Avary Holding(002938)2024-03-29 16:00Financial Performance - The company's operating revenue for 2023 was ¥32,066,047,781.90, a decrease of 11.45% compared to ¥36,210,971,441.99 in 2022[6]. - Net profit attributable to shareholders was ¥3,286,953,204.23, down 34.41% from ¥5,011,536,639.03 in the previous year[6]. - The cash flow from operating activities was ¥7,968,561,814.22, reflecting a decline of 27.27% from ¥10,956,763,951.29 in 2022[6]. - Basic earnings per share decreased by 34.26% to ¥1.42 from ¥2.16 in 2022[6]. - The company reported a total of ¥116,851,302.85 in non-recurring gains for 2023, compared to ¥127,458,754.13 in 2022[26]. - The company's total revenue for 2023 was approximately ¥32.07 billion, a decrease of 11.45% compared to ¥36.21 billion in 2022[70]. - Revenue from communication boards reached CNY 23.513 billion, while revenue from consumer electronics and computer boards was CNY 7.975 billion[59]. - The automotive and server product lines generated revenue of CNY 539 million, representing a year-on-year growth of 71.45%[60]. Risk Factors and Management - The company has confirmed that there are no significant risk factors affecting its production, operational, financial status, or sustainable profitability[3]. - The company has outlined potential risk factors and corresponding strategies in its annual report, emphasizing the importance of investor awareness regarding these risks[3]. - The company is exposed to foreign exchange risks due to significant USD-denominated assets and liabilities, necessitating the use of financial hedging products[142]. - The company is actively managing risks related to raw material shortages and price increases, which could affect profit margins[144]. - The company faces risks from global economic fluctuations and potential inventory issues in the electronics industry, which could impact PCB industry growth[141]. Market Trends and Industry Outlook - The PCB industry is projected to experience a compound annual growth rate of 5.4% from 2024 to 2028, with an expected market value exceeding 69.517 billion, reflecting a 15.0% decline year-over-year due to weakened demand in traditional consumer electronics[31]. - The global smartphone market is projected to see a decline in shipments to approximately 1.164 billion units in 2023, a decrease of 3.5% from 2022, marking the lowest shipment volume in a decade[41]. - The automotive PCB market is expected to grow significantly, with usage projected to increase by 50% from 2022 to 2028, driven by advancements in electric and smart vehicles[44]. - AI technology is creating new opportunities in the PCB sector, with the global market for server and storage PCBs expected to grow from 13.804 billion by 2028, reflecting a compound annual growth rate of 11.0%[43]. Research and Development - The company invested approximately RMB 660 million in environmental protection in 2023, including operational costs and investments in environmental facilities[53]. - The company is focusing on R&D in high-density interconnect (HDI) and flexible printed circuit (FPC) products to enhance its competitive edge in the automotive and AI server markets[44]. - R&D investment increased by 17.04% to approximately CNY 1.96 billion in 2023, compared to CNY 1.67 billion in 2022[85]. - The number of R&D personnel rose by 11.23% to 6,022 in 2023, compared to 5,414 in 2022[85]. - The company has made significant advancements in the development of AI high-performance computing server materials and processes, laying the groundwork for future industrialization[85]. Corporate Governance - The board of directors consists of 7 members, including 3 independent directors, ensuring a balanced and professional governance structure[155]. - The company has established a performance evaluation and incentive mechanism linking executive compensation to company performance, promoting sustainable development[157]. - The company maintains independence from its controlling shareholders, ensuring no interference in decision-making processes[154]. - The company has established an information disclosure committee to ensure compliance with regulations and protect investor interests, with a focus on transparent communication[159]. - The company is committed to enhancing governance efficiency and transparency to maximize long-term shareholder value[149]. Environmental and Social Responsibility - The company emphasizes sustainable development and advanced technology, adhering to a strategy focused on lightweight, thin, and low-carbon products[45]. - The company achieved a 100% external certification for greenhouse gas emissions under ISO14064-1 for its main production sites in 2023[67]. - The company reduced carbon emissions by 37,209 tons in 2023 through energy-saving projects and advanced energy-efficient equipment[68]. - The company is committed to achieving carbon neutrality and advancing low-carbon operations as part of its mission to benefit humanity and improve the environment[136]. - The company emphasizes social responsibility, viewing "employees, customers, strategic partners, shareholders, and society" as key stakeholders in its development[158]. Strategic Initiatives and Future Plans - The company plans to invest approximately 3.3 billion in capital expenditures for 2024, focusing on high-end HDI and advanced SLP smart manufacturing projects, digital transformation, and production base construction in Thailand[134]. - The company aims to enhance its market share by focusing on high-end PCB products and expanding its global market presence while leveraging technological advancements[129]. - The company plans to respond to market demands by accelerating new product launches and deepening collaborations with leading domestic and international clients[131]. - The company is actively exploring new technologies and product development to enhance its competitive edge[200]. - The company is focused on expanding its market presence through new product development and technological advancements[104].