BOMIN ELECTRONICS(SH:603936)2017-04-20 16:00Financial Performance - The company's operating revenue for 2016 was approximately CNY 1.35 billion, representing a year-on-year increase of 19.49% compared to CNY 1.13 billion in 2015[18]. - The net profit attributable to shareholders for 2016 was CNY 53.39 million, a decrease of 12.41% from CNY 60.96 million in 2015[18]. - The net cash flow from operating activities increased significantly by 144.23% to CNY 47.93 million, compared to CNY 19.63 million in the previous year[18]. - The total assets of the company at the end of 2016 were CNY 1.92 billion, reflecting a growth of 7.70% from CNY 1.79 billion at the end of 2015[18]. - The net assets attributable to shareholders increased by 5.06% to CNY 934.26 million, up from CNY 889.24 million in 2015[18]. - Basic earnings per share decreased by 34.36% to CNY 0.319 in 2016, down from CNY 0.486 in 2015[19]. - The weighted average return on equity decreased by 5.06 percentage points to 5.86% in 2016, compared to 10.92% in 2015[19]. - The total profit amounted to CNY 56,356,100, a decrease of 20.48% compared to the previous year[46]. - The net profit attributable to shareholders was CNY 53,391,600, down 12.41% year-on-year, with a net profit of CNY 43,622,900 after deducting non-recurring gains and losses, a slight decrease of 0.93%[46]. - The company's operating costs increased by 24.66% to CNY 1,123,114,770.06, compared to CNY 900,908,011.47 in the previous year[48]. Revenue and Sales - The company's total revenue for 2016 was approximately CNY 1.35 billion, with quarterly revenues increasing from CNY 297.06 million in Q1 to CNY 398.58 million in Q4, representing a growth of 34.5% in the last quarter compared to the first[22]. - The net profit attributable to shareholders for the year was CNY 53.39 million, with a notable increase in Q2 to CNY 18.91 million, which is a 167.5% increase compared to Q1[22]. - The net profit after deducting non-recurring gains and losses was CNY 43.62 million for the year, with Q2 showing the highest quarterly figure of CNY 15.81 million[22]. - The company reported a negative cash flow from operating activities of CNY 40.39 million in Q1, which improved significantly to CNY 68.37 million in Q2[22]. - Total revenue from the printed circuit board segment was ¥1,299,102,508.56, with a gross margin of 14.88%, down 3.89 percentage points from the previous year[51]. - The sales revenue from domestic markets was ¥1,096,300,816.73, with a gross margin of 15.63%, reflecting a decrease of 3.74 percentage points year-on-year[51]. Operational Strategy - The company specializes in high-precision printed circuit boards (PCBs), with a focus on multi-layer and single/double-sided PCBs, which are widely used in consumer electronics and automotive electronics[28]. - The company has established a differentiated product strategy, with HDI products accounting for over 50% of its sales, and has begun mass production of various HDI products[33]. - The company employs a direct sales model primarily, supplemented by a distribution model, ensuring quality control and timely delivery to customers[31]. - The company is focusing on expanding into new markets such as renewable energy and military applications to enhance its growth prospects[44]. - The company aims to achieve profitability in 2017 by focusing on market expansion in the new energy vehicle and military sectors, alongside improving production efficiency[78]. - The company plans to establish a professional overseas market team to increase its market share internationally[81]. Research and Development - The company has been recognized as a national high-tech enterprise and has established partnerships with several universities and research institutions to enhance its R&D capabilities[36]. - The company has obtained 24 authorized patents and 2 software copyrights during the reporting period, reflecting its commitment to innovation[37]. - Research and development expenses rose by 18.48% to ¥63,981,724.20, accounting for 4.74% of total revenue[59]. - The company is investing heavily in R&D, with a budget allocation of 100 million RMB for new technology development[117]. Market Conditions - The PCB industry faced challenges in 2016, with a total market value of USD 54.207 billion, down 2.02% from USD 55.325 billion in 2015[44]. - The global electronic information industry reached $1,853 billion in 2016, a decline of 0.7% from 2015, with the automotive electronics market growing by 6.8%[65]. - The global PCB market is projected to grow at a rate of 2.0% in 2017, with total market value reaching $55,276 million, up from $54,207 million in 2016[74]. - The demand for HDI boards and flexible circuit boards is expected to increase, with HDI board production capacity and technology levels being enhanced to meet market needs[76]. Environmental and Social Responsibility - The company has established a systematic pollution management system to meet environmental standards, but risks remain regarding potential environmental incidents and increasing regulatory costs[90]. - The company has implemented ISO14001 and ISO/TS16949:2009 environmental management system certifications to enhance its environmental management practices[130]. - The company has invested RMB 210,000 in various public welfare initiatives during the reporting period[129]. - The company emphasizes a commitment to green manufacturing and has increased investments in environmental protection technologies[130]. - The company achieved a 100% compliance rate in external sampling tests for wastewater discharge[131]. Shareholder and Governance - The company plans to distribute a cash dividend of CNY 0.6 per 10 shares, totaling CNY 10.04 million, subject to shareholder approval[2]. - The company maintains a stable profit distribution policy, ensuring that cash dividends are at least 10% of the distributable profits each year[96]. - The company’s cash dividend policy aims for a minimum of 10% of distributable profits to be paid out annually, with a cumulative target of 40% over three years[97]. - The company has a buyback plan where the total amount used for repurchase will not exceed 20% of the net profit attributable to shareholders from the previous year[106]. - The company will implement stock price stabilization measures if the stock price falls below the net asset value per share for 20 consecutive trading days within 36 months of listing[106]. - The company has established a commitment to ensure that any share reduction plans comply with relevant regulations and are disclosed in advance[111]. Employee Management - The total number of employees in the parent company and major subsidiaries is 3,586, with 2,425 in the parent company and 1,161 in subsidiaries[163]. - The company has implemented a training plan to enhance employee skills and knowledge, including a three-day onboarding training for new employees[166]. - The company strictly adheres to labor policies and provides social insurance and housing funds for all employees[164]. - The company has a diverse management team with extensive experience in various industries, enhancing its operational capabilities[156]. Internal Control and Compliance - The internal control audit was conducted by Lixin Accounting Firm, which issued a standard audit report confirming the financial statements' compliance with accounting standards[184]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operations[170]. - The board has established specialized committees to oversee various aspects of governance, including audit and remuneration[175]. - There were no significant deficiencies in internal controls reported during the period[178].