Champion Asia(SH:603386)2021-03-25 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,065,746,952.43, representing a 40.32% increase compared to CNY 1,472,180,953.85 in 2019[22]. - Net profit attributable to shareholders reached CNY 120,065,676.46, a significant increase of 246.74% from CNY 34,626,602.07 in the previous year[22]. - The basic earnings per share rose to CNY 0.54, up 217.65% from CNY 0.17 in 2019[23]. - The cash flow from operating activities increased to CNY 153,181,684.70, a 236.67% rise compared to CNY 45,498,977.56 in 2019[22]. - The company's total assets at the end of 2020 were CNY 2,987,446,948.14, reflecting a 10.20% increase from CNY 2,710,850,445.68 in 2019[22]. - The weighted average return on equity increased to 11.26%, up 6.77 percentage points from 4.49% in 2019[23]. - The company reported a net profit of CNY 47,513,833.39 in Q2 2020, compared to a loss of CNY 9,953,051.31 in Q1 2020[25]. - The net profit attributable to shareholders for Q4 2020 was CNY 36,506,675.25, showing a recovery trend throughout the year[25]. - The company achieved total revenue of CNY 2.066 billion in 2020, representing a year-on-year growth of 40.32%[50]. - Net profit attributable to shareholders reached CNY 120.07 million, a significant increase of 246.74% compared to the previous year[50]. Dividend Distribution - The company plans to distribute a cash dividend of 2.2 RMB per 10 shares, totaling approximately 49.36 million RMB, which represents 41.11% of the net profit attributable to shareholders for 2020[5]. - The company’s cash dividend policy stipulates that at least 30% of the distributable profit for the year should be distributed as cash dividends[94]. - In 2019, the company distributed a cash dividend of RMB 11,315,136.30 (including tax), accounting for 32.68% of the net profit attributable to shareholders[97]. - For 2018, the cash dividend distributed was RMB 28,252,000.00 (including tax), which was 40.95% of the net profit attributable to shareholders[96]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[8]. - The company has outlined various risks it may face, including macroeconomic fluctuations and raw material price volatility[8]. - The company faces risks from macroeconomic fluctuations that could impact PCB demand in downstream industries like consumer electronics[86]. - Increased competition in the PCB industry may affect the company's profitability if it fails to enhance its technological and production capabilities[87]. - Fluctuations in raw material prices, which constitute a significant portion of the company's operating costs, pose a risk to profitability[88]. - The company acknowledges management risks associated with scale expansion, which may lead to delivery delays and increased costs if not managed effectively[90]. Corporate Governance - The company has received a standard unqualified audit opinion from Da Hua Certified Public Accountants[4]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has ensured that all board members attended the board meeting, affirming the accuracy and completeness of the annual report[7]. - The company guarantees that all information and documents related to the transaction provided to intermediaries are true, accurate, and complete, and assumes legal responsibility for any misrepresentation or omissions[101]. - The controlling shareholder and actual controller commit that no competing business will be operated directly or indirectly outside of the company and its subsidiaries[105]. Market Position and Strategy - The company focuses on the printed circuit board (PCB) industry, engaging in R&D, production, and sales of PCBs, including rigid, flexible, and rigid-flex boards, with applications in various sectors such as consumer electronics and automotive electronics[30]. - The company ranks 38th among comprehensive PCB enterprises and 19th among domestic PCB enterprises in China, according to the 2019 China Electronic Circuit Industry Ranking[34]. - The global PCB market was valued at $61.3 billion in 2019, experiencing a slight decline of 1.7% compared to 2018, with future growth driven by IoT, automotive electronics, and cloud servers[34]. - The company is actively responding to the strong demand growth in downstream sectors such as telecommunications, consumer electronics, and automotive electronics[78]. - The company is enhancing its market position by leveraging the shift of global PCB production capacity to China and the rapid growth of electronic terminal products[78]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[52]. Research and Development - The company’s R&D expenses amounted to CNY 113.19 million, up 46.50% year-on-year, accounting for 5.48% of total revenue[47]. - The company has a cumulative total of nearly 10,000 customers for its sample and small batch board products, covering various high-precision PCB types[43]. - The company has established a robust ERP management system to enhance data accuracy and operational efficiency, contributing to effective cost control and production management[36]. - The company is committed to advancing smart manufacturing systems to improve production efficiency and product quality[85]. Environmental Management - The company has established an environmental monitoring system to comply with local regulations and ensure effective pollution monitoring[176]. - The company has implemented measures for solid waste treatment, ensuring that recyclable materials are processed and reused without external discharge[181]. - The company has a total of 123 discharge outlets, with specific locations and methods for wastewater discharge to municipal treatment facilities[179]. - The company has established wastewater discharge standards, including limits for total copper at 2 mg/L and chemical oxygen demand (COD) at 500 mg/L[182]. - The company has reported no instances of exceeding the discharge limits for hazardous waste, demonstrating effective waste management practices[181]. - The company has a dedicated team for environmental management, ensuring pollution control measures are effectively implemented[186]. Legal and Compliance - The company reported no major litigation or arbitration matters exceeding 10% of the latest audited net assets during the reporting period[147]. - The company has not engaged in any entrusted financial management or loans during the reporting period, focusing instead on its core operations[169]. - The company will disclose any related party transactions in accordance with legal and regulatory requirements[123]. - The company has established a stock price stabilization plan to protect shareholder interests if the stock price falls below the net asset value per share for 20 consecutive trading days within three years post-IPO[130].