[年报]东山精密(002384):2023年年度报告（英文版）
原标题:东山精密:2023年年度报告（英文版） April 18, 2024 Annual Report 2023 Section I Important Note, Table of Contents and Definitions The Board of Directors, the Board of Supervisors, directors, supervisors and senior executives of the Company hereby warrant that the information contained in this Annual Report is true, accurate and complete and this Annual Report is free from any misrepresentation, misleading statement or material omission, and agree to assume joint and several liabilities for this Annual Report. YUAN Yonggang, Principal of the Company, CFO WANG Xu and Accounting Supervisor ZHU Deguang hereby represent that the financial statements contained in this Annual Report are true, accurate and complete. All directors of the Company attended the meeting of the Board of Directors reviewing this Report. The Company has fully disclosed the potential risks associated with the concentration of customers, rapid upgrading and iteration of industrial technologies, fluctuations in exchange rates, etc. in this Report. Please see “XI. Prospects for Future Development of the Company” under “Section III. Management’s Discussion and Analysis”. According to the profit distribution proposal approved by the Board of Directors, the Company will distribute a cash dividend of RMB 2.5 (inclusive of tax) per 10 shares to all shareholders on the basis of 1,701,276,209 shares (excluding the treasury shares), and will not distribute any bonus shares or transfer any capital reserve to the share capital. Note: This document is a translated version of the Chinese Annual Report 2023 ("2023 年年度报告"). In case of any discrepancies, the Annual Report 2023 published in the Chinese version shall prevail. The full Chinese Annual Report 2023 is available at www.cninfo.com.cn. Table of Contents Section I Important Note, Table of Contents and Definitions .............................................................. 2 Section II Company Profile and Financial Highlights ......................................................................... 8 Section III Management’s Discussion and Analysis .......................................................................... 12 Section IV Corporate Governance ..................................................................................................... 35 Section V Environmental and Social Responsibilities ....................................................................... 49 Section VI Significant Matters ........................................................................................................... 53 Section VII Changes in Shares and Shareholders .............................................................................. 62 Section VIII Preferred Shares ............................................................................................................ 67 Section IX Bonds ............................................................................................................................... 68 Section X Financial Report ................................................................................................................ 69 List of References 1. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu, CFO, and Mr. ZHU Deguang, Accounting Supervisor of the Company; 2. Originals of all documents of the Company publicly disclosed during the reporting period and related announcements; 3. Original of the Annual Report 2023 stamped with the seal and signed by the legal representative of the Company; and 4. Place keeping such documents for inspection: Securities Department of the Company at Building 12#, Yunhe Town Headquarters Industrial Park, 99 East Taihu Road, Wuzhong District, Suzhou. Definitions
Section II Company Profile and Financial Highlights I. Company Profile
□ Applicable ? N/A Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period: □ Applicable ? N/A VI. Key Accounting Data and Financial Indicators Did the Company need to retrospectively adjust or restate any accounting data of prior years? ? Yes □No Reason for retrospective adjustment or re-statement: Changes in accounting policies
Business Enterprises (“CASBE”) No. 16 issued by the Ministry of Finance, regarding the “accounting treatment of deferred taxes related to assets and liabilities arising from single transactions to which the initial recognition exemption does not apply”, and adjusted the single transactions to which such provisions apply that occurred during the period from the beginning of the earliest period in which we applied such provisions in the presentation of financial statements for the first time, till the date of initial application of such provisions as follows: with respect to the taxable temporary difference and deductible temporary differences arising from lease liabilities and right-of-use assets, provisions related to retirement obligations and corresponding assets recognized in connection with the single transactions to which such provisions apply, at the beginning of the earliest period in which we applied such provisions in the presentation of financial statements for the first time, the cumulative effect is treated as an adjustment to the opening retained earnings and other related financial statement items for that period in accordance with such provisions and the provisions of CASBE No. 18 “Income Tax”. Whether the lower of the net profit before and after the deduction of non-recurring gain or loss in the past three accounting years has been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is uncertain? □ Yes ? No Whether the lower of net profit before and after the deduction of non-recurring gain or loss is negative? □ Yes ? No VII. Differences in Accounting Data under the Chinese Accounting Standards for Business Enterprises (the “CASBEs”) and Overseas Accounting Standards 1. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and the International Financial Reporting Standards (IFRS) □ Applicable ? N/A There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the CASBEs and the IFRS. 2. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and overseas accounting standards □ Applicable ? N/A There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the CASBEs and overseas accounting standards. VIII. Key Financial Indicators by Quarter
corresponding financial metrics set out in any quarterly report or semi-annual report of the Company already disclosed? □ Yes ? No IX. Items and Amounts of Non-recurring Gains or Losses ? Applicable □ N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses. Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss: □ Applicable ? N/A We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss. Section III Management’s Discussion and Analysis I. Situations of our industry during the Reporting Period 1. PCBs Our printed circuit board (PCB) products include FPCs, which are important components for the PCB industry, and account for over 20% of PCB products. As substrates carrying electronic components and key connectors, the manufacturing quality of PCBs not only directly affects the reliability of electronic products, but also affects the overall competitiveness of system products, and therefore are referred to as the “mother of electronic system products”. PCBs are widely used in consumer electronics, new energy vehicles, communication equipment, industrial control, medical and other fields throughout the world. Along with intensive research and development (R&D) and continuous technology upgrading, PCB products are developing towards high density, small aperture and large capacity, and becoming lighter and thinner. The functional innovations of smart phones, including the continuous growth of foldable phones, drive the rapid increase in the use of FPCs per unit. Along with the application of artificial intelligence-generated content (AIGC) on mobile phones and computers, the year 2024 is expected to become the first year for AI phones and AI PCs. The new smart eyeglass-type products launched by the leading manufacturers will drive the maturity of the metaverse industry. In addition, the new energy vehicle industry also enters a market-driven rapid growth period. According to a report released by the CITIC Securities Research Institute and the data published by the China Association of Automobile Manufacturers, the total global sales volume of electric vehicles is expected to reach 24.70 million units by 2025, representing a compounded annual growth rate (CAGR) of 32.20% between 2022 and 2025, where the total sales volume of new energy vehicles in China will reach 15.60 million units by 2025; and by 2030, the total sales volume of new energy vehicles is expected to reach 46.70 million units in the world, and 23.20 million units in China. The growing demands of these industries are expected to start a new innovation cycle in the PCB industry. 2. Precision components Our precision component products mainly are precision metal structural components, including heat dissipaters for new energy vehicles, battery casings, domain control casings, body in white, battery structural components, as well as base station antennas, filters and other structural components and assemblies for mobile communication. Our precision components are primarily used in new energy vehicles, communication equipment, and other fields having strict requirements for the processing precision and production quality of structural components. In recent years, driven by the demands for green and low-carbon transition, the global new energy vehicle industry has been growing rapidly, bringing new development opportunities for manufacturers of precision metal structural components. 3. Touch panel modules Our touch panel modules are widely used in laptop, tablet, smart watch, on-board display and other fields, which develop along with the development of the relevant downstream industries. (1) Consumer electronics As consumers have formed a habit of touch operation, all major laptop brands have launched laptops with touch panels. The emergence of convertible laptops, 2 in 1 laptops and other innovative products will continuously increase the penetration of laptops with touch panels, and further drive the market demands for touch panel module products. (2) Automobile On-board displays mainly include central control displays, dashboards, and emerging head-up displays (HUD), electronic rearview mirrors, passenger/rear seat displays, which are key interactive hardware for automotive intelligentization. New energy vehicle manufacturers actively strive to improve their brand competencies through intelligentization, driving the rapid development of on- board display modules. According to the CITIC Securities Research Institute, the global on-board display market size is expected to reach USD 13.84 billion by 2025, representing a CAGR of 19.96% between 2022 and 2025. With the advancement of new energy vehicles, automotive intelligence is on the rise, leading to a trend of larger screens, multiple displays, and higher resolutions in on-board displays. 4. LED display devices Our LED device products mainly include small-pitch LEDs, Mini LEDs and other products packaged in granule form. Along with the development of Mini LED technology, LED display technology is continuously expanding into emerging applications, with products entering display screen, XR virtual shooting, outdoor naked-eye 3D, all-in-one conference equipment, mobile phones, tablets and other fields. As leading terminal manufacturers continuously launch new Mini LED products, the Mini LED market size will grow continuously. II. Situations of our Primary Business during the Reporting Period (I) During the reporting period, our primary business has not undergone any material change. We focus on the R&D and manufacturing of core components for the intelligently interconnected world, and the provision of comprehensive intelligent interconnection solutions to customers all over the world. We are primarily engaged in the R&D, manufacturing and sale of PCBs, precision components, touch panel modules and LED display devices, which are widely used in consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, medical appliances and other fields. (II) During the reporting period, our main business model has not undergone any material change. We leverage our complete business chain to provide our customers with comprehensive, one-stop, industrial-leading services, continuously increase the depth of cooperation and adhesion with our customers, and maintain long-term, stable cooperation with premium customers taking the lead in the global consumer electronics, new energy vehicle and communication equipment industries. We manufacture main products based on market demands, and adopt the production model that determines production according to sales, under which we develop production plans and deliver products taking into account the purchase orders placed by customers, the product quantities demanded by the customers under such purchase orders, as well as our production capacity and supply of raw materials. (1) Our main products and their applications
In the field of PCB, according to the research data published by Prismark, in terms of sales revenues in 2023, we are ranked second in the field of FPC and third in the field of PCB in the world. We have strong technology R&D, quality control, and smart factory management capabilities in the PCB industry, and are able to provide customers with high-quality products and services. Our major PCB customers are well-known global consumer electronics and new energy vehicle manufacturers, so we have a good customer base, and strong competitiveness. In the field of precision components, we are one of the largest specialized precision component suppliers in China, provide structural components for new energy vehicles, communication equipment and other fields, and mainly serve well-known global new energy vehicle and communication equipment manufacturers. We have strong competencies in the industry, and are one of the few vendors able to provide the new energy vehicle manufacturers with PCBs (including FPCs), on-board displays, functional and structural components, and other products and integrated solutions. In the future, we will leverage our advantages in the coverage of multiple industry chains and the provision of integrated solutions to further improve customer adhesion. In the field of touch panel modules and LED display devices, we are one of the largest touch panel modules and LED display device manufacturers in China. Our successful acquisition of Suzhou JDI in January 2023 will further expand our on-board display module business, and enhance our overall competence in the field of touch panel modules. III. Core Competencies of DSBJ (I) Advantage in customers: Premium domestic and foreign customer base Our products find favor with top customers in different areas throughout the world and have a premium customer base, which has a good demonstration effect, and will help us further enhance our capability to develop new customers, and acquire larger market shares in the future competition. Our customers come from consumer electronics, new energy vehicles, communication equipment and other industries. Such diversified customer base enables us to fend off the impact of seasonal and cyclical fluctuations of different industries, and improve our core competencies while maintaining stable growth of business. (II) Advantage in products: Wide range of products and integrated industry chain In recent years, we have continuously improved our industrial and product mix through acquisitions and internal development, broken development bottlenecks, and introduced superior businesses to build up new growth drivers. At present, our product offerings cover three business segments, namely PCB, photoelectric display and precision manufacturing. We are able to provide consumer electronics and new energy vehicle manufacturers with a variety of basic and core components for intelligent （未完）  |