KingShine(SZ:300903)2024-04-23 12:32Financial Performance - The net profit attributable to shareholders for 2023 was negative, with specific details and measures for improving profitability discussed in the management analysis section [3]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves [4]. - The company's operating revenue for 2023 was ¥2,962,486,886.77, representing a 12.36% increase compared to ¥2,636,620,088.96 in 2022 [21]. - The net profit attributable to shareholders for 2023 was -¥159,314,507.47, a significant decline of 418.06% from a profit of ¥50,089,640.07 in 2022 [21]. - The cash flow from operating activities improved to ¥7,843,256.20 in 2023, compared to -¥73,827,339.01 in 2022, marking a 110.62% increase [21]. - The total assets at the end of 2023 were ¥6,664,638,748.11, up 7.42% from ¥6,204,147,982.19 at the end of 2022 [21]. - The basic earnings per share for 2023 was -¥0.3842, a decrease of 398.99% from ¥0.1285 in 2022 [21]. - The net profit after deducting non-recurring gains and losses was -¥197,192,671.58 in 2023, a drastic decline of 4,760.37% from ¥4,231,269.13 in 2022 [21]. - The weighted average return on equity for 2023 was -6.98%, down from 2.61% in 2022 [21]. - The company’s net assets attributable to shareholders decreased by 7.08% to ¥2,198,247,520.91 at the end of 2023 from ¥2,365,855,916.82 at the end of 2022 [21]. Market and Industry Insights - The global PCB market value in 2023 was $69.517 billion, a decrease of 15% year-on-year, with a projected compound annual growth rate (CAGR) of 5.4% from 2023 to 2028 [34]. - The company is ranked 19th among domestic PCB companies and 34th among comprehensive PCB companies in China, according to the CPCA's 2022 rankings [49]. - The global PCB market is expected to reach approximately $90.413 billion by 2028, driven by sectors such as artificial intelligence and communication [49]. Operational Developments - The company has improved its MES capabilities, achieving significant advancements in digital and intelligent manufacturing, leading to enhanced production efficiency and reduced labor costs [52]. - The company is currently in the capacity ramp-up phase for its Jiangxi project, which has impacted sales revenue and product structure expectations [33]. - The company has established stable partnerships with well-known domestic and foreign enterprises, enhancing customer engagement and value extraction through strategic cooperation [51]. - The company employs a competitive bidding procurement model to manage raw material sourcing effectively [36]. Research and Development - Research and development expenses rose by 6.59% to CNY 179,522,071.66 in 2023, compared to CNY 168,430,687.58 in 2022 [66]. - The company reported a research and development investment of ¥179,522,071.66 in 2023, representing 6.06% of its operating revenue [70]. - The number of R&D personnel increased by 4.38% from 479 in 2022 to 500 in 2023, although the proportion of R&D staff decreased from 12.60% to 11.69% [70]. - The company has achieved a copper hole qualification rate of 100% in its research on 4-layer embedded capacitor PCB technology [68]. Environmental Compliance - The company has complied with environmental protection regulations and obtained necessary approvals for its projects [178]. - The company has established pollution prevention facilities that have passed environmental department inspections [178]. - The company is classified as a key pollutant discharge unit by environmental protection authorities [177]. - The company has prepared environmental impact assessment reports as required and received approval from environmental protection departments [178]. - The company adheres to multiple environmental laws and standards, including the Environmental Protection Law and the Air Pollution Prevention Law [177]. Corporate Governance - The company has a board of directors consisting of 8 members, including 4 independent directors, ensuring compliance with relevant laws and regulations [115]. - The supervisory board comprises 3 members, including 1 employee representative, and operates in accordance with legal requirements [116]. - The company maintains independence from its controlling shareholders and actual controllers, with no interference in decision-making or operations [117]. - The performance evaluation and incentive mechanisms for senior management are established and continuously improved by the remuneration and assessment committee [118]. Future Outlook - The company provided a future outlook with a revenue guidance of 1.8 billion yuan for the next fiscal year, representing a 20% increase [131]. - The company plans to focus on niche application areas and avoid price competition, with increased orders from core customers in automotive electronics and new energy sectors compared to the previous year [104]. - The PCB industry is expected to experience a recovery growth in 2024, with a compound annual growth rate (CAGR) of 7.8% for 18-layer and above high multilayer boards, driven by demand in automotive, AI, and server applications [105]. Employee and Labor Relations - The total number of employees at the end of the reporting period was 4,277, with 721 in the parent company and 3,556 in major subsidiaries [162]. - The company has established a comprehensive welfare system, including social insurance, housing funds, and free meals and accommodation for employees [164]. - The company emphasizes a fair and competitive salary structure, adjusting salaries based on market conditions and company performance annually [164]. Investment and Financing - The company reported a total of CNY 99,731,000 raised through specific stock issuance, with CNY 83,583,000 utilized for investment purposes [85]. - The company has committed to investing in the Jiangxi Kexiang Mini LED PCB project, with a total investment of RMB 14,490,000, fully utilized [87]. - The company is focusing on expanding its market presence through strategic investments in battery technology and materials [80]. Subsidiary Performance - The subsidiary Zhien Electronics reported a sales revenue of RMB 146.1 million, a decrease of 2.02% year-on-year, with a net loss of RMB 24.7 million, down 210.38% from the previous year [96]. - The subsidiary Dayawan Kexiang achieved a sales revenue of RMB 26.3 million, a decline of 7.09% year-on-year, with a net loss of RMB 2.4 million, down 88.46% from the previous year [98]. - The subsidiary Jiangxi Kexiang reported a sales revenue of RMB 84.7 million, an increase of 51.71% year-on-year, but a net loss of RMB 81.3 million, down 235.93% from the previous year [100].