Champion Asia(SH:603386)2025-04-25 11:50Financial Performance - The company reported a basic earnings per share of -0.47 yuan, a decrease of 323.81% compared to 0.21 yuan in 2023[25]. - The diluted earnings per share also stood at -0.47 yuan, reflecting the same percentage decrease of 323.81% from the previous year[25]. - The weighted average return on equity decreased by 15.72 percentage points to -11.08% from 4.64% in 2023[25]. - The basic earnings per share after deducting non-recurring gains and losses was -0.49 yuan, a decline of 406.25% from 0.16 yuan in 2023[25]. - The weighted average return on equity after deducting non-recurring gains and losses decreased to -11.58% from 3.65% in 2023, a drop of 15.23 percentage points[25]. - The company reported a revenue of RMB 2,347,226,817.29 for 2024, a decrease of 3.30% compared to RMB 2,427,329,832.42 in 2023[26]. - The net profit attributable to shareholders was RMB -154,128,131.08, representing a decline of 324.83% from RMB 68,554,703.57 in the previous year[26]. - Operating profit was -170.74 million yuan, a decrease of 220.17 million yuan year-on-year[57]. - Total profit amounted to -171.66 million yuan, down by 217.89 million yuan compared to the previous year[57]. - Net profit attributable to shareholders of the parent company was -154.13 million yuan, a decline of 324.83% year-on-year[57]. Cash Flow and Assets - The net cash flow from operating activities increased by 82.13% to RMB 405,038,201.60, up from RMB 222,390,375.56 in 2023[26]. - The company's total assets decreased by 2.25% to RMB 3,347,787,579.02 compared to RMB 3,424,762,204.99 at the end of 2023[26]. - The net assets attributable to shareholders fell by 11.26% to RMB 1,340,648,674.19 from RMB 1,510,766,209.62 in 2023[26]. - The net cash flow from investment activities improved, with a reduction in cash outflow to -¥127,895,713.84 from -¥208,777,199.39 year-on-year[58]. - The cash and cash equivalents net increase was 13.15 million yuan, a turnaround from a decrease of 67.55 million yuan in the previous period[72]. Market and Industry Outlook - The global PCB market is expected to grow by 5.8% in 2024, driven by demand in AI servers and high-speed network communications, despite overall slow recovery[35]. - The global PCB market is projected to reach USD 73.57 billion in 2024, with a growth rate of approximately 5.8%, while China's PCB market is expected to grow by 9% to USD 41.21 billion[42]. - The demand for high-layer count boards, HDI boards, and packaging substrates is expected to grow significantly over the next five years, driven by advancements in technologies such as AI and 5G[87]. - The company aims to enhance its product and customer structure, focusing on core clients in sectors like new energy and automotive electronics to drive new demand opportunities[91]. Operational Challenges - The decline in net profit was primarily due to increased goodwill impairment and a decrease in revenue and gross margin[27]. - The company experienced a significant drop in average product prices and sales revenue, leading to underutilization of factory capacity and higher fixed costs[35]. - The company faced various risks including fluctuations in macroeconomic conditions and raw material prices, as detailed in the management discussion section[10]. - The PCB industry is facing intensified competition and risks from international trade frictions, which could negatively impact the company's export business and overall development[94]. Research and Development - The company invested CNY 112.03 million in R&D in 2024, accounting for 4.77% of revenue, and added 61 new patents during the reporting period[38]. - The company holds 398 patents as of December 31, 2024, including 87 invention patents and 297 utility model patents[52]. - The company plans to increase R&D investment and technological innovation, focusing on emerging markets such as cloud computing and IoT to meet evolving PCB technology demands[92]. Governance and Compliance - The company held 2 extraordinary shareholder meetings and 1 annual meeting during the reporting period, ensuring compliance with legal requirements and protecting shareholder rights[100]. - The board of directors consists of 7 members, including 3 independent directors, and has held 7 meetings to ensure objective and scientific decision-making[100]. - The company has established a system for insider information management to protect investor rights and ensure fair information disclosure[102]. - The company has reported no penalties from securities regulatory agencies in the past three years, indicating a clean compliance record[113]. Environmental Management - The company has implemented a comprehensive wastewater treatment system to manage and treat various pollutants effectively[150]. - The company has established solid waste management practices, categorizing waste into general industrial waste, household waste, and hazardous waste, with appropriate disposal methods for each[159]. - The company has received environmental impact assessment approvals for multiple projects, including a natural gas thermal oil boiler project approved on April 27, 2023, by the Huizhou Ecological Environment Bureau[166]. - The company has a dedicated team responsible for environmental management, conducting regular inspections and maintenance of wastewater and air treatment facilities[165]. Employee and Management Structure - The total number of employees in the company and its main subsidiaries is 4,417, with 2,263 in production, 915 in technology, and 567 in research and development[124][125]. - The company has a long-standing management team with key members serving since November 1998[108]. - The management team includes experienced professionals with diverse backgrounds in finance and technology[108]. - The company has a structured training program for new employees and ongoing skill enhancement training[127].