrease of 0.30 percentage points from 4.60% in 2019[28]. - The company invested approximately ¥156.20 million in R&D in the current year, representing a 9.70% increase from the previous year[64]. - The R&D personnel count increased to 596, representing 12.14% of the total workforce, up from 10.45% in the previous period[77]. - The company has developed 13 core technologies in PCB manufacturing, maintaining a strong competitive edge, and has obtained 150 invention patents as of the end of 2020[56]. - The company is focusing on expanding its capabilities in 5G technology, with multiple projects aimed at enhancing product standards and testing databases[70]. - The company has initiated projects related to "5G multi-module heterogeneous high-frequency PCB key technologies" and "high-speed large-size PCBs for 5G baseband processing units," achieving international advanced levels[57]. - The company has completed several key R&D projects, including the "Data Center Computing Node PCB Development" and "Rigid-Flex PCB Development," both of which are now in the market application stage[68]. Market Position and Strategy - The company ranks 20th among the top 100 PCB companies in China and 7th among domestic PCB companies based on total revenue[48]. - The company aims to expand its market presence by enhancing its sales network and technical support services for both domestic and international clients[41]. - The company has successfully passed certifications from well-known domestic and international enterprises, establishing itself as an important PCB supplier in the communications sector[48]. - The demand for high-frequency and high-speed PCBs is expected to increase with the deployment of 5G base stations, which will drive the development of the PCB industry[51]. - The company is expanding its product portfolio and market presence, which is expected to enhance its market ranking and share[48]. - The company has maintained a direct sales model, focusing on customized PCB products to meet client needs[38]. - The company is collaborating with major institutions on significant R&D projects, including a key project supported by the national key R&D plan for broadband communication and new networks[59]. Corporate Governance and Compliance - The company has a standard unqualified audit report issued by Huaxing Accounting Firm[6]. - The company does not have any special arrangements for corporate governance[8]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures for external guarantees[9]. - The company’s financial report has been confirmed as true, accurate, and complete by its management[4]. - The company has implemented a strict compliance framework to ensure sustainable and healthy development in accordance with relevant laws and regulations[143]. - The company will strictly adhere to the requirements of the Company Law of the People's Republic of China regarding related party transactions, ensuring fair treatment and disclosure[164]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 3.30 per 10 shares to shareholders, pending approval at the annual general meeting[7]. - In 2020, the company distributed a total of 274,500,987.75 RMB in cash dividends, representing 62.50% of the net profit attributable to ordinary shareholders[148]. - The company has established a return mechanism for investors, ensuring compliance with regulations regarding profit distribution policies[145]. - The company has a cash dividend policy where the minimum cash dividend ratio is set at 80% for mature companies without significant capital expenditure, 40% for mature companies with significant capital expenditure, and 20% for growth-stage companies with significant capital expenditure[170]. Risks and Challenges - The company has outlined potential risks in its future development in the report[5]. - The company faces risks related to technological innovation, including potential loss of core technology and key personnel, which could impact its R&D capabilities[93]. - The company has committed to ensuring independent operation and decision-making for Shengyi Electronics[164]. - The company guarantees that any reduction in shares will not exceed 1% of the total shares through centralized bidding within any continuous 90-day period[158].

Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.63 billion, an increase of 17.35% compared to CNY 3.10 billion in 2019[25]. - The net profit attributable to shareholders for 2020 was approximately CNY 439.23 million, a slight decrease of 0.44% from CNY 441.18 million in 2019[25]. - The net cash flow from operating activities reached approximately CNY 838.34 million, representing a significant increase of 219.25% compared to CNY 262.60 million in 2019[25]. - Basic earnings per share for 2020 remained at CNY 0.66, unchanged from 2019, while diluted earnings per share also stayed at CNY 0.66[28]. - The weighted average return on net assets decreased to 24.72% in 2020, down by 3.90 percentage points from 28.62% in 2019[28]. - Operating revenue for the first quarter of 2020 was CNY 771,963,396.95, while the second quarter saw revenue of CNY 1,134,193,619.19[29]. - The net profit attributable to shareholders in the second quarter of 2020 was CNY 189,623,614.56, compared to CNY 107,362,401.89 in the first quarter[29]. - The net cash flow from operating activities in the second quarter of 2020 was CNY 54,695,853.61, significantly lower than CNY 320,559,297.23 in the first quarter[29]. - Non-operating income for 2020 totaled CNY 19,787,651.57, compared to CNY 449,136.87 in 2019[33]. - Operating costs increased by 21.47% year-over-year to CNY 2,641,721,847.76, primarily due to the growth in operating revenue[102]. Research and Development - The company has a strong focus on R&D and is committed to expanding its product offerings in the PCB sector[25]. - Research and development expenses accounted for 4.30% of operating income in 2020, a decrease of 0.30 percentage points from 4.60% in 2019[28]. - The company invested approximately ¥156.20 million in R&D in the current year, representing a 9.70% increase from the previous year[64]. - The R&D personnel count increased to 596, accounting for 12.14% of the total workforce, up from 10.45% in the previous period[77]. - The company has developed 13 core technologies in PCB manufacturing, maintaining a strong competitive edge, and has obtained 150 invention patents as of the end of 2020[56]. - The company has achieved international advanced level in two key technology projects related to 5G PCB manufacturing, which are widely used in 5G communication base stations[57][58]. - The company is collaborating with Guangzhou Haige Communication Group and Tsinghua University on a key national R&D project for 5G technology, currently in implementation[59]. - The company aims to enhance its market competitiveness by developing diverse high-frequency materials for PCB applications, with a focus on 5G technology[73]. - The company has established a comprehensive R&D innovation platform, maintaining a strong focus on technological advancements and customer collaboration[79]. - The company achieved significant progress in various R&D projects, with several completed and others in development, indicating a strong commitment to innovation[68]. Market Position and Strategy - The company ranks 20th in the overall PCB industry and 7th among domestic PCB manufacturers according to CPCA's 2019 report[48]. - The company has established strong brand recognition and market presence in the communication PCB sector through successful certifications with well-known domestic and international enterprises[48]. - The demand for high-frequency and high-speed PCBs is expected to increase with the growth of 5G technology, which requires low dielectric constant and low loss factor materials[51]. - The company is positioned as one of the few capable suppliers of high-end communication PCBs for 5G applications[51]. - The company aims to enhance its market share and ranking through continuous market expansion and product diversification[48]. - The company’s PCB products are essential for the stability and reliability required in communication equipment, which fosters long-term customer relationships[48]. - The global PCB industry is projected to grow at a compound annual growth rate (CAGR) of 4.30% from 2019 to 2024, reaching a market value of $75.846 billion by 2024[52]. - The PCB industry in mainland China is expected to maintain a CAGR of 4.90%, with a total market value of $41.770 billion by 2024[52]. - The company aims to expand its international market presence and strengthen its overseas marketing service network, focusing on communication, cloud computing, IoT, and new energy sectors over the next three years[141]. Governance and Compliance - The company has maintained a consistent governance structure, ensuring the integrity of its financial reporting[11]. - The company has received a standard unqualified audit report from Huaxing Accounting Firm[6]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has established a robust management system and automated processes to improve production efficiency and reduce labor costs[83]. - The company has passed multiple management system certifications, including ISO9001 and IATF16949, reinforcing its commitment to quality and customer satisfaction[82]. - The company will strictly adhere to legal regulations and improve its governance level to ensure sustainable and healthy development[143]. - The company has committed to ensuring independent operation and decision-making for Shengyi Electronics[164]. - The company will strictly adhere to the requirements of the Company Law of the People's Republic of China regarding related party transactions, ensuring fair treatment for all shareholders[164]. Investment and Financial Management - The company plans to distribute a cash dividend of CNY 3.30 per 10 shares to shareholders, pending approval at the annual general meeting[7]. - The company has established a profit distribution policy to enhance investor returns, focusing on reasonable and stable returns for investors[179]. - The company will set up a special account for the raised funds and ensure strict management and effective use of these funds[179]. - The company is committed to improving the protection system for small and medium investors, ensuring their rights to information and participation in decision-making[179]. - The company will not engage in unfair benefit transfers or damage its interests, ensuring accountability for any violations of commitments made[182]. - The company will compensate investors for direct losses incurred due to reliance on the stock price stabilization plan, with the compensation amount to be determined through negotiation or according to regulatory authority determinations[171]. - The company will actively seek feedback from independent directors and public investors to continuously improve its profit distribution policy[179]. Risks and Challenges - The company has outlined potential risks in its future development strategies, which investors should be aware of[5]. - The company faces risks related to technological innovation, including potential loss of core technical personnel and the impact of market competition on profitability[95]. - The company has reported a 100% decrease in long-term borrowings, which were reclassified as current liabilities[131]. - The company will publicly apologize and stop receiving remuneration and dividends until it takes appropriate measures to stabilize the stock price if it fails to fulfill its commitments[191]. - The company is liable for compensation to investors if it causes losses due to non-fulfillment of public commitments[190]. Production and Capacity - The company produced 822,000 square meters of printed circuit boards in 2020, an increase of 1.88% year-over-year[101]. - The company established the Dongguan Hongmei branch to enhance production capacity, focusing on the semi-process drilling of circuit boards, effectively addressing capacity bottlenecks[89]. - The company implemented a comprehensive quality management model, enhancing risk identification and prevention capabilities, ensuring high product quality[88]. - The company initiated the East City Phase IV project to strengthen its competitive edge, with construction starting on September 28, 2020[89]. Shareholder Relations - The company has established a return mechanism for investors, enhancing the transparency of its cash dividend policy to protect the rights of minority investors[145]. - Major shareholders, including Guohong Investment, will not reduce their holdings within two years after the lock-up period ends, and any reduction will comply with relevant laws and regulations[158]. - The company guarantees that any reduction in shares will not be below the price at the time of the initial public offering[158]. - The company will report any planned share reductions to the stock exchange 15 trading days in advance[158].