OLYMPIC(SH:603920)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was approximately RMB 2.54 billion, an increase of 3.98% compared to 2019 [22]. - Net profit attributable to shareholders decreased by 7.61% to approximately RMB 303.73 million, primarily due to significant foreign exchange losses from RMB appreciation [22]. - The net cash flow from operating activities fell by 13.31% to approximately RMB 499.24 million, attributed to increased payments to suppliers and employees [22]. - Basic earnings per share for 2020 was RMB 0.75, down 7.41% from RMB 0.81 in 2019 [23]. - The weighted average return on equity decreased by 1.82 percentage points to 11.60% in 2020 [23]. - Total assets increased by 10.06% to approximately RMB 3.80 billion at the end of 2020 [22]. - The company reported a net asset attributable to shareholders of approximately RMB 2.70 billion, an increase of 4.29% year-on-year [22]. - The company's total revenue for the reporting period was CNY 2,449,875,209.29, representing a year-on-year increase of 2.98% [81]. - The gross profit margin decreased by 0.66 percentage points to 23.30% compared to the previous year [81]. - Main business revenue for 2020 was CNY 2.45 billion, a year-on-year increase of 2.98%, while main business costs were CNY 1.88 billion, up 3.87% year-on-year [80]. Dividend Policy - The company plans to distribute a cash dividend of 6 yuan per 10 shares (including tax) and to convert capital reserves into shares at a rate of 3 shares for every 10 shares held [7]. - In 2020, the company distributed a cash dividend of 6 RMB per 10 shares, totaling 245,697,120 RMB, which accounted for 80.89% of the net profit attributable to ordinary shareholders [165]. - The company plans to continue its profit distribution policy for the next three years (2020-2022), maintaining the minimum distribution of 10% of the annual distributable profits [163]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period [9]. - The company has not faced any major operational risks during the reporting period [9]. - The company has maintained compliance with decision-making procedures regarding external guarantees [9]. - The company faces risks from overcapacity in the PCB industry, which may lead to price competition; it aims to increase R&D investment and develop high-value products to mitigate this risk [150]. - The company is exposed to raw material price fluctuations, which it plans to manage through supply chain optimization and price adjustments [155]. - The company exports nearly 90% of its products, making it vulnerable to exchange rate fluctuations, which it aims to mitigate through various financial strategies [157]. - Increased environmental regulations may raise the company's operational costs, necessitating further investment in compliance measures [158]. Corporate Governance - The audit report issued by Tianjian Accounting Firm was a standard unqualified opinion, ensuring the accuracy and completeness of the financial report [6]. - The company's financial report is guaranteed to be true, accurate, and complete by its management team [6]. - The company has committed to maintaining independence from Dongguan Tongchang/Tongchang Electronics in all aspects of operations, with no transactions occurring or planned in the future [171]. - The company has no current or future plans to engage in competitive business activities with its controlled entity, Guangdong Shiyun Circuit Technology Co., Ltd [171]. - The company plans to enhance its internal control systems and improve corporate governance in accordance with regulatory requirements [146]. Market Position and Strategy - The company continues to focus on the R&D, production, and sales of various printed circuit boards (PCBs), with no significant changes in its main business operations [35]. - The company ranks 17th among global automotive PCB suppliers according to N.T. Information, showing a three-place improvement from 2018 [50]. - The automotive PCB segment has become a significant business support for the company, with Tesla being the largest automotive client [50]. - The company is actively expanding its domestic market presence while maintaining a strong focus on overseas markets, particularly in the U.S., Europe, and Asia [42]. - The company has a well-established customer base, including major international brands like Tesla and Panasonic, providing stable revenue sources [46]. - The company aims to capitalize on opportunities in the automotive electronics sector, with automotive PCBs becoming its largest business segment, focusing on deepening existing customer relationships and expanding into new markets [134]. - The company plans to adopt a dual domestic and overseas development strategy to mitigate risks from rising costs and trade conflicts, exploring overseas production bases to better serve global customers [135]. Research and Development - R&D investment for the reporting period was CNY 98.33 million, an increase of CNY 12.20 million compared to the same period last year, with 5 new utility model patent applications accepted and 3 invention patents under substantive examination [68]. - The company has established strategic partnerships with institutions like Guangdong Academy of Sciences and Guangdong University of Technology to enhance R&D capabilities in high-frequency and high-speed materials [68]. - Continuous investment in R&D and collaboration with research institutions will enhance the company's technological capabilities and product offerings, focusing on high-value products [136]. - New product development will target precision PCBs for electric vehicles and advanced technologies for 5G applications, including high-frequency materials and embedded semiconductor technologies [141][142]. Supply Chain and Production - The company has established a robust supply chain management system, including a qualified supplier list and regular performance evaluations [36]. - The company has implemented a strict procurement process, utilizing an Oracle ERP system to manage procurement operations and minimize human error [37]. - The company has developed a reliable quality control system, achieving certifications such as ISO9001 and IATF16949, ensuring high product quality [51]. - The company has implemented automation and intelligent factory construction, including AI-driven quality management systems to enhance operational efficiency [73]. - The company has achieved nearly 80% capacity release for its IPO fundraising project by December 2020, with expectations to reach full capacity in the first half of 2021 [74]. Industry Trends - In 2020, the global PCB market value reached approximately $65.219 billion, with a year-on-year growth of 6.4% [43]. - The automotive PCB market is expected to see a CAGR exceeding 20% over the next five years, driven by the increasing adoption of electric vehicles [118]. - The demand for communication PCBs is expected to rise significantly due to the increase in 5G base stations and the expansion of 5G applications [124]. - The consumer electronics PCB market is anticipated to accelerate growth due to increased demand for smart home devices and remote work solutions during the COVID-19 pandemic [127].