BOMIN ELECTRONICS(SH:603936)2025-04-25 12:45Financial Performance - The net profit attributable to the parent company for 2024 is -235.97 million RMB, indicating a loss [5]. - The company plans not to distribute cash dividends or issue bonus shares for 2024 due to the negative net profit [6]. - The cumulative undistributed profits at the end of the period are 444.43 million RMB, which will be used to support daily operations and new project construction [6]. - The company's operating revenue for 2024 reached ¥3,266,245,669.79, representing a 12.11% increase compared to ¥2,913,308,302.34 in 2023 [22]. - The net profit attributable to shareholders of the listed company was -¥235,968,943.21 in 2024, an improvement from -¥565,750,945.13 in 2023 [22]. - The net cash flow from operating activities significantly increased to ¥164,237,139.04, a 421.26% rise from ¥31,507,874.89 in 2023 [22]. - The total assets of the company grew by 13.43% to ¥9,043,075,245.92 in 2024, up from ¥7,972,075,999.31 in 2023 [22]. - The basic earnings per share improved to -¥0.38 in 2024 from -¥0.95 in 2023 [23]. - The weighted average return on equity increased to -5.40% in 2024, compared to -12.58% in 2023 [23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥262,558,162.60 in 2024, an improvement from -¥600,414,293.97 in 2023 [22]. - The company experienced a decrease in net assets attributable to shareholders by 6.58% to ¥4,259,567,260.86 at the end of 2024, down from ¥4,559,613,077.27 at the end of 2023 [22]. Shareholder Returns - The total cash dividends and share repurchase (including cancellation) amount to 182.77 million RMB [5]. - The company will not distribute cash dividends or stock dividends in 2024 due to a negative net profit, aligning with its profit distribution policy [182]. - The cash dividend policy emphasizes prioritizing cash dividends when conditions are met, with specific conditions for stock dividends based on profitability and capital structure [179]. - The company has established a differentiated cash dividend policy based on its development stage and significant capital expenditure arrangements [178]. - The company aims to retain undistributed profits for daily operations, project construction, and technology research and development to enhance core competitiveness [182]. - In 2024, the company distributed a cash dividend of 0.2 yuan per 10 shares, totaling 12,607,960.08 yuan (including tax) based on a total share capital of 630,398,004 shares [180]. - The total amount for cash dividends and share repurchases in 2024 reached 182,768,343.58 yuan, with 170,160,383.50 yuan allocated for share repurchases [181]. Market and Industry Outlook - The global PCB market is projected to reach $73.57 billion in 2024, with a year-on-year growth of 5.8% [30]. - The PCB market in mainland China is expected to grow to $41.21 billion in 2024, reflecting a 9% increase compared to the previous year [32]. - The server and data storage segment is anticipated to experience a compound annual growth rate (CAGR) of 11.6% from 2024 to 2029 [33]. - High-density interconnect (HDI) boards are expected to see significant growth, with a projected increase of 40.3% in 2024 compared to 2023 [38]. - The automotive electronics sector is expected to contribute significantly to the PCB industry's recovery, with a projected output value of $9.2 billion in 2024 [36]. - The demand for high-speed data center switches is increasing, with a focus on upgrading to 400G/800G ports, driving PCB demand [34]. - The automotive PCB market is projected to grow at a CAGR of 12%, from 9.2 billion USD in 2022 to 14.5 billion USD in 2026, presenting significant opportunities for the company's automotive PCB business [61]. Operational Efficiency and Strategy - The company has implemented a digital management system integrating ERP, EAS, MES, QMS, and EAP for comprehensive production quality management [52]. - The company’s production strategy is based on a make-to-order model, ensuring efficient production scheduling and capacity management [51]. - The company is focused on increasing the localization rate of its products in high-growth industries such as servers and new energy vehicles [46]. - The company has established a procurement management system to optimize supplier relationships and control procurement processes [54]. - The company achieved total revenue of RMB 3,266.25 million, a year-on-year increase of 12.11% [83]. - The company has implemented cost reduction and efficiency improvement activities, enhancing operational efficiency through smart factory investments [81]. - The company is focusing on expanding its packaging substrate business and has developed new technologies for RF substrates [8]. Research and Development - R&D expenses amounted to RMB 141.79 million, representing 4.34% of total revenue, with a year-on-year increase of 6.69% [80]. - The company has applied for 42 patents, with 291 patents authorized, ranking among the industry leaders [80]. - The company has established seven provincial R&D platforms and is involved in multiple provincial and national technology projects, including a key project for high-end flexible cable design and simulation optimization [73]. - The company has developed proprietary technologies, including a method for embedding passive components in PCBs, which improves reliability and reduces space [75]. - The company is focusing on the high-end server motherboard market, with the Eagle Stream platform achieving scale production and the Birch Stream platform in development [76]. Risk Management - The company has faced various risks in its production and operations, which are detailed in the management discussion and analysis section [8]. - The company has implemented strict risk control measures for foreign exchange hedging, including market, liquidity, operational, performance, and legal risks [118]. - Raw material price volatility poses a risk to production stability and profitability, with significant reliance on materials like copper and gold [136]. - The company faces risks from macroeconomic fluctuations that could impact PCB industry growth and profitability [134]. - The company will implement strategies to shorten the capacity ramp-up period and ensure steady performance growth [137]. Governance and Compliance - The company has established a robust governance structure with a board of directors that held 11 meetings, ensuring effective decision-making and oversight [145]. - The company conducted 4 shareholder meetings during the reporting period, ensuring compliance with legal requirements and protecting minority shareholders' rights [144]. - The company has implemented a comprehensive investor relations management system to maintain effective communication with stakeholders [146]. - The company has established a dedicated department for compliance with information disclosure, enhancing transparency and quality of disclosures [147]. - The company has confirmed that the remuneration standards for directors and senior management are aligned with the company's operational performance [168]. Environmental Responsibility - The company has invested 10,298.12 million CNY in environmental protection during the reporting period [190]. - The company has maintained compliance with environmental discharge standards, with no instances of exceeding emission limits reported [192]. - The company is listed as a key environmental regulatory unit in Yancheng for 2024, indicating a commitment to environmental monitoring and compliance [200]. - The company has established a mechanism for managing subsidiaries, ensuring effective oversight and governance [187]. - The company operates a total of 14 emission outlets for nitrogen oxides, formaldehyde, cyanide mist, sulfuric mist, hydrochloric acid, and particulate matter, adhering to the GB21900-2008 standard [198].