JOVE(SZ:300814)2024-04-22 12:34Financial Performance - The company's net profit decreased due to significant increases in depreciation and amortization expenses from previous fundraising projects, leading to a substantial rise in operating costs, and new production capacity being in the customer certification phase, which delayed sales revenue [4]. - The company's operating revenue declined due to a drop in orders, with major domestic customers experiencing a significant reduction in product prices, impacting both revenue and gross profit [4]. - The company's operating revenue for 2023 was CNY 1,241,127,632.50, a decrease of 19.24% compared to CNY 1,536,725,440.77 in 2022 [21]. - The net profit attributable to shareholders for 2023 was CNY 26,269,345.56, down 73.35% from CNY 96,598,179.55 in the previous year [21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 23,449,989.89, a decrease of 66.48% compared to CNY 67,965,760.74 in 2022 [21]. - The net cash flow from operating activities for 2023 was CNY 76,343,197.59, a decline of 10.45% from CNY 85,250,710.16 in 2022 [21]. - Basic earnings per share for 2023 were CNY 0.15, down 73.21% from CNY 0.55 in 2022 [21]. - The weighted average return on net assets for 2023 was 2.32%, a decrease of 6.76% from 8.89% in 2022 [21]. - The company's main business revenue for 2023 was CNY 1,131.67 million, a decrease of 20.58% year-on-year [52]. - The gross profit margin for the main business was 13.13%, down by 2.59% year-on-year [61]. Operational Developments - The company is implementing measures to improve profitability by leveraging existing technology and market positions, focusing on advanced technology products such as packaging substrates and embedded components, which have begun to achieve mass production sales [6]. - The company is expanding its production capacity with the construction of a factory in Thailand, expected to begin trial production in the second half of 2024 [46]. - The company has established a comprehensive production management system, implementing a customer order processing flow that ensures efficient coordination among production, procurement, and warehouse departments [40]. - The company has a strong focus on R&D, with 90 patents obtained as of December 31, 2023, including 10 invention patents and 80 utility model patents [45]. - The company is actively pursuing international market expansion, with significant interest from overseas customers in its new factory in Thailand [47]. Market and Industry Trends - The global PCB market value in 2023 is estimated at USD 69.52 billion, a decline of approximately 14.96% from USD 81.74 billion in 2022 [33]. - The company operates in the PCB industry, which is projected to have a compound annual growth rate (CAGR) of 5.40% from 2023 to 2028 [33]. - The compound annual growth rate for the PCB industry in mainland China is projected to be 4.10%, indicating stable growth [102]. Customer and Supplier Relationships - The company maintains stable relationships with major clients, including global leaders in communication equipment and automotive electronics [36]. - The top five customers accounted for 46.07% of total annual sales, with the largest customer contributing 22.05% [67]. - The top five suppliers represented 52.57% of total annual purchases, with the largest supplier accounting for 21.93% [67]. Research and Development - The company invested CNY 53.67 million in R&D, a decrease of 27.50%, representing 4.32% of total revenue [58]. - The number of R&D personnel decreased by 12.45% from 249 in 2022 to 218 in 2023 [71]. - The company's R&D investment in 2023 amounted to ¥53,669,563.42, representing 4.32% of total revenue, a decrease from 4.82% in 2022 [72]. Environmental Compliance - The company adheres to environmental protection standards and has obtained necessary permits for wastewater discharge, complying with relevant regulations [189]. - The company’s factories execute stringent wastewater and air emission standards, exceeding the regulatory limits in certain parameters [190]. - The company is committed to complying with pollution discharge standards and has implemented measures to manage wastewater effectively [198]. Governance and Compliance - The company has established a transparent and fair process for the appointment and evaluation of directors, supervisors, and senior management [128]. - The board of directors consists of 6 members, including 2 independent directors, and has held 8 meetings during the reporting period, passing a total of 55 resolutions [126]. - The company strictly adheres to legal regulations and guidelines for information disclosure, ensuring timely and accurate communication with investors [130]. Profit Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 1.13 RMB (including tax) for every 10 shares based on 175,796,000 shares, with no bonus shares issued [6]. - The total distributable profit for 2023 is CNY 159,172,429.37, after deducting CNY 3,598,993.20 for statutory surplus reserves [180]. - The cash dividend amount represents 100% of the total profit distribution for the year [177]. Financial Management - The company has a commitment to invest RMB 40 million in the convertible bond project, with only 14.09% of the investment completed by the end of the reporting period [90]. - The company has a structured decision-making process for determining the remuneration of directors and senior management, requiring board approval [155]. - The company has a complete and independent research, procurement, production, and sales system, ensuring it can operate independently in the market [139].