Kinwong(SH:603228)2018-03-30 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 5.00 per 10 shares, totaling RMB 204 million for the 2017 fiscal year[6]. - The interim dividend for 2017 was RMB 2.00 per 10 shares, amounting to RMB 81.6 million, which has already been distributed[6]. - The cash dividend policy stipulates that at least 20% of the distributable profit must be distributed in cash if certain conditions are met, including profitability and no major capital expenditures[89]. - In 2017, the company distributed a cash dividend of 7.00 RMB per 10 shares, with a payout ratio of 43.29% of net profit[91]. - The company plans to maintain a minimum cash dividend distribution of 40% of the total profit distribution if there are no significant investment plans[90]. Financial Performance - The company's operating revenue for 2017 was CNY 4,192,017,811.27, representing a year-on-year increase of 27.68% compared to CNY 3,283,195,794.98 in 2016[22]. - Net profit attributable to shareholders of the listed company reached CNY 659,735,093.35, up 22.75% from CNY 537,459,011.72 in the previous year[22]. - The diluted earnings per share for 2017 was CNY 1.62, an increase of 8.72% from CNY 1.49 in 2016[24]. - The total profit reached 800 million yuan, with a year-on-year increase of 22.49%[42]. - The total operating costs were ¥3,441,577,526.52, which is a 29.86% increase year-on-year[48]. Risk Management - The company reported no significant operational risks that could materially affect its business during the reporting period[8]. - The company has a comprehensive risk management strategy in place to address potential operational risks[8]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the report[7]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[8]. - The company faces risks from fluctuations in raw material prices, which significantly impact production costs due to high reliance on materials like copper and gold[86]. Research and Development - R&D expenses amounted to 198.84 million yuan, an increase of 55.47% from 2016[43]. - The company holds a total of 58 invention patents and 143 utility model patents as of December 31, 2017[44]. - The company has developed high-density multilayer flexible boards and high-frequency 5G antenna boards among other advanced technologies[43]. - The company plans to enhance its R&D capabilities focusing on technologies related to 5G, automotive electronics, and the Internet of Things[81]. - The company is committed to strengthening its technical team and fostering partnerships with research institutions to enhance innovation[81]. Market Position and Strategy - The company focuses on the printed circuit board (PCB) industry, engaging in R&D, production, and sales of various types of PCBs, including double-sided and multi-layer rigid boards, flexible boards, and metal-based boards[31]. - The company has seen a steady increase in market share, ranking 10th in the Chinese PCB industry in 2016 with a market share of 1.3%, up from 1.97% in 2015[35]. - The PCB industry is characterized by low cyclicality due to its wide application across various sectors, including consumer electronics, automotive electronics, and industrial control[34]. - The company has developed a core competitive advantage through its product strategy, focusing on rigid boards while expanding into flexible and metal-based boards, positioning itself as a major player in the FPC and MPCB markets[36]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[195]. Corporate Governance - The company has established a governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management, ensuring compliance with relevant laws and regulations[161]. - The company has committed to maintaining transparency and accountability in its financial reporting and operational practices[96]. - The company will not engage in related party transactions that could harm shareholder interests, adhering to strict disclosure and approval processes[95]. - The company has established a commitment to comply with relevant laws regarding employee social insurance and housing fund contributions, with a liability sharing ratio of 46.5% for certain stakeholders[96]. - The company has a clear strategy to manage potential penalties related to employee benefits, ensuring financial responsibility[96]. Environmental Responsibility - The company has invested approximately 54.1 million RMB in environmental protection measures during the reporting period[120]. - The company has been recognized as a "Green Environmental Demonstration Enterprise" for its commitment to clean production[120]. - The company achieved a 100% compliance rate for all pollutant emissions during the reporting period, meeting environmental assessment requirements[121]. - The total annual COD emission was 14.7 tons, with a concentration of 69.5 mg/L, adhering to the discharge standards[121]. - The total annual VOCs emission was 377.9 kg, with a concentration of 0.48 mg/m3, in line with environmental regulations[123]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,203, an increase from 9,803 at the end of the previous month[132]. - The largest shareholder, Shenzhen Jinghong Yongtai Investment Co., Ltd., holds 152,014,080 shares, representing 37.26% of the total shares[134]. - The company did not issue any convertible bonds during the reporting period[129]. - The controlling shareholder is Shenzhen Jinghong Yongtai Investment Holding Co., Ltd., established in 2012, primarily engaged in equity investment and entrusted asset management[138]. - The company has no reported mergers or acquisitions during the reporting period[142]. Internal Controls and Audit - The internal control self-assessment report was disclosed on April 2, 2018, with no significant deficiencies reported[168]. - The internal control audit report was issued by Tianzhi International Accounting Firm, confirming the effectiveness of internal controls[169]. - The financial statements for the year ended December 31, 2017, were audited and found to fairly present the company's financial position[171]. - The audit report confirmed that there were no significant misstatements in the financial statements based on the audit procedures performed[178]. - Management is responsible for ensuring the financial statements fairly reflect the company's financial position and performance[179].