TPC(SZ:002134)2019-04-12 16:00Financial Performance - The company's operating revenue for 2018 was ¥392,363,890.71, a decrease of 9.08% compared to ¥431,547,560.38 in 2017[17]. - The net profit attributable to shareholders for 2018 was -¥59,257,230.67, representing a decline of 517.58% from a profit of ¥14,190,643.11 in 2017[17]. - The net cash flow from operating activities was ¥10,692,073.35, down 54.85% from ¥23,681,053.31 in the previous year[17]. - The total assets at the end of 2018 were ¥585,441,091.51, a decrease of 7.70% from ¥634,252,726.50 at the end of 2017[17]. - The net assets attributable to shareholders decreased by 13.54% to ¥378,511,623.89 from ¥437,768,854.56 in 2017[17]. - The basic earnings per share for 2018 was -¥0.24, a decline of 500.00% compared to ¥0.06 in 2017[17]. - The weighted average return on net assets was -14.52%, down 17.81% from 3.29% in 2017[17]. - The gross profit margin for 2018 was 7.63%, down from 11.94% in 2017, indicating a decline of 4.31%[185]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 54.85% to ¥10,692,073.35, primarily due to increased payments for goods[53]. - The company reported a significant increase in cash and cash equivalents by 96.53%, primarily due to the maturity of financial products[31]. - The total cash and cash equivalents increased by 753.86% to ¥46,117,681.89, reflecting improved liquidity[53]. - The company's cash and cash equivalents increased to ¥102,083,996.96, representing 17.44% of total assets, up from 8.19% in the previous year[58]. - Cash and cash equivalents increased to ¥102,083,996.96 from ¥51,944,332.61, representing a growth of 96.4%[196]. Market and Industry Insights - The global PCB market is projected to reach $62.396 billion in 2018, with a year-on-year growth of 6.0%[28]. - China's PCB market value reached $32.702 billion in 2018, with a year-on-year increase of 10.0%, making it the fastest-growing region globally[28]. - The global PCB market is projected to grow at a compound annual growth rate (CAGR) of 3.7% from 2018 to 2023, with packaging substrates expected to grow the fastest at 4.9%[67]. Strategic Focus and Future Plans - The company aims to enhance its competitive edge through core technology research and development, improving management systems, and establishing stable marketing channels[68]. - In 2019, the company plans to focus on market development, quality improvement, technology enhancement, and cost reduction to increase asset operation efficiency and profitability[69]. - The company will deepen the development of high-end product demands to enhance capacity value and increase the proportion of high-end product orders[69]. - The company plans to strengthen cost control through lean management, linking employee compensation to performance, and improving procurement efficiency[72]. - The company aims to expand its market presence by leveraging quality and service to develop new customer relationships[38]. Governance and Management - The company has a diverse board with members holding advanced degrees and significant experience in various sectors, enhancing its governance[140]. - The company has maintained a stable management structure, with no new shares issued or significant changes in ownership among executives[135]. - The company is committed to transparency in its governance, as evidenced by the detailed reporting of board member changes and qualifications[138]. - The company has established a performance evaluation system for senior management, linking their performance directly to compensation[173]. - The company’s independent directors actively participated in meetings and provided constructive suggestions, contributing to the company's stable development[168]. Risks and Challenges - The company faced significant challenges in 2018, leading to a negative performance outlook and increased risks[5]. - The company acknowledges risks from macroeconomic fluctuations and plans to strengthen production management and marketing team capabilities to mitigate these risks[74]. - The company is aware of foreign exchange risks due to exports and imports, and will monitor exchange rate trends to minimize impacts on financial performance[75]. - The company faces rising costs in raw materials and labor, and will continue to implement lean management and enhance financial analysis to improve operational efficiency[76]. Shareholder Information - The company has a total of 245,849,768 shares, all of which are unrestricted[121]. - The total number of common shareholders at the end of the reporting period was 14,673, while the total number of preferred shareholders was 15,731[124]. - The largest shareholder, Tianjin Zhonghuan Electronic Information Group Co., Ltd., holds 25.35% of shares, totaling 62,314,645 shares[124]. - The company has not distributed dividends in the past three years due to ongoing operational challenges, with net profits of -59.26 million in 2018, -14.19 million in 2017, and -98.83 million in 2016[80][82][83]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit and has stable emissions of ammonia nitrogen, total phosphorus, and total copper, all meeting discharge standards[112]. - The company maintains a commitment to sustainable development and environmental protection, ensuring compliance with relevant laws and regulations[109]. - The company has established an emergency response plan for environmental incidents and conducts annual reviews and employee training[114]. Internal Controls and Audit - The company maintained effective internal controls over financial reporting as of December 31, 2018, with no significant deficiencies identified[178]. - The audit opinion issued by Tianzhi International Accounting Firm was a standard unqualified opinion, confirming the fairness of the financial statements[182]. - The internal control evaluation was based on revenue and total assets as quantitative standards, with specific thresholds for identifying deficiencies[182]. - There were no significant internal control deficiencies reported during the period[174].