Kinwong(SH:603228)2020-03-16 16:00Financial Performance - The company's operating revenue for 2018 was CNY 6,332,122,845.94, representing a 27.01% increase compared to CNY 4,985,559,104.51 in 2017[14]. - The net profit attributable to shareholders for 2018 was CNY 802,658,748.18, a 4.29% increase from CNY 659,735,093.35 in 2017[14]. - The net cash flow from operating activities for 2018 was CNY 803,839,605.06, reflecting an 8.68% increase compared to CNY 728,556,733.64 in 2017[14]. - The total assets at the end of 2018 were CNY 8,820,032,353.92, a 14.99% increase from CNY 7,670,109,491.55 at the end of 2017[14]. - The company's net assets attributable to shareholders increased by 30.94% to CNY 5,424,905,176.60 at the end of 2018 from CNY 4,143,029,496.68 at the end of 2017[14]. - The company's revenue for the fourth quarter of 2019 was CNY 1,797,533,304.84, contributing to a total annual revenue of CNY 6,332,122,845.94[16]. - The company achieved total operating revenue of CNY 6,332,122,845.94 in 2019, representing a year-on-year growth of 27.01%[52]. - The net profit attributable to shareholders was CNY 83,708,660, an increase of 4.29% compared to the previous year[52]. - The total assets of the company reached CNY 882,003,240, reflecting a year-on-year growth of 14.99%[52]. Dividend Policy - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares (including tax) and to increase capital by converting 4 shares for every 10 shares held, pending shareholder approval[3]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends, contingent on certain conditions being met[80]. - The company will consider stock dividends to align the growth of total shares with performance, ensuring it benefits all shareholders[81]. - The company is committed to maintaining a cash dividend ratio of at least 20% of the total distributable profits in the absence of major investment plans[82]. - In 2019, the company distributed a cash dividend of 3.00 CNY per 10 shares, with a net profit attributable to ordinary shareholders of 837,086,594.52 CNY, representing 21.59% of the profit[84]. - In 2018, the cash dividend was 7.50 CNY per 10 shares, with a net profit of 802,658,748.18 CNY, accounting for 40.20% of the profit[84]. - In 2017, the cash dividend was 7.00 CNY per 10 shares, with a net profit of 659,735,093.35 CNY, which was 43.29% of the profit[84]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[84]. Risk Management - The company reported no significant risks affecting its operations during the reporting period, ensuring stable business performance[4]. - The company emphasizes the importance of risk management and has outlined potential risks and mitigation strategies in its report[4]. - The company is sensitive to exchange rate fluctuations due to its significant export business, and it will implement strategies to manage currency risk effectively[79]. - The company will continue to optimize its supply chain management and control production costs to mitigate risks associated with raw material price fluctuations[78]. Research and Development - The company focuses on the R&D, production, and sales of printed circuit boards, covering various types including rigid, flexible, and metal-based circuit boards[19]. - Research and development investment reached CNY 297,183,502, a year-on-year increase of 28.57%, accounting for 4.69% of operating revenue[48]. - The company established a high-efficiency technology R&D operation system and applied for a total of 130 invention patents and 201 utility model patents during the reporting period[49]. - The company has developed 130 invention patents and 201 utility model patents, showcasing its commitment to innovation and technology advancement[42]. - The company is focusing on high-value products such as 5G high-frequency amplifier boards and automotive ADAS radar microwave boards, which have achieved mass production capabilities[48]. Environmental Responsibility - The company has invested significantly in environmental protection, achieving compliance with all waste discharge standards and receiving multiple awards for its green initiatives[106]. - The company maintained 100% compliance with environmental regulations, with no government penalties or external complaints[112]. - The company has established advanced waste treatment systems, ensuring that all pollutants are within legal limits, including COD at 10.74 tons/year and ammonia nitrogen at 2.96 tons/year[113]. - The company has implemented a wastewater treatment system in Shenzhen with a design capacity of 243.5 m³/month, operational since October 2019[120]. - The total wastewater treatment capacity in Jiangxi has reached 8,800 m³/d after the completion of the second phase in March 2018[121]. - The actual wastewater discharge in 2019 was 226,800 tons, complying with government environmental regulations[124]. - The company achieved a total pollutant discharge of 10.74 tons for chemical oxygen demand in 2019[124]. - The company has successfully obtained the necessary environmental permits to ensure compliance with regulations[124]. Corporate Governance - The company has a diverse board with members holding academic and independent director roles in various institutions, enhancing its strategic insights[168]. - The company’s governance structure was updated with new appointments, reflecting a commitment to effective management and oversight[165]. - The company maintains a strong shareholder structure with significant indirect holdings by key executives, ensuring alignment of interests[165]. - The company completed the election of the third board of directors and supervisory board on June 14, 2019, with terms lasting until June 13, 2022[165]. - The company’s remuneration and assessment committee is responsible for evaluating the performance of directors and senior management[169]. Financial Management - The company has engaged in structured deposits with a total amount of RMB 1,050,000,000.00 during the reporting period[100]. - The annualized return rates for the structured deposits ranged from 3.15% to 3.65%[100]. - The actual returns from the structured deposits amounted to RMB 4,200,000.00, with all funds successfully recovered[100]. - The company’s financial management strategy includes both capital preservation and potential returns through various financial products[100]. - The company has a history of engaging in financial management activities since at least December 2018[100]. Employee Engagement - The company has implemented a comprehensive employee health system, providing regular health check-ups and improving working conditions[107]. - The company has organized numerous employee engagement activities to enhance morale and cohesion among staff[107]. - The company conducted 278 training sessions during the reporting period, with over 11,725 participants, enhancing the capabilities of management and employees[173]. - The company has established a comprehensive training mechanism to support employee development and align with strategic goals[173]. Shareholder Information - The total number of shares held by directors and senior management increased from 327,252,138 at the beginning of the year to 458,153,637 at the end of the year, representing a change of 130,901,499 shares[162]. - The total pre-tax remuneration for directors and senior management during the reporting period amounted to 1,462.26 million yuan[163]. - The company has a total of 32,037,373 shares held by Dongguan Hengxin Industrial Investment Co., Ltd., accounting for 5.32% of the total shares[153]. - The company has established a joint action agreement among key shareholders to maintain stable control over the company until 36 months after the IPO[154].