SCC(SZ:002916)2018-08-02 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 3,239,757,362.53, representing an increase of 18.70% compared to CNY 2,729,342,273.05 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 280,353,910.30, up 11.31% from CNY 251,867,056.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 260,631,277.91, reflecting a growth of 17.06% compared to CNY 222,640,611.14 in the previous year[17]. - The company achieved total revenue of CNY 3.24 billion in the first half of 2018, representing a year-on-year growth of 18.70%[44]. - Net profit attributable to shareholders reached CNY 280 million, an increase of 11.31% compared to the previous year[44]. - The printed circuit board (PCB) business generated sales of CNY 2.30 billion, accounting for 70.97% of total revenue, with a growth rate of 19.61%[45]. - The packaging substrate business, driven by demand for MEMS-MIC products, reported sales of CNY 386 million, up 19.33% and representing 11.91% of total revenue[46]. - The electronic assembly business achieved sales of CNY 399 million, reflecting a growth of 16.67% and accounting for 12.31% of total revenue[47]. - The company reported a significant increase in revenue for the first half of 2018, with a year-on-year growth of 24%[93]. - The company reported a significant increase in revenue for the first half of 2018, achieving a total of 1.5 billion RMB, representing a year-on-year growth of 20%[103]. Cash Flow and Assets - The net cash flow from operating activities decreased by 35.68% to CNY 369,386,958.36 from CNY 574,321,451.08 in the same period last year[17]. - The company's cash and cash equivalents decreased to RMB 583,881,094.85 from RMB 1,593,300,064.85, representing a decline of approximately 63.4%[155]. - The company's cash and cash equivalents decreased significantly to CNY 463,292,484.60 from CNY 1,508,409,791.32 at the beginning of the year[160]. - The total assets at the end of the reporting period were CNY 7,704,045,479.13, an increase of 3.50% from CNY 7,443,389,852.03 at the end of the previous year[17]. - The company's total assets decreased to CNY 5,795,193,352.39 from CNY 6,345,572,764.08 at the beginning of the year[162]. - The company's total current liabilities decreased significantly from RMB 160,000,000.00 to RMB 5,000,000.00, a reduction of about 96.9%[156]. - The company's retained earnings improved to CNY 739,742,542.36 from CNY 617,981,067.41, showing a positive trend in profit retention[162]. - The total equity attributable to shareholders increased to CNY 3,271,419,975.52 from CNY 3,149,658,500.57, reflecting a stronger equity position[162]. Market Position and Strategy - The company focuses on the electronic interconnection field, with a unique "3-In-One" business layout comprising printed circuit boards (PCBs), packaging substrates, and electronic assembly[25]. - According to the 2018 Prismark Q1 report, the company ranks 21st among global PCB manufacturers, with China's PCB output value expected to account for 51.1% of the global total in 2018[30]. - The company has a leading market share of over 30% in the MEMS packaging substrate for silicon microphones, widely used in smartphones from Apple and Samsung[28]. - The company is advancing its PCB technology in high-end applications, particularly in 5G, new energy vehicles, and the Internet of Things, with a focus on aerospace and industrial control sectors[25]. - The company is actively expanding its market presence and enhancing its product structure to maintain its competitive edge in high-end PCB markets[44]. - The company is currently engaged in significant non-equity investments, including projects in high-density multilayer printed circuit boards and IC substrates[63]. - The company is considering strategic acquisitions to enhance its market position, targeting a deal valued at approximately $100 million[93]. - The company plans to accelerate the implementation of fundraising projects and develop new market segments to achieve sustained sales growth[86]. Research and Development - Research and development investment totaled CNY 166 million, a year-on-year increase of 17.72%, representing over 5% of total revenue[48]. - The company has implemented a three-tier R&D system, resulting in a series of proprietary technologies and patents, maintaining a leading edge in the industry[36]. - The company is investing heavily in technology R&D, allocating 10% of its revenue to innovation initiatives in 2018[105]. - The company is investing in R&D, with a budget increase of 30% for new technology development[93]. - The company has allocated resources for the development of new products, aiming to enhance its competitive edge in the market[186]. Risks and Challenges - The company faces various risks including exchange rate risks and market competition risks, as detailed in the report[5]. - The company acknowledges risks related to raw material supply and price volatility, which could affect production stability and profitability[86]. - The PCB industry faces intense competition and potential adverse effects on performance if the company cannot effectively respond to market challenges[85]. - The company faces risks associated with capacity ramp-up after large-scale expansion, which may temporarily impact operational performance[85]. - The company is sensitive to fluctuations in the USD/RMB exchange rate, which can directly impact import costs and export prices, affecting net profit[85]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company committed to stabilize its stock price by repurchasing shares if certain conditions are met, such as the stock price being below the latest audited net asset value for 20 consecutive trading days[95]. - The company will not oppose any share repurchase plans proposed at the shareholders' meeting[95]. - The company has established measures to handle any violations of commitments effectively[100]. - The company has committed to fulfilling its obligations as stated in the prospectus, with measures in place for any potential non-compliance[107]. Environmental and Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[128]. - The total wastewater discharge was 20.365 tons per year, which is below the permitted limit of 61.32 tons per year[128]. - The company invested over 10 million RMB in pollution prevention facilities during the reporting period, with 100% compliance in pollutant emissions[130]. - The company has established a comprehensive wastewater treatment system, utilizing physical-chemical treatment, ultrafiltration, and reverse osmosis for wastewater reuse[130]. - The company has implemented a rigorous environmental monitoring plan, conducting wastewater monitoring every 4 hours and air quality monitoring every 2 months[131].