Kinwong(SH:603228)2019-03-29 16:00Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 7.50 per 10 shares (including tax) and to increase capital by converting 6 shares for every 10 shares held[4]. - The company has a cash dividend policy requiring a minimum of 20% of distributable profits to be distributed as cash dividends if certain conditions are met, including achieving profitability and having positive retained earnings[74]. - In 2018, the company distributed cash dividends totaling RMB 308.25 million, representing 38.40% of the net profit attributable to ordinary shareholders[74]. - The company plans to maintain a minimum cash dividend distribution of 40% of the total profit distribution if there are no major investment plans or cash expenditure arrangements[74]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, indicating a focus on reinvestment[74]. Financial Performance - The company's operating revenue for 2018 was approximately CNY 4.99 billion, representing an 18.93% increase compared to 2017[18]. - Net profit attributable to shareholders for 2018 was approximately CNY 802.66 million, reflecting a growth of 21.66% year-over-year[18]. - The net profit after deducting non-recurring gains and losses was approximately CNY 750.52 million, which is a 19.05% increase from the previous year[18]. - The company's total assets increased by 60.55% year-over-year, reaching approximately CNY 7.67 billion by the end of 2018[20]. - The weighted average return on net assets was 21.5%, showing a slight increase of 0.47 percentage points compared to the previous year[19]. - The net cash flow from operating activities for 2018 was approximately CNY 803.84 million, a 10.33% increase from 2017[18]. Risk Management and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period[6]. - The company has established a comprehensive risk management strategy to address potential operational risks[6]. - The company has no violations in decision-making procedures for providing guarantees[6]. - The company has committed to maintaining transparency and compliance in its financial reporting and dividend distribution practices[75]. - The company has a strategy to balance foreign currency exposure through flexible trade settlement methods to mitigate exchange rate risks[73]. Audit and Financial Reporting - The audit report issued by Tianzhi International Accounting Firm was a standard unqualified opinion[3]. - The company's financial report has been confirmed for its authenticity and completeness by its management[3]. - The company has not reported any significant accounting policy changes or major accounting errors during the period, marked as not applicable[78]. - The company did not identify any major deficiencies in internal controls during the reporting period[169]. - The audit committee played a significant role in the reappointment of the auditing firm and the preparation of financial statements[167]. Research and Development - The company invested 231.14 million yuan in R&D, a 16.24% increase compared to 2017, focusing on technologies related to 5G and advanced PCB manufacturing[39]. - The company’s R&D investment accounted for 4.64% of operating revenue, with 1,028 R&D personnel, representing 10.48% of total employees[53]. - The company is committed to innovation, with ongoing research and development efforts in new products and technologies[153]. - The company has a robust governance structure with independent directors overseeing operations and strategic decisions[153]. Market Position and Industry Outlook - The global PCB market value was approximately $62.40 billion in 2018, with China's PCB market value at $32.70 billion[27]. - The PCB industry is expected to grow at a compound annual growth rate (CAGR) of 3.7% globally and 4.4% in mainland China from 2018 to 2023[27]. - The company is ranked 10th in the Chinese PCB industry and 31st among the global top PCB manufacturers, showing an upward trend in rankings[29]. - The demand for PCBs is driven by sectors such as automotive electronics, medical devices, and 5G technology, which are experiencing significant growth[59]. Environmental Responsibility - The company invested over 95 million yuan in environmental protection during the reporting period, achieving compliance with all environmental regulations and receiving multiple awards for its eco-friendly practices[92]. - The company has maintained a 100% compliance rate in environmental monitoring, with all pollutants meeting regulatory standards during the reporting period[96]. - The company has implemented a clean production management system, certified under multiple international standards, to enhance operational efficiency and reduce environmental impact[96]. - The company has not reported any significant environmental pollution incidents during the reporting period, reflecting its commitment to sustainable operations[92]. Employee and Governance Structure - The company employed a total of 4,594 people in its subsidiaries located in Longchuan County, with 70% of employees being local residents[95]. - The company has established a comprehensive training mechanism to meet strategic development needs and improve employee skills[159]. - The board of directors consists of 9 members, including 3 independent directors, and held 10 meetings during the reporting period[162]. - The company emphasizes performance-based remuneration, linking individual performance to team outcomes[158]. Shareholder Information - The top shareholder, Shenzhen Jinghong Yongtai Investment Holdings Co., Ltd., holds 152,014,080 shares, representing 36.99% of the total shares[136]. - The number of ordinary shareholders increased from 7,381 to 7,505 during the reporting period[135]. - The company’s total share capital after the issuance of restricted stock is 411,000,000 shares[128]. - The company granted a total of 340,000 stock options during the reporting period, with an exercise price of 49.99 CNY per share[150].