Kinwong(SH:603228)2021-08-12 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥4,337,002,370.25, representing a 38.16% increase compared to ¥3,139,085,787.17 in the same period last year[14]. - The net profit attributable to shareholders of the listed company was ¥462,470,203.59, a decrease of 3.23% from ¥477,922,656.14 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥413,216,783.25, down 3.49% from ¥428,140,769.68 year-on-year[14]. - The net cash flow from operating activities was ¥532,573,508.72, a decline of 32.17% compared to ¥785,165,284.76 in the same period last year[14]. - Basic earnings per share for the reporting period (1-6 months) decreased by 3.51% to CNY 0.55 compared to the same period last year[15]. - Weighted average return on equity dropped to 6.88%, down 1.62 percentage points from 8.50% in the same period last year[15]. - Operating costs increased by 48.83% to ¥3,260,491,509.10, primarily due to sales growth, new factory production, and rising raw material prices[40]. - The company reported a significant increase in financial expenses by 431.88% to ¥50,860,095.45, mainly due to exchange losses and increased convertible bond interest expenses[41]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥13,320,880,647.45, reflecting a 10.04% increase from ¥12,105,507,834.35 at the end of the previous year[14]. - The net assets attributable to shareholders at the end of the reporting period were ¥6,815,934,114.21, an increase of 4.07% from ¥6,549,417,316.32 at the end of the previous year[14]. - The company's cash and cash equivalents at the end of the period were ¥1,244,550,358.89, down 38.40% from ¥2,020,499,630.72 at the end of the previous year[43]. - Total liabilities reached ¥6,301,580,001.14, compared to ¥5,348,679,737.43, marking an increase of around 17.74%[117]. - Current liabilities rose to ¥4,519,663,237.11, up from ¥3,619,432,838.86, indicating a growth of approximately 24.87%[116]. Production and Operations - The company has expanded its production capabilities with the official launch of the HLC factory and HDI (including SLP) factory in Zhuhai, enhancing high-end product processing capacity[21]. - The company operates five major production bases, with a focus on customized products rather than standard items, aligning production with sales orders[20]. - The company has a procurement management department to oversee raw material procurement, ensuring efficient supply chain management[19]. - The company has a strong focus on high-density interconnect (HDI) and multi-layer products, catering to diverse market needs[19]. - The new factory projects, including the Zhuhai Jingwang HLC and HDI (including SLP), are expected to significantly enhance high-end product manufacturing capabilities, particularly for 5G communication devices and automotive multilayer PCBs[37]. Research and Development - R&D investment reached 202 million RMB, reflecting a year-on-year growth of 21.75%, focusing on high-performance products such as OLED multilayer products and automotive applications[38]. - The company holds 192 invention patents and 248 utility model patents, demonstrating its commitment to innovation and technology development[35]. - The company has established a comprehensive cost control management system, resulting in improved efficiency and reduced waste throughout the production process[32]. Market Trends - In 2021, China's PCB industry sales are expected to grow by 14.1% year-on-year, driven by the recovery of suppressed consumer demand due to the pandemic[23]. - The global PCB industry is projected to reach a value of over $46 billion by 2025, with China being the main driver of this growth[24]. - The automotive electronics market saw a production and sales increase of 24.2% and 25.6% respectively in the first half of 2021, with new energy vehicles experiencing a staggering growth of 200%[25]. - The demand for PCBs in 5G infrastructure is expected to reach $3.7 billion by 2025, with a CAGR of about 6.8% from 2020 to 2025[26]. Environmental Compliance - The company has implemented a wastewater treatment system that includes pre-treatment and MBR membrane technology for effective pollutant removal[58]. - The company’s air emissions included nitrogen oxides at 2.8061 tons with a concentration of 3.0 mg/m³, compliant with the second-level standards[58]. - The company has established a real-time monitoring system for wastewater and air emissions to ensure compliance with environmental regulations[58]. - The company has committed to enhancing its environmental protection measures and has invested in pollution control facilities[57]. - The company has completed environmental impact assessments and received approvals for various projects, ensuring compliance with environmental regulations[75]. Shareholder and Corporate Governance - The company has committed to timely and strict fulfillment of its promises, ensuring transparency and accountability in its operations[89]. - The company has established a long-term commitment to uphold the rights of minority shareholders, ensuring protection against misleading statements in the prospectus[92]. - The company confirmed that there are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[93]. - The total guarantee amount (excluding guarantees to subsidiaries) during the reporting period was CNY 3,130,000,000, accounting for 44.59% of the company's net assets[98]. - The company has no strategic investors or general corporations becoming top ten shareholders due to new share placements during the reporting period[106]. Financial Instruments and Accounting - Financial instruments are recognized when the company becomes a party to the financial instrument contract, with specific conditions for derecognition[171]. - The company applies the effective interest method for subsequent measurement of financial assets classified at amortized cost, with gains or losses recognized in the current period[173]. - The company recognizes expected credit losses for financial assets measured at amortized cost and debt instruments measured at fair value with changes recognized in other comprehensive income[177]. - The company assesses credit risk based on the aging of receivables, particularly for commercial acceptance bills[180]. - The company adopts a simplified model for expected credit losses on accounts receivable, measuring loss provisions based on the expected credit loss over the entire duration of the receivables[182].