Kinwong(SH:603228)2022-08-05 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 5,127,046,163.90, representing an increase of 18.22% compared to CNY 4,337,002,370.25 in the same period last year[14]. - The net profit attributable to shareholders of the listed company was CNY 465,434,641.63, a slight increase of 0.64% from CNY 462,470,203.59 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 425,471,076.91, up by 2.97% from CNY 413,216,783.25 year-on-year[14]. - The net cash flow from operating activities was CNY 445,888,597.52, down by 16.28% compared to CNY 532,573,508.72 in the same period last year[14]. - The net assets attributable to shareholders at the end of the reporting period were CNY 7,497,737,085.71, an increase of 3.02% from CNY 7,278,185,081.52 at the end of the previous year[14]. - Total assets at the end of the reporting period were CNY 14,784,116,485.08, reflecting a growth of 3.08% from CNY 14,341,831,053.63 at the end of the previous year[14]. - Basic earnings per share remained stable at CNY 0.55, with a year-on-year increase of 0%[15]. - Diluted earnings per share also held steady at CNY 0.55, showing no change compared to the previous year[15]. - The basic earnings per share after deducting non-recurring gains and losses increased by 4.08% to CNY 0.51 from CNY 0.49 in the same period last year[15]. - The weighted average return on equity decreased by 0.65 percentage points to 6.23% from 6.88% year-on-year[15]. - The weighted average return on equity after deducting non-recurring gains and losses decreased by 0.46 percentage points to 5.69% from 6.15% year-on-year[15]. Market Overview - The global PCB market is projected to grow from USD 80.449 billion in 2021 to USD 101.559 billion by 2026, with a compound annual growth rate (CAGR) of 4.8%[20]. - The domestic PCB industry is expected to grow from USD 43.616 billion in 2021 to USD 54.605 billion by 2026, maintaining a CAGR of 4.6%[20]. - The automotive electronics market is projected to grow from USD 240 billion in 2021 to USD 337 billion by 2026, with a CAGR of 7.0%[23]. - The server and data storage market is expected to increase from USD 192 billion in 2021 to USD 290 billion by 2026, with a CAGR of 8.6%[24]. Company Rankings and Recognition - The company ranked 7th in the comprehensive PCB enterprise ranking and 3rd among domestic PCB enterprises in China according to CPCA in 2021[25]. - The company was listed as the 16th among the global top 100 PCB manufacturers by Prismark in 2021[25]. Production and Quality Management - The company has five major production bases, with Shenzhen Jingwang focusing on high-tech rigid boards and flexible boards, and Jiangxi Jingwang being one of the leading automated factories in the industry[27]. - The company has established a strict quality management system, obtaining certifications such as ISO 9001-2015 and IATF 16949-2016, ensuring reliable product quality[31]. - The company emphasizes cost control through lean production management, implementing a comprehensive cost control management system across all production processes[32]. - The company has a diversified product strategy, providing a wide range of products for various applications including telecommunications, consumer electronics, and automotive electronics[30]. - The company actively maintains and expands overseas markets through subsidiaries in Europe, Japan, and the United States, enhancing global competitiveness[28]. - The company utilizes a "direct sales as the main, distribution as a supplement" sales model, targeting both end customers and PCB traders[29]. - The company has a strong focus on technological innovation and quality control, which has led to multiple quality awards from clients such as Vivo and Hikvision[31]. Research and Development - The company invested 244 million in R&D during the first half of 2022, an increase of 20.96% year-on-year, focusing on market-driven technological innovations[39]. - The company has obtained 235 invention patents and 182 utility model patents, enhancing its technological capabilities and industry standards[36]. - The company has established a comprehensive information management system integrating ERP, MES, and other systems, optimizing resource allocation and reducing costs[33]. Financial Management - The company reported a significant increase in net profit in Q2 2022, reaching 296 million, a 65.90% increase quarter-on-quarter, due to cost control and declining raw material prices[40]. - The company has a diverse customer base across various industries, reducing risks associated with reliance on a single sector[34]. - The company emphasizes long-term strategic partnerships with clients, enhancing its service capabilities and deepening customer value[34]. - The company is committed to organizational transformation to improve management efficiency and enhance overall competitiveness[40]. Environmental Management - Shenzhen Jingwang reported a COD emission concentration of 55.8 mg/L, totaling 34.00320 tons per half year[59]. - The company recorded an ammonia nitrogen emission concentration of 8.97 mg/L, amounting to 6.37560 tons per half year[59]. - Total nitrogen emissions were reported at 22.5 mg/L, with a total of 8.50080 tons per half year[59]. - The company has established a wastewater treatment system utilizing a combination of pre-treatment, biological active sludge, and MBR membrane filtration[59]. - The company has implemented a stable operation for its wastewater treatment facilities to meet environmental standards[61]. - The company has received environmental protection approvals for its projects, ensuring compliance with regulations[72]. - The company has established emergency response plans for environmental incidents, with documentation filed with local environmental authorities[82]. Shareholder and Corporate Governance - The company has committed to not engaging in any business that competes with its subsidiaries, ensuring no direct or indirect competition during the control period[90]. - The commitments made by the actual controllers and shareholders to avoid conflicts of interest and ensure compliance with relevant laws and regulations are ongoing and strictly adhered to[91]. - The company has promised to not transfer benefits unfairly to other entities or individuals, maintaining the integrity of its operations and management[92]. - The company will compensate investors for any losses incurred due to false statements or omissions in its prospectus, ensuring accountability to minority shareholders[92]. - The commitments regarding related party transactions will be strictly followed, with adherence to legal and regulatory requirements to protect shareholder interests[91]. Capital Structure and Financing - The total guarantee amount (excluding guarantees to subsidiaries) is CNY 2,980,000,000, accounting for 38.65% of the company's net assets[98]. - The company has provided guarantees totaling CNY 2,980,000,000 to its subsidiaries during the reporting period[98]. - The company plans to publicly issue A-share convertible bonds totaling no more than RMB 1.16 billion, with the funds allocated for a project to produce 600,000 square meters of high-density interconnect printed circuit boards annually[116]. - The company issued 17.8 million convertible bonds in 2020, raising a total of RMB 1.78 billion, with a maturity of 6 years and a coupon rate that increases from 0.4% to 2.0% over the term[107]. Financial Position - As of June 30, 2022, the company converted 4,437 restricted shares from the "Jing 20 Convertible Bonds" into A-shares[154]. - The company maintains a continuous operation basis for its financial statements, with no significant doubts about its ability to continue operations within the next 12 months[158]. - The company’s financial statements comply with the requirements of enterprise accounting standards, reflecting its financial position and operating results accurately[159].