OLYMPIC(SH:603920)2019-04-09 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,167,293,686.74, representing a 10.73% increase compared to CNY 1,957,205,860.78 in 2017[24]. - The net profit attributable to shareholders for 2018 was CNY 225,787,976.93, which is a 24.96% increase from CNY 180,685,697.53 in 2017[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 225,173,112.31, up 38.11% from CNY 163,033,729.50 in 2017[24]. - The net cash flow from operating activities for 2018 was CNY 257,384,299.49, an increase of 85.74% compared to CNY 138,573,608.43 in 2017[24]. - The total assets at the end of 2018 were CNY 3,179,034,929.86, reflecting an 11.02% increase from CNY 2,863,392,498.77 at the end of 2017[24]. - The net assets attributable to shareholders at the end of 2018 were CNY 2,392,497,984.04, a 2.10% increase from CNY 2,343,249,156.26 at the end of 2017[24]. - Basic earnings per share increased by 14.29% to CNY 0.56 compared to CNY 0.49 in the previous year[25]. - Net profit attributable to shareholders rose by 24.96% due to increased sales revenue and gross profit[25]. - Operating cash flow increased significantly, driven by higher sales leading to increased cash collections[25]. - Main business revenue grew by 10.73% year-on-year, attributed to product structure optimization and increased business volume[25]. - The net profit after deducting non-recurring gains and losses for the year was CNY 0.56 per share, up from CNY 0.44 in the previous year, marking a 27.27% increase[25]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 4.40 per 10 shares, totaling CNY 180,092,880, based on a total share capital of 409,302,000 shares as of December 31, 2018[6]. - In 2018, the company distributed cash dividends amounting to 180,092,880.00 RMB, representing 79.76% of the net profit attributable to ordinary shareholders[132]. - The company plans to maintain a cash dividend policy of at least 10% of the distributable profit each year, ensuring consistent returns to shareholders[130]. Research and Development - R&D investment totaled 72.84 million yuan, representing an increase of 18.02 million yuan, with R&D expenses accounting for 3.36% of operating revenue[57]. - The company’s R&D expenses rose by 32.89% to CNY 72.84 million, reflecting a commitment to innovation[65]. - The company plans to enhance its R&D capabilities by upgrading its current municipal technology center to a provincial level and focusing on high-end products like automotive radar boards and aluminum substrates[114]. Market and Industry Trends - The global PCB industry grew by over 6% in 2018, with a market value exceeding 60 billion USD, driven by cloud technology, 5G, and electric vehicles[44]. - China's PCB output accounted for 52.4% of the global market, solidifying its position as the largest PCB production hub[44]. - The automotive application market remains the largest sales segment, with a focus on high-reliability PCB products due to stringent certification requirements[55]. - The demand for PCBs is categorized into enterprise-level and consumer-level, with enterprise demand focusing on high-reliability sectors such as communication and aerospace, while consumer demand is driven by the growth in computers and mobile devices[93]. - The PCB industry in China is gradually achieving a trade surplus, with exports primarily consisting of mid-to-low-end products and imports focusing on high-end products[99]. - The automotive PCB market grew by 3% in 2018, nearly matching the market share of consumer electronics, indicating strong growth potential[106]. Operational Efficiency and Cost Management - The company implemented cost control measures, focusing on procurement cost reduction and continuous improvement in manufacturing processes to enhance profit margins and market competitiveness[118]. - The company’s inventory management system was enhanced through the implementation of an automated warehouse and Oracle ERP system, improving efficiency and reducing costs[58]. - The total cost of the printing line was 1,021,973,053, accounting for 61.03% of total costs, an increase of 8.47% compared to the previous year[75]. Risk Management and Compliance - There were no significant risks that materially affected the company's operations during the reporting period[8]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not violated any decision-making procedures for providing guarantees to external parties[8]. - The company is facing risks related to the inability to quickly release new production capacity from its project aimed at producing 2 million square meters of high-density interconnect boards annually, which could impact profit growth due to increased fixed asset depreciation[124]. - The company has enjoyed a preferential corporate income tax rate of 15% since 2016, contingent on passing a high-tech enterprise re-evaluation in 2019; failure to do so would increase the tax rate to 25%, negatively impacting net profit[126]. Environmental and Safety Management - The company has committed to enhancing safety management and environmental protection, aligning with higher societal expectations for corporate responsibility[119]. - The company reported an average discharge concentration of COD at 18 mg/L and ammonia nitrogen at 0.33 mg/L for the year, which is below the approved discharge limits[178]. - The total annual discharge of COD was 17.53 tons and ammonia nitrogen was 0.34 tons, indicating compliance with environmental standards[178]. - The company has implemented a rainwater and wastewater separation system to enhance environmental protection measures[179]. - The company has established a safety production leadership group to oversee safety governance and management across all levels[173]. Shareholder and Stakeholder Relations - The company has commitments related to share restrictions for various stakeholders, with a lock-up period of 36 months for several entities, including Xin Hao International and Woze Technology[135]. - The company has fulfilled its commitments on share restrictions and competition resolution as per the outlined agreements[135]. - The company has a commitment to not engage in any business that competes directly or indirectly with its main operations, ensuring independence from competitors[138]. Audit and Financial Management - The company has not encountered any non-standard audit opinions from its accounting firm during the reporting period[144]. - The company appointed Tianjian Accounting Firm with an audit fee of RMB 700,000 for a term of 4 years[145]. - The company has engaged in wealth management with various banks, achieving annualized returns ranging from 3.25% to 4.00% on different products[161].