BOMIN ELECTRONICS(SH:603936)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,949,051,830.67, representing a 10.75% increase compared to CNY 1,759,879,480.77 in 2017[21]. - The net profit attributable to shareholders for 2018 was CNY 124,737,747.29, a significant increase of 91.20% from CNY 65,240,733.43 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 110,630,076.98, reflecting a 103.96% increase from CNY 54,241,368.24 in 2017[21]. - Basic earnings per share increased by 74.36% to CNY 0.68 compared to CNY 0.39 in the previous year[23]. - The total profit reached CNY 13,406.13 million, an increase of 89.46% compared to the previous year[64]. - The net profit attributable to shareholders was CNY 12,473.77 million, up 91.20% year-on-year, with a net profit excluding non-recurring gains and losses of CNY 11,063.01 million, reflecting a growth of 103.96%[64]. Cash Flow and Assets - The net cash flow from operating activities for 2018 was CNY 173,652,504.16, showing a slight decrease of 1.07% compared to CNY 175,535,269.23 in 2017[21]. - The total assets at the end of 2018 reached CNY 3,827,469,285.23, marking a 61.80% increase from CNY 2,365,551,530.17 at the end of 2017[21]. - The net cash flow from operating activities reached CNY 72,405,285.06 in Q4 2018, showing significant improvement from CNY 12,441,545.22 in Q1 2018[25]. - The company's overseas assets amounted to 157.96 million yuan, representing 4.13% of total assets[42]. Strategic Acquisitions and Growth - The company completed a major asset restructuring with Jun Tian Heng Xun in August 2018, extending its main business into the PCBA field and enhancing product customization capabilities[37]. - The strategic acquisition of Jun Tian Heng Xun in August 2018 enhanced the company's capabilities in customized electronic component solutions, strengthening customer relationships and profitability[57]. - The company aims to become a customized solution provider in the PCBA field following the acquisition of Jun Tian Heng Xun[33]. Research and Development - Research and development expenses totaled CNY 93,957,874.64, representing 4.82% of total revenue, with an increase of 14.64% compared to the previous year[78]. - The company has developed key technologies in high-frequency and high-density circuit boards, achieving significant breakthroughs in production techniques[47]. - The company added 38 patents in 2018, including 14 invention patents and 24 utility model patents, showcasing its strong R&D capabilities[50]. Market Position and Industry Outlook - The PCB industry is expected to expand due to increasing demand for flexible printed circuit boards (FPC) and high-end servers, indicating a growing market space[41]. - The global PCB market size reached $62.4 billion in 2018, growing by 6% compared to 2017, with China's PCB market accounting for 52.4% at $32.7 billion[85]. - The PCB industry is expected to maintain a compound annual growth rate of 3.2% from 2018 to 2022, with the global market projected to reach $68.81 billion by 2022[89]. Risk Management - The company has outlined various risks in its annual report, which investors should be aware of[7]. - The company faces risks from macroeconomic fluctuations that could impact the PCB industry's growth and, consequently, its revenue and net profit[110]. - The company is addressing raw material price volatility by improving production processes and collaborating directly with suppliers to reduce costs[111]. Corporate Governance and Compliance - The company has established measures to ensure that related party transactions do not harm the interests of other shareholders[132]. - The company has committed to full liability for any losses incurred due to lease agreements during the effective period[132]. - The company has committed to ensuring that its subsidiaries do not engage in any competitive business activities[126]. Environmental Responsibility - The company emphasizes a commitment to green production and enhancing environmental safety awareness across all levels of operation[104]. - The company has implemented strict environmental protection measures, ensuring that all hazardous waste is collected and disposed of by qualified units without external discharge[160]. - The company has established a complete environmental risk prevention and emergency response system, including emergency drills for potential environmental incidents[165]. Shareholder Engagement and Dividends - The company plans to distribute cash dividends of CNY 22,502,735.00, which is 18.04% of the net profit attributable to shareholders[121]. - The company has developed a three-year shareholder return plan (2018-2020) to enhance shareholder value and ensure compliance with regulatory requirements[120]. - The company has committed to achieving net profits of at least RMB 90 million, RMB 112.5 million, and RMB 140.63 million for the years 2018, 2019, and 2020 respectively, after deducting non-recurring gains and losses[123].