Core Viewpoint - Jiangsu Benchuan Intelligent Circuit Technology Co., Ltd. is undergoing a review process for issuing convertible bonds, with specific financial accounting issues raised by the Shenzhen Stock Exchange that require clarification and quantification of revenue and profit fluctuations during the reporting period [1][3]. Financial Performance Summary - The company's operating revenue for the reporting period was 559.26 million, 510.94 million, 596.10 million, and 170.49 million yuan, with net profits after deducting non-recurring gains and losses of 34.05 million, -110.45 million, 74.60 million, and 28.18 million yuan respectively [1][11]. - The gross profit margins for the main business were 15.79%, 11.60%, 12.42%, and 15.69% during the same periods [1][19]. - The company experienced a significant drop in net profit in 2023, primarily due to decreased market demand and increased manufacturing costs, leading to a gross margin decline from 19.25% to 16.86% [11][28]. Revenue Composition and Trends - The company's revenue composition included 90.96% from main business and 9.04% from other business activities, with the latter primarily consisting of sales from waste materials [12][20]. - The company’s foreign sales accounted for 57.37%, 52.13%, 48.39%, and 50.78% of main business revenue, with major export markets being the United States and Europe [2][3]. - The company’s production capacity utilization rates were 82.68%, 77.54%, 87.40%, and 85.95% during the reporting periods [2][3]. Industry Context - The global PCB market saw a decline in value by approximately 14.96% in 2023, with a significant drop in sales prices, indicating intense competition within the industry [5][13]. - China has become the largest production area for PCBs, accounting for 56% of the global market share in 2024 [7][8]. - The PCB industry is characterized by a low concentration of manufacturers, leading to a competitive market environment [7][8]. Product and Market Dynamics - The company has established a flexible production management system to meet diverse customer specifications, which is crucial given the complexity of PCB manufacturing [8][9]. - The company has a strong focus on R&D, holding several core technologies and certifications that enhance its competitive edge in the market [9][10]. - The sales of single/double-sided boards and multi-layer boards represented significant portions of the company's revenue, with fluctuations in sales prices and volumes impacting overall profitability [15][21]. Cost and Expense Analysis - The company’s total expenses during the reporting periods were 66.32 million, 88.59 million, 90.80 million, and 27.55 million yuan, with a rising trend in sales and management expenses [25][26]. - The increase in sales expenses was attributed to efforts to expand market presence and enhance brand recognition [25][26]. - R&D expenses remained a significant part of the budget, reflecting the company's commitment to innovation and technology development [26][27].