盈方微电子股份有限公司 2016 年年度报告全文 盈方微电子股份有限公司 2016 年年度报告 2017 年 03 月 1 盈方微电子股份有限公司 2016 年年度报告全文 第一节 重要提示、目录和释义 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整，不存在虚假记载、误导 性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主管人员)张雪芳声明：保证年度报告中财务 报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 亚太（集团）会计师事务所（特殊普通合伙）为本公司出具了带强调事项段无保留意见的审计报告，本公司董事会及 监事会对相关事项已有详细说明，请投资者注意阅读。 本年度报告涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承诺，请投资者注意投资风险。 《中国证券报》、《证券时报》、《上海证券报》、《证券日报》和巨潮资讯网（www.cninfo.com.cn）为本公司的指定信息 披露媒体，本公司所发布的信息均以上述媒体刊登的信息为准，敬请投资者注意投资风险。 公司计划不派发现金红利，不送红股，不以 ...

盈方微电子股份有限公司 2016 年年度报告全文 盈方微电子股份有限公司 2016 年年度报告 2017 年 03 月 盈方微电子股份有限公司 2016 年年度报告全文 1 本年度报告涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承诺，请投资者注意投资风险。 《中国证券报》、《证券时报》、《上海证券报》、《证券日报》和巨潮资讯网（www.cninfo.com.cn）为本公司的指定信息 披露媒体，本公司所发布的信息均以上述媒体刊登的信息为准，敬请投资者注意投资风险。 亚太（集团）会计师事务所（特殊普通合伙）为本公司出具了带强调事项段无保留意见的审计报告，本公司董事会及 监事会对相关事项已有详细说明，请投资者注意阅读。 第一节 重要提示、目录和释义 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整，不存在虚假记载、误导 性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主管人员)张雪芳声明：保证年度报告中财务 报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 盈方微电子股份有限公司 2016 年年 ...

[Section I Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisory board, and senior management guarantee the quarterly report's truthfulness and completeness, with all directors attending the review meeting, and key financial officers affirming the financial statements' accuracy - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume legal responsibility[4](index=4&type=chunk) - All directors attended the board meeting to review this quarterly report[5](index=5&type=chunk) - Company head Chen Zhicheng, chief accountant Zhao Haifeng, and head of accounting department Zhang Xuefang declare the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) [Section II Key Financial Data and Shareholder Changes](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) [I. Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company retrospectively adjusted prior-year accounting data due to policy changes and error corrections, with total assets and net assets attributable to shareholders increasing, while Q3 net profit attributable to shareholders significantly decreased by **263.11%** year-over-year, despite YTD Q3 revenue growing by **81.61%** and net profit by **167.07%** - The company adjusted relevant financial data for 2015 and Q1 2016 after its 2015 annual report received a disclaimer of opinion and a special audit on profit forecast realization was conducted by Asia Pacific (Group) CPA firm as per regulatory requirements[8](index=8&type=chunk) Key Accounting Data and Financial Indicators (Balance Sheet, as of Reporting Period End) | Indicator | As of Reporting Period End (Yuan) | Prior Year End (Adjusted) (Yuan) | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 774,871,277.43 | 713,588,681.38 | 8.59% | | Net Assets Attributable to Listed Company Shareholders | 695,100,301.61 | 562,475,681.11 | 23.58% | Key Accounting Data and Financial Indicators (Income Statement and Cash Flow Statement) | Indicator | Current Reporting Period (Q3) (Yuan) | Change from Prior Year Same Period (%) | Year-to-Date (YTD Q3) (Yuan) | Change from Prior Year Same Period YTD (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 69,791,415.85 | -14.97% | 374,909,186.32 | 81.61% | | Net Profit Attributable to Listed Company Shareholders | -6,399,630.38 | -263.11% | 16,698,998.88 | 167.07% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | -9,962,247.99 | -485.77% | 10,465,037.64 | 146.08% | | Net Cash Flow from Operating Activities | -- | -- | -53,052,019.23 | -810.73% | | Basic Earnings Per Share (Yuan/share) | -0.0078 | -262.50% | 0.0204 | 166.89% | | Diluted Earnings Per Share (Yuan/share) | -0.0078 | -262.50% | 0.0204 | 166.89% | | Weighted Average Return on Net Assets | -0.92% | -1.73% | 2.66% | 7.81% | Non-Recurring Gains and Losses from Year-Beginning to Reporting Period End | Item | Amount (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 82,507.38 | | Government Subsidies Included in Current Profit and Loss | 7,134,305.09 | | Other Non-Operating Income and Expenses Apart from the Above | 138,559.77 | | Less: Income Tax Impact | 1,072,005.48 | | Impact on Minority Shareholders' Equity (After Tax) | 49,405.52 | | **Total** | **6,233,961.24** | [II. Total Number of Shareholders and Top Ten Shareholders' Holdings at Period End](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had **72,682** common shareholders, with controlling shareholder Shanghai Ingenic Microelectronics Technology Co., Ltd. holding **25.92%** of shares, largely pledged and frozen, and no repurchase transactions by top ten common shareholders during the period - As of the reporting period end, the total number of common shareholders was **72,682**, with no preferred shareholders whose voting rights have been restored[13](index=13&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Ratio (%) | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledged or Frozen Status (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Ingenic Microelectronics Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 25.92% | 211,692,576 | 211,692,576 | Pledged: 211,442,576; Frozen: 23,834,616 | | Shanghai Shun Yuan Enterprise Investment Development Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.99% | 40,777,984 | 3,115,248 | - | | Chongqing Guotou Wealth Investment Management Co., Ltd. - Liying No. 1 Private Fund | Other | 4.95% | 40,419,901 | 0 | - | | Shao Hui | Domestic Natural Person | 1.96% | 16,000,000 | 0 | - | | Jingzhou Ancient City State-Owned Investment Co., Ltd. | State-Owned Legal Person | 1.50% | 12,230,400 | 0 | - | | National Social Security Fund 415 Portfolio | Other | 0.86% | 7,045,199 | 0 | - | | Huabao Trust Co., Ltd. - Huihuang 1011 Single Fund Trust | Other | 0.73% | 6,000,000 | 0 | - | | China Merchants Bank Co., Ltd. - Huafu Growth Trend Mixed Securities Investment Fund | Other | 0.61% | 5,000,000 | 0 | - | | Huang Rui | Domestic Natural Person | 0.53% | 4,357,000 | 0 | - | | Huabao Trust Co., Ltd. - "Huihuang" No. 22 Single Fund Trust | Other | 0.50% | 4,076,406 | 0 | - | - Controlling shareholder Shanghai Ingenic Microelectronics Technology Co., Ltd. holds a total of **211,692,576** shares, with **211,442,576** shares pledged and **23,834,616** shares judicially frozen[14](index=14&type=chunk) - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[15](index=15&type=chunk)[16](index=16&type=chunk) [Section III Significant Matters](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [I. Changes and Reasons for Key Financial Statement Items and Indicators During the Reporting Period](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) During the reporting period, significant changes occurred in multiple balance sheet and income statement items, with decreases in cash, notes receivable, short-term borrowings, and deferred income due to increased prepayments and debt repayments, while accounts receivable, prepayments, employee compensation, and operating revenue saw substantial increases driven by higher credit sales and government subsidies Balance Sheet Item Changes (Changes Exceeding 30%) | Balance Sheet Item | Year-End Balance (Yuan) | Year-Beginning Balance (Yuan) | Change Rate (%) | Explanation for Change Exceeding 30% | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 36,129,922.06 | 95,709,108.24 | -62.25% | Due to increased prepayments for goods and engineering | | Notes Receivable | 32,817,063.36 | 59,552,673.04 | -44.89% | Due to notes receivable maturing and being accepted in the current period | | Accounts Receivable | 193,887,882.97 | 80,365,292.45 | 141.26% | Due to increased credit sales in the current period | | Prepayments | 79,402,072.47 | 36,566,724.62 | 117.14% | Due to increased prepayments for goods and engineering | | Long-Term Deferred Expenses | 4,079,253.55 | 13,278,946.50 | -69.28% | Due to increased amortization in the current period | | Short-Term Borrowings | 13,980,957.72 | 25,916,591.50 | -46.05% | Due to repayment of some bank borrowings in the current period | | Advances from Customers | 2,043,722.57 | 5,006,972.69 | -59.18% | Due to conversion of year-beginning advances to sales revenue | | Employee Compensation Payable | 9,899,166.43 | 3,015,148.62 | 228.31% | Due to increased employee compensation payable | | Taxes Payable | -273,557.44 | 7,098,618.39 | -103.85% | Due to increased tax payments in the current period | | Interest Payable | - | 480,108.73 | -100.00% | Due to repayment of borrowing interest in the current period | | Other Payables | 8,172,188.84 | 43,759,064.46 | -81.32% | Due to performance guarantee deposit being converted to performance compensation | | Deferred Income | 5,869,733.95 | 10,429,633.99 | -43.72% | Due to increased amortization of asset-related government grants | | Other Comprehensive Income | 6,867,299.93 | 3,235,342.28 | 112.26% | Due to increased foreign currency translation differences | | Minority Interests | -2,127,515.11 | -1,526,642.24 | 39.36% | Due to increased losses attributable to minority shareholders | Income Statement Item Changes (Changes Exceeding 30%) | Income Statement Item | Current Reporting Period (Yuan) | Prior Year Same Period (Yuan) | Change Rate (%) | Explanation for Change Exceeding 30% | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 374,909,186.32 | 206,437,184.75 | 81.61% | Due to overall operating revenue increase from business type and channel expansion | | Operating Cost | 259,875,482.40 | 148,721,469.60 | 74.74% | Due to corresponding increase in operating cost from increased operating revenue | | Selling Expenses | 8,060,345.44 | 4,562,644.44 | 76.66% | Due to increased selling efforts | | Asset Impairment Losses | 6,316,409.79 | 2,713,378.34 | 132.79% | Due to increased provision for doubtful accounts on receivables | | Investment Income | - | -6,577,396.70 | -100.00% | Due to loss from disposal of Lianyi Real Estate equity in prior year, no such event in current period | | Non-Operating Income | 7,396,910.63 | 4,764,108.38 | 55.26% | Due to increased income-related government grants received in the current period | | Non-Operating Expenses | 41,538.39 | 145,360.20 | -71.42% | Due to early lease termination expenses for original office space in prior year | [II. Progress, Impact, and Solutions Analysis of Significant Matters](index=7&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) This section details the progress of several significant matters, including the controlling shareholder's full fulfillment of the 2015 performance compensation, completion of board and supervisory board re-election, ongoing litigation involving a wholly-owned subsidiary, the transfer of Shanghai Minghe partnership equity, and the company's receipt of an investigation notice from the China Securities Regulatory Commission for alleged violations [1. Fulfillment of 2015 Performance Compensation Commitment](index=7&type=section&id=1%E3%80%812015%E5%B9%B4%E5%BA%A6%E4%B8%9A%E7%BB%A9%E8%A1%A5%E5%81%BF%E7%9A%84%E6%89%BF%E8%AF%BA%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The controlling shareholder fully fulfilled the 2015 performance compensation commitment, paying a total of **112,293,663.97 Yuan** based on the audited net profit - Controlling shareholder Ingenic Microelectronics and actual controller Chen Zhicheng committed to a 2015 non-recurring net profit attributable to the parent company of no less than **125 million Yuan**, with a cash compensation for any shortfall[22](index=22&type=chunk) - On May 5, 2016, the company received an advance performance compensation payment of **102,638,714.76 Yuan** from Ingenic Microelectronics for the 2015 performance commitment[22](index=22&type=chunk) - According to the special audit report by Asia Pacific CPA firm, the company's 2015 net profit attributable to parent company shareholders after deducting non-recurring gains and losses was **12,706,336.03 Yuan**, resulting in a determined compensation amount of **112,293,663.97 Yuan**[23](index=23&type=chunk) - On August 9, 2016, the company received the remaining performance compensation of **9,654,949.21 Yuan** from Ingenic Microelectronics, fully fulfilling the 2015 performance commitment compensation[24](index=24&type=chunk) [2. Board of Directors and Supervisors Re-election](index=8&type=section&id=2%E3%80%81%E8%91%A3%E7%9B%91%E4%BA%8B%E4%BC%9A%E6%8D%A2%E5%B1%8A) The company completed the re-election of its tenth board of directors and supervisory board members, along with the appointment of new management and special committee members, following the expiration of the ninth term on August 15, 2016 - The company's ninth board of directors and supervisory board terms expired on August 15, 2016[25](index=25&type=chunk) - The company has completed the appointment of members for the tenth board of directors and supervisory board (non-employee supervisors), and appointed and elected new management team members and special committee members of the board[25](index=25&type=chunk) [3. Progress of Datan Digital Lawsuit](index=8&type=section&id=3%E3%80%81%E5%A4%A7%E5%9D%A6%E6%95%B0%E7%A0%81%E8%AF%89%E8%AE%BC%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) A civil lawsuit filed by Shenzhen Datan Digital Electronics Co., Ltd. against the company's wholly-owned subsidiary for a sales contract dispute is ongoing, with the company and its Hong Kong subsidiary added as defendants and third parties - On June 4, 2015, the company's wholly-owned subsidiary, Shanghai Ingenic Microelectronics Co., Ltd., received a civil lawsuit summons from Shenzhen Datan Digital Electronics Co., Ltd. regarding a sales contract dispute[26](index=26&type=chunk) - The case had its first hearing on November 19, 2015, with the company and Ingenic Microelectronics (Hong Kong) Co., Ltd. notified to participate as defendants and third parties[26](index=26&type=chunk) - As of the date of this report, the lawsuit has not yet had another hearing[26](index=26&type=chunk) [4. Transfer of Shanghai Minghe Partnership Equity](index=8&type=section&id=4%E3%80%81%E4%B8%8A%E6%B5%B7%E6%98%8E%E8%B5%AB%E5%90%88%E4%BC%99%E6%9D%83%E7%9B%8A%E8%BD%AC%E8%AE%A9%E4%BA%8B%E9%A1%B9) The company completed the transfer of its **99.01%** partnership equity in Shanghai Minghe Venture Capital Partnership (Limited Partnership) to Mr. Zhang Xu for **10 million Yuan** - The company agreed to transfer its **99.01%** partnership equity in Shanghai Minghe Venture Capital Partnership (Limited Partnership) to Mr. Zhang Xu for a consideration of **10 million Yuan**[27](index=27&type=chunk) - On August 26, 2016, the company received the **10 million Yuan** transfer consideration from Mr. Zhang Xu, and the transfer of Shanghai Minghe partnership equity has been substantially completed[27](index=27&type=chunk) [5. Investigation Initiation](index=8&type=section&id=5%E3%80%81%E7%AB%8B%E6%A1%88%E8%B0%83%E6%9F%A5%E4%BA%8B%E9%A1%B9) The company received an investigation notice from the China Securities Regulatory Commission on October 14, 2016, initiating an investigation into alleged violations of laws and regulations - On October 14, 2016, the company received an 'Investigation Notice' from the China Securities Regulatory Commission, stating that the CSRC decided to initiate an investigation into the company due to suspected violations of laws and regulations[28](index=28&type=chunk) [III. Commitments Fulfilled and Unfulfilled by the Company, Shareholders, Actual Controllers, Acquirers, Directors, Supervisors, Senior Management, or Other Related Parties During and as of the End of the Reporting Period](index=9&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%88%96%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%B0%9A%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) This section lists commitments fulfilled and unfulfilled by the company and its related parties, including the full fulfillment of 2014 and 2015 performance compensation, and ongoing commitments such as share lock-up, minimum share reduction price, avoidance of horizontal competition, and standardization of related-party transactions - Controlling shareholder Ingenic Microelectronics and actual controller Chen Zhicheng have fully fulfilled their performance compensation commitments for 2014 and 2015, with the 2015 compensation totaling **112,293,663.97 Yuan**[30](index=30&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - Ingenic Microelectronics committed to a **36-month** lock-up period for its shares from the first trading day after equity division reform, and not to reduce its holdings below **15 Yuan/share** (adjusted for ex-rights/ex-dividends) within **48 months** via secondary market, a commitment still valid and ongoing[31](index=31&type=chunk) - The share lock-up commitments of Ingenic Microelectronics and Shanghai Shun Yuan Enterprise Investment Development Co., Ltd. remain valid and are being continuously fulfilled[31](index=31&type=chunk)[32](index=32&type=chunk) - Ingenic Microelectronics' commitments regarding horizontal competition, related-party transactions, and fund occupation, including ensuring independent company operation, avoiding horizontal competition, and standardizing and reducing related-party transactions, are all valid and continuously fulfilled[32](index=32&type=chunk)[33](index=33&type=chunk) - Chen Zhicheng's commitment not to reduce his shareholding in the company within **12 months** from July 9, 2015, has been fulfilled[33](index=33&type=chunk) - Shun Yuan Investment's commitment not to reduce its shareholding within **6 months** from July 8, 2015, after the lifting of share restrictions, has been fulfilled[33](index=33&type=chunk) [IV. Forecast of 2016 Operating Performance](index=14&type=section&id=%E5%9B%9B%E3%80%81%E5%AF%B9%202016%20%E5%B9%B4%E5%BA%A6%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company did not provide a forecast for its 2016 operating performance nor issued any warnings regarding potential cumulative net profit losses or significant changes for the period ending the next reporting period - The company did not provide a forecast for its 2016 operating performance during the reporting period[36](index=36&type=chunk) - The company did not issue any warnings or explanations regarding potential cumulative net profit losses or significant changes compared to the prior year for the period from year-beginning to the end of the next reporting period[36](index=36&type=chunk) [V. Securities Investment](index=14&type=section&id=%E4%BA%94%E3%80%81%E8%AF%81%E5%88%B8%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company did not engage in any securities investments during the reporting period - The company had no securities investments during the reporting period[36](index=36&type=chunk) [VI. Derivative Investments](index=14&type=section&id=%E5%85%AD%E3%80%81%E8%A1%8D%E7%94%9F%E5%93%81%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company did not engage in any derivative investments during the reporting period - The company had no derivative investments during the reporting period[37](index=37&type=chunk) [VII. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=14&type=section&id=%E4%B8%83%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) On May 20, 2016, the company hosted a research activity for investors in the Hubei region, focusing on the 2016 semi-annual report Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period | Reception Date | Reception Method | Type of Reception Object | Index of Basic Research Situation | | :--- | :--- | :--- | :--- | | May 20, 2016 | Other | Other | 2016 Semi-Annual Report (Hubei Region Investor Reception Day Activity) | [VIII. Irregular External Guarantees](index=15&type=section&id=%E5%85%AB%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[39](index=39&type=chunk) [IX. Non-Operating Funds Occupied by Controlling Shareholder and Its Related Parties from the Listed Company](index=15&type=section&id=%E4%B9%9D%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There were no instances of non-operating funds being occupied by the controlling shareholder or its related parties from the listed company during the reporting period - The company had no non-operating funds occupied by the controlling shareholder or its related parties from the listed company during the reporting period[40](index=40&type=chunk)

盈方微电子股份有限公司 2016 年半年度报告全文 盈方微电子股份有限公司 2016 年半年度报告 2016 年 08 月 1 盈方微电子股份有限公司 2016 年半年度报告全文 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本报告的董事会会议。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主管人员)张雪 芳声明：保证本半年度报告中财务报告的真实、准确、完整。 本半年度报告涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承诺，请投资者 注意投资风险。 2 | 第一节重要提示、目录和释义 | 2 | | --- | --- | | 第二节公司简介 | 5 | | 第三节会计数据和财务指标摘要 | 7 | | 第四节董事会报告 | 9 | | 第五节重要事项 | 16 | | 第六节股份变动及股东情况 | 26 | | 第七节优先股相关情况 | 29 | | 第八节董事、监事、高级管 ...

[Important Notice, Table of Contents and Definitions](index=2&type=section&id=Important%20Notice,%20Table%20of%20Contents%20and%20Definitions) This section provides crucial disclaimers, the report's table of contents, and definitions of key terms [Important Notice](index=2&type=section&id=Important%20Notice) The board, supervisory board, and senior management guarantee report accuracy, while the auditor issued a negative opinion on internal controls, and no profit distribution is planned - Grant Thornton issued a **negative opinion** on the company's 2015 internal control audit report, advising investors to be aware of related risks[3](index=3&type=chunk) - The company's 2015 profit distribution plan is to not distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section details the company's basic information and presents a comprehensive overview of its key financial performance and position [Company Information and Contact Details](index=6&type=section&id=Company%20Information%20and%20Contact%20Details) The company, Infotm Microelectronics Co., Ltd. (*ST Infotm, stock code 000670), is listed on the Shenzhen Stock Exchange, with Chen Zhicheng as legal representative and its office in Shanghai Pudong New Area Company Information | Item | Content | | :--- | :--- | | **Stock Abbreviation** | *ST Infotm | | **Stock Code** | 000670 | | **Chinese Name** | 盈方微电子股份有限公司 | | **Legal Representative** | Chen Zhicheng | | **Office Address** | 16th Floor, Building 1, Zhanxiang Plaza, No. 2290 Zuchongzhi Road, Pudong New Area, Shanghai | [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2015, the company achieved significant growth in revenue and net profit, with operating cash flow increasing substantially, despite a negative weighted average return on net assets Key Financial Data for 2015 | Indicator | 2015 | 2014 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (Yuan)** | 368,434,645.62 | 174,915,669.31 | 110.64% | | **Net Profit Attributable to Shareholders of Listed Company (Yuan)** | 11,354,013.27 | 5,187,361.13 | 118.88% | | **Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains/Losses (Yuan)** | 12,706,336.03 | -669,429.75 | -1,998.08% | | **Net Cash Flow from Operating Activities (Yuan)** | 17,268,289.49 | 4,746,135.30 | 263.84% | | **Basic Earnings Per Share (Yuan/share)** | 0.0139 | 0.0105 | 32.38% | | **Weighted Average Return on Net Assets** | -2.10% | 4.51% | -2.41% | | **Total Assets (Yuan)** | 713,588,681.38 | 761,111,231.12 | -6.24% | | **Net Assets Attributable to Shareholders of Listed Company (Yuan)** | 562,475,681.11 | 495,175,784.75 | 13.59% | Key Quarterly Financial Indicators for 2015 (Unit: Yuan) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 68,512,169.75 | 55,849,047.01 | 82,075,967.99 | 161,997,460.87 | | **Net Profit Attributable to Shareholders of Listed Company** | 4,272,015.00 | -33,093,880.61 | 3,923,565.16 | 36,252,313.72 | - The company's total non-recurring gains and losses in 2015 amounted to **-1.35 million Yuan**, primarily consisting of non-current asset disposal losses and government subsidies[22](index=22&type=chunk) [Company Business Overview](index=10&type=section&id=Company%20Business%20Overview) This section outlines the company's core business activities, operational models, and key assets, highlighting its competitive strengths [Main Business and Operating Model](index=10&type=section&id=Main%20Business%20and%20Operating%20Model) The company primarily designs SoC chips for mobile internet and smart home applications, while also expanding into overseas big data centers and the Beidou market through acquisitions, operating with a Fabless model for chips and a leasing model for data centers - The company's core business is SoC chip design, with products primarily applied in mobile internet terminals, smart homes, video surveillance, and action cameras[26](index=26&type=chunk) - During the reporting period, the company expanded into two new business areas: big data centers and Beidou applications[26](index=26&type=chunk) - The chip design business adopts a **Fabless model**, focusing on design and development while outsourcing manufacturing, packaging, and testing[27](index=27&type=chunk) - The big data center business primarily operates in the United States, providing data center and cabinet leasing services to large internet companies or specific clients[28](index=28&type=chunk) [Key Assets and Core Competencies](index=11&type=section&id=Key%20Assets%20and%20Core%20Competencies) The company's assets increased due to equipment purchases, capitalized R&D, and data center construction, while its core competencies lie in R&D technology, market insight, supply chain synergy, and team cohesion Explanation of Significant Changes in Key Assets | Key Asset | Significant Change Explanation | | :--- | :--- | | **Fixed Assets** | Increase due to acquisition of production and transportation equipment this period | | **Intangible Assets** | Image chip R&D capitalized as intangible assets this period | | **Construction in Progress** | Primarily investment in data center construction | - The company's core competencies include: - **R&D Technology**: Possessing **5 computer software copyrights** and **18 patents**[32](index=32&type=chunk) - **Market Insight**: Market-demand oriented, with expansion into big data center business[34](index=34&type=chunk) - **Supply Chain Synergy**: Establishing cooperation with mainstream suppliers and foundries to integrate upstream and downstream resources[35](index=35&type=chunk) - **Team Cohesion**: Establishing scientific management and talent incentive mechanisms[36](index=36&type=chunk)[37](index=37&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's operational performance, financial condition, and future outlook, including key strategies and identified risks [Overview](index=13&type=section&id=Overview) 2015 marked the first full year of business transformation, achieving double-digit growth in revenue and net profit by focusing on chip design, US IDC cloud services, and Beidou industry entry, alongside internal governance improvements 2015 Performance Overview | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | **Operating Revenue** | 368 million Yuan | 110.64% | | **Net Profit** | 9.49 million Yuan | 94.25% | | **Net Profit Attributable to Parent Company Shareholders** | 11.35 million Yuan | 118.88% | - The company's business development focuses on three core areas: - **Chip Business**: Launched a new H.265-based image processor and collaborated with Tencent to customize image transmission chips for the miniStation game console[41](index=41&type=chunk) - **Big Data Business**: The IDC cloud computing service center established in Houston, USA, has commenced operations[42](index=42&type=chunk) - **Beidou Business**: Entered the Beidou market through the acquisition of Shanghai YuXin Technology and is exploring applications in animal husbandry and education sectors[43](index=43&type=chunk) [Analysis of Main Business](index=14&type=section&id=Analysis%20of%20Main%20Business) In 2015, the company's main business revenue significantly increased, driven by rapid growth in trade and service businesses, with overseas revenue accounting for 66.04% and R&D investment surging to 51.77% of revenue 2015 Operating Revenue Composition (Unit: Yuan) | By Product | 2015 Amount | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **Chip Business** | 129,600,808.55 | 35.18% | 9.51% | | **Trade Business** | 149,069,570.07 | 40.46% | 363.03% | | **Service Business** | 82,941,400.00 | 22.51% | 272.53% | | **Real Estate Business** | 6,822,867.00 | 1.85% | 222.61% | | **By Region** | | | | | **Domestic** | 125,132,608.06 | 33.96% | 78.09% | | **Overseas** | 243,302,037.56 | 66.04% | 132.49% | - Sales to the top five customers accounted for **74.37%** of total annual sales, indicating high customer concentration, with High Sharp Electronics Limited being the largest customer at **22.51%** of sales[62](index=62&type=chunk) 2015 Expense Situation (Unit: Yuan) | Expense Item | 2015 | 2014 | YoY Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | **Administrative Expenses** | 105,252,099.55 | 61,984,713.06 | 69.80% | Increased investment in business expansion, human resources, and rent | | **Financial Expenses** | -8,881,828.83 | 679,106.87 | -1,407.87% | Primarily due to increased exchange gains from currency fluctuations | 2015 R&D Investment Situation | Indicator | 2015 | 2014 | Change Ratio | | :--- | :--- | :--- | :--- | | **R&D Investment Amount (Yuan)** | 190,727,297.89 | 75,240,097.33 | 153.49% | | **R&D Investment as % of Operating Revenue** | 51.77% | 43.02% | 8.75% | | **Amount of Capitalized R&D Investment (Yuan)** | 143,146,518.19 | 32,061,935.71 | 346.47% | Key Cash Flow Statement Items for 2015 (Unit: Yuan) | Item | 2015 | 2014 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 17,268,289.49 | 4,746,135.30 | 263.84% | | **Net Cash Flow from Investing Activities** | -200,994,446.09 | 201,772,425.84 | -199.61% | | **Net Cash Flow from Financing Activities** | 56,164,942.20 | -11,150,755.55 | -603.69% | [Outlook for Company's Future Development](index=23&type=section&id=Outlook%20for%20Company's%20Future%20Development) The company plans to capitalize on the integrated circuit industry's growth by integrating the industry chain through M&A, focusing on chip, big data, and Beidou businesses in 2016, while acknowledging risks like product development, market competition, and exchange rate fluctuations - The company's future development strategy is a "comprehensive layout, key breakthroughs" market expansion approach, integrating upstream and downstream industry chains through mergers, acquisitions, and investments to achieve stable, healthy, and sustainable development[86](index=86&type=chunk) - 2016 Operating Plan: - **Chip Business**: Increase R&D investment and expand into the mobile internet terminal application processor market[87](index=87&type=chunk) - **Big Data Center Business**: Provide one-stop services including equipment customization, IDC construction, and data mining analysis[88](index=88&type=chunk) - **Beidou System Business**: Adopt an "Internet + Beidou + Industry Application" model to customize and develop industry application systems[88](index=88&type=chunk) - Key risks faced by the company include: - **Product Risk**: Significant investment in new product development, with potential for output to be less than input if market expansion is unfavorable[91](index=91&type=chunk) - **Market Risk**: Facing intense competition from domestic and Taiwanese counterparts, as well as international giants like Apple and Qualcomm[92](index=92&type=chunk) - **Exchange Rate Risk**: Overseas sales and purchases are denominated in USD, posing exchange rate fluctuation risks[93](index=93&type=chunk) - **Human Resources Risk**: As an intellectual-intensive industry, facing risks of technical talent loss and technology leakage[94](index=94&type=chunk) [Significant Matters](index=26&type=section&id=Significant%20Matters) This section covers critical corporate events, including profit distribution, fulfillment of commitments, changes in consolidation scope, and major litigation [Profit Distribution and Commitment Fulfillment](index=26&type=section&id=Profit%20Distribution%20and%20Commitment%20Fulfillment) No profit distribution occurred due to accumulated losses, and the 2015 performance commitment of 125 million Yuan in non-recurring net profit was significantly missed, requiring cash compensation from the controlling shareholder and actual controller - The 2015 profit distribution plan was no distribution or capitalization, primarily due to the parent company's undistributed profits showing a severe loss of **-756 million Yuan**[99](index=99&type=chunk) 2015 Performance Commitment Fulfillment | Item | Committed Amount (Yuan) | Actual Completion (Yuan) | Fulfillment Status | | :--- | :--- | :--- | :--- | | **Net Profit Attributable to Parent Company Shareholders After Non-recurring Gains/Losses** | 125,000,000.00 | 12,706,336.03 | Unfulfilled | - Due to the unfulfilled 2015 performance commitment, controlling shareholder Infotm Microelectronics and actual controller Chen Zhicheng are obligated to provide cash compensation; the audited compensation amount is **112 million Yuan**, with **103 million Yuan** already paid, and the remaining difference pending[102](index=102&type=chunk)[103](index=103&type=chunk) [Changes in Consolidation Scope and Major Litigation](index=33&type=section&id=Changes%20in%20Consolidation%20Scope%20and%20Major%20Litigation) The company expanded its consolidation scope by acquiring Shanghai YuXin Technology and Soaring Wisdom Capital, while divesting a 40% stake in Shangyu Lianyi Real Estate, and is involved in a 23.55 million Yuan sales contract dispute leading to asset freezes - Changes in consolidation scope during the reporting period: - **Additions**: Acquisition of **70% equity** in Shanghai YuXin Technology, **100% equity** in Soaring Wisdom Capital, LLC, and establishment of Infotm Taiwan[113](index=113&type=chunk) - **Reduction**: Sale of **40% equity** in Shangyu Lianyi Real Estate Co., Ltd[114](index=114&type=chunk) - The company's subsidiary, Infotm Limited, is involved in a sales contract dispute with Shenzhen Datan Digital Electronics Co., Ltd., with a case value of **23.55 million Yuan**, resulting in the freezing of some bank accounts and assets[119](index=119&type=chunk)[120](index=120&type=chunk) [Other Significant Matters](index=35&type=section&id=Other%20Significant%20Matters) The company initiated an employee stock ownership plan and a private placement of shares (later terminated), provided 68 million Yuan in guarantees for subsidiaries, and generated significant revenue from a data center lease agreement with High Sharp - The company launched an employee stock ownership plan (draft) in July 2015, intending to raise up to **16 million Yuan**[122](index=122&type=chunk) - The company planned a private placement of shares to raise no more than **500 million Yuan**, but the application was withdrawn and approved for termination of review by the CSRC in May 2016[139](index=139&type=chunk)[600](index=600&type=chunk) - During the reporting period, the company provided guarantees totaling **68 million Yuan** for its subsidiaries[134](index=134&type=chunk) - The company's subsidiary, INFOTM, INC, signed a site and equipment leasing service contract with High Sharp for data center operations, which contributed **22.70 million Yuan** in revenue to the company, significantly impacting net profit[130](index=130&type=chunk) [Share Changes and Shareholder Information](index=41&type=section&id=Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital structure, changes in restricted and unrestricted shares, and information on its major shareholders and their share pledges [Share Change Situation](index=41&type=section&id=Share%20Change%20Situation) The company's total share capital remained unchanged at 816,627,360 shares, but the proportion of restricted shares decreased from 43.18% to 31.51% due to the release of some restricted shares Share Change Situation (Unit: Share) | Share Class | Before This Change | After This Change | Change Amount | | :--- | :--- | :--- | :--- | | **Restricted Shares** | 352,620,960 (43.18%) | 257,291,442 (31.51%) | -95,329,518 | | **Unrestricted Shares** | 464,006,400 (56.82%) | 559,335,918 (68.49%) | +95,329,518 | | **Total Share Capital** | 816,627,360 (100%) | 816,627,360 (100%) | 0 | [Shareholder Information](index=42&type=section&id=Shareholder%20Information) As of the reporting period end, the company had 56,744 shareholders, with Shanghai Infotm Microelectronics Technology Co., Ltd. as the controlling shareholder (25.92%) and Chen Zhicheng as the actual controller, noting high pledge ratios for the top two shareholders Top Two Shareholders' Holdings and Pledge Status | Shareholder Name | Shareholding Ratio | Number of Shares Held | Number of Shares Pledged | Pledge Ratio | | :--- | :--- | :--- | :--- | :--- | | **Shanghai Infotm Microelectronics Technology Co., Ltd.** | 25.92% | 211,692,576 | 195,144,616 | 92.18% | | **Shanghai Shun Yuan Enterprise Investment Development Co., Ltd.** | 10.63% | 86,777,984 | 80,000,000 | 92.19% | - The company's controlling shareholder is Shanghai Infotm Microelectronics Technology Co., Ltd., and the actual controller is Chen Zhicheng[151](index=151&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) [Preferred Share Information](index=48&type=section&id=Preferred%20Share%20Information) This section confirms that the company had no preferred shares during the reporting period [Preferred Share Status](index=48&type=section&id=Preferred%20Share%20Status) The company did not have any preferred shares during the reporting period - The company had no preferred shares during the reporting period[159](index=159&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=49&type=section&id=Directors,%20Supervisors,%20Senior%20Management,%20and%20Employees) This section details changes in the board, supervisory board, and senior management, their compensation, and the overall employee structure by profession and education level [Changes and Shareholdings of Directors, Supervisors, and Senior Management](index=49&type=section&id=Changes%20and%20Shareholdings%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, several key management positions saw changes, with Chairman Chen Zhicheng increasing his shareholding, and the total annual compensation for directors, supervisors, and senior management amounting to 5.462 million Yuan - During the reporting period, the company's Chairman changed from Shi Haoliang to Chen Zhicheng, Zhao Haifeng was appointed Executive Deputy General Manager, and Wang Fang as Board Secretary; former Director Jiang Weijie, former Board Secretary Zhang Yun, and former Supervisor Jiang Min resigned due to personal reasons[164](index=164&type=chunk) - Chairman and General Manager Mr. Chen Zhicheng increased his company shareholding by **2,203,000 shares** during this period, which also represents his total shares held at period-end[162](index=162&type=chunk) - The total annual compensation paid by the company to its directors, supervisors, and senior management during the reporting period was **5.462 million Yuan**[172](index=172&type=chunk)[174](index=174&type=chunk) [Employee Information](index=54&type=section&id=Employee%20Information) As of the reporting period end, the company had 182 employees, with technical personnel comprising 55.49% and 80.22% holding bachelor's degrees or higher, reflecting its nature as a technology-intensive enterprise Employee Professional Composition and Education Level | Category | Number of People | Proportion | | :--- | :--- | :--- | | **Professional Composition** | | | | Technical Personnel | 101 | 55.49% | | Administrative Personnel | 58 | 31.87% | | Financial Personnel | 18 | 9.89% | | Sales Personnel | 5 | 2.75% | | **Total** | **182** | **100.00%** | | **Education Level** | | | | Bachelor's Degree and Above | 146 | 80.22% | | Associate Degree | 27 | 14.84% | | Below Associate Degree | 9 | 4.95% | | **Total** | **182** | **100.00%** | [Corporate Governance](index=56&type=section&id=Corporate%20Governance) This section addresses the company's governance structure, its independence from the controlling shareholder, and significant internal control deficiencies identified by the auditor [Corporate Governance and Internal Control](index=56&type=section&id=Corporate%20Governance%20and%20Internal%20Control) While the company's governance structure largely complies with regulations and maintains independence, a negative internal control audit opinion was issued due to major deficiencies in contract management, overseas subsidiary control, and customer credit/reconciliation processes - The company's actual corporate governance status does not materially differ from the normative documents on listed company governance issued by the China Securities Regulatory Commission[181](index=181&type=chunk) - The company is independent of its controlling shareholder in terms of business, personnel, assets, organization, and finance[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - The company's 2015 internal control audit report received a **negative opinion** from Grant Thornton[194](index=194&type=chunk)[199](index=199&type=chunk) - Three major internal control deficiencies exist: - **Contract Management Failure**: Failure to approve significant contract changes with Shenzhen Datan Digital Electronics Co., Ltd. as required, leading to a lawsuit involving **23.55 million Yuan**[194](index=194&type=chunk)[195](index=195&type=chunk) - **Loss of Control over Overseas Subsidiaries**: Failure to implement effective internal controls over overseas subsidiaries, resulting in issues such as payments without signed contracts, non-standard financial accounting, and incomplete retention of original documents[198](index=198&type=chunk) - **Customer Credit and Reconciliation Management Deficiencies**: Significant deficiencies in the execution of customer credit limit management and ineffective implementation of reconciliation procedures with customers and suppliers[204](index=204&type=chunk)[205](index=205&type=chunk) [Financial Report](index=63&type=section&id=Financial%20Report) This section presents the audited financial statements, including adjustments made during the audit, and assesses the fulfillment of the company's profit forecast [Audit Report and Profit Forecast Fulfillment](index=63&type=section&id=Audit%20Report%20and%20Profit%20Forecast%20Fulfillment) The revised financial report, audited by Asia Pacific (Group) CPA, showed significant adjustments that reduced net profit, resulting in a 2015 non-recurring net profit of 12.71 million Yuan, far below the 125 million Yuan commitment, achieving only 9.83% of the forecast Audit Adjustments to Key Income Statement Items (Unit: Yuan) | Consolidated Income Statement Item | Unaudited Amount | Adjustment Amount | Audited Amount | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 375,720,978.76 | -7,286,333.14 | 368,434,645.62 | | **Operating Cost** | 245,780,349.34 | 3,795,909.35 | 249,576,258.69 | | **Net Profit** | 19,143,648.48 | -9,654,949.21 | 9,488,699.27 | | **Net Profit Attributable to Parent Company Shareholders** | 21,008,962.48 | -9,654,949.21 | 11,354,013.27 | 2015 Profit Forecast Fulfillment (Unit: Yuan) | Item | Amount | | :--- | :--- | | **Committed Net Profit Attributable to Parent Company Shareholders After Non-recurring Gains/Losses** | 125,000,000.00 | | **Audited Net Profit Attributable to Parent Company Shareholders After Non-recurring Gains/Losses** | 12,706,336.03 | | **Difference** | -116,535,309.98 | | **Fulfillment Rate** | 9.83% | [Key Consolidated Financial Statement Data](index=65&type=section&id=Key%20Consolidated%20Financial%20Statement%20Data) As of year-end 2015, total assets decreased by 6.24% to 713.59 million Yuan, total liabilities decreased by 30.87% to 152.64 million Yuan, and owners' equity attributable to the parent company increased by 13.59% to 562.48 million Yuan, with significant increases in development expenditures and intangible assets Key Consolidated Balance Sheet Items (Unit: Yuan) | Item | Period-end Balance | Period-start Balance | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 95,709,108.24 | 218,857,073.08 | | **Accounts Receivable** | 80,365,292.45 | 30,613,005.88 | | **Inventories** | 69,485,275.32 | 260,318,391.69 | | **Intangible Assets** | 127,168,071.92 | 82,613,682.57 | | **Development Expenditures** | 116,880,969.64 | 15,916,796.08 | | **Total Assets** | 713,588,681.38 | 761,111,231.12 | | **Short-term Borrowings** | 25,916,591.50 | 3,955,792.84 | | **Accounts Payable** | 53,975,819.34 | 38,185,051.39 | | **Total Liabilities** | 152,639,642.51 | 220,799,661.39 | | **Total Owners' Equity Attributable to Parent Company** | 562,475,681.11 | 495,175,784.75 | Key Consolidated Income Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | **Total Operating Revenue** | 368,434,645.62 | 174,915,669.31 | | **Total Operating Cost** | 358,357,685.32 | 174,574,170.47 | | **Operating Profit** | 3,499,563.60 | 344,512.54 | | **Total Profit** | 9,615,474.63 | 7,091,140.12 | | **Net Profit** | 9,488,699.27 | 4,884,903.57 | | **Net Profit Attributable to Parent Company Owners** | 11,354,013.27 | 5,187,361.13 | [Reference Documents](index=158&type=section&id=Reference%20Documents) This section lists the essential documents available for inspection, including signed financial statements, audit reports, and publicly disclosed filings [Reference Documents](index=158&type=section&id=Reference%20Documents) The reference documents include signed financial statements, the original audit report, all publicly disclosed documents during the reporting period, and the original annual report signed by the legal representative - Reference documents include: - **Signed and sealed financial statements** - **Original audit report** - **All documents disclosed during the reporting period** - **Original annual report signed by the legal representative**[624](index=624&type=chunk)

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - Company management guarantees the report content is true, accurate, and complete, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's responsible person, head of accounting, and head of the accounting department jointly declare the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) [Key Financial Data and Shareholder Changes](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) The company achieved significant growth in operating revenue and net profit, with increased total assets and a notable number of common shareholders, including pledged shares by major holders [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q1 2016, operating revenue grew by 147.84% to 170 million Yuan, net profit increased by 305.68% to 17.33 million Yuan, and total assets rose by 11.67% 2016 Q1 Key Financial Indicators | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 169,800,874.91 | 68,512,169.75 | 147.84% | | Net Profit Attributable to Shareholders | 17,330,745.22 | 4,272,015.00 | 305.68% | | Net Cash Flow from Operating Activities | -21,307,988.00 | -82,023,638.86 | -74.02% | | Basic EPS (Yuan/share) | 0.0212 | 0.0052 | 307.69% | | Total Assets | 796,891,262.95 | 713,588,681.38 | 11.67% (vs. end of prior year) | - During the reporting period, the company's total non-recurring gains and losses amounted to **1.354 million Yuan**, primarily from government grants[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) At the end of the reporting period, the company had 61,167 common shareholders, with the top two shareholders having significant portions of their holdings pledged - At the end of the reporting period, the company had a total of **61,167** common shareholders[11](index=11&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Shares Held | | :--- | :--- | :--- | :--- | | Shanghai Ingenic Microelectronics Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 25.92% | 211,692,576 | | Shanghai Shun Yuan Enterprise Investment Development Co., Ltd. | Domestic Non-State-Owned Legal Person | 5.73% | 46,777,984 | | Chongqing Guotou Wealth Investment Management Co., Ltd. - Liying No. 1 Private Fund | Other | 4.95% | 40,419,901 | - The largest shareholder, Shanghai Ingenic Microelectronics Technology Co., Ltd., pledged **211,442,576 shares**, accounting for **99.88%** of its total holdings[11](index=11&type=chunk) [Significant Events](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) Business expansion drove significant financial changes, the company withdrew its A-share offering application, a performance compensation balance remains, and a return to profitability is projected for H1 2016 [Analysis of Changes in Key Financial Items](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Operating revenue and costs surged due to business expansion, while accounts receivable and payable increased from credit transactions, and financial expenses rose due to exchange losses Changes in Key Financial Items | Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 147.84% | Overall operating revenue increase due to business type and channel expansion | | Operating Cost | 193.65% | Overall operating cost increase due to business type and channel expansion | | Accounts Receivable | 108.41% | Increase in credit sales during the current period | | Accounts Payable | 128.60% | Increase in credit purchases during the current period | | Financial Expenses | -899.23% | Exchange losses due to currency fluctuations | | Asset Impairment Loss | 444.64% | Increase in provision for bad debts on accounts receivable | [Progress of Significant Events](index=6&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company's 2015 non-public A-share offering, intended to raise up to 500 million Yuan for R&D, was voluntarily withdrawn and terminated by the CSRC in May 2016 - The company originally planned a non-public offering of A-shares to raise no more than **500 million Yuan** for multiple processor R&D projects and working capital replenishment[16](index=16&type=chunk) - The company submitted application materials to the CSRC in March 2016, but applied for withdrawal on **May 4, 2016**, and received a termination of review notice on **May 12**[16](index=16&type=chunk) [Fulfillment of Commitments](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%88%96%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%B0%9A%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) Most commitments are being fulfilled, but a 2015 performance commitment shortfall of 9.65 million Yuan remains outstanding, which the company is actively pursuing - Ingenic Microelectronics and actual controller Mr. Chen Zhicheng failed to meet the company's 2015 performance commitment, with a compensation amount of **112.29 million Yuan** due according to the audit report[18](index=18&type=chunk) - The committing parties have already paid **102.64 million Yuan** in performance compensation, with a remaining balance of **9.65 million Yuan** unpaid, which the company will urge them to correct and supplement[18](index=18&type=chunk) - Other commitments regarding share reduction, restricted shares, and avoidance of horizontal competition are all within their validity period, are being fulfilled, and no violations have been found[19](index=19&type=chunk)[20](index=20&type=chunk) [2016 Half-Year Performance Forecast](index=10&type=section&id=%E5%9B%9B%E3%80%81%E5%AF%B9%202016%20%E5%B9%B4%201-6%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company forecasts a return to profitability for H1 2016 with an estimated net profit of 23 million Yuan, driven by strong chip, complete machine, and new data center leasing businesses 2016 January-June Performance Forecast | Indicator | Year-to-Next Reporting Period End (Million Yuan) | Prior Year Period (Million Yuan) | | :--- | :--- | :--- | | Estimated Cumulative Net Profit | approx. 23 | -28.82 | | Basic EPS (Yuan/share) | approx. 0.0282 | -0.0353 | - The main reasons for the forecast turnaround to profit are the good development of chip and complete machine businesses, along with new revenue from data center leasing[22](index=22&type=chunk) [Other Significant Events](index=10&type=section&id=%E4%BA%94%E3%80%81%E5%85%AD%E3%80%81%E4%B8%83%E3%80%81%E5%85%AB%E3%80%81%E4%B9%9D) The company had no securities or derivative investments, no research activities, no illegal external guarantees, and no non-operating fund occupation by controlling shareholders - The company had no securities investments, derivative investments, illegal external guarantees, or occupation of company funds by controlling shareholders during the reporting period[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Financial Statements](index=12&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2016, comprising the balance sheet, income statement, and cash flow statement [Financial Statements](index=12&type=section&id=%E4%B8%80%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's Q1 2016 consolidated and parent company balance sheets, income statements, and cash flow statements, detailing financial position, operating results, and cash flows [Consolidated Balance Sheet](index=12&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2016, total assets reached 797 million Yuan (up 11.67%), total liabilities were 219 million Yuan, and equity attributable to parent company owners was 579 million Yuan Key Items of Consolidated Balance Sheet | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 796,891,262.95 | 713,588,681.38 | | Total Liabilities | 219,126,781.93 | 152,639,642.51 | | Total Equity Attributable to Parent Company Owners | 579,352,993.52 | 562,475,681.11 | [Consolidated Income Statement](index=19&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2016, total operating revenue reached 170 million Yuan (up 147.84%), and net profit attributable to parent company owners surged by 305.68% to 17.33 million Yuan Key Items of Consolidated Income Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 169,800,874.91 | 68,512,169.75 | | Operating Profit | 15,922,566.13 | 2,447,652.39 | | Net Profit Attributable to Parent Company Owners | 17,330,745.22 | 4,272,015.00 | [Consolidated Cash Flow Statement](index=24&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2016 operating cash flow improved to -21.31 million Yuan, while investing and financing activities showed net outflows, resulting in a 47.04 million Yuan decrease in cash and cash equivalents to 48.67 million Yuan Key Items of Consolidated Cash Flow Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -21,307,988.00 | -82,023,638.86 | | Net Cash Flow from Investing Activities | -18,983,398.91 | -44,748,846.02 | | Net Cash Flow from Financing Activities | -6,526,729.52 | 10,278,477.58 | | Net Increase in Cash and Cash Equivalents | -47,037,666.42 | -116,048,307.78 | [Audit Opinion](index=29&type=section&id=%E4%BA%8C%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's first quarter 2016 report is unaudited - The company's first quarter report is unaudited[58](index=58&type=chunk)

盈方微电子股份有限公司 2016 年第一季度报告正文 2016 年 04 月 1 盈方微电子股份有限公司 2016 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 盈方微电子股份有限公司 2016 年第一季度报告正文 证券代码：000670 证券简称：盈方微 公告编号： 公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主 管人员)张雪芳声明：保证季度报告中财务报表的真实、准确、完整。 2 除下列董事外，其他董事亲自出席了审议本次季报的董事会会议 未亲自出席董事姓名 未亲自出席董事职务 未亲自出席会议原因 被委托人姓名 唐忠民 董事 因工作原因 李元 陈炎表 董事 因工作原因 史浩樑 盈方微电子股份有限公司 2016 年第一季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | | - ...

盈方微电子股份有限公司 2015 年年度报告全文 盈方微电子股份有限公司 2015 年年度报告 2016 年 04 月 1 盈方微电子股份有限公司 2015 年年度报告全文 第一节重要提示、目录和释义 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节重要提示、目录和释义 5 | | --- | | 第二节公司简介和主要财务指标 9 | | 第三节公司业务概要 12 | | 第四节管理层讨论与分析 26 | | 第五节重要事项 41 | | 第六节股份变动及股东情况 48 | | 第七节优先股相关情况 48 | | 第八节董事、监事、高级管理人员和员工情况 49 | | 第九节公司治理 57 | | 第十节财务报告 64 | | 第十一节备查文件目录 158 | 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整，不存在虚假记载、误导 性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主管人员)张雪芳声明：保证年度报告中财务报 告的真实、准确、完整。 除下列董事外，其他董事亲自出席了审议本次年报的董 ...

盈方微电子股份有限公司 2015 年第三季度报告正文 证券代码：000670 证券简称：盈方微 公告编号：2015-080 盈方微电子股份有限公司 2015 年第三季度报告正文 1 盈方微电子股份有限公司 2015 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存在虚 假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司法定代表人史浩樑、公司负责人陈志成、主管会计工作负责人赵海峰及会计机构负责人(会计主管 人员)张雪芳声明：保证季度报告中财务报表的真实、准确、完整。 2 盈方微电子股份有限公司 2015 年第三季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 680,874,077.59 | 761,111,231 ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the report's accuracy and completeness, while planning no cash dividends or bonus share distributions for the period - The company's management guarantees the truthfulness, accuracy, and completeness of the report content and assumes corresponding legal responsibilities[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the 2015 semi-annual period[5](index=5&type=chunk) [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This chapter defines abbreviations and full names of key company entities, related parties, and professional terms used in the report, providing a basis for understanding the content - The report clarifies the referents of key entities such as "Infront Micro," "Controlling Shareholder," and "Actual Controller"[10](index=10&type=chunk) [Company Profile](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) [Company Basic Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This chapter provides the company's basic business registration information, including its Chinese and English names, stock code (000670), listing exchange (Shenzhen Stock Exchange), and legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Infront Micro | | Stock Code | 000670 | | Chinese Name | Infront Microelectronics Co, Ltd | | Legal Representative | Shi Haoliang | [Contact Person and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the names and detailed contact information, including address, phone, fax, and email, for the company's Board Secretary and Securities Affairs Representative - The company's Board Secretary is Zhang Yun, and the Securities Affairs Representative is Jin Zhicheng[13](index=13&type=chunk) [Other Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, the company's office address, information disclosure newspaper, and document storage location changed, but its registration status remained unchanged - During the reporting period, the company's office address and information disclosure channels changed, but its registration information remained unchanged[14](index=14&type=chunk)[15](index=15&type=chunk)[17](index=17&type=chunk) [Summary of Accounting Data and Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E6%91%98%E8%A6%81) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2015, the company's operating revenue increased by 93.20% year-on-year, but net profit attributable to shareholders turned from profit to loss, significantly decreasing to -28.82 million RMB, and operating cash flow also turned negative, indicating profitability and cash flow pressures despite expansion Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,361,216.76 | 64,368,976.59 | 93.20% | | Net Profit Attributable to Listed Company Shareholders | -28,821,865.61 | 713,973.02 | -4,136.83% | | Net Cash Flow from Operating Activities | -37,126,116.47 | 614,343.84 | -6,143.21% | | Basic Earnings Per Share (RMB/share) | -0.0353 | 0.0041 | -960.98% | | Total Assets | 677,819,019.57 | 761,111,231.12 | -10.94% | | Net Assets Attributable to Listed Company Shareholders | 516,131,684.01 | 495,175,784.75 | 4.23% | [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to -3.53 million RMB, primarily due to a 6.57 million RMB loss from disposal of non-current assets, partially offset by 3.18 million RMB in government grants Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -6,572,764.33 | | Government Grants Included in Current Profit/Loss | 3,184,932.33 | | Other Non-Operating Income and Expenses | 71,373.67 | | **Total** | **-3,530,166.52** | [Board of Directors' Report](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%8A%A5%E5%91%8A) [Overview](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) The company believes that the Chinese semiconductor industry faces significant development opportunities in the post-Moore's Law era, supported by national policies like "Made in China 2025," with new growth drivers from areas such as connected vehicles and cloud computing providing a stable external environment for its chip design business - Semiconductor industry growth is driven by new demands such as connected vehicles, the internet, cloud computing, and big data, laying a stable foundation for China's semiconductor industry[28](index=28&type=chunk) - Policies like "Made in China 2025" and the "National Integrated Circuit Industry Development Promotion Outline" provide a comprehensive support system for the integrated circuit industry[28](index=28&type=chunk) [Analysis of Main Business](index=9&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In the first half of 2015, the company's operating revenue increased by 93.20% year-on-year, primarily due to business type and channel expansion; however, operating costs, selling expenses, and administrative expenses also significantly increased, leading to a net loss, while the company advanced several strategic initiatives including the acquisition of YuXin Technology, construction of a Houston cloud computing center, and a private placement of shares Main Business Financial Indicators | Financial Indicator | Current Reporting Period (RMB) | Year-on-Year Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,361,216.76 | 93.20% | Business type, channel expansion | | Operating Cost | 90,604,344.18 | 143.96% | Business type, channel expansion | | Administrative Expenses | 54,351,077.90 | 109.64% | Increase in personnel, rent, and other expenses | | Net Cash Flow from Operating Activities | -37,126,116.47 | -6,143.21% | Increase in operating expenditures | - The company strengthened its application and expansion capabilities in the mobile intelligent terminal dedicated market and Beidou industry chain by acquiring a **70% equity stake in YuXin Technology**[33](index=33&type=chunk) - The company invested approximately **9.4 million USD** to build a cloud computing service center in Houston, USA, expected to commence operations in Q3 2015[33](index=33&type=chunk) [Composition of Main Business](index=10&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%9E%84%E6%88%90%E6%83%85%E5%86%B5) The company's main business is predominantly electronic equipment manufacturing, with a smaller contribution from real estate; electronic components, chips, and service fees are the primary revenue sources by product, while mainland China and Hong Kong contribute similarly to revenue, but mainland China shows rapid revenue growth Main Business Composition | Category | Operating Revenue (RMB) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | :--- | | **By Industry** | | | | | Electronic Equipment Manufacturing | 118,628,349.76 | 29.61% | 84.29% | | Real Estate Industry | 5,732,867.00 | -23.80% | - | | **By Product** | | | | | Chips | 29,242,960.58 | 30.96% | -46.68% | | Service Fees | 27,100,008.31 | 88.20% | 184.42% | | Electronic Product Complete Machines | 26,240,249.48 | 6.25% | - | | Electronic Components | 36,045,131.39 | 1.46% | - | | **By Region** | | | | | Mainland China | 61,099,401.67 | 38.91% | 540.90% | | Hong Kong | 63,261,815.09 | 15.78% | 15.37% | [Analysis of Core Competencies](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company attributes its core competitiveness to five key advantages: advanced SoC processor design capabilities, deep market understanding, strong industry chain collaboration with major partners, a stable and efficient talent team, and optimized chip design processes ensuring product performance and power efficiency - The company's core competencies include: - **Technology Advantage**: Possesses excellent design capabilities in high-end SoC processor research and development - **Market Advantage**: Deeply understands the market-demand-oriented development model - **Industry Chain Collaboration Advantage**: Established close cooperative relationships with renowned companies such as ARM and Synopsys - **Talent Advantage**: Owns a stable, lean, and efficient technical talent team - **Product Advantage**: Unique chip design and verification processes ensure optimized product performance and power consumption[38](index=38&type=chunk)[39](index=39&type=chunk) [Analysis of Investment Status](index=11&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company had no new external equity investments, holdings in financial enterprises, securities investments, or entrusted wealth management, with this section primarily focusing on the operating performance of its major subsidiaries Major Subsidiaries' Operating Performance | Company Name | Main Business | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Shanghai Infront Microelectronics Co, Ltd | Integrated circuit R&D and sales | 72,272,645.35 | 2,494,649.66 | | Infront Microelectronics (Hong Kong) Co, Ltd | Electronic product sales | 63,261,815.09 | 1,653,798.49 | | Shanghai Hanting Electronic Technology Co, Ltd | Electronic product sales | 26,169,020.74 | -1,623,759.89 | | Changxing Xiaoran Real Estate Development Co, Ltd | Real estate development and sales | 5,732,867.00 | -12,086,880.62 | [Significant Events](index=15&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Asset Transactions](index=16&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E4%BA%A4%E6%98%93%E4%BA%8B%E9%A1%B9) During the reporting period, the company completed two significant asset transactions: acquiring a 70% equity stake in Shanghai YuXin Technology Co, Ltd through a subsidiary's bid to enhance chip design capabilities, and selling a 40% equity stake in Shangyu Lianyi Real Estate Co, Ltd to optimize asset structure and recover funds Asset Transactions | Transaction Type | Target Asset | Transaction Price (10,000 RMB) | Impact | | :--- | :--- | :--- | :--- | | Asset Acquisition | YuXin Technology 70% Equity | 999.6 | Strengthens the company's chip design and software development capabilities in mobile intelligent terminals, connected vehicles, and other fields | | Asset Sale | Shangyu Lianyi Real Estate 40% Equity | 2,240 | Optimizes the company's asset structure and focuses resources on core businesses | [Significant Related Party Transactions](index=17&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in ordinary course of business transactions with related parties, primarily involving acceptance of renovation services and office space leases, totaling 716,000 RMB, all within approved transaction limits Significant Related Party Transactions | Related Party | Related Transaction Content | Related Transaction Amount (10,000 RMB) | | :--- | :--- | :--- | | Shun Yuan Construction (Group) Co, Ltd | Acceptance of renovation services | 31.39 | | Shun Yuan Holding Group Co, Ltd | Office building lease | 40.21 | | **Total** | | **71.6** | [Significant Contracts and Their Performance](index=19&type=section&id=%E4%B9%9D%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company provided multiple guarantees for its subsidiaries during the reporting period to support their business development, with a total guarantee limit of 68 million RMB and an actual guarantee balance of 30 million RMB, representing 5.81% of the company's net assets; additionally, related party ShuoYing Digital Technology also provided several performance guarantees for the company's subsidiaries - During the reporting period, the company provided joint liability guarantees for its subsidiaries Shanghai Infront Microelectronics and Shanghai YuXin Technology, with an actual guarantee balance totaling **30 million RMB**[81](index=81&type=chunk) - Related party ShuoYing Digital Technology (China) Co, Ltd provided joint liability guarantees for the company's subsidiaries' procurement contracts with suppliers such as ARM, ON2, and Synopsys[84](index=84&type=chunk)[85](index=85&type=chunk) [Shareholder Commitments](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E6%88%96%E6%8C%81%E8%82%A1%205%25%E4%BB%A5%E4%B8%8A%E8%82%A1%E4%B8%9C%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E6%88%96%E4%BB%A5%E5%89%8D%E6%9C%9F%E9%97%B4%E5%8F%91%E7%94%9F%E4%BD%86%E6%8C%81%E7%BB%AD%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The controlling shareholder and actual controller made multiple commitments, including performance pledges, share lock-ups, minimum reduction prices, avoidance of horizontal competition, and standardization of related party transactions, all of which were effectively fulfilled during the reporting period, with the 2014 performance compensation commitment already completed - Controlling shareholder Shanghai Infront Microelectronics Technology Co, Ltd committed that the **2015 non-recurring net profit would not be less than 125 million RMB**, with cash compensation if not achieved[88](index=88&type=chunk) - The controlling shareholder committed that the price for reducing company shares through the secondary market would not be less than **15 RMB per share** within 48 months from the completion date of the share reform plan[89](index=89&type=chunk) - The 2014 performance commitment compensation was fully fulfilled on April 23, 2015[91](index=91&type=chunk) [Explanation of Other Significant Matters](index=27&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company disclosed three other significant matters: a pending private placement of A-shares not exceeding 2.3 billion RMB, a planned 303 million RMB venture capital fund in collaboration with SoftBank, and the full receipt of 50.67 million RMB in 2014 performance compensation from the controlling shareholder - The company plans to privately issue A-shares, raising a total of no more than **2.3 billion RMB** to supplement working capital, with the application accepted by the China Securities Regulatory Commission on June 15, 2015[97](index=97&type=chunk) - The company has fully received the 2014 performance commitment compensation payment from controlling shareholder Infront Microelectronics, totaling **50,669,429.75 RMB**[98](index=98&type=chunk)[99](index=99&type=chunk) [Share Changes and Shareholder Information](index=28&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Share Change Status](index=28&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at 816,627,360 shares, with restricted shares accounting for 43.18% and unrestricted shares for 56.82% Share Change Status | Share Type | Quantity (shares) | Proportion | | :--- | :--- | :--- | | Restricted Shares | 352,620,960 | 43.18% | | Unrestricted Shares | 464,006,400 | 56.82% | | **Total Shares** | **816,627,360** | **100.00%** | [Number of Shareholders and Shareholding Status](index=28&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 56,423 common shareholders, with Shanghai Infront Microelectronics Technology Co, Ltd as the largest shareholder holding 25.92% and Shanghai Shun Yuan Enterprise Investment Development Co, Ltd as the second largest with 10.63% Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholding Proportion | Number of Common Shares Held (shares) | Share Status | | :--- | :--- | :--- | :--- | | Shanghai Infront Microelectronics Technology Co, Ltd | 25.92% | 211,692,576 | Pledged 195,765,000 | | Shanghai Shun Yuan Enterprise Investment Development Co, Ltd | 10.63% | 86,777,984 | Pledged 80,000,000 | | Jinma Holding Group Co, Ltd | 3.76% | 30,720,000 | Pledged 30,720,000 | [Shareholder Share Increase Plan](index=31&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%B8%80%E8%87%B4%E8%A1%8C%E5%8A%A8%E4%BA%BA%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%8F%90%E5%87%BA%E6%88%96%E5%AE%9E%E6%96%BD%E8%82%A1%E4%BB%BD%E5%A2%9E%E6%8C%81%E8%AE%A1%E5%88%92%E7%9A%84%E6%83%85%E5%86%B5) During the reporting period, the company's actual controller Chen Zhicheng and shareholder Shun Yuan Investment, holding over 5% of shares, both completed their share increase plans, acquiring 2.103 million and 2 million shares respectively, demonstrating confidence in the company's future development - Actual controller Chen Zhicheng completed the share increase plan, accumulating an additional **2,103,000 shares**, representing **0.26%** of the total share capital[109](index=109&type=chunk) - Shareholder Shun Yuan Investment completed the share increase plan, accumulating an additional **2,000,000 shares**, representing **0.25%** of the total share capital[109](index=109&type=chunk) [Preferred Share Information](index=32&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Preferred Share Status](index=32&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[112](index=112&type=chunk) [Directors, Supervisors, and Senior Management Information](index=33&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=33&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, there were no changes in the company's directors, supervisors, or senior management, nor in their shareholdings; however, Vice Chairman and General Manager Chen Zhicheng increased his shareholding by 2.103 million shares after the reporting period (July 1st and 2nd) - The company's directors, supervisors, and senior management did not change during the reporting period[115](index=115&type=chunk) - The company's Vice Chairman and General Manager Chen Zhicheng increased his shareholding by **2,103,000 shares** through the secondary market in early July 2015[114](index=114&type=chunk) [Financial Report](index=34&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's 2015 semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[118](index=118&type=chunk) [Financial Statements](index=34&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section includes the company's unaudited consolidated and parent company financial statements, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity [Consolidated Balance Sheet](index=34&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2015, the company's total assets were 677.82 million RMB, a 10.94% decrease from the beginning of the period; total liabilities were 163.12 million RMB, a 26.12% decrease; and total owners' equity attributable to the parent company was 516.13 million RMB, a 4.23% increase Consolidated Balance Sheet | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 677,819,019.57 | 761,111,231.12 | | Total Liabilities | 163,115,820.33 | 220,799,661.39 | | Total Owners' Equity Attributable to Parent Company | 516,131,684.01 | 495,175,784.75 | [Consolidated Income Statement](index=39&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first half of 2015, the company achieved total operating revenue of 124.36 million RMB, a 93.2% year-on-year increase; however, due to significant increases in costs and expenses and investment losses, operating profit was -32.17 million RMB, and net profit attributable to the parent company was -28.82 million RMB, representing a substantial turn to loss year-on-year Consolidated Income Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 124,361,216.76 | 64,368,976.59 | | Total Operating Costs | 149,957,511.81 | 65,817,761.53 | | Operating Profit | -32,173,691.75 | -1,448,784.94 | | Net Profit Attributable to Parent Company Owners | -28,821,865.61 | 713,973.02 | [Consolidated Cash Flow Statement](index=43&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash flow from operating activities was -37.13 million RMB, a significant outflow year-on-year, primarily due to increased expenditures for purchasing goods and paying employee compensation; net cash outflow from investing activities was 114.45 million RMB, mainly for technology licensing fees; and net cash inflow from financing activities was 52.26 million RMB, primarily from received performance compensation and new bank borrowings Consolidated Cash Flow Statement | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -37,126,116.47 | 614,343.84 | | Net Cash Flow from Investing Activities | -114,445,534.05 | 218,300,890.91 | | Net Cash Flow from Financing Activities | 52,262,403.91 | -9,811,869.67 | | Net Increase in Cash and Cash Equivalents | -100,313,938.78 | 208,681,751.41 | [Notes to Consolidated Financial Statements](index=67&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the consolidated financial statements, explaining their composition, reasons for changes, and accounting treatment methods [Goodwill](index=75&type=section&id=12%E3%80%81%E5%95%86%E8%AA%89) During the reporting period, the company recognized new goodwill of 13,337,959.09 RMB due to the non-same-control business combination acquisition of a 70% equity stake in Shanghai YuXin Technology Co, Ltd - The company completed the acquisition of YuXin Technology on March 3, 2015, with a merger cost of **9,996,000.00 RMB**, which exceeded the fair value share of identifiable net assets acquired, resulting in the recognition of goodwill of **13,337,959.09 RMB**[238](index=238&type=chunk)[239](index=239&type=chunk) [Capital Reserve](index=82&type=section&id=24%E3%80%81%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF) During the reporting period, the company's capital reserve increased by 50,669,429.75 RMB, primarily due to the receipt of the 2014 performance commitment compensation from controlling shareholder Shanghai Infront Microelectronics Technology Co, Ltd - The company received the 2014 performance commitment compensation and performance bond totaling **50,669,429.75 RMB** from the controlling shareholder, which was recorded in capital reserve[274](index=274&type=chunk)[275](index=275&type=chunk) [Changes in Consolidation Scope](index=91&type=section&id=%E5%85%AB%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company's consolidation scope changed, primarily including: 1. A non-same-control business combination adding Shanghai YuXin Technology Co, Ltd as a new controlled subsidiary; 2. Disposal of a subsidiary, Shangyu Lianyi Real Estate Co, Ltd, which is no longer consolidated after transferring a 40% equity stake; and 3. Establishment of a new wholly-owned grandchild company, Infront Micro International Co, Ltd in Taiwan, which is now included in the consolidation scope - Acquired a **70% equity stake in YuXin Technology** through bidding for **9.996 million RMB**, consolidating it from March 3, 2015[310](index=310&type=chunk)[311](index=311&type=chunk) - Transferred a **40% equity stake in Shangyu Lianyi Real Estate** for **22.4 million RMB**, losing control and deconsolidating it from June 15, 2015[319](index=319&type=chunk) - Established a new wholly-owned grandchild company, **Infront Micro International Co, Ltd in Taiwan**, and included it in the consolidation scope[320](index=320&type=chunk) [Reference Documents Catalog](index=104&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) [List of Reference Documents](index=104&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E5%88%97%E8%A1%A8) This chapter lists the available reference documents, including the signed report text by the legal representative, financial statements signed and sealed by relevant responsible persons, and the originals of all publicly disclosed documents and announcements during the reporting period - Reference documents include: - Signed semi-annual report text - Signed and sealed financial statements - Originals of all disclosed documents and announcements during the reporting period[363](index=363&type=chunk)