WLCSP(SH:603005)2019-02-17 16:00Financial Performance - The company's operating revenue for 2018 was CNY 566,233,702.35, a decrease of 9.95% compared to CNY 628,779,607.76 in 2017[24] - The net profit attributable to shareholders for 2018 was CNY 71,124,803.74, down 25.67% from CNY 95,691,736.99 in 2017[24] - Basic earnings per share for 2018 were CNY 0.31, a decrease of 26.19% from CNY 0.42 in 2017[25] - The weighted average return on net assets for 2018 was 3.89%, down from 5.56% in 2017, a decrease of 1.67 percentage points[25] - The net profit after deducting non-recurring gains and losses was CNY 24,641,362.06, a decrease of 63.53% compared to CNY 67,568,042.49 in 2017[24] - Operating profit was 87.80 million RMB, down 17.71% year-on-year, while net profit decreased by 25.67% to 71.12 million RMB[40] - The company reported a consolidated revenue of 566 million CNY for the year 2018, which is a key performance indicator[181] Cash Flow and Assets - The net cash flow from operating activities increased to CNY 292,157,470.13, a rise of 22.74% compared to CNY 238,024,064.86 in 2017[24] - The total assets at the end of 2018 were CNY 2,272,198,541.26, reflecting a 7.42% increase from CNY 2,115,220,497.28 at the end of 2017[24] - The net cash flow from operating activities reached CNY 224,789,103.27 in Q4 2018, up from CNY 37,639,335.32 in Q3[27] - The company's cash and cash equivalents rose to CNY 785,045,556.81, compared to CNY 691,535,506.68 at the start of the year, indicating an increase of about 13.5%[191] - Accounts receivable decreased to CNY 77,623,083.37 from CNY 99,268,813.19, reflecting a decline of approximately 21.7%[191] - Inventory levels slightly decreased to CNY 70,182,764.44 from CNY 73,002,659.84, showing a reduction of about 3.8%[191] Research and Development - The company's R&D expenses increased by 25.95% to 121.83 million RMB, reflecting a commitment to innovation[41] - Research and development expenses totaled 121,829,120.55 RMB, which is 21.52% of operating revenue, indicating a focus on innovation[57] - The company has developed various proprietary packaging technologies, including ultra-thin wafer-level chip size packaging and silicon through-hole packaging, enhancing its competitive edge in the market[36] Market and Industry Trends - The company focuses on the packaging and testing of sensors, with advanced packaging technologies for 8-inch and 12-inch wafer-level chip size packaging, serving as a major provider globally[33] - In 2018, China's integrated circuit industry sales revenue reached CNY 446.15 billion, a year-on-year increase of 22.45%, with the packaging and testing sector growing by 19.1%[38] - The global sensor market size reached approximately USD 19 billion by the end of 2017, with a projected growth to CNY 147.2 billion in China by 2018, reflecting a compound annual growth rate of about 12.13% from 2018 to 2022[35] - The integrated circuit industry in China is projected to maintain rapid growth, with a compound annual growth rate of 22.9% from 2012 to 2017[33] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 0.7 per 10 shares, totaling CNY 16,393,436.85[6] - In 2018, the cash dividend per 10 shares was RMB 0.70, with a total cash distribution of RMB 16,393,436.85, representing 23.05% of the net profit attributable to ordinary shareholders[85] - The company strictly adhered to its cash dividend policy, ensuring the protection of minority shareholders' rights throughout the reporting period[82] Legal and Compliance - The company reported a significant legal case where it was ordered to compensate Beijing Sibike Microelectronics Co., Ltd. a total of RMB 16,362,064 due to a processing contract dispute[98] - The company has made adjustments to its financial reporting in accordance with new accounting standards, which did not have a significant impact on its financial position or operating results[93] - The company has not reported any significant risks identified by the supervisory board during the reporting period[173] Corporate Governance - The company has a balanced board structure with 9 directors, ensuring no single shareholder can exert substantial influence over board decisions[135] - The company strictly adheres to legal requirements for corporate governance, ensuring transparency and fairness in shareholder meetings[167] - The company has established a performance evaluation and incentive mechanism for senior management, consisting of basic and performance-based compensation[175] Social Responsibility - The company has actively engaged in poverty alleviation efforts, signing a framework agreement with Wanseng Village in December 2018 to support local needs[112] - The company has disclosed its 2018 Social Responsibility Report, highlighting its commitment to social responsibility initiatives[115] Risks and Challenges - The company faces risks from cyclical fluctuations in the semiconductor industry, which may adversely affect its operations[80] - Rising labor costs and currency fluctuations pose additional risks to the company's operational performance[80]