SCC(SZ:002916)2024-03-14 16:00Financial Performance - The company's operating revenue for 2023 was CNY 13,526,425,962, a decrease of 3.33% compared to CNY 13,992,454,035 in 2022 [23]. - The net profit attributable to shareholders for 2023 was CNY 1,398,114,737, reflecting a decline of 14.81% from CNY 1,639,730,777 in 2022 [23]. - The net cash flow from operating activities decreased by 18.57% to CNY 2,589,283,004 in 2023 from CNY 3,179,833,339 in 2022 [23]. - Basic earnings per share for 2023 were CNY 2.73, down 15.22% from CNY 3.22 in 2022 [23]. - The company achieved total revenue of 13.526 billion yuan in 2023, a year-on-year decrease of 3.33% [47]. - Net profit attributable to shareholders was 1.398 billion yuan, down 14.81% year-on-year, primarily due to declining downstream market demand and increased costs from new project construction [47]. - The PCB business generated 8.073 billion yuan in revenue, a decline of 8.52%, accounting for 59.68% of total revenue [48]. - The packaging substrate business reported revenue of 2.306 billion yuan, down 8.47%, with a gross margin of 23.87%, a decrease of 3.11 percentage points [51]. - The electronic assembly business saw revenue growth of 21.19 billion yuan, up 21.50% year-on-year, with a gross margin of 14.66%, an increase of 1.51 percentage points [53]. Dividend Distribution - The company plans to distribute a cash dividend of 9.00 CNY per 10 shares (including tax) to all shareholders, with no bonus shares issued [5]. - The company plans to distribute a cash dividend of RMB 9.00 per 10 shares, totaling approximately RMB 461,589,781.50, which represents 33.02% of the net profit attributable to shareholders for 2023 [192]. - The total distributable profit for the company is RMB 6,178,510,167.44, with the cash dividend accounting for 100% of the profit distribution [192]. - The company distributed a cash dividend of RMB 10.00 per 10 shares, totaling RMB 512,877,535, which represents 31.28% of the net profit attributable to shareholders of the parent company for 2022 [190]. Investment and Expansion - The company is expanding its production capacity with a new project for high-end IC carrier boards, funded through a non-public stock issuance [16]. - The company has established a unique "3-In-One" business layout, integrating PCB, electronic assembly, and packaging substrate services [39]. - The company is investing in a factory in Thailand to enhance its overseas presence, facing potential challenges in legal compliance, market expansion, and supply chain management [123]. - The cumulative investment in the high-end flip chip IC substrate project was 1,799.3 million CNY, with a progress rate of 89.26% [89]. - The total investment during the reporting period was ¥3,698,085,227.32, a 9.68% increase from the previous year [87]. Research and Development - The company increased its R&D investment to 7.93% of revenue, up 2.07 percentage points year-on-year, with 95 new patents granted and 6 new PCT patents applied for during the reporting period [56]. - The company is investing CNY 500 million in R&D for new technologies, focusing on sustainable materials and advanced manufacturing processes [131]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product efficiency [135]. - The company has invested 50 million RMB in R&D for advanced technology applications, aiming to lead in innovation within the industry [170]. Market Trends and Outlook - The global PCB industry value decreased by 15.0% in 2023, with the Chinese mainland's PCB market value dropping by 13.2% to 37,794 million USD [34]. - The projected compound annual growth rate (CAGR) for the global PCB industry from 2023 to 2028 is estimated at 5.4%, with the Chinese mainland expected to grow at a CAGR of 4.1% [34]. - The demand for advanced packaging substrates is expected to grow significantly due to technological upgrades in AI, cloud computing, and smart driving, driving the global packaging substrate industry [36]. - The company anticipates a recovery in the semiconductor supply environment as inventory levels normalize, with a projected 13.1% growth in the global semiconductor market in 2024 [34]. - The company provided a future outlook with a revenue guidance of CNY 12 billion for the full year 2023, representing a 10% increase from previous estimates [132]. Risk Factors - The company acknowledges potential risks including macroeconomic fluctuations, US-China trade tensions, and market competition, which may impact future performance [5]. - The global semiconductor sales are projected to decline by nearly 11% in 2023, impacting the packaging substrate business, but the company is focusing on market opportunities and new customer development [51]. - The company will continue to monitor exchange rate fluctuations, particularly with USD settlements, to manage potential impacts on financial results [127]. Corporate Governance and Management - The company has established independent financial management systems, including independent bank accounts and tax compliance, ensuring no interference from the controlling shareholder in financial decisions [151]. - The company has appointed new senior management, including Chen Li and Miao Hua as vice presidents, effective June 13, 2023 [158]. - The company has established a three-tier training system focused on strategic direction, enhancing employee skills and management capabilities [189]. - The company emphasizes a performance evaluation mechanism for senior management, aligning incentives with long-term strategic goals [200]. Employee and Workforce Management - The total number of employees at the end of the reporting period was 15,445, with 4,966 in the parent company and 10,479 in major subsidiaries [186]. - The company has a total of 4,109 technical personnel, 360 sales personnel, and 10,260 production personnel [187]. - The educational background of employees includes 629 with master's degrees or above, 2,998 with bachelor's degrees, and 3,216 with associate degrees [187]. - The company has no retired employees requiring financial support, indicating a focus on workforce stability [186].