TFE(600237)2023-03-13 16:00Inventory Management - The company's inventory is measured at cost if the net realizable value of finished goods is higher than the cost. If the material price decline indicates that the net realizable value of finished goods is lower than the cost, the inventory is measured at net realizable value, and the difference is recognized as a provision for inventory decline[1] - The company generally calculates the provision for inventory decline on a single-item basis. For inventories with large quantities and low unit prices, the provision is calculated by category[1] - If the factors that previously caused the inventory value to decrease have disappeared, the previously recognized impairment is reversed within the amount of the provision for inventory decline, and the reversal is recognized in current profit or loss[1] - The company uses the installment amortization method for consumable materials when they are issued[1] - Inventory balance at the end of the period is 312,765,535.91 yuan, with inventory impairment provision of 59,323,792.14 yuan, resulting in a net inventory value of 253,441,743.77 yuan[31] - Inventory balance at the end of the period was RMB 59,323,792.14, with raw materials accounting for RMB 11,162,621.35, work-in-progress at RMB 21,630,375.25, and finished goods at RMB 18,125,143.85[39] Long-term Equity Investments - The company considers having significant influence over an investee if it directly or indirectly holds 20% or more but less than 50% of the voting rights, unless there is clear evidence that it cannot participate in the investee's production and operation decisions[3] - For long-term equity investments formed through business combinations, the initial investment cost is determined based on the fair value of assets paid, liabilities incurred, or equity securities issued to obtain control of the acquiree[3] - The company uses the cost method for long-term equity investments where it has control over the investee and the equity method for investments in associates and joint ventures[4] - The company recognizes investment income and other comprehensive income based on its share of the investee's net profit or loss and other comprehensive income, adjusting the carrying amount of the long-term equity investment accordingly[5] Borrowing Costs and Intangible Assets - The company capitalizes borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset when specific conditions are met, such as the occurrence of asset expenditures and borrowing costs, and the commencement of necessary activities[9] - The company estimates the useful life of intangible assets, such as land use rights at 50 years, technology usage fees at 10 years, and proprietary technology at 10 years, based on the period they are expected to bring economic benefits[10] Receivables and Bad Debt Provisions - The company's other receivables decreased from 3,163,585.64 to 3,129,012.45 at the end of the period[22] - The total bad debt provision for the period was 6,854,764.20, with a reversal or recovery of 182,958.36 and an addition of 298,838.12, resulting in a final balance of 6,738,884.44[23] - Other receivables total balance is 5,461,967.73 yuan, with bad debt provision of 4,741,967.73 yuan, accounting for 55.35% of the total balance[24] - Other receivables aged 1 year or less have a balance of 5,097,516.09 yuan, with a bad debt provision rate of 5.00%[37] - Other receivables aged 1-2 years have a balance of 1,539,456.86 yuan, with a bad debt provision rate of 10.00%[37] - Other receivables aged 2-3 years have a balance of 440,942.63 yuan, with a bad debt provision rate of 30.00%[37] - Other receivables aged 3-4 years have a balance of 154,766.58 yuan, with a bad debt provision rate of 50.00%[37] - Other receivables aged 4-5 years have a balance of 33,226.10 yuan, with a bad debt provision rate of 80.00%[37] - Other receivables aged over 5 years have a balance of 1,274,237.98 yuan, with a bad debt provision rate of 100.00%[37] - Total bad debt provision for other receivables is 1,735,526.04 yuan, representing 35.68% of the total balance[37] Fixed Assets and Depreciation - Fixed assets net book value at the end of the period is 581,989,562.36 yuan, a decrease from the beginning of the period value of 603,324,657.60 yuan[35] - The company's fixed assets decreased from RMB 603,324,657.60 at the beginning of the period to RMB 581,989,562.36 at the end of the period[42] - The company's restricted assets totaled RMB 254,486,109.79, including RMB 132,140,000.00 in monetary funds and RMB 122,346,109.79 in fixed assets[47] Research and Development - The company's internal research and development expenditures are divided into research and development phases, with research phase expenses recognized as current period losses and development phase expenses capitalized as intangible assets under specific conditions[11] - R&D investment totaled RMB 44,382,246.93, accounting for 4.27% of revenue[91] - The company has 218 R&D personnel, representing 12.51% of the total workforce[92] Employee Benefits and Compensation - The company's short-term employee benefits are recognized as liabilities and included in current period expenses or asset costs, with any amounts not expected to be paid within 12 months discounted[13] - Post-employment benefits are recognized as liabilities based on defined contribution plans or defined benefit plans, with the latter involving the present value of obligations and current service costs[14] - Termination benefits are recognized as liabilities when the company cannot unilaterally withdraw the benefits or when restructuring costs are recognized, with any amounts not expected to be paid within 12 months discounted[15] - The total compensation for the company's executives, including the CFO, vice presidents, and board secretary, amounts to 503.35 million yuan[141] - Chairman Huang Mingqiang received a pre-tax compensation of RMB 900,000 in 2022[151] - General Manager Bao Junhua received a pre-tax compensation of RMB 765,000 in 2022[151] - Total compensation for all directors, supervisors, and senior management in 2022 was RMB 5.0335 million[144] Revenue and Profit - 2022 net profit attributable to shareholders was 73.95 million yuan, a 45.41% increase year-over-year[73] - 2022 operating income reached 1.04 billion yuan, up 4.04% from the previous year[73] - Revenue for 2022 reached RMB 1,040,482,674.93, a year-on-year increase of 4.04%[87] - Net profit attributable to shareholders of the listed company increased by 45.41% to RMB 7,394,840[82] - Basic earnings per share rose by 44.28% to RMB 0.1300[79] - Weighted average return on equity increased by 1.4687 percentage points to 5.98%[79] - The company achieved total operating revenue of 1,040.48 million yuan in 2022, a year-on-year increase of 4.04%[106] - Revenue from film materials reached 483.17 million yuan, up 16.34% year-on-year[106] - Revenue from capacitors was 408.75 million yuan, an increase of 2.6% compared to the previous year[106] - Q1 2022 operating revenue was 249.52 million yuan, with net profit attributable to shareholders of 21.02 million yuan[98] - Q2 2022 operating revenue was 269.85 million yuan, with net profit attributable to shareholders of 18.53 million yuan[98] - Q3 2022 operating revenue was 263.53 million yuan, with net profit attributable to shareholders of 13.04 million yuan[98] - Q4 2022 operating revenue was 257.59 million yuan, with net profit attributable to shareholders of 21.35 million yuan[98] Cash Flow and Financial Activities - Net cash flow from operating activities in 2022 was 82.41 million yuan, a 59.68% decrease compared to 2021[73] - Net cash flow from financing activities increased by 180.97% to RMB 117,088,807.53[87] - Operating cash flow decreased by 59.68% due to increased payments for goods and services[111] - Investment cash flow decreased by 183.96% due to increased cash outflows for investments[111] - Financing cash flow increased by 180.96% due to higher borrowing and reduced payments related to financing activities[111] Subsidiaries and Investments - The company's subsidiary, Tongai Electronics, reported a net profit of RMB 891.59 million, while another subsidiary, Tongfeng Optoelectronics, reported a net loss of RMB 1,913.82 million[48] - The company's subsidiary, Tongfeng Shima, reported a net profit of RMB 291.23 million, while another subsidiary, Fengcheng Electronics, reported a net loss of RMB 216.08 million[48] - The company completed the cancellation of its wholly-owned subsidiary, Tongling Tongfeng Capacitor Co., Ltd., and established a capacitor branch[133] - The company increased the registered capital of Tongfeng World Trade from 40 million to 100 million yuan, completed on February 23, 2022[133] Market and Industry Risks - The company faces risks from macroeconomic fluctuations and policy changes, which may impact demand for its products in industries such as home appliances, communications, and new energy[52] - The company faces risks from intensified market competition and raw material price fluctuations, particularly in polypropylene granules, which are heavily influenced by international crude oil prices[136][137] - The global high-end film capacitor industry is dominated by foreign companies, with domestic production capacity for ultra-thin polypropylene film insufficient to meet market demand, heavily reliant on imports[118] Corporate Governance and Compliance - The company maintains independent operations in assets, personnel, finance, and business from its controlling shareholder[53] - The company completed self-inspection and rectification of governance issues as required by regulatory authorities[53] - The audit report for 2022 was issued with an unqualified opinion by Rongcheng Certified Public Accountants[57] - The company's 2022 annual report was reviewed and approved by all directors[57] - The company has an independent financial department and accounting system, with separate bank accounts and tax payments, ensuring no interference from controlling shareholders in financial decisions[139] - The company has established a complete and independent organizational structure, separate from its controlling shareholders[139] - The company operates independently in its business activities, with no significant competition from controlling shareholders or their affiliates[139] - The company held its 2021 annual general meeting on April 22, 2022, with resolutions disclosed on the Shanghai Stock Exchange website[139] - The company held its first and second extraordinary general meetings in 2022 on October 26 and November 25, respectively, with resolutions disclosed on the Shanghai Stock Exchange website[139] Environmental and Social Responsibility - The company has an environmental emergency response plan filed with the Tongling Ecological Environment Bureau (Filing No. 340700-2021-013-L)[149] - The company is not classified as a key pollutant discharge unit and has no additional environmental protection information to disclose[150] - The company's solid waste management includes hazardous waste categories HW13, HW08, HW06, and HW49, all properly transferred and disposed of[148] - The company invested 143.84 million yuan in environmental protection funds during the reporting period[167] - The company has 19 sets of dust collection devices for particulate matter emissions and 12 sets of activated carbon adsorption devices for non-methane hydrocarbon emissions[169] - The company conducted environmental self-monitoring and achieved compliance with discharge standards for wastewater, exhaust gas, and noise[170] - The company invested a total of 34.107 million yuan in poverty alleviation and rural revitalization projects, benefiting 270 people[171] - The company did not implement any carbon reduction measures or report on carbon emissions reduction[171] - The company did not disclose a separate social responsibility report, sustainability report, or ESG report[171] Financial Audits and Internal Controls - The company's internal control audit was conducted by Rongcheng Certified Public Accountants (Special General Partnership) with a fee of 300,000 yuan[174] - The company's financial audit was conducted by Rongcheng Certified Public Accountants (Special General Partnership) with a fee of 1.2 million yuan[173] - The Board of Directors Audit Committee held 4 meetings in 2022, reviewing financial reports, internal control evaluations, and asset impairment provisions[146] - The Board of Directors Remuneration Committee held 2 meetings in 2022, approving the 2022 compensation and assessment plan for directors, supervisors, and senior management[147] Legal and Regulatory Matters - The company's subsidiary, Tongling Tongfeng Precision Technology Co., Ltd., won a lawsuit requiring Kunshan Longmeng Electronics Technology Co., Ltd. to return 19.2588 million yuan[176][177] - The company did not face any delisting risks or bankruptcy restructuring issues during the reporting period[174] - The company did not have any significant changes in accounting policies, estimates, or major accounting errors[172] - The company did not have any non-operational fund occupation by controlling shareholders or related parties[172] - The company did not have any significant litigation or arbitration cases that formed expected liabilities[176] - The company was issued a warning letter by the Anhui Regulatory Bureau of the China Securities Regulatory Commission in 2020[153] Shareholder and Ownership Structure - The total number of ordinary shareholders at the end of the reporting period was 47,675, an increase from 45,789 at the end of the previous month[191] - The largest shareholder, Tongling Dajiang Investment Holding Co., Ltd., holds 111,705,979 unrestricted shares[192] - The actual controller of the company is the Tongling Municipal State-owned Assets Supervision and Administration Commission, with Wang Hui as the legal representative[194] - The controlling shareholder, Dajiang Investment, has committed not to sell its shares within five years and not to change the company's registered address or actual business location within ten years[199] - No significant changes in share structure or impact on financial metrics such as EPS and net assets per share[200] - No securities issued during the reporting period[200] - No changes in total shares, shareholder structure, or asset and liability structure[200] - No internal employee shares currently exist[200] Future Plans and Strategic Initiatives - The company plans to develop ultra-thin, high-temperature-resistant, and high-voltage-resistant film products, as well as capacitors with high capacitance ratio, high voltage resistance, and high reliability[50] - The company plans to achieve revenue of 1.15 billion yuan, operating costs of 950 million yuan, and period expenses of 120 million yuan in 2023, including sales expenses of 33 million yuan, management expenses of 77 million yuan, and financial expenses of 10 million yuan[119] - The company will focus on innovation and new product development, particularly in the new energy sector, to drive high-quality development[119] - The company is investing in multiple projects to optimize product structure and improve profitability, but faces risks such as market changes, policy shifts, and technological updates[122] - The company aims to accelerate project construction, ensure market expansion, and achieve expected benefits[122] - The company will strengthen cost control and implement automation to improve labor efficiency and reduce costs[120] - The company will enhance talent development and professional team building to stimulate internal vitality[120] - The company will continue to strengthen safety and environmental protection measures to ensure compliance[120] - The company will promote the integration of corporate culture and business development[120] - The company is working on issuing shares to specific investors to improve resource integration efficiency[120] Financial Metrics and Ratios - Total assets at the end of 2022 were 1.92 billion yuan, a 10.85% increase from 2021[73] - Shareholders' equity attributable to the parent company at the end of 2022 was 1.22 billion yuan, up 6.43% year-over-year[73] - The company's 2022 profit distribution plan proposes no dividend distribution or capital reserve conversion due to negative distributable profits[58] - Gross profit margin improved due to a 3.30% decrease in operating costs to RMB 769,539,313.28[87] - Direct material costs in the electronic components manufacturing sector decreased by 3.68% to RMB 541,143,163.94[89] - Electronic components segment revenue reached 1,011,251,800.85 yuan, with a gross margin of 26.96%, an increase of 5.47 percentage points year-over-year[107] - Electronic-grade thin film material revenue grew by 16.34% year-over-year to 483,167,701.32 yuan, with a gross margin increase of 9.89 percentage points[107] - Domestic revenue increased by 9.6% year-over-year to 796,480,061.34 yuan, with a gross margin improvement of 6.26 percentage points[107] - Foreign revenue decreased by 14.2% year-over-year to 214,771,739.51 yuan, but gross margin improved by 4.51 percentage points[107] - Top five customers accounted for 17.80% of total annual sales, totaling 179,976,400 yuan[110] - Top five suppliers accounted for 35.25% of total annual procurement, totaling 272,227,500 yuan[110] Operational and Financial Adjustments - Prepayments increased by 95.78% compared to the previous period, reaching 34,028,138.24, mainly due to increased business scale and rising raw material prices[130] - Long-term prepaid expenses surged by 284.73% to 3,022,919.09, reflecting significant growth in deferred costs[130] - Other non-current assets rose by 115.03% to 90,610,148.94, indicating substantial expansion in this category[130] - Short-term borrowings grew by 68.78% to 238,748,537.49, reflecting increased reliance on short-term financing[130] - Taxes payable increased by 67.26% to 14,304,887.57, primarily due to higher value-added tax liabilities[131] - Non-current liabilities due within one year rose by 82.34