Champion Asia(SH:603386)2019-04-08 16:00Financial Performance - In 2018, the company's operating revenue reached ¥1,120,072,953.73, representing a 13.32% increase compared to ¥988,455,520.10 in 2017[22]. - The net profit attributable to shareholders was ¥68,994,249.42, a 5.14% increase from ¥65,622,609.25 in the previous year[22]. - The net cash flow from operating activities significantly increased to ¥60,814,050.27, up 880.54% from ¥6,202,093.29 in 2017[22]. - Total assets grew by 24.87% to ¥1,504,154,088.60 from ¥1,204,622,353.93 in 2017[22]. - The basic earnings per share decreased by 15.00% to ¥0.34 from ¥0.40 in 2017[23]. - The weighted average return on equity dropped to 10.90%, down 6.77 percentage points from 17.67% in 2017[23]. - The company achieved operating revenue of 1,120,073 thousand yuan, a year-on-year increase of 13.32%[50]. - The net profit attributable to shareholders was 68,994.2 thousand yuan, representing a year-on-year growth of 5.14%[50]. - The net cash flow from operating activities surged by 880.54% to ¥60,814,050.27, attributed to improved collection efforts[62]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.40 per 10 shares, totaling RMB 28,252,000, based on a total share capital of 201,800,000 shares as of December 31, 2018[5]. - The company has a cash dividend policy ensuring that at least 30% of the distributable profit will be distributed as cash dividends annually from 2017 to 2019, contingent on positive distributable profits[92][93]. - For 2018, the company plans to distribute a cash dividend of RMB 28,252,000, which is 40.95% of the net profit attributable to shareholders[96]. - In 2017, the company distributed a total cash dividend of RMB 30,270,000, representing 46.13% of the net profit attributable to shareholders[94]. Operational Risks and Compliance - The company reported no significant operational risks during the reporting period, including risks from macroeconomic fluctuations and raw material price volatility[7]. - The company emphasizes the importance of investor awareness regarding investment risks related to forward-looking statements in the report[6]. - The company has committed to ensuring that all information provided for transactions is accurate, complete, and free from misleading statements or significant omissions[101]. - The company has not faced any administrative penalties or criminal investigations in the last three years, ensuring compliance with regulatory standards[100]. - The actual controller and all directors, supervisors, and senior management have committed to not being involved in any criminal investigations or administrative penalties in the last three years[100]. - The company commits to maintaining the integrity of its financial reporting and compliance with legal obligations[101]. Environmental and Social Responsibility - The company has made significant investments in environmental protection, which has created a more equitable competitive environment for compliant firms[71]. - The company has been recognized as an environmentally good enterprise (blue card) by the Huizhou Environmental Protection Bureau[175]. - The company is listed as a key pollutant discharge unit by the Huizhou Environmental Protection Bureau for 2018[175]. - The company actively engages in public welfare activities, supporting local culture, education, and poverty alleviation[174]. - The company has invested a total of 6.40 million RMB in poverty alleviation initiatives[169]. - The company allocated 3.40 million RMB specifically for targeted poverty alleviation efforts[170]. Corporate Governance and Shareholder Relations - The company has established an independent financial accounting department with a complete financial management system to ensure financial independence[109]. - The company guarantees that all information and documents related to the transaction are true, accurate, and complete, with no false records or significant omissions[102]. - The company has established a governance structure that allows for independent decision-making by its board and management[126]. - The company will ensure that any unavoidable related party transactions are conducted fairly and transparently[130]. - The company has committed to compensating any losses incurred by Guangdong Junya due to non-fulfillment of promises made by the company or its affiliates[114]. Market Position and Strategy - The company maintained its focus on the printed circuit board industry, with no changes in its main business operations during the reporting period[32]. - The company is actively pursuing customer certification and expanding its market presence through collaboration with leading enterprises[43]. - The company ranks 50th among comprehensive PCB enterprises in China according to the 2017 ranking[36]. - The company plans to enhance its product structure by increasing R&D investment in high-value products such as multilayer boards and flexible printed circuits (FPC)[81]. - The company aims to expand its overseas market presence, with current export revenue accounting for 9.45% of its main business income[83]. Research and Development - The company’s R&D expenses rose by 65.26% to 56,380.96 thousand yuan, indicating a strong focus on innovation[50]. - Total R&D investment accounted for 5.03% of operating revenue, with 253 R&D personnel representing 8.08% of total staff[61]. - The company is focusing on new product technology development and improving operational efficiency to enhance competitiveness[43]. Legal Matters - The company is involved in a significant lawsuit concerning a contract dispute, with the amount in question totaling RMB 9,119,905.02 plus interest and penalties[150]. - There are no ongoing or undisclosed litigation or arbitration matters that require further reporting[151]. - The company and its controlling shareholders have maintained a good integrity status, with no significant debts or court judgments unmet during the reporting period[151]. Wealth Management and Financial Strategy - The company entrusted a total of RMB 300 million in wealth management products, with annualized returns ranging from 1.10% to 5.00%[162]. - The expected returns from the wealth management products amounted to RMB 1,000,000, with actual returns already received[162]. - The company has successfully recovered all invested amounts from the wealth management products, demonstrating effective cash management[162]. - The company utilized idle raised funds for wealth management, optimizing its financial resources[162]. Environmental Compliance - The company has implemented measures to control pollution during PCB production, addressing waste water, waste gas, and waste management[176]. - The company reported a total wastewater discharge of 62.76 tons/year, exceeding the chemical oxygen demand limit of 50 mg/L with a measured value of 62.76 mg/L[178]. - The ammonia nitrogen concentration in wastewater was recorded at 10.04 mg/L, surpassing the limit of 8.0 mg/L[178]. - The company has established a continuous emission control system for waste gases, ensuring compliance with the GB16297-1996 standards for various pollutants[180].