JCET(SH:600584)2019-04-26 16:00Financial Performance - The company's operating revenue for 2018 was approximately CNY 23.86 billion, showing a slight increase of 0.00% compared to CNY 23.86 billion in 2017[16]. - The net profit attributable to shareholders for 2018 was a loss of approximately CNY 939.32 million, a significant decline from a profit of CNY 343.35 million in 2017[16]. - The net cash flow from operating activities decreased by 34.05% to approximately CNY 2.51 billion in 2018, down from CNY 3.80 billion in 2017[16]. - The company's total assets increased by 12.15% to approximately CNY 34.43 billion at the end of 2018, compared to CNY 30.70 billion at the end of 2017[16]. - The net assets attributable to shareholders increased by 30.14% to approximately CNY 12.29 billion at the end of 2018, up from CNY 9.45 billion at the end of 2017[16]. - The basic earnings per share for 2018 was -CNY 0.65, compared to CNY 0.28 in 2017[17]. - The weighted average return on net assets for 2018 was -9.15%, a decline from 4.89% in 2017[17]. - The company reported a quarterly revenue of approximately CNY 5.49 billion in Q1 2018, CNY 5.81 billion in Q2, CNY 6.78 billion in Q3, and CNY 5.77 billion in Q4[19]. - The net profit attributable to shareholders in Q4 2018 was a loss of approximately CNY 956.79 million, following profits in the first three quarters[19]. - The company achieved a total revenue of CNY 23.86 billion, remaining flat compared to the previous year, with a net loss attributable to shareholders of CNY 939 million due to significant asset impairment losses[47]. Audit and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Hua Ming[2]. - The financial report is confirmed to be true, accurate, and complete by the responsible persons[2]. - The company has not violated decision-making procedures for external guarantees[3]. - The company has not proposed any capital increase through public reserves or bonus shares[3]. - The company has not faced any risks of suspension or termination of its listing[102]. - The company has not made any changes to its accounting firm during the audit period[102]. - The company has not disclosed any employee stock ownership plans or other incentive measures during the reporting period[106]. - The company has not reported any risks identified by the supervisory board during the reporting period[190]. - Ernst & Young Huaming issued a standard audit report for the company’s financial statements, affirming their fair presentation in accordance with accounting standards[194]. Corporate Governance - The board of directors and supervisory board members were present at the board meeting[2]. - The company has established a robust investor relations management system to maintain communication with investors[181]. - The audit committee provided guidance on the internal control system and actively communicated with auditors during the financial reporting process[189]. - The company’s internal control self-assessment report is available on the Shanghai Stock Exchange website, indicating no significant deficiencies in internal controls[192]. - The governance team is responsible for overseeing the financial reporting process of the company[200]. Market and Industry Trends - The global semiconductor market sales revenue reached USD 468.8 billion in 2018, with a year-on-year growth of 13.7%[26]. - China's integrated circuit market sales grew from RMB 110.9 billion in 2009 to RMB 653.2 billion in 2018, with a compound annual growth rate of 21.78%[28]. - The packaging and testing industry in China experienced a year-on-year growth of 16.1% in 2018[28]. - The company anticipates a decline in global semiconductor market sales revenue by 3.0% in 2019, with integrated circuit sales expected to drop by 4.1%[27]. - The demand for semiconductor packaging technology is increasing due to trends towards miniaturization and enhanced functionality[29]. Research and Development - The company’s R&D expenses increased by 13.26% to CNY 888 million, reflecting its commitment to innovation and technology development[48]. - Research and development expenses totaled CNY 888.39 million, accounting for 3.72% of total revenue, with 5,910 R&D personnel representing 25.04% of the total workforce[58]. - The company received 201 patent grants and filed 195 new patents in 2018, totaling 3,673 patents by the end of the reporting period[43]. - The company filed for 198 new patents in 2018, bringing its total patent applications to 4,923, with 3,674 patents granted[66]. - The company plans to continue developing advanced packaging technologies to meet customer demands and prepare for emerging market applications[59]. Financial Position and Investments - The company's total liabilities increased by 67.30% to approximately CNY 10.14 billion, primarily due to an increase in short-term bank borrowings[50]. - The cash flow from financing activities was approximately CNY 3.60 billion, a 37.75% increase compared to the previous year, driven by increased fundraising activities[50]. - The company’s total assets were adjusted to reflect a new classification of receivables, consolidating accounts receivable and notes receivable into a single line item[96]. - The company’s short-term borrowings increased by 108.15% to ¥7,128,699,854.55, primarily to repay a $200 million perpetual bond and to redeem $425 million in preferred shares[63]. - The company completed a significant equity investment of 350 million RMB in a financing leasing company, increasing its registered capital to 10,649.94 million RMB[71]. Environmental and Social Responsibility - The company invested over 5.3 million yuan in safety production in 2018, implementing comprehensive safety management systems and conducting regular safety checks[127]. - Environmental protection investments totaled over 28 million yuan in 2018, with six energy-saving and emission reduction projects completed, resulting in an annual electricity saving of approximately 110,300 kWh and water savings of 30,000 tons[127]. - The company achieved a total wastewater discharge of 1,187,600 tons in 2018, with all monitored pollutants meeting the discharge standards[129]. - The company’s actual COD discharge in 2018 was 19.23 tons, significantly below the total discharge limit of 70.63 tons per year[131]. - The company has not faced any penalties for environmental violations during the reporting period[139]. Shareholder Information - The total number of ordinary shares increased from 1,359,844,003 to 1,602,874,555 shares after a non-public issuance of 243,030,552 shares[143]. - The largest shareholder changed to the National Integrated Circuit Industry Investment Fund, holding 19.00% of shares, while the second largest shareholder, Chip Semiconductor (Shanghai) Co., Ltd., holds 14.28%[148]. - The total number of ordinary shareholders decreased from 116,290 to 99,644 during the reporting period[149]. - The company has no controlling shareholder or actual controller, as the top three shareholders do not have any concerted action relationship[156]. - The company has a total of 50 retired employees that require financial support[176]. Future Outlook and Strategy - The company plans to enhance its market expansion and product development strategies in the upcoming fiscal year[16]. - The company aims for a total operating income of 24.805 billion RMB in 2019, subject to market conditions and geopolitical factors[82]. - The company plans to invest approximately 2.93 billion RMB in fixed assets for the year to support ongoing and planned projects[85]. - The company is focusing on strategic acquisitions to enhance its competitive position in the market[165]. - The company is committed to sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2030[169].