SCC(002916)2023-08-23 16:00Financial Performance - Revenue for the first half of 2023 reached RMB 6.5 billion, representing a year-on-year growth of 12%[2] - Net profit attributable to shareholders increased by 8% year-on-year to RMB 750 million[2] - Revenue for the reporting period was RMB 6,033,778,519.58, a decrease of 13.45% compared to the same period last year[14] - Net profit attributable to shareholders of the listed company was RMB 473,932,042.81, a decrease of 37.02% compared to the same period last year[14] - Shennan Circuits achieved total operating revenue of 6.034 billion yuan in H1 2023, a year-on-year decrease of 13.45%, with net profit attributable to shareholders dropping 37.02% to 474 million yuan[31] - Total revenue for the first half of 2023 was 6,033,778,519.58 yuan, a decrease from 6,971,616,823.46 yuan in the same period last year[127] - Operating revenue for the first half of 2023 was 2,832,175,605.32 yuan, a decrease compared to 3,203,177,685.51 yuan in the same period last year[130] - Operating profit for the first half of 2023 was 448,718,205.05 yuan, down from 819,461,697.65 yuan in the same period last year[128] - Net profit attributable to the parent company's shareholders was 473,932,042.81 yuan, compared to 752,470,663.16 yuan in the same period last year[128] - Comprehensive income for the first half of 2023 was RMB 385,721,524.55, a decrease from RMB 441,070,261.78 in the same period last year[132] - Total comprehensive income for the period amounted to RMB 1,086,435.69 thousand[138] - Net profit attributable to the parent company's owners was RMB 475,018,478.50[138] - Comprehensive income for the period was RMB 753,494,000[140] - Total revenue for the first half of 2023 reached 663.16 million, with a net profit of 167.54 million[141] - Comprehensive income for the period amounted to 385,721,524.55, contributing to the overall equity growth[143] - Comprehensive income for the period was RMB 441,070,260[145] Profitability and Margins - The company's gross margin improved to 25.5%, up from 24.8% in the same period last year[2] - PCB business revenue declined 12.43% to 3.882 billion yuan, accounting for 64.33% of total revenue, with a gross margin of 25.85%, down 1.49 percentage points[32] - PCB business revenue increased by 20.33% to 850 million yuan, accounting for 14.10% of total revenue, with a gross margin of 15.80%[35] - Substrate business revenue decreased by 39.90% to 821 million yuan, accounting for 13.61% of total revenue, with a gross margin of 18.80%[34] - Revenue from the printed circuit board segment decreased by 12.43% to RMB 3,881,582,638.92, with a gross margin of 25.85%[47] - Revenue from the electronic assembly segment increased by 20.33% to RMB 850,482,987.89, with a gross margin of 15.80%[47] - Revenue from the packaging substrate segment decreased significantly by 39.90% to RMB 821,217,786.89, with a gross margin of 18.80%[47] Capital Expenditure and Investments - Capital expenditure for the first half of 2023 amounted to RMB 1.2 billion, primarily allocated to capacity expansion and technology upgrades[2] - The company plans to invest RMB 2.5 billion in the second half of 2023 for the construction of the Wuxi Substrate Phase II project[6] - The company's investment in the high-end flip-chip IC substrate manufacturing project reached 1,789,592,229.86 yuan, with a project progress of 88.76%[53] - The Guangzhou Guangxin packaging substrate investment project had a cumulative investment of 1,853,016,581.42 yuan, with a project progress of 30.16%[53] - The company's total investment during the reporting period was 1,232,199,910.88 yuan, a decrease of 30.21% compared to the same period last year[52] - The high-end flip-chip IC substrate manufacturing project has a total investment commitment of 1,800 million yuan, with 1,108.24 million yuan invested by the end of the reporting period, achieving 61.57% of the planned investment[61] - Total funds raised through non-public stock issuance in 2022 amounted to 2,529.66 million yuan, with 1,840.21 million yuan already utilized, leaving 731.26 million yuan unused[59] - In the first half of 2023, the company used 235.99 million yuan of the raised funds, with a cumulative usage of 1,840.21 million yuan by June 30, 2023[60] R&D and Innovation - The company's R&D expenditure for the first half of 2023 was RMB 450 million, accounting for 6.9% of total revenue[2] - The company successfully launched 15 new products in the first half of 2023, contributing to 18% of total revenue[2] - R&D investment accounted for 6.24% of revenue, an increase of 0.49 percentage points year-on-year[37] - 55 new patents were authorized and 5 new PCT patents were applied for[37] - FC-CSP product sample capabilities in MSAP and ETS processes have reached industry-leading levels[34] - FC-BGA mid-range products have completed client certification, and high-end product R&D is in the mid-to-late stages[34] - The company has 832 authorized patents, including 446 invention patents, and has applied for 95 international PCT patents[39] - The company's backplane samples can reach up to 120 layers, with mass production capabilities of up to 68 layers[39] - R&D expenses for the first half of 2023 were 376,719,495.77 yuan, a decrease from 401,092,046.95 yuan in the same period last year[128] Market and Industry Trends - Global PCB industry output value is expected to decrease by 9.3% in 2023, with a compound annual growth rate of 3.8% from 2022 to 2027[20] - Substrate for packaging output value is expected to decrease by 17.1% in 2023, with a compound annual growth rate of 5.1% from 2022 to 2027[21] - Global packaging substrate industry is expected to maintain rapid growth driven by 5G, AI, cloud computing, autonomous driving, and IoT applications[22] - PCB industry growth is driven by wireless communication, servers, data storage, new energy, smart driving, and consumer electronics, with high-end PCB products like high-layer, high-frequency, and HDI boards showing strong demand[22] - The company faces risks from macroeconomic fluctuations, with potential impacts on the PCB industry due to global economic slowdown[67] - The company is mitigating risks from US-China trade friction by maintaining close communication with overseas customers and monitoring geopolitical changes[68] - The company is addressing raw material supply and price fluctuation risks by optimizing supply chain management and increasing inventory of key materials[73] Subsidiaries and Business Segments - The subsidiary Wuxi Shennan Circuits Co., Ltd. reported a net profit of 507.94 million yuan in the reporting period[65] - The subsidiary Nantong Shennan Circuits Co., Ltd. reported a net profit of 660.63 million yuan in the reporting period[65] - The subsidiary Tianxin Interconnect Technology Co., Ltd. reported a net profit of 265.25 million yuan in the reporting period[65] - The subsidiary Guangzhou Guangxin Substrate Co., Ltd. reported a net loss of 748.94 million yuan in the reporting period[65] - Total assets of Shennan Circuits Co., Ltd. reached RMB 46,328.342 million, with net assets of RMB 20,362.813 million as of June 30, 2023[66] - Nantong Shennan Circuits Co., Ltd. reported total assets of RMB 398,427.20 million and net assets of RMB 232,134.77 million as of June 30, 2023[66] - Tianxin Interconnect Technology Co., Ltd. had total assets of RMB 42,494.08 million and net assets of RMB 19,129.49 million as of June 30, 2023[66] - Guangzhou Guangxin Packaging Substrate Co., Ltd. recorded total assets of RMB 266,125.03 million and net assets of RMB 101,440.18 million as of June 30, 2023[66] - The company operates through 10 subsidiaries, including Shennan Circuits USA, Inc. and Glaretec GmbH[149] - The company's main business activities include the R&D, production, and sales of printed circuit boards, packaging substrates, and electronic assembly products[150] Environmental and Social Responsibility - The company invested over 30 million yuan in pollution prevention facilities and operating costs during the reporting period, with all pollutant emissions meeting 100% compliance standards[84] - The company paid 102,000 yuan in environmental protection taxes during the reporting period[85] - The company's wastewater treatment system ensures that chemical oxygen demand (COD) emissions are less than 33mg/L, with total emissions below 21.369 tons, well within the annual limit of 60.225 tons[82] - Total copper emissions in wastewater are controlled to less than 0.05mg/L, with total emissions below 0.032 tons[82] - Sulfuric acid mist emissions are maintained at 5.035mg/m³, with total emissions of 9.92 tons, complying with the national standards[82] - Nitrogen oxide emissions are controlled at 0.909mg/m³, with total emissions of 1.374 tons, meeting the national standards[82] - The company's environmental monitoring system includes hourly checks for wastewater and semi-annual checks for exhaust gases, conducted by both in-house labs and third-party certified units[86] - No environmental penalties were imposed on the company or its subsidiaries during the reporting period[87] - The company implemented photovoltaic transformation, heat recovery, and energy-saving projects in Shenzhen, Wuxi, and Nantong parks, achieving significant environmental benefits[88] - The company was awarded the title of "Green and Low-Carbon Pioneer Enterprise" in Shenzhen in 2023[88] Shareholder and Corporate Governance - The company held its 2023 First Extraordinary General Meeting with a 70.70% investor participation rate on January 16, 2023[74] - The 2022 Annual General Meeting had a 68.04% investor participation rate on April 6, 2023[74] - 135 incentive objects were eligible to unlock 1,469,013 restricted shares on January 31, 2023[77] - The company's restricted shares decreased by 1,124,542, resulting in a post-change total of 3,631,519 shares, accounting for 0.71% of the total shares[109] - The company's unrestricted shares increased by 1,124,542, resulting in a post-change total of 509,246,016 shares, accounting for 99.29% of the total shares[109] - The company's total shares remained unchanged at 512,877,535, with no new shares issued or converted[109] - The company unlocked 1,469,013 restricted shares for 135 incentive objects, which became tradable on January 31, 2023[110] - The total number of restricted shares at the end of the period is 3,631,519 shares, with a net decrease of 1,124,542 shares compared to the beginning of the period[113] - AVIC International Holdings Limited holds 63.97% of the company's shares, totaling 328,068,670 shares[115] - Hong Kong Securities Clearing Company Limited increased its holdings by 1,750,609 shares, reaching a total of 15,999,989 shares, representing 3.12% of the company[115] - China Life Insurance Company Limited - Traditional - General Insurance Product - 005L - CT001 Shanghai increased its holdings by 3,419,664 shares, totaling 4,986,060 shares, representing 0.97% of the company[115] - AVIC Industrial Investment Co., Ltd. holds 1,393,792 restricted shares, representing 0.27% of the company[115] - The total number of restricted shares released during the period is 1,469,013 shares[113] - The number of shareholders with voting rights restored at the end of the reporting period is 67,881[114] - The company's top 10 shareholders do not have any share pledges, marks, or freezes[116] - The company's top 10 shareholders did not engage in any repurchase agreements during the reporting period[116] - The company's top 10 shareholders are not aware of any other relationships or acting in concert as stipulated in the "Administrative Measures for the Acquisition of Listed Companies"[115] Financial Position and Assets - The company's total assets as of June 30, 2023, stood at RMB 18.5 billion, an increase of 5% compared to the end of 2022[2] - Total assets at the end of the reporting period were RMB 20,357,577,727.02, a decrease of 1.81% compared to the end of the previous year[14] - Total assets as of June 30, 2023, were 13,982,901,931.39 yuan, compared to 14,300,425,216.25 yuan at the beginning of the year[126] - Total liabilities as of June 30, 2023, were 4,114,956,417.59 yuan, down from 4,341,476,510.67 yuan at the beginning of the year[127] - Total equity as of June 30, 2023, was 9,867,945,513.80 yuan, compared to 9,958,948,705.58 yuan at the beginning of the year[127] - Long-term loans increased to 1,899,255,785.09 yuan as of June 30, 2023, from 1,174,624,053.70 yuan at the beginning of the year[125] - Accounts receivable increased to 2,887,211,437.90 yuan as of June 30, 2023, from 2,626,918,808.31 yuan at the beginning of the year[126] - Inventory decreased to 838,535,140.29 yuan as of June 30, 2023, from 940,459,211.41 yuan at the beginning of the year[126] - Long-term equity investments increased to 5,990,502,137.55 yuan as of June 30, 2023, from 5,046,080,618.63 yuan at the beginning of the year[126] - Fixed assets decreased to 1,659,318,189.48 yuan as of June 30, 2023, from 1,939,353,703.90 yuan at the beginning of the year[126] - Total assets decreased from RMB 20.73 billion as of January 1, 2023, to RMB 20.36 billion as of June 30, 2023[123][124] - Cash and cash equivalents decreased significantly from RMB 1.91 billion to RMB 516.31 million[123] - Trade receivables increased from RMB 2.77 billion to RMB 2.94 billion[123] - Inventory increased from RMB 2.34 billion to RMB 2.55 billion[123] - Fixed assets increased from RMB 9.14 billion to RMB 9.47 billion[124] - Construction in progress increased from RMB 1.52 billion to RMB 1.84 billion[124] - Short-term borrowings stood at RMB 499.27 million as of June 30, 2023[124] - Trade payables increased from RMB 1.64 billion to RMB 1.85 billion[124] - Employee benefits payable decreased from RMB 461.56 million to RMB 332.30 million[124] - Other payables decreased from RMB 1.70 billion to RMB 1.33 billion[124] - The company's monetary funds decreased by 6.69% to RMB 516,310,700.89, accounting for 2.54% of total assets[48] - Long-term loans increased by 3.66% to RMB 1,899,255,785.09, primarily due to increased borrowing from financial institutions[49] - The company's financial assets at the beginning of the period were 332,513,820.11 yuan, with a fair value change of 1,826,042.58 yuan during the period, and the ending balance was 761,964,421.75 yuan[50] - The company's restricted assets include land and factory buildings with a book value of 320,184,310.44 yuan and 149,733,675.00 yuan, respectively[51] - The company's restricted monetary funds amounted to 1,389,832.26 yuan, which is the land reclamation guarantee deposit[51] - The company's financial liabilities at the beginning of the period were 643,000.00 yuan, with a fair value change of -3,244,000.00 yuan, and the ending balance was 3,887,000.00 yuan[50] - The company's derivative investments accounted for 0.56% of the company's net assets at the end of the reporting period[56] - The company's forward foreign exchange contracts resulted in a loss of 1,615.98 million yuan, including a fair value change loss of 324.40 million yuan[56] - The company's total assets at the end of the period stood at 9,867,945,513.80, indicating strong financial health[144] - The company's total equity at the end of the period was RMB 9,375,527,675.90, an increase of RMB 2,526,595,829.16 from the beginning of the period[145][146] - Owner's equity at the beginning of the period was RMB 12,251,659,553.96[137] - Net profit attributable