NJEC(SH:600699)2018-04-27 16:00Business Performance - In 2017, Joyson Electronics achieved new orders totaling approximately RMB 38 billion, laying a solid foundation for long-term sustainable development[17]. - The company’s operating revenue for 2017 was approximately CNY 26.61 billion, representing a 43.41% increase compared to CNY 18.55 billion in 2016[30]. - The net profit attributable to shareholders for 2017 was CNY 395.87 million, a decrease of 12.75% from CNY 453.69 million in 2016[30]. - The net cash flow from operating activities increased by 182.23% to CNY 1.90 billion, up from CNY 673.69 million in 2016[30]. - The company reported a significant increase in R&D expenses, totaling CNY 1.98 billion in 2017, an increase of CNY 820 million year-over-year[31]. - The company achieved a total asset of RMB 266,535.29 million and operating revenue of RMB 167,385.19 million from its subsidiary Ningbo Joyson Automotive Electronics Co., Ltd. with a 75% direct holding[85]. - The company reported a total of ¥1.7 billion in trust financial products and ¥1.7815 billion in bank financial products, with a remaining balance of ¥1.5 billion and ¥10 million respectively[120]. Market Position and Strategy - The company successfully integrated KSS and acquired Takata's target assets, positioning itself as the second-largest automotive safety system supplier globally, with annual sales revenue nearing USD 7 billion and a market share close to 30%[18]. - The acquisition of Takata's major assets, excluding the PSAN business, is expected to significantly increase the company's market share in automotive safety, positioning it as a global leader in the field[49]. - The company has established strong partnerships with major automakers, including BMW, Daimler, and Ford, and successfully entered the supply chain of Japanese brands like Toyota and Honda[46]. - The company aims to achieve over RMB 50 billion in total revenue for the year 2018, while striving towards a target of USD 10 billion in revenue[94]. - The company plans to increase its market share in the battery management system and mild hybrid (48V) system market in China to 25% to 30% within three years[93]. Research and Development - Joyson Electronics increased its global R&D and technical personnel by over 1,000 in 2017, focusing on human-machine interaction, intelligent vehicle networking, and new energy power control[17]. - The company established a new R&D center in Europe for its functional components business, successfully implementing its "going out" strategy with new orders totaling approximately RMB 5.9 billion[17]. - R&D investment in 2017 was approximately 1.9 billion RMB, accounting for 7.1% of the company's revenue[49]. - The company has three major R&D centers located in China, the United States, and Germany, with over 3,000 engineering and R&D personnel[45]. - The company plans to invest 300 million RMB in research and development over the next two years to innovate new technologies[160]. Financial Management and Dividend Policy - The company proposed a cash dividend of RMB 1.0 per 10 shares, totaling a distribution of RMB 94,928,900 based on a total share capital of 949,289,000 shares[7]. - The net profit attributable to ordinary shareholders for 2017 was 395,870,260.54 RMB, with a dividend payout ratio of 23.98%[102]. - The company has revised its cash dividend policy to enhance transparency and align with regulatory requirements[101]. - The company has established a complete decision-making process for dividend distribution, ensuring independent directors fulfill their responsibilities[101]. Operational Challenges - Joyson Electronics faced challenges in 2017, including a decline in gross profit margin due to the ramp-up of new product production and unexpected costs related to the integration of KSS[19]. - The gross margin for the KSS business was affected by new project ramp-up, resulting in a decrease of 1.5 percentage points compared to normal levels[31]. - The company faces risks related to integration, exchange rate fluctuations, and raw material price volatility, which could impact manufacturing costs and financial data[95][96][97]. Corporate Governance and Compliance - The company appointed KPMG Huazhen as the financial audit and internal control audit institution for the fiscal year 2017, with a total audit fee of RMB 6.5 million[112]. - The company has implemented changes to its accounting policies in accordance with the Ministry of Finance's notifications, which will not affect total assets, net assets, or net profit[107]. - The internal control management system has been established and evaluated, with no significant deficiencies in financial reporting internal controls identified[175]. - The company maintains independence from its controlling shareholder, ensuring fair and reasonable related transactions[172]. Social Responsibility and Environmental Commitment - The company emphasizes its commitment to environmental protection and has established an effective environmental risk management system[130]. - The company has a strong focus on social responsibility, including environmental protection and energy conservation[129]. - The company respects the intellectual property rights of customers and suppliers, ensuring their legal rights are protected[128]. Shareholder Structure and Changes - The company's total share capital increased from 689,369,800 shares to 949,289,000 shares, with Junsheng Group holding 33.56% of the shares post-change[140]. - The top ten shareholders collectively hold 66.56% of the company's shares, indicating a concentrated ownership structure[144]. - The total number of ordinary shareholders increased from 52,934 to 54,225 during the reporting period, reflecting a growth of approximately 2.44%[142].