[年报]东山精密(002384):2024年年度报告（英文版）
原标题:东山精密:2024年年度报告（英文版） Annual Report 2024 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 without any misrepresentation, misleading statement or material omission, and agree to assume joint and several liabilities for this Annual Report. YUAN Yonggang, Chairman 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. Forward-looking statements such as those on future development plans in this Report do not constitute substantial commitments by the Company to the investors. Investors and relevant persons shall be sufficiently mindful of risks, and understand the differences between plans, predictions and commitments. 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 0.70 (inclusive of tax) per 10 shares to all shareholders on the basis of 1,697,077,809 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 2024 ("2024 年年度报告"). In case of any discrepancies, the Annual Report 2024 published in the Chinese version shall prevail. The full Chinese Annual Report 2024 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 .............................................................................. 51 Section V Environmental and Social Responsibilities ................................................ 69 Section VI Significant Matters .................................................................................... 82 Section VII Changes in Shares and Shareholders ....................................................... 97 Section VIII Preferred Shares.................................................................................... 104 Section IX Bonds ....................................................................................................... 104 Section X Financial Report ....................................................................................... 105 List of References I. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu, CFO, and Mr. ZHU Deguang, Accounting Supervisor of the Company; II. Originals of all documents of the Company publicly disclosed during the reporting period and related announcements; III. Original of the Annual Report 2024 stamped with the seal and signed by the legal representative of the Company; and IV. Place keeping such documents for inspection: Securities Department of the Company at Building 12#, Yunhe Town Headquarters Industrial Park, No. 99 East Taihu Road, Wuzhong District, Suzhou. Definitions
Section II Company Profile and Financial Highlights I. Company Profile
Accounting firm engaged by the Company:
□ 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
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 International Financial Reporting Standards (IFRS) and the CASBEs □ 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 IFRS and the CASBEs. 2. Differences in net profit and net assets disclosed in the financial report prepared under overseas accounting standards and the CASBEs □ Applicable ? N/A There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under overseas accounting standards and the CASBEs. VIII. Key Financial Indicators by Quarter In RMB
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 In RMB
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 We are primarily engaged in the R&D, manufacturing and sale of electronic circuits, precision components, touch panel modules and LED display devices, etc. According to the Industrial Classification for National Economic Activities (GB/T 4754- 2017), our main business belongs to “electronic circuit manufacturing” under “manufacturing of electronic components and electronic special materials” with the industry code C3982. 1. Electronic circuits Our electronic circuit products are printed circuit board (PCB), which is a general substrate board provided with point-to- point connections and printed components according to a predefined design. As an electric connection among various electronic components, it mainly functions for relay transmission. 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”. To a certain extent, the development level of the PCB industry reflects the development speed and technical level of the electronic industry in a country or region. At present, PCBs are in use for almost all electronic products, including consumer electronics, new energy vehicles, communication equipment, industrial control, medical and other industries, which leads to very strong market demands. The PCB industry, as one of the most important segment in the global electronic component sector, can be classified into flexible printed circuits (FPC), rigid circuit boards and rigid-flexible circuit boards. The specific classification and market prospects are as follows: (1) Types and uses of PCBs Thanks to the expansion of PCB applications and technology innovation, the PCB production process has been greatly improved since its release, with multiple derivative types coming out, mainly including:
Source: Prismark ② Prospects of the FPC market A. The functional innovation of smartphones and the development of AI technologies create additional demands for FPC The innovative development of smartphones, the addition of functions and configurations such as OLED screens, face recognition, multiple cameras, wireless charging, foldable screens, etc., and the iteration of technologies leads to additional components in smartphones and increasing capacity of batteries, which crowds the internal space of mobile phones and leads to increasing demands for lightweight, thin, and small-size FPCs with high-intensity wires. In addition, high-end Android models are also gradually using more FPCs in individual devices. In the future, the innovation of mobile phone functions and the greater integration will drive the rapid increase in the number of FPCs in a single device, and will raise more refined requirements on FPC products. During this process, top FPC manufacturers are actively making capital investment to rapidly improve their market competitiveness in the hope of acquiring more market shares. In addition, on the background of the rapid development of AI technologies in recent years, more and more smartphone manufacturers are releasing AI mobile phones. IDC predicts that there will be 827 million AI mobile phones in 2027, reflecting a compound annual growth rate of 100.7% from 2023 to 2027. AI mobile phones come with both additional computing power and additional energy consumption. This change raises higher requirements on transmission, requiring high frequency, high speed and high density. Therefore, the FPC, thanks to its unique advantages in high-frequency, high-speed and high-density transmission, has a favorable prospect for its application. A replacement cycle driven by AI mobile phones and the use of more FPCs (and value) in AI mobile phones will create a new growth opportunity with certain certainty for FPCs. Since the addition of AI functions increases the difficulty in both soft board designing and processing, which leads to more intense high-end production capabilities, top manufacturers will stand out with their competitiveness. B. The rapid development of innovative consumer electronics products led to more FPC demands During the elimination of old models and release of new models on the consumer electronics market in recent years, the emerging markets of AR/VR, wearable devices, mobile phones with foldable screens, etc. experienced rapid growth, which led to further FPC demands on the market. In the AR/VR field, the AR/VR industry has entered a period of rapid growth driven by the constant advancement of chips, display technologies and communication means and the development of meta universe. According to IDC, driven by innovation in software and hardware technologies, AI support, and the entry of terminal manufacturers, the overall AR/VR market will develop rapidly and the AR/VR shipment in China will increase by 114.7% in 2025 compared with 2024. In the field of wearable devices, the products need to carry more components to achieve more functions, and need to be lightweight and integrated at the same time; this raises additional requirements for the wire density, which will increase the use of FPCs in individual devices. Meanwhile, in the field of mobile phones with foldable screens, the application of dual screens, dual motherboards, multiple cameras and other structures will further increase the use of FPCs. C. The rapid development of the new energy vehicle market led to the rapid growth of upstream FPC demands for new energy vehicles Thanks to its outstanding features of high wire density, light weight, thinness, being foldable and bendable, three- dimensional wiring, and high safety, in new energy vehicles, FPCs can be used in systems for automatic driving, entertainment, lighting, display, power, and battery management, and for devices such as sensors. On the background that mainstream automakers both in China and abroad have increased their efforts for the strategic layout of new energy vehicles, the new energy vehicle industry entered a high-speed growth period driven by the market, which leads to the rapid growth of upstream FPC demands for new energy vehicles. In 2024, the global and Chinese automotive sales were 95.31 million and 31.44 million, respectively, up by 2.6% and 4.5% year-on-year; the global and Chinese new energy vehicle production and sales were 18.24 million and 12.87 million, respectively, up by 24.5% and 35.5% year-on-year, continuing to maintain the rapid growth. This indicates the ratio of 19.1% and 40.9% respectively for new energy vehicle sales against the total automotive sales, respectively, indicating that China has become an important force leading the transformation of the global automotive industry. Source: China Association of Automobile Manufacturers, OICA, EVTank Source: China Association of Automobile Manufacturers, EVTank D. The development of electric, intelligent, integrated, and lightweight new energy vehicles leads to increasing demands on on-board FPC market FPC, given its advantages that are unavailable in other circuit board types, is more suitable for the development trend of lightweight, intelligent, and integrated electronic products in the downstream industries, and therefore is more suitable for new energy vehicles. On the one hand, on the ground of development towards electric and intelligent automotive, the proportion of automotive electronics in the cost of the whole vehicle is gradually increasing, and according to the CCID Thinktank Electronic Information Research Institute, is expected to reach 50% in 2030. The improved electrification level leads to greater demands for electronic components for various automotive devices, including automatic driving, entertainment system, lighting system, display system, power system, battery management system, and sensors, which correspondingly requires more wire carriers to connect the electronic components. Therefore, the demand for vehicle FPC will further increase. According to iFixit, it is expected that FPCs used in a new energy vehicle will exceed 100 items, and up to 70 FPCs may be used for battery voltage monitoring. On the other hand, the power batteries of early new energy vehicles mainly used conventional wiring harnesses, which were relatively bulky and complex in connection, and therefore could not meet the development trend of increasing electronic components for new energy vehicles. Instead, the automotive FPC, thanks to its lightweight, simple structure, convenient connection, and other advantages, has been widely used in new energy vehicles. By now, the FPC connection solution has become a major solution in power batteries of new energy vehicles; it is developing towards integration as a cells contact system (CCS). A CCS consists of an FPC, plastic structural parts, copper and aluminum bars, etc. The FPC is connected to copper and aluminum bars and plastic structural parts to create an electrical connection and structural component for signal detection. It is highly customizable, simple in installation, can be directly placed on a battery package, and therefore is more suitable for automatic production of power batteries and leads to greater value of individual vehicles. According to CITIC Securities Research Institute, the global market size of power battery CCS will reach RMB 28.12 billion in 2025, indicating a compound annual growth rate of 62.33% from 2021 to 2025. In addition, it is expected that the replacement of conventional wiring harnesses with FPC in batteries will further extend to the field of energy storage, hence further increasing the FPC market demands. According to the CITIC Securities Research Institute, the market size of energy storage batteries CCS was RMB 180 million in 2021, and will reach RMB 4.43 billion in 2025, indicating a compound annual growth rate of 122.73% from 2021 to 2025. 2. Precision components In recent years, on the background that China’s new energy vehicle industry experienced continuous growth at a high speed thanks to the green and low-carbon transformation, we have actively made arrangement of the precision component business for the new energy vehicle industry, and enhanced both capital investment and the efforts for business development, which resulted in rapid growth of the revenue from relevant products. By now, our precision component products are mostly precision metal structural products for new energy vehicles, including heat radiators, battery housing, white vehicle body, battery structural parts, and other auto parts for new energy vehicles. The rapid development of the new energy vehicle industry created new development opportunities for the relevant precision component market. (1) Developing new energy vehicles is the only way for China to move from a big automotive consumer country to a strong automotive manufacturing country, and the only way to respond to climate change and promote green development At present, on the background of a new round of global scientific and technological revolution and industrial transformation, the integration of automotive with energy, transportation, information communication, and other relevant areas is accelerating, where the development trend is electric, connected, and intelligent vehicles in the industry. New energy vehicles integrate multiple transformative technologies, including new energy, new materials, the Internet, big data, artificial intelligence etc., which promotes automotive to transform from a simple means of transportation to mobile smart terminals, energy storage units and digital space, drives the transformation and upgrade of the energy, transportation, information and communication infrastructure, promotes the optimization of energy consumption structure, and improves the intelligent transportation system and urban operation. It is of great significance to building a clean and beautiful world and building a community for human beings as a whole. In recent years, given the enhanced strategic planning and strengthened policy support by major automotive powers and the increased R&D investment and comprehensive industry deployment by multinational automotive manufacturers, new energy vehicles have become a major direction for the transformation of the global automotive industry and a significant engine for driving the continuous growth of the world economy. To promote the development of new energy vehicles is the only way for China to move from a big automotive consumer country to a strong automotive country, and the only way to respond to climate change and promote green development. (2) The new energy vehicle industry is in a period of rapid growth with new development opportunities for the industry chain Under the wave of automotive electrification around the world, mainstream automakers both in China and abroad have increased their efforts for the strategic layout of new energy vehicles, which promoted the new energy vehicle industry to enter a high-speed growth period driven by the market. The rapid growth of the new energy vehicle market created many growth opportunities for relevant companies in the industry chain, such as precision metal structural parts. While the engine, gearbox and auxiliary parts of conventional vehicles are （未完）  |