BOMIN ELECTRONICS(SH:603936)2022-04-17 16:00Financial Performance - In 2021, the net profit attributable to the parent company's shareholders was CNY 241.87 million, with a cumulative undistributed profit of CNY 544.28 million at year-end[7]. - The company's operating revenue for 2021 was CNY 3,520,660,207.12, representing a year-over-year increase of 26.39% compared to CNY 2,785,506,052.16 in 2020[23]. - The net profit attributable to shareholders for 2021 was CNY 241,871,903.43, a decrease of 1.96% from CNY 246,713,503.86 in 2020[23]. - The net cash flow from operating activities increased significantly by 283.89% to CNY 272,949,728.81 from CNY 71,101,428.66 in 2020[23]. - The total assets at the end of 2021 reached CNY 6,551,683,119.37, marking a 17.76% increase from CNY 5,563,756,228.81 at the end of 2020[23]. - The basic earnings per share for 2021 was CNY 0.48, down 12.73% from CNY 0.55 in 2020[24]. - The weighted average return on equity decreased to 6.83% in 2021 from 9.36% in 2020, a decline of 2.53 percentage points[24]. - The total profit was 275.67 million RMB, a decrease of 2.64% compared to the previous year[60]. - The net profit attributable to shareholders was 241.87 million RMB, down 1.96% year-on-year, with a net profit of 211.20 million RMB after deducting non-recurring gains and losses, a decrease of 2.79%[60]. Shareholder Returns - The board of directors proposed not to distribute cash dividends or issue bonus shares for the 2021 fiscal year, opting to retain undistributed profits for operational and liquidity needs[7]. - The company implemented a share repurchase amounting to CNY 93.10 million, representing 38.49% of the net profit attributable to the parent company for the year[7]. - The company plans to implement a cash dividend policy, ensuring that at least 10% of the distributable profits are allocated as cash dividends each year, with higher percentages based on the company's development stage[140]. - The cash dividend distribution plan for 2020 was approved by the board and shareholders, ensuring compliance with relevant regulations and protecting shareholder interests[142]. - The company has distributed a total of approximately 104 million CNY in cash dividends over six consecutive years from 2015 to 2021, ensuring stable profit distribution[175]. Research and Development - The company has a commitment to research and development, focusing on new products and technologies, although specific figures are not provided in the extracted content[8]. - R&D expenses amounted to 142.79 million RMB, an increase of 19.30%, accounting for 4.06% of operating revenue[58]. - The company successfully developed over 300 new products in 2021, including 20 milestone projects with leading industry players, and added 33 new patents, ranking high in the industry for patent authorization[42]. - The company plans to increase R&D and market development for high-value products such as customized electronic components and ceramic substrates[50]. - The company is investing in new technology development, allocating 15% of its revenue towards R&D, which amounts to approximately 180 million[119]. Market Expansion and Strategy - The company is actively exploring market expansion opportunities, but detailed strategies and metrics are not specified in the provided documents[8]. - In 2021, the company actively expanded its product offerings in key areas aligned with national policies on new infrastructure, carbon neutrality, and IoT, providing new growth points for performance[35]. - The company is set to increase production capacity by 40,000 square meters per month with the Jiangsu Bomin Phase II project, expected to reach production by July 2022[39]. - The company plans to enter two new international markets by Q3 2022, targeting a 5% market share in each within the first year[118]. - The company is considering strategic acquisitions to enhance its market position, with a budget of up to 300 million allocated for potential mergers and acquisitions in 2022[120]. Operational Efficiency - The company implemented cost control measures that resulted in a 10% reduction in production management costs, while improving drilling efficiency and output by over 30%[41]. - The company has established a high-integration ERP system to manage production, quality, and supply chain effectively, ensuring customer satisfaction[51]. - The company is focused on upgrading bottleneck processes and enhancing production automation to maximize flow and improve market share[52]. - The company has strengthened its management control over subsidiaries to improve operational efficiency and risk management[147]. Environmental Responsibility - The company has maintained a commitment to environmental responsibility, achieving compliance with national environmental standards and passing ISO14001 certification for several consecutive years[178]. - The company has implemented a clean production and end-of-pipe treatment approach, with no environmental pollution incidents reported during the reporting period[150]. - The company has achieved modernization and informatization of its main equipment, aligning with environmental protection facilities to ensure simultaneous operation[166]. - The company has implemented water-saving measures, achieving a water reuse rate of over 92% and an indirect cooling water recycling rate exceeding 98%[173]. - The company has established a hazardous waste management system and has recorded a hazardous waste storage amount of 30.2765 tons as of December 31, 2020, with a reduction of 60.8494 tons by the end of 2021[163]. Governance and Compliance - The company has established a robust governance structure and internal control system to protect shareholder rights and ensure compliance with regulations[105]. - The company maintained independence from its controlling shareholder, ensuring no interference in decision-making or operations[107]. - The company has established specialized committees under the board, including an audit committee and a strategic committee[127]. - The company has not faced any penalties from securities regulatory authorities in the past three years[123]. - The company has committed to not engaging in any business that competes with its subsidiaries, ensuring a clear operational focus[185]. Risks and Challenges - The company faced various operational risks, which are detailed in the management discussion and analysis section of the report[10]. - The company faces risks from macroeconomic fluctuations, which could impact revenue and net profit if the PCB industry's growth slows down[99]. - PCB manufacturers faced significant profit pressure due to rising raw material prices, with direct materials accounting for approximately 55% of costs, and copper foil prices being a major contributor[46]. - Raw material prices have seen significant increases, with key materials like copper foil and prepreg experiencing substantial price hikes[100]. Employee Development - The company has a total of 11 directors and supervisors, with 6 of them being independent directors[115]. - The company invested over 1.5 million yuan in business English training for 260 employees to support its internationalization strategy[138]. - The company has implemented an online learning platform to improve training efficiency and coverage for employees[138]. - The company is actively conducting industry salary surveys to address compensation disparities and enhance competitiveness in the labor market[137]. - The company has a structured approach to employee compensation, focusing on competitive remuneration for key positions to retain talent[137].