Kinwong(SH:603228)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was CNY 7,063,588,891.52, representing an increase of 11.55% compared to 2019 [20]. - The net profit attributable to shareholders for 2020 was CNY 920,988,701.28, reflecting a growth of 10.02% year-over-year [20]. - The net cash flow from operating activities reached CNY 1,526,815,234.44, a significant increase of 74.77% from the previous year [20]. - The total assets at the end of 2020 amounted to CNY 12,105,507,834.35, which is a 37.25% increase compared to the end of 2019 [20]. - The basic earnings per share for 2020 was CNY 1.10, up 7.84% from CNY 1.02 in 2019 [21]. - The weighted average return on equity decreased to 15.61% in 2020, down by 1.59 percentage points from 2019 [21]. - The company reported non-recurring gains of CNY 102,274,841.43 for 2020, compared to CNY 66,949,547.59 in 2019 [29]. - The net assets attributable to shareholders at the end of 2020 were CNY 6,549,417,316.32, a 20.73% increase from the end of 2019 [20]. - The company achieved a net profit of CNY 236,396,178.17 in the fourth quarter of 2020, contributing to the overall annual performance [23]. Dividend Policy - The company plans to distribute a cash dividend of RMB 3.00 per 10 shares to all shareholders, based on the total share capital on the dividend distribution date [6]. - The company has no plans for capital reserve conversion into share capital for the 2020 profit distribution [6]. - In 2020, the company distributed cash dividends of 3.00 RMB per share, amounting to 256,045,108.20 RMB, representing 27.80% of the net profit attributable to shareholders [126]. - The company plans to distribute at least 20% of its distributable profits as cash dividends if certain conditions are met, including profitability and no major capital expenditures [122]. - The company has a cash dividend policy that ensures a minimum distribution of 20% of the distributable profits annually [125]. Operational Capacity and Projects - The company has a total of 60 million square meters of high-density interconnect printed circuit board production capacity planned for the HDI project [12]. - The company has a total of 120 million square meters of multilayer printed circuit board production capacity planned for the HLC project [12]. - The company issued convertible bonds raising 1.78 billion RMB to support key project developments, particularly the HLC project [66]. - The company plans to invest RMB 2.68895 billion in the first phase of the Jingwang Electronics Technology (Zhuhai) Co., Ltd. project, with a production capacity of 600,000 square meters of high-density interconnect printed circuit boards, which is currently under construction [98]. - The company issued 17.8 million convertible bonds at RMB 100 each, raising a total of RMB 1.78 billion for the first phase of the Jingwang Electronics Technology (Zhuhai) Co., Ltd. project, which is also under construction [99]. Research and Development - The company invested 356 million RMB in R&D, an increase of 19.66% year-on-year, focusing on technology innovation and product development [65]. - The company has a well-established R&D framework, recognized as a high-tech enterprise, with multiple patents and industry standards developed [57]. - The company has 1,289 R&D personnel, making up 10.64% of the total workforce [80]. - R&D expenses totaled ¥355,608,921.22, accounting for 5.03% of operating revenue [80]. Market Position and Strategy - The company focuses on the research, production, and sales of printed circuit boards (PCBs), covering rigid PCBs (RPCB), flexible PCBs (FPC), and metal-based PCBs (MPCB) among others [33]. - The company has established independent factories for RPCB, FPC, and MPCB, ranking among the top in various product segments [47]. - The company has been recognized as one of the top PCB manufacturers globally, ranking 20th in the N.T.Information's global PCB supplier list in 2019 [43]. - The PCB industry is expected to grow at a compound annual growth rate (CAGR) of approximately 5.8% globally from 2020 to 2025, with China's PCB market expected to grow at a CAGR of 5.6% [41]. - The company aims to enhance its technological innovation capabilities and optimize manufacturing processes in response to industry trends [95]. Environmental Responsibility - The company invested over 101.83 million yuan in environmental protection equipment and operations during the reporting period, actively building an environmentally friendly enterprise [177]. - The company has established a robust wastewater treatment facility, ensuring that wastewater meets the discharge standards before being released into the municipal system [187]. - The company has implemented a wastewater treatment system that combines physical-chemical treatment and biological active sludge methods, ensuring stable operation [190]. - The company has constructed a concentrated wastewater treatment system with a designed capacity of 243.5 m³/month, operational since October 2019 [200]. - The company has emphasized its corporate philosophy of creating value for shareholders while fulfilling social responsibilities [174]. Risk Management and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period [7]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties [7]. - The company has no violations of decision-making procedures regarding external guarantees [7]. - The company has committed to maintaining the accuracy and completeness of the financial report as stated by its management [4]. - The company has maintained compliance with legal procedures in its financial management activities, ensuring regulatory adherence [171]. Corporate Governance - The company has confirmed that all board members attended the board meeting, ensuring the integrity of the annual report [5]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm [5]. - The company appointed Tianzhi International Accounting Firm as its domestic auditor, with a remuneration of 145 million for an 8-year audit term [138]. - The company has maintained a good integrity status for its controlling shareholders and actual controllers [140]. - The commitments made by major shareholders and related parties are effective during their control period, ensuring compliance with relevant laws and regulations [132].