Kinwong(SH:603228)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 9.53 billion, representing a year-over-year increase of 34.95% compared to CNY 7.06 billion in 2020[15]. - The net profit attributable to shareholders for 2021 was approximately CNY 935.25 million, a slight increase of 1.55% from CNY 920.99 million in 2020[15]. - The net cash flow from operating activities decreased by 25.33% to approximately CNY 1.14 billion in 2021, down from CNY 1.53 billion in 2020[15]. - The total assets at the end of 2021 were approximately CNY 14.34 billion, an increase of 18.47% from CNY 12.11 billion at the end of 2020[15]. - The basic earnings per share for 2021 was CNY 1.11, a slight increase of 0.91% compared to CNY 1.10 in 2020[16]. - The weighted average return on equity for 2021 was 13.58%, a decrease of 2.03 percentage points from 15.61% in 2020[16]. - The company reported non-recurring gains of approximately CNY 94.91 million in 2021, compared to CNY 103.89 million in 2020[18]. - The company's operating revenue for the reporting period reached ¥9,532,422,463.08, representing a year-on-year increase of 34.95% compared to ¥7,063,588,891.52[39]. - The operating cost increased by 44.24% to ¥7,302,850,532.77, primarily due to sales scale growth, new factory production, and rising raw material prices[39]. Dividend and Shareholder Information - 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[3]. - The company has a cash dividend policy that mandates a minimum of 20% of the distributable profit to be distributed as cash dividends if certain conditions are met[112]. - In the absence of significant investment plans, the company will distribute at least 40% of the total profit distribution amount as cash dividends[113]. - The company can issue stock dividends based on the available distributable profits and cash flow, ensuring alignment with overall shareholder interests[113]. - The total number of shares held by Chairman Liu Shaobai increased from 0 to 638,405 shares during the reporting period, with a pre-tax remuneration of 2.5542 million yuan[82]. - The total number of shares held by the company’s executives increased by 1,147,447 shares, with a total pre-tax remuneration of 14.0421 million yuan for the reporting period[83]. - The company executed a cash dividend distribution of RMB 3.00 per 10 shares, impacting the earnings per share and net assets per share[179]. Corporate Governance - The company has established a robust corporate governance structure, complying with relevant laws and regulations to enhance management quality[76]. - The board of directors consists of nine members, including three independent directors, and held twelve meetings to support scientific decision-making[78]. - The supervisory board, comprising three members, conducted seven meetings to oversee the company's major matters and protect shareholder interests[79]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making or operations[80]. - The company has not faced any penalties from securities regulatory agencies in the past three years[91]. - The company has no dissenting opinions from the board regarding its operations during the reporting period[106]. Research and Development - R&D investment reached 458 million yuan, up 28.71% year-on-year, focusing on high-performance products and technologies[24]. - The company has established a technology research system involving universities and research institutions to enhance product innovation[24]. - The company has developed batch production technologies for various PCB products, including high-density rigid-flex PCBs, and holds 209 invention patents and 164 utility model patents[37]. - The company has a total of 1,497 R&D personnel, accounting for 10.35% of the total workforce[54]. - The company is currently constructing a headquarters R&D center and office building with an investment of up to ¥450 million[57]. Environmental Management - The company reported a total COD discharge of 9.69 tons/year with a concentration of 38.63 mg/L, which is within the permitted limits[122]. - The company’s wastewater treatment facilities utilize a combination of pre-treatment and biological methods to ensure compliance with discharge standards[122]. - The company has implemented a wastewater recycling system using membrane separation technology to enhance environmental protection efforts[122]. - The company is committed to continuous monitoring and improvement of its environmental management practices in line with regulatory changes[120]. - The company has established a comprehensive environmental monitoring scheme, including quarterly noise testing and annual soil testing[147]. Market and Industry Outlook - The PCB industry is expected to grow at a compound annual growth rate of 4.8% from 2021 to 2026, driven by demand in automotive, 5G communication, and IoT sectors[28]. - The automotive electronics sector is expected to grow at a CAGR of 8.0% from 2020 to 2025, significantly boosting PCB demand[64]. - The 5G market is anticipated to see significant growth, with China planning to build over 600,000 new 5G base stations in 2022, contributing to stable demand for PCBs[66]. - The wearable electronics market, including smartwatches and TWS earbuds, saw a shipment increase of 24% in 2021, indicating rising demand for HDI boards and flexible PCBs[67]. Risk Management - The company faces risks from macroeconomic fluctuations and raw material price volatility, which could impact production stability and profitability[70][71]. - The company is sensitive to fluctuations in the USD/CNY exchange rate, which can directly impact the cost of imported raw materials and the selling price of exported products, affecting net profit[72]. - The company is actively managing supply chain risks by collaborating with suppliers and clients to address raw material price fluctuations[26]. Financial Management - The company has a total guarantee amount of RMB 3.13 billion, which accounts for 41.84% of its total assets[164]. - The company invested RMB 621.9 million in bank wealth management products from its own funds, with an outstanding balance of RMB 34 million[165]. - The company raised RMB 820 million through fundraising for bank wealth management products, with an outstanding balance of RMB 250 million[165]. - The company reported a total of 1,500 million in entrusted financial management with an annualized return rate of 1.65%[167]. - The company achieved a return of 20.52 million from a structured deposit linked to the stock market, with an annualized return rate of 3.15%[167]. Employee Management - The company employed a total of 14,469 staff, with 2,320 in the parent company and 12,149 in major subsidiaries[107]. - The workforce includes 8,838 production personnel, 4,059 technical staff, and 1,254 administrative employees[108]. - The company conducted a total of 171,428 hours of employee training during the reporting period, covering 12 major projects across 5 key areas[110]. - The company has implemented a performance-oriented compensation policy linking individual and team performance[109]. Shareholder Structure - The top two shareholders, Shenzhen Jinghong Yongtai Investment Holding Co., Ltd. and Zhichuang Investment Co., Ltd., each hold 293,731,122 shares, representing 34.49% of the total shares[184]. - The number of ordinary shareholders decreased from 20,021 to 18,948 during the reporting period[183]. - The company has no preferred shareholders with restored voting rights as of the end of the reporting period[183].