BOMIN ELECTRONICS(SH:603936)2016-05-16 16:00Financial Performance - The company's operating revenue for 2015 was CNY 1,130,254,643.17, representing a 7.27% increase compared to CNY 1,053,667,556.44 in 2014[23]. - The net profit attributable to shareholders for 2015 was CNY 60,958,524.91, a decrease of 11.94% from CNY 69,221,557.05 in the previous year[23]. - The net cash flow from operating activities significantly dropped by 88.33% to CNY 19,625,451.57, down from CNY 168,136,519.95 in 2014[23]. - The total assets at the end of 2015 were CNY 1,785,204,668.61, which is a 33.22% increase from CNY 1,340,040,981.64 in 2014[23]. - The company's net assets attributable to shareholders increased by 68.47% to CNY 889,239,423.93, compared to CNY 527,830,163.81 at the end of 2014[23]. - The basic earnings per share for 2015 were CNY 0.486, down 11.96% from CNY 0.552 in 2014[23]. - The weighted average return on equity decreased by 3.11 percentage points to 10.92% in 2015, compared to 14.03% in 2014[23]. - The gross profit margin decreased by 0.42 percentage points to 20.29% compared to the previous year[53]. - The revenue from printed circuit boards was CNY 1,105,964,314.62, with a gross margin of 18.77%, reflecting a decrease of 0.35 percentage points[53]. - The total profit for 2015 was 81,603,287.76 RMB, a slight decrease from 82,280,673.19 RMB in the previous year, representing a decline of approximately 0.82%[184]. Cash Flow and Investments - The company experienced a significant cash flow challenge in Q3 2015, reporting a negative cash flow from operating activities of ¥40.93 million[26]. - The company raised a total of CNY 33,731.10 million from the public offering of 41.85 million shares at a price of CNY 8.06 per share, with a net amount of CNY 30,045.07 million after deducting issuance costs[127][128]. - The company's financing activities generated a net cash flow of CNY 325,671,712.83 in 2015, compared to a net outflow of 11,500,031.58 RMB in 2014[187]. - Cash outflow from investing activities was 184,079,394.09 RMB, an increase from 171,896,251.43 RMB in 2014, reflecting a rise of about 6.83%[187]. - The total cash inflow from operating activities was 970,761,275.07 RMB, compared to 1,027,306,804.77 RMB in 2014, indicating a decline of about 5.49%[187]. Market and Industry Outlook - The company specializes in high-precision printed circuit boards, with applications in consumer electronics, automotive electronics, and medical electronics[32]. - The printed circuit board industry is characterized by a broad application range, reducing dependency on any single sector, and is expected to grow in demand due to urbanization and consumption upgrades in China[37]. - The company anticipates that the demand for printed circuit boards in China will grow at a rate higher than the global average due to ongoing economic development and technological advancements[37]. - The PCB industry in China is expected to see continued growth in demand for HDI boards and flexible circuit boards, driven by the miniaturization and multifunctionality of consumer electronics[67]. Research and Development - The company has invested CNY 54,004,296.64 in R&D, an increase of 14.80% from the previous year[51]. - The company has established a comprehensive product structure, focusing on high-tech products such as HDI boards, flexible circuit boards, and rigid-flex boards[40]. - The company aims to enhance the technology level of HDI boards, targeting a minimum line width and spacing of 0.03mm, minimum mechanical hole diameter of 0.1mm, minimum laser hole diameter of 0.05mm, and minimum thickness of 0.2mm[84]. - The company has established partnerships with domestic universities and research institutions to enhance R&D capabilities and develop products with independent intellectual property rights[81]. Corporate Governance and Shareholder Relations - The company has appointed Lixin Accounting Firm for the audit of its 2015 financial report, with an audit fee of 600,000 RMB[114]. - The company has committed to avoid any related party transactions that could harm the interests of shareholders[112]. - The company will ensure compliance with relevant laws and regulations in any unavoidable related party transactions[112]. - The company has not engaged in any major related party transactions during the reporting period[118]. - The company has not reported any instances of funds being occupied or any progress in debt recovery during the reporting period[113]. Risk Factors - The company has outlined potential risks in its future development, including industry and market risks, which investors should be aware of[8]. - The company faces risks from macroeconomic fluctuations, which could impact its main business revenue and net profit[92]. - Intense market competition in the PCB industry may lead to price declines, affecting the company's operational performance if it fails to innovate[92]. - Fluctuations in raw material prices, particularly copper and gold, could adversely affect the company's gross margin if costs rise significantly[93]. Employee and Management Structure - The company employs a total of 3,584 staff, with 2,547 in the parent company and 1,037 in major subsidiaries[153]. - The professional composition includes 2,583 production personnel, 90 sales personnel, 598 technical personnel, and 34 financial personnel[153]. - The governance structure includes a board of directors with 9 members, 3 of whom are independent directors[159]. - The company has implemented a salary policy that aligns employee compensation with job responsibilities and performance[154]. Dividend Policy - The company plans to distribute at least 10% of its distributable profits as cash dividends annually, with a minimum of 40% if significant capital expenditures are planned[97]. - The company proposed a cash dividend of 0.5 yuan per 10 shares, amounting to a total of 60,958,524.91 yuan, which represents 13.73% of the net profit attributable to shareholders[98]. - The company aims to distribute cash dividends of no less than 10% of the distributable profits each year for the next three years[109].