SHENGYI ELECTRONICS CO.(SH:688183)2024-05-17 11:12Financial Performance - The company reported a net loss of CNY 24.993632 million for the consolidated financial statements and a net loss of CNY 52.008333 million for the parent company in 2023[5]. - The company's operating revenue for 2023 was approximately ¥3.27 billion, a decrease of 7.40% compared to ¥3.53 billion in 2022[23]. - The net profit attributable to shareholders was a loss of approximately ¥24.99 million, compared to a profit of ¥312.91 million in 2022, marking a significant decline[23]. - The basic earnings per share for 2023 was -¥0.03, down from ¥0.38 in 2022, indicating a substantial drop in profitability[24]. - The company's gross profit margin decreased significantly, with gross profit for the year at approximately ¥34.90 million, down 51.77% from ¥72.36 million in 2022[26]. - The revenue for 2023 was 3.273 billion RMB, a decrease of 7.40% compared to the previous year, primarily due to reduced demand from major clients and declining prices in the communications sector[36]. - The net profit for 2023 was a loss of 24.9936 million RMB, attributed to revenue decline and underutilization of production capacity during the ramp-up phase of projects[36]. Profit Distribution - The profit distribution plan for 2023 is to not distribute cash dividends, issue bonus shares, or convert reserves into share capital, with all undistributed profits carried forward to the next period[5]. - The company distributed a total of 133.091388 million yuan in cash dividends for the fiscal year 2022, at a rate of 1.60 yuan per 10 shares[193]. Market and Sales Performance - The overall gross profit margin decreased significantly due to a decline in product prices in the communications sector and underutilization of production capacity, leading to higher unit costs[9]. - Sales in the communications sector fell by ¥55.13 million, a decrease of 26.56%, significantly impacting overall revenue[25]. - Revenue from the server segment increased by ¥15.46 million, a growth of 25.32%, while automotive electronics revenue rose by ¥15.90 million, an increase of 41.75%[26]. - The company's PCB products in the communications sector accounted for 48.60% of total sales in 2023, with an average selling price decrease of 547.37 RMB/m², representing an 18.08% decline compared to the previous year[98]. Research and Development - The company's R&D expenditure as a percentage of operating revenue increased to 5.89%, up from 5.53% in the previous year[24]. - The total R&D investment for 2023 was approximately ¥192.72 million, a decrease of 1.47% compared to the previous year[81]. - The company has ongoing projects with a total expected investment of ¥32 million for high-density smart card PCBs, with ¥17.95 million invested this period[84]. - The company has conducted research on projects such as "enterprise-level high-speed server storage SSD rigid-flex combined board manufacturing technology" and "core giant router circuit board development for smart cities," achieving international and domestic advanced levels[71]. - The company published 15 technical papers in core academic journals in 2023, reflecting its commitment to enhancing core competitiveness through research[77]. Production and Capacity - The company produced 127.85 million square meters of printed circuit boards in 2023, an increase of 11.73% compared to the previous year[27]. - The company sold 1.2642 million square meters of printed circuit boards in 2023, an increase of 12.36% year-over-year[36]. - The average selling price of products decreased by 18.08% to ¥2,480.85 per square meter, while the unit cost decreased by 7.56% to ¥2,204.75 per square meter[27]. Strategic Initiatives - The company plans to strengthen domestic and international market expansion and continue implementing cost reduction and efficiency enhancement measures to improve competitiveness[9]. - The company has established new offices in East China and hired foreign employees to enhance market penetration and respond quickly to customer needs[36]. - The company is actively collaborating with leading enterprises in the communications sector to develop PCB products for 5.5G, 6G, and satellite communications, with mass production expected to commence in 2024[57]. Governance and Management - The company has established a governance structure that includes independent directors and various committees to enhance operational efficiency[152]. - The company has re-elected its board members, including Deng Chunhua and Liu Shufeng, for another term until May 2026[156]. - The company emphasizes the importance of retaining core technical personnel to safeguard its R&D capabilities and prevent potential technology leaks[100]. Financial Position - The total assets of the company decreased by 9.73% to approximately ¥6.28 billion, down from ¥6.96 billion in 2022[23]. - Cash and cash equivalents decreased by 63.13% to approximately ¥428.90 million due to fundraising and loan repayments[130]. - The company's short-term borrowings increased by 33.55% to approximately ¥862.34 million, reflecting adjustments in loan structure[130]. Industry Trends - In 2023, the global PCB market value decreased by 15% year-on-year, reaching $69.517 billion, while the domestic PCB market value in China fell by 13.2% to $37.794 billion[52]. - The demand for PCB products in 2023 showed negative growth across all product structures, with the most significant decline in packaging substrates at -28.2%[54]. - The automotive electronics segment's revenue share increased from 11% to 17% year-on-year, driven by the growing demand for electric and smart vehicles[63]. Future Outlook - The company plans to invest approximately $100 million in establishing a new PCB production base in Thailand, including land acquisition and fixed asset construction[148]. - The company aims to enhance its market expansion and operational efficiency, focusing on multi-industry development and product structure optimization in 2024[147]. - The company anticipates that the demand for AI-related products will continue to rise, with mass production of AI server projects expected to maintain growth into 2024[60].