BOMIN ELECTRONICS(SH:603936)2022-08-22 16:00Financial Performance - Basic earnings per share for the first half of 2022 was CNY 0.21, a decrease of 30% compared to CNY 0.30 in the same period last year[18]. - Diluted earnings per share for the first half of 2022 was CNY 0.21, reflecting a 30% decline from CNY 0.30 year-on-year[18]. - Net profit attributable to shareholders, excluding non-recurring gains and losses, decreased to CNY 0.19 per share, down 32.14% from CNY 0.28 in the previous year[18]. - The weighted average return on net assets was 2.98%, down 1.34 percentage points from 4.32% in the same period last year[18]. - Revenue decline was the primary reason for the decrease in net profit and earnings per share[18]. - The company's operating revenue for the first half of the year was ¥1,534,458,668.07, a decrease of 6.78% compared to ¥1,646,109,664.03 in the same period last year[20]. - Net profit attributable to shareholders was ¥109,463,305.52, down 28.35% from ¥152,772,809.02 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was ¥97,825,613.44, a decline of 30.46% compared to ¥140,665,382.83 in the previous year[20]. - The net cash flow from operating activities was ¥64,577,467.90, a decrease of 10.33% from ¥72,013,126.13 in the same period last year[20]. - The company achieved operating revenue of CNY 153,445.87 million in the first half of 2022, a decrease of 6.78% year-on-year[53]. - The net profit attributable to shareholders was CNY 10,946.33 million, down 28.35% compared to the same period last year[53]. Operational Developments - The company is focusing on high-precision printed circuit boards (PCBs) and expanding into high-value products such as customized electronic devices and modular products[23]. - The company is developing ceramic substrates for power semiconductor modules, which are expected to meet the growing demand in the power semiconductor market[26]. - The AMB ceramic substrate production capacity is currently 80,000 pieces per month, with plans to expand to 150,000-200,000 pieces per month by 2023[29]. - The company aims to become a professional PCBA solution provider for power control modules in the electric vehicle sector[28]. - The company has developed a high-voltage integrated electric drive system, which reduces system weight and size, improves power density, and enhances energy efficiency, leading to increased driving range[30]. - The electronic components business has launched eight high-performance passive components, achieving a high level of performance and domestic substitution, with a supply chain involving world-class manufacturers[30]. - The company has established a new intelligent factory in Jiangsu, which is expected to add 40,000 square meters per month of high-end product capacity[55]. - The company signed a strategic cooperation agreement to invest approximately CNY 6 billion in the construction of an IC packaging substrate industrial base in Hefei[55]. Market Trends and Projections - The global PCB market has grown from $41.6 billion in 2000 to $80.9 billion in 2021, with China's market share increasing from 8.1% to 54.6% during the same period[32]. - Multi-layer boards accounted for 38% of global PCB products in 2021, while packaging substrates and HDI boards saw significant growth rates of 41.4% and 25.4% respectively[33]. - The PCB industry's downstream applications are diversifying, with the top five sectors being mobile phones (20%), personal computers (18%), consumer electronics (15%), automotive (11%), and servers/data storage (10%) in 2021[34]. - The global ceramic substrate market was valued at $7.02 billion in 2021 and is projected to reach $12.03 billion by 2028, with a CAGR of 8.0%[38]. - The global market size for DBC substrates is projected to grow from $2.9 billion in 2020 to $4.0 billion in 2026, with a CAGR of 8.6%[39]. - The AUB substrate market is expected to expand significantly from $4.0 billion in 2020 to $16.0 billion in 2026, achieving a CAGR of 25.0%[39]. - The DPC substrate market is forecasted to increase from $12.0 billion in 2020 to $17.0 billion in 2026, with a CAGR of 5.2%[39]. - The LTCC substrate market is anticipated to grow from $65.0 billion in 2020 to $127.0 billion in 2026, reflecting a CAGR of 10.1%[39]. Financial Position and Assets - The company's total assets increased by 3.90% to ¥6,807,398,622.08 from ¥6,551,683,119.37 at the end of the previous year[20]. - The net assets attributable to shareholders rose by 3.33% to ¥3,735,993,512.15 from ¥3,615,559,573.30 at the end of the previous year[20]. - The company's total assets increased to CNY 6,807,398,622.08, up from CNY 6,551,683,119.37, representing a growth of approximately 3.8% year-over-year[144]. - The total current assets decreased from CNY 2,745,626,781.68 to CNY 2,473,989,974.02, a decline of approximately 9.87%[142]. - Cash and cash equivalents decreased from CNY 596,905,980.80 to CNY 501,037,819.08, a reduction of about 15.99%[142]. - Accounts receivable decreased from CNY 1,162,628,748.86 to CNY 1,068,981,731.27, a decrease of approximately 8.06%[142]. - Inventory increased from CNY 531,800,807.88 to CNY 556,257,333.30, an increase of about 4.62%[142]. - The total non-current assets increased from CNY 2,150,000,000 to CNY 2,200,000,000, reflecting a growth of approximately 2.33%[142]. Environmental Compliance and Initiatives - The company has implemented strict environmental regulations to manage waste and emissions, but faces risks from potential environmental incidents and increasing regulatory requirements[74]. - The company has achieved stable operation of its facilities, with no instances of exceeding discharge limits reported[86]. - The company has established a hazardous waste management system and is executing inspections to ensure compliance, with all hazardous waste being disposed of by qualified units[98]. - The company has made significant progress in reducing hazardous waste storage, with a reduction of 27 tons reported in the first half of 2022[97]. - The company has adopted measures to reduce carbon emissions, including replacing high-energy-consuming equipment and optimizing production processes[108]. - The company is committed to energy conservation and emission reduction, aligning with national "dual carbon" policies[108]. - The company has established various environmental management systems to ensure legal compliance in environmental management[106]. - The company has installed online monitoring devices for key pollutants, achieving 24-hour dynamic monitoring and ensuring compliance with discharge standards[104]. Corporate Governance and Shareholder Relations - The company reported a commitment from its controlling shareholders to protect the interests of investors and not to interfere with the company's management activities[114]. - The company has established a compensation responsibility for any losses caused to investors due to non-compliance with commitments[116]. - The company’s board members and senior management have pledged to act diligently and in good faith to protect the rights of all shareholders[115]. - There is a restriction on the transfer of shares by board members, limiting it to 25% of their total shares during their tenure and 50% within 12 months after leaving[115]. - The company has committed to not engaging in any competitive business activities that may conflict with its subsidiaries[116]. - The company will ensure that any future business expansions do not compete with its existing operations[116]. - The company has outlined measures to avoid conflicts of interest and ensure compliance with regulatory requirements[114]. - The company will publicly explain any failure to fulfill stock reduction intentions and apologize to shareholders[120]. Legal and Regulatory Matters - There were no significant lawsuits or arbitration matters during the reporting period[124]. - The company did not disclose any major related party transactions during the reporting period[125]. - There were no changes in the audit opinion from the previous annual report[124]. - The company has not provided guarantees for any third parties outside of its subsidiaries[128]. - The company reported a total guarantee amount of RMB 631,041,100, which accounts for 16.89% of the company's net assets[128]. Accounting Policies and Financial Reporting - The financial statements are prepared on a going concern basis, with no significant doubts regarding the company's ability to continue operations for the next 12 months[181]. - The company adheres to specific accounting policies and estimates related to financial instruments impairment, fixed asset depreciation, and revenue recognition[183]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position and operating results[184]. - The company recognizes expected credit losses based on the weighted average of credit losses for financial assets measured at amortized cost and certain debt instruments[199].