Champion Asia(SH:603386)2024-04-25 10:42Financial Performance - The company's operating revenue for 2023 was CNY 2,427,329,832.42, a decrease of 5.66% compared to CNY 2,572,827,310.93 in 2022[24]. - Net profit attributable to shareholders for 2023 was CNY 68,554,703.57, down 57.85% from CNY 162,625,763.25 in 2022[24]. - Basic earnings per share for 2023 were CNY 0.21, reflecting a decline of 65.00% compared to CNY 0.60 in 2022[25]. - The weighted average return on equity decreased to 4.64% in 2023, down 6.26 percentage points from 10.90% in 2022[25]. - The total assets at the end of 2023 were CNY 3,424,762,204.99, a decrease of 4.10% from CNY 3,571,127,303.71 at the end of 2022[24]. - The net cash flow from operating activities for 2023 was CNY 222,390,375.56, a decrease of 2.72% compared to CNY 228,619,115.43 in 2022[24]. - The company faced decreased downstream demand and intensified market competition, leading to a decline in sales revenue[27]. - The new factory in Zhuhai incurred increased costs, and exchange rate fluctuations reduced foreign exchange gains, impacting net profit[27]. - Non-recurring gains and losses included a government subsidy of CNY 21,594,058.78 in 2023, compared to CNY 26,413,523.51 in 2022[30]. - The company reported a net loss of CNY 14,138,882.58 in the fourth quarter of 2023, following a profit in the previous quarters[28]. Market and Industry Trends - The global PCB market is expected to reach USD 69.5 billion in 2023, reflecting a year-on-year decline of approximately 15% due to insufficient downstream demand and intense price competition[34]. - The company’s PCB product sales volume increased by 5.24% year-on-year, although sales revenue decreased due to overall market demand decline[36]. - The company has strengthened its market presence in consumer electronics and new energy sectors, actively expanding into AI applications and automotive electronics, including partnerships with several automotive electronic companies[37]. - The company is expanding its market presence in Southeast Asia, Europe, and North America to mitigate supply chain risks and enhance customer acquisition[99]. - The automotive electronics market in China reached a scale of 978.3 billion in 2022, with a year-on-year growth of 10.00%[95]. - The global PCB market for automotive applications is expected to reach 11.956 billion by 2027, with a compound annual growth rate (CAGR) of 4.8% from 2022 to 2027[95]. Research and Development - The company invested CNY 11,893.17 million in R&D in 2023, accounting for 4.90% of its operating revenue, and added 60 new patents during the period[39]. - The company holds 378 patents as of December 31, 2023, including 74 invention patents and 294 utility model patents, showcasing its commitment to R&D in advanced PCB technologies[51]. - The company is focusing on enhancing its R&D system in areas such as networking, new HD displays, and AR/VR, promoting resource sharing and technical complementarity among subsidiaries[100]. - The company will continue to invest in R&D, focusing on technology innovation in sectors such as new energy, automotive electronics, and 5G communication[99]. Corporate Governance - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[4]. - The board of directors consists of 8 members, including 3 independent directors, and held 6 meetings during the reporting period, ensuring compliance with legal and regulatory requirements[109]. - The company has established a comprehensive investor relations management system, enhancing communication through various channels such as phone consultations and performance briefings[111]. - The company has implemented a strict insider information management system to protect investor rights and ensure fair information disclosure[111]. - The company has developed a three-year shareholder return plan for 2023-2025, indicating a strategic focus on shareholder value[113]. Environmental Management - The company has established a robust environmental protection system, ensuring compliance with local regulations and achieving zero major environmental accidents in the reporting period[194]. - The company adheres to strict waste discharge standards, with no instances of exceeding discharge limits reported[155][157]. - The company has implemented a comprehensive waste management strategy, including the collection and safe disposal of hazardous waste[161]. - The company has received multiple environmental impact assessment approvals for its projects, including a recent approval for a natural gas boiler construction project in Huizhou[174]. - The company has established emergency response plans for environmental pollution incidents across its subsidiaries to enhance crisis management capabilities and ensure public safety[176]. Employee and Social Responsibility - The company emphasizes employee rights and welfare, providing equal employment and promotion opportunities, and ensuring compliance with national labor laws[195]. - The company actively engages in social responsibility initiatives, focusing on charity and community support[196]. - The company has a performance-oriented compensation system that links employee salaries to individual performance and the profitability of their respective units[137]. - The company has established a comprehensive training program for new employees, including onboarding and skills enhancement training[138]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.86 per 10 shares to all shareholders, pending approval at the 2023 annual general meeting[6]. - For the year 2023, the company plans to distribute RMB 28.06 million in cash dividends, representing 40.94% of the net profit attributable to shareholders[142]. - The company’s cash dividend policy stipulates that at least 30% of the distributable profit should be distributed in cash annually[141].