天津普林(002134) - 2024 Q2 - 季度财报

Important Notices, Table of Contents, and Definitions Important Notices The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report's content, with no false records, misleading statements, or major omissions, and assume individual and joint legal liability[2] - The company's responsible person Pang Dong, chief accounting officer Wang Tai, and head of the accounting department Zhao Xiaojie declare: We guarantee the truthfulness, accuracy, and completeness of the financial report in this semi-annual report[2] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[2] Table of Contents This report lists ten chapters, covering important notices, company profile, management discussion, corporate governance, social responsibility, significant events, and financial reports - The report contains ten chapters, from Important Notices, Table of Contents, and Definitions to the Financial Report[3] List of Documents for Inspection Available documents for inspection include signed financial statements and all original company documents and announcements publicly disclosed during the reporting period - Documents available for inspection include financial statements signed and sealed by the company's responsible person, chief accounting officer, and head of the accounting department (accounting supervisor); and originals of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[4] Definitions This section provides definitions for common terms used in the report, such as "the Company," "TCL Technology," "PCB," "HDI," and "Reporting Period," and specifies the currency as RMB - Unless otherwise specified, the currency unit in this report is RMB[5] - The reporting period refers to January 1, 2024 - June 30, 2024[5] - PCB refers to Printed Circuit Board, and HDI refers to High Density Interconnect multilayer printed circuit board[5] Company Profile and Key Financial Indicators I. Company Profile This section introduces Tianjin Printronics Circuit Corp's stock abbreviation, code, listing exchange, English and Chinese names, and legal representative information - Stock Abbreviation: Tianjin Printronics, Stock Code: 002134, Listing Stock Exchange: Shenzhen Stock Exchange[6] - The company's legal representative is Pang Dong[6] II. Contact Persons and Methods This section discloses the name, contact address, telephone, fax, and email of the company's Board Secretary, Shu Haifeng, for investor communication and inquiries - Board Secretary: Shu Haifeng, Contact Address: No 53, Hanghai Road, Airport Economic Zone, Tianjin Pilot Free Trade Zone[7] - Telephone: 022-24893466, Fax: 022-24890198, Email: ir@tianjin-pcb.com[7] III. Other Information This section states that the company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - The company's registered address, office address and its postal code, company website, and email address did not change during the reporting period; for details, please refer to the 2023 annual report[8] - The stock exchange website and media names and URLs for the company's semi-annual report disclosure, as well as the location for the semi-annual report's preparation, did not change during the reporting period; for details, please refer to the 2023 annual report[9] IV. Key Accounting Data and Financial Indicators During the reporting period, operating revenue and net profit grew significantly, but net cash flow from operating activities decreased substantially year-over-year Key Accounting Data and Financial Indicators (Current Period vs Same Period Last Year) | Indicator | Current Period (Yuan) | Same Period Last Year (Yuan) | Change vs Same Period Last Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 516,137,591.94 | 303,301,497.36 | 70.17% | | Net Profit Attributable to Shareholders of the Listed Company | 20,686,110.25 | 16,201,372.06 | 27.68% | | Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Gains and Losses | 17,863,109.55 | 16,341,266.71 | 9.31% | | Net Cash Flow from Operating Activities | 19,238,848.92 | 51,547,313.54 | -62.68% | | Basic Earnings Per Share (Yuan/share) | 0.08 | 0.07 | 14.29% | | Diluted Earnings Per Share (Yuan/share) | 0.08 | 0.07 | 14.29% | | Weighted Average Return on Equity | 4.48% | 3.60% | 0.88% | | End of Current Period vs End of Last Year | | | | | Total Assets | 1,784,825,070.95 | 1,502,564,487.67 | 18.79% | | Net Assets Attributable to Shareholders of the Listed Company | 464,942,879.99 | 451,482,538.11 | 2.98% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards There were no discrepancies in net profit or net assets between financial reports prepared under international or foreign accounting standards and Chinese accounting standards - The company had no discrepancies in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[12] - The company had no discrepancies in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese accounting standards during the reporting period[13] VI. Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss totaled RMB 2,823,000.70, mainly from asset disposals, government grants, fair value changes, and other non-operating income and expenses Non-recurring Profit and Loss Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses on disposal of non-current assets (including write-offs of asset impairment provisions) | 772,369.27 | | Government grants included in current profit or loss (excluding those closely related to the company's normal business operations, conforming to national policies, and enjoyed according to certain standards, which have a continuous impact on the company's profit or loss) | 1,255,686.00 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and investment income from the disposal of financial assets and liabilities, excluding effective hedging activities related to the company's normal business operations | 131,495.79 | | Other non-operating income and expenses besides the above items | 1,374,725.79 | | Less: Income tax impact | 188,352.90 | | Minority interest impact (after tax) | 522,923.25 | | Total | 2,823,000.70 | Management Discussion and Analysis I. Principal Business Activities during the Reporting Period The company's main business is the R&D, production, and sales of PCBs for various sectors, with a multi-base layout and a focus on glass substrate R&D - The company is primarily engaged in the research and development, production, and sales of printed circuit boards (PCBs), with products widely used in industrial control and medical, automotive electronics, aerospace, and consumer electronics fields[18] - Following the acquisition of Techwise Circuit in 2023, the company established a multi-factory, multi-base layout; the Tianjin base focuses on industrial control, automotive, aerospace, and specialized research, while the South China base (Huizhou/Zhuhai) focuses on display optoelectronics, coil thick copper, etc[20] - The company leverages internal group resources to conduct R&D on glass substrates, making forward-looking layouts in this field and leading company development through technological innovation[18] - The company's business development is advancing both domestically and internationally; domestic business accounts for 70.03% and overseas business accounts for 29.97%[22] (I) Development Trends in the PCB Industry The PCB industry is driven by servers, automotive, and mobile phones, with new demands for high-frequency materials and system-level packaging pushing innovation in substrates like glass - The output value of PCBs is about 3%-4% of the terminal product value[16] - In the next five years, the top three drivers of incremental demand for terminal products will be servers ($50 billion+), automobiles ($47 billion+), and mobile phones ($50 billion+)[16] - Technologically, the development of system-level packaging in the "post-Moore era" presents new demands for substrates, requiring high-frequency, high-speed materials and board-level interconnects[17] - Glass substrates are becoming an important carrier for new advanced packaging technology substrates due to their natural electrical properties, excellent mechanical performance, good thermal conductivity, and low coefficient of thermal expansion[18] (II) Introduction to the Business Development of Tianjin Printronics With over 30 years of experience, the company is a top PCB manufacturer in China, serving major clients like CSOT and Schneider and supporting domestic large aircraft projects - The company is primarily engaged in the R&D, production, and sales of printed circuit boards (PCBs), with product types covering single/double-sided boards, multilayer boards, high-multilayer boards, HDI, high-frequency high-speed boards, and thick copper boards[18] - The company has been selected as one of the top 100 comprehensive PCB enterprises and top 100 domestic PCB enterprises in China's electronic circuit industry for many consecutive years[19] - The company completed the acquisition of Techwise Circuit in 2023, achieving a multi-factory, multi-base layout; the Tianjin base focuses on industrial control, automotive, aerospace, and specialized research, while the South China base (Huizhou/Zhuhai) focuses on display optoelectronics, coil thick copper, etc[20] - In the display panel field, Tianjin Printronics is a major supplier to CSOT; in the industrial control field, it is a major supplier to Schneider; and it has successfully supported the domestic large aircraft project[22] II. Core Competitiveness Analysis The company's core strengths lie in its extensive high-quality customer base, stable product quality, advanced production processes, and flexible management capabilities - Through years of development and deep cultivation in the PCB industry, the company has established a good brand image and industry reputation, successfully entering the qualified supplier systems of many leading global enterprises[23] - The company has obtained ISO9001, ISO14001, IATF16949, ISO45001, AS9100, and NADCAP certifications[24] - The company possesses full-process PCB manufacturing capabilities and multiple composite process manufacturing abilities, allowing it to undertake various complex PCB order requirements, with products covering all categories of rigid boards[25] - The company's "multi-variety, small-to-medium batch" production capability has forged a flexible management advantage, enabling it to continuously shorten production cycles and adapt to the rapidly changing market[27] III. Analysis of Principal Business Revenue grew 70.17% due to the consolidation of Techwise Circuit, which also increased costs, while operating cash flow fell 62.68% due to increased bill payments Key Financial Data Year-on-Year Changes | Indicator | Current Period (Yuan) | Same Period Last Year (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 516,137,591.94 | 303,301,497.36 | 70.17% | Mainly due to the consolidation of Techwise Circuit | | Operating Costs | 424,707,851.62 | 249,695,783.96 | 70.09% | Mainly due to the consolidation of Techwise Circuit | | Selling Expenses | 10,808,305.90 | 3,332,615.16 | 224.32% | Mainly due to the consolidation of Techwise Circuit | | Administrative Expenses | 31,874,670.86 | 22,236,223.03 | 43.35% | Mainly due to the consolidation of Techwise Circuit | | Financial Expenses | 2,866,618.49 | -412,165.52 | 795.50% | Mainly due to increased loan interest expenses this period | | Income Tax Expense | 3,435,475.82 | -21,472.86 | 16,099.15% | Mainly due to the consolidation of Techwise Circuit | | R&D Investment | 16,549,217.13 | 9,452,546.92 | 75.08% | Mainly due to the consolidation of Techwise Circuit | | Net Cash Flow from Operating Activities | 19,238,848.92 | 51,547,313.54 | -62.68% | Increased payments for matured bills | | Net Cash Flow from Investing Activities | -268,467,271.00 | -36,707,030.72 | -631.38% | Mainly due to payment for major asset restructuring project | | Net Cash Flow from Financing Activities | 265,883,634.46 | 50,860,899.57 | 422.77% | Mainly due to increased borrowings this period | | Net Increase in Cash and Cash Equivalents | 18,543,887.48 | 65,644,610.16 | -71.75% | Due to the combined reasons above | Operating Revenue Composition (by Industry, Product, Region) | Category | Current Period Amount (Yuan) | % of Operating Revenue | Same Period Last Year Amount (Yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 516,137,591.94 | 100% | 303,301,497.36 | 100% | 70.17% | | Electronic Components Manufacturing | 516,137,591.94 | 100% | 303,301,497.36 | 100% | 70.17% | | Printed Circuit Boards | 516,137,591.94 | 100% | 303,301,497.36 | 100% | 70.17% | | Domestic | 361,445,219.62 | 70.03% | 172,316,507.11 | 56.81% | 109.76% | | Overseas | 154,692,372.32 | 29.97% | 130,984,990.25 | 43.19% | 18.10% | - The gross profit margin for the electronic components manufacturing industry was 17.71%, an increase of 0.04% compared to the same period last year[30] IV. Analysis of Non-Principal Business Non-principal business income was mainly from investment gains, non-operating income, and government grants, while expenses included credit impairment and asset write-off losses Analysis of Non-Principal Business | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 826,708.47 | 2.68% | Long-term equity investment income, wealth management income | No | | Non-operating Income | 1,511,240.76 | 4.90% | Won quality dispute lawsuit | No | | Non-operating Expenses | 908,884.24 | 2.95% | Asset retirement loss | No | | Credit Impairment Loss | -234,837.81 | -0.76% | Bad debt loss on receivables recognized in the current period | No | | Other Income | 2,980,727.20 | 9.66% | Government grants received and amortized in the current period | No | V. Analysis of Assets and Liabilities Total assets grew 18.79%, driven by a 6.60% increase in construction in progress and a 14.23% rise in long-term borrowings for acquisitions Major Changes in Asset Composition | Item | End of Current Period Amount (Yuan) | % of Total Assets | End of Last Year Amount (Yuan) | % of Total Assets | Change in Proportion | Explanation of Major Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 161,376,116.83 | 9.04% | 140,891,454.46 | 9.38% | -0.34% | | | Accounts Receivable | 342,810,325.46 | 19.21% | 304,435,592.72 | 20.26% | -1.05% | | | Inventory | 130,842,226.67 | 7.33% | 119,163,026.04 | 7.93% | -0.60% | | | Construction in Progress | 567,857,692.58 | 31.82% | 378,978,229.20 | 25.22% | 6.60% | Due to new investment in Zhuhai factory construction | | Long-term Borrowings | 444,430,844.61 | 24.90% | 160,257,059.54 | 10.67% | 14.23% | Due to increase in acquisition loans | Assets with Restricted Rights as of the End of the Reporting Period | Item | Year-end Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 13,097,110.49 | Notes margin, ETC deposit | | Notes Receivable | 1,990,214.27 | Endorsed notes | | Fixed Assets | 57,067,119.93 | Loan collateral | | Intangible Assets | 7,290,588.73 | Loan collateral | | Total | 79,445,033.42 | | VI. Analysis of Investment Status The company had no major equity investments but engaged in forward foreign exchange hedging, purchasing RMB 10.41 million and recognizing an investment gain of RMB 100,400 - The company had no securities investments, major equity investments, or non-equity investments during the reporting period[37] Derivative Investments (for Hedging Purposes) | Derivative Investment Type | Initial Amount (Notional Amount of Unsettled Contracts) | Fair Value Change Gain/Loss this Period | Amount Purchased this Period (Contract Amount) | Year-end Amount (Notional Amount of Unsettled Contracts) | Year-end Investment Amount as % of Company's Year-end Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Forward Foreign Exchange | 0 | 0 | 10,410,400 | 0 | 0.00% | | Total | 0 | 0 | 10,410,400 | 0 | 0.00% | - Investment income of RMB 100,400 was recognized during the reporting period; the company's foreign exchange derivative transactions are based on actual foreign exchange income and expenditure, adopting a currency-neutral principle and relying on specific business operations to prevent adverse effects from significant exchange rate fluctuations and mitigate foreign exchange market risks[38] - The company did not use any raised funds during the reporting period[41] VII. Major Asset and Equity Sales The company did not sell any major assets or equity during the reporting period - The company did not sell any major assets during the reporting period[43] - The company did not sell any major equity during the reporting period[44] VIII. Analysis of Major Holding and Associated Companies Techwise Circuit Technology (Huizhou) Co, Ltd, a key subsidiary, reported total assets of RMB 872 million, net assets of RMB 515 million, and a net profit of RMB 17.27 million Major Subsidiaries and Associated Companies with over 10% Impact on Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Techwise Circuit Technology (Huizhou) Co, Ltd | Subsidiary | R&D, manufacturing, processing, and sales of printed circuit boards | 146,938,776.00 | 871,662,591.62 | 515,278,453.26 | 235,596,270.33 | 21,339,438.12 | 17,267,568.00 | - No subsidiaries were acquired or disposed of during the reporting period[44] IX. Information on Structured Entities Controlled by the Company The company did not have any controlled structured entities during the reporting period - The company did not have any controlled structured entities during the reporting period[44] X. Risks Faced by the Company and Countermeasures The company faces risks from exchange rate fluctuations and rising costs, which it mitigates through hedging, product optimization, and efficiency improvements - The company has a high proportion of export sales, with main settlement currencies being the US dollar and Euro; exchange rate fluctuations will have a certain impact on the company's operating performance[44] - The company will closely monitor exchange rate trends, adopt a currency-neutral principle, choose favorable settlement times, and reasonably use foreign exchange derivatives; additionally, it will negotiate RMB settlement with customers to reduce the impact of exchange rate fluctuations[44] - Recently, the prices of upstream raw materials most closely related to PCB production have fluctuated significantly, posing a continuous challenge to the company's cost control; rising costs may lead to a decline in product gross profit margins, thereby affecting operating performance[45] - The company will enhance product added value through product structure optimization, improve production efficiency through intelligent and automated construction, reduce costs through internal refined management, and strengthen procurement management to enhance comprehensive competitiveness and bargaining power[45] XI. Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[46] Corporate Governance I. Annual and Extraordinary General Meetings Held during the Reporting Period The company held four extraordinary general meetings and one annual general meeting, approving various resolutions including the 2023 annual report and board elections - The company held a total of four extraordinary general meetings and one annual general meeting during the reporting period[47] - The 2023 Annual General Meeting was held on May 7, 2024, with an investor participation rate of 32.28%[47] II. Changes in Directors, Supervisors, and Senior Management During the reporting period, Vice Chairman Xu Luoluo and Vice President Zhang Hai resigned for personal reasons, while Wu Lan and Jing Chunmei were elected as directors - Vice Chairman Xu Luoluo resigned for personal reasons on April 30, 2024[48] - Vice President Zhang Hai was dismissed for personal reasons on April 30, 2024[48] - Wu Lan and Jing Chunmei were elected as directors on May 27, 2024[48] III. Profit Distribution and Capitalization of Capital Reserve during the Reporting Period The company does not plan to distribute cash dividends, issue bonus shares, or capitalize the capital reserve for the first half of the year - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the first half of the year[49] IV. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives The 2023 Employee Stock Ownership Plan completed its share transfer, involving 22 employees and 1,666,268 shares, representing 0.68% of the total share capital - The 2023 Employee Stock Ownership Plan was transferred to the "Tianjin Printronics Circuit Corp - 2023 Employee Stock Ownership Plan" special securities account via non-trading transfer on December 5, 2023, with the transferred shares accounting for 0.68% of the company's total share capital[50] - The scope of the 2023 Employee Stock Ownership Plan includes directors (excluding independent directors), supervisors, senior management, middle management, key core technical (business) personnel, and high-performing employees, totaling 22 people[51] - During the reporting period, directors (excluding independent directors), supervisors, and senior management held 413,577 shares in the employee stock ownership plan, accounting for 0.17% of the company's total share capital[52] - On July 16, 2024, the company held the second holders' meeting of the 2023 Employee Stock Ownership Plan and approved the proposal to adjust the management committee, electing Yang Wenqing as a new member[53] Environmental and Social Responsibility I. Major Environmental Issues As a key pollutant-discharging unit, the company strictly adheres to environmental regulations, maintains valid permits, and ensures all emissions meet standards without penalty - The company and its subsidiaries are designated as key pollutant-discharging units by environmental protection authorities[54] - The company strictly adheres to environmental protection laws and regulations such as the "Environmental Protection Law of the People's Republic of China" and executes national, industry, and local pollutant emission standards like the "Integrated Emission Standard of Air Pollutants"[54] - Tianjin Printronics holds a valid discharge permit (No 91120116600552474E001R), and Techwise Circuit Technology (Huizhou) Co, Ltd holds a valid discharge permit (No 91441300698148866L002R)[54] - During the reporting period, the company continued to increase its investment in environmental protection, upgrading facilities and introducing intelligent control systems[66] - The company has prepared and filed an "Emergency Plan for Environmental Incidents" and conducts regular training and drills for all employees[66] - The company reduces electricity consumption through measures like replacing equipment with energy-efficient models and purchasing green electricity, steadily implementing low-carbon manufacturing[66] - The company did not receive any administrative penalties for environmental issues during the reporting period[66] Specifics of Pollutant Emission Standards and Emissions from Production and Operation Activities The company complies with national and local emission standards, with detailed data showing that all wastewater and waste gas pollutants are discharged within permissible limits - The company adheres to national, industry, and local pollutant emission standards such as the "Integrated Emission Standard of Air Pollutants," "Emission Standard of Pollutants for Electroplating," and "Tianjin Integrated Wastewater Discharge Standard"[54] Tianjin Printronics Circuit Corp Main Pollutant Emission Status | Pollutant Type | Pollutant Name | Emission Method | Emission Concentration/Intensity | Total Emission | Emission Standard | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wastewater | COD | Stable compliant discharge | 84.316 mg/L | 21.804t | Tianjin Integrated Wastewater Discharge Standard (DB12/356-2018) | None | | Wastewater | Total Copper | Stable compliant discharge | 0.911 mg/L | 0.2356t | Tianjin Integrated Wastewater Discharge Standard (DB12/356-2018) | None | | Wastewater | Total Nitrogen | Stable compliant discharge | 15.668 mg/L | 4.052t | Tianjin Integrated Wastewater Discharge Standard (DB12/356-2018) | None | | Wastewater | Ammonia Nitrogen | Stable compliant discharge | 7.895 mg/L | 2.042t | Tianjin Integrated Wastewater Discharge Standard (DB12/356-2018) | None | Techwise Circuit Technology (Huizhou) Co, Ltd Main Pollutant Emission Status | Pollutant Type | Pollutant Name | Emission Method | Emission Concentration/Intensity | Total Emission | Emission Standard | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wastewater | Total Nickel | Compliant discharge | 0.0237 mg/L | 0.00015t | Water Pollutant Discharge Standard for Electroplating (DB44/1597-2015) | None | | Wastewater | COD | Compliant discharge | 15.0150 mg/L | 0.7596t | Water Pollutant Discharge Standard for Electroplating (DB44/1597-2015) | None | | Wastewater | Ammonia Nitrogen | Compliant discharge | 0.7283 mg/L | 0.0037t | Water Pollutant Discharge Standard for Electroplating (DB44/1597-2015) | None | | Wastewater | Suspended Solids | Compliant discharge | 8.1667 mg/L | 0.9244t | Water Pollutant Discharge Standard for Electroplating (DB44/1597-2015) | None | Pollutant Treatment The Tianjin base's new wastewater station has reduced pollutant levels, while the Huizhou base effectively treats wastewater, waste gas, and solid waste to meet standards - The new wastewater station at the Tianjin base has started trial operations, adopting a "classified collection—separate pretreatment—comprehensive treatment" process, resulting in reduced concentrations and total emissions of COD, ammonia nitrogen, total nitrogen, and total nickel at the main discharge outlet[65] - The Huizhou Techwise facility has a wastewater treatment station with a design capacity of 1200m³/d, which treats wastewater to compliance before discharging it into the municipal network, and is equipped with an online automatic monitoring system[65] - At Huizhou Techwise, major waste gas emission sources are treated by dust collectors and waste gas treatment systems to meet standards before high-altitude discharge; solid waste is classified into general and hazardous waste and handled by qualified recycling units and hazardous waste companies, respectively[65] II. Social Responsibility The company actively fulfills its social responsibilities by ensuring corporate governance, protecting employee rights, maintaining product quality, and promoting sustainable development - The company operates under the principle of "creating value for customers, generating benefits for shareholders, and providing opportunities for employees," actively practicing social responsibility[67] - The company continuously improves its corporate governance structure, focuses on protecting the legal rights of investors, especially small and medium-sized investors, and fulfills its information disclosure obligations in accordance with regulations[67] - The company strictly complies with laws and regulations such as the "Labor Law" and "Labor Contract Law" to protect the legal rights of employees, emphasizes talent development, offers a competitive compensation system, and actively participates in public welfare activities[67] - The company always adheres to the principles of quality first and safety foremost, is customer-centric, and is committed to establishing cooperative relationships with suppliers and customers based on integrity, mutual benefit, and win-win outcomes[67] - The company adheres to a sustainable development strategy, conscientiously implements laws and regulations related to safe production and environmental protection, and fully implements safety production responsibility systems and pollution control measures[67] Significant Events I. Commitments Fulfilled during the Reporting Period and Overdue Commitments at the End of the Reporting Period by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company Commitments from TCL Technology Group regarding non-competition and related-party transactions are currently being fulfilled on schedule Status of Commitment Fulfillment | Reason for Commitment | Promisor | Commitment Type | Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments made in acquisition reports or equity change reports | TCL Technology Group Corporation | Commitment to avoid horizontal competition | | 2020/10/01 | | In progress | | Commitments made during asset restructuring | TCL Technology Group (Tianjin) Co, Ltd | Commitment to reduce and regulate related-party transactions | | 2023/05/23 | | In progress | | Commitments made during initial public offering or refinancing | TCL Technology Group (Tianjin) Co, Ltd | Commitment to avoid horizontal competition | | 2007/04/17 | | In progress | | Were commitments fulfilled on time? | Yes | | | | | | II. Non-operational Fund Occupation by the Controlling Shareholder and Other Related Parties There were no instances of non-operational fund occupation by the controlling shareholder or other related parties during the reporting period - The company had no non-operational fund occupation by the controlling shareholder and other related parties during the reporting period[69] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[70] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[70] V. Explanation from the Board of Directors and Supervisory Committee on the "Non-standard Audit Report" for the Reporting Period The company did not have a non-standard audit report for the reporting period - The company did not have a non-standard audit report for the reporting period[70] VI. Explanation from the Board of Directors on the "Non-standard Audit Report" of the Previous Year The company did not have a non-standard audit report for the reporting period - The company did not have a non-standard audit report for the reporting period[70] VII. Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[71] VIII. Litigation Matters The company had no major litigation, arbitration, or other legal matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[72] - The company had no other litigation matters during the reporting period[72] IX. Penalties and Rectifications There were no penalties or rectifications during the reporting period - There were no penalties or rectifications during the reporting period[72] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no issues concerning the integrity of the company, its controlling shareholder, or its actual controller during the reporting period - There were no issues concerning the integrity of the company, its controlling shareholder, or its actual controller during the reporting period[72] XI. Major Related-Party Transactions The company maintained deposit services with related party TCL Technology Group Finance Co, Ltd, with a year-end balance of RMB 30,900 - The company had no related-party transactions related to daily operations, asset or equity acquisitions/sales, joint external investments, or related-party debt and credit during the reporting period[72][74] Deposit Business (Transactions with Related Finance Company) | Related Party | Relationship | Daily Max Deposit Limit (10k Yuan) | Deposit Interest Rate Range | Opening Balance (10k Yuan) | Total Deposits this Period (10k Yuan) | Total Withdrawals this Period (10k Yuan) | Closing Balance (10k Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TCL Technology Group Finance Co, Ltd | A controlled subsidiary of the company's indirect controlling shareholder, TCL Technology | 20,000 | | 2,060.98 | 25,388.82 | 27,446.71 | 3.09 | - On December 28, 2023, the company disclosed the "Announcement on Estimated Daily Related-Party Transactions for 2024," and on April 17, 2024, it disclosed the "Announcement on Renewing the 'Financial Services Agreement' with TCL Technology Group Finance Co, Ltd and Related-Party Transactions" and the "Announcement on Increasing the Estimated Daily Related-Party Transactions for 2024"[75][76] XII. Major Contracts and Their Performance The company provided guarantees for its subsidiaries totaling RMB 119.87 million and engaged in wealth management of RMB 30 million, with no outstanding balance at period-end - The company had no custody, contracting, or leasing arrangements during the reporting period[77][78] Guarantees for Subsidiaries | Guaranteed Party | Guarantee Quota Disclosure Date | Guarantee Quota | Actual Occurrence Date | Actual Guarantee Amount | Guarantee Type | Collateral (if any) | Counter-guarantee (if any) | Guarantee Period | Completed? | Related-Party Guarantee? | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Techwise Circuit Technology (Huizhou) Co, Ltd | 2024/05/09 | 4,590 | | 159.53 | Joint liability guarantee | | | 1 year | No | Yes | | Techwise Circuit Technology (Zhuhai) Co, Ltd | 2023/12/15 | 24,225 | | 3,994.73 | Joint liability guarantee | | | 10 years | No | Yes | - The total outstanding actual guarantee balance at the end of the reporting period was RMB 119.87 million, accounting for 25.78% of the company's net assets[81] Entrusted Wealth Management | Specific Type | Source of Funds | Amount Entrusted (10k Yuan) | Outstanding Balance (10k Yuan) | Overdue Unrecovered Amount (10k Yuan) | Impairment Provision for Overdue Unrecovered Amount (10k Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 3,000 | 0 | 0 | 0 | | Total | | 3,000 | 0 | 0 | 0 | - The company had no other major contracts during the reporting period[82] XIII. Explanation of Other Major Matters The company is advancing a plan to issue shares to specific investors to raise up to RMB 90 million for a PCB intelligent manufacturing upgrade project - On May 7, 2024, the company held the 37th meeting of the 6th Board of Directors and the 29th meeting of the 6th Supervisory Committee, approving the "Proposal on the Company's 2024 Plan to Issue Shares to Specific Objects through a Simplified Procedure" and other proposals[83] - The company plans to issue shares to specific objects through a simplified procedure, aiming to raise a total of no more than RMB 90.00 million (inclusive) for the company's PCB intelligent manufacturing technological transformation project[83] XIV. Major Matters of Subsidiaries The Zhuhai factory of Huizhou Techwise's subsidiary opened on April 23, 2024, aiming to enhance specialization, expand markets, and boost sustainable growth - On April 23, 2024, Zhuhai Techwise, a wholly-owned subsidiary of Huizhou Techwise, held a grand opening ceremony at the Fushan Industrial Park in Zhuhai[84] - The construction of the Zhuhai factory will effectively leverage the company's resources and advantages, promote specialization in the PCB product field, help explore specialized markets, expand business channels, enhance the company's sustainable development capabilities, increase company profits, and maximize shareholder value[84] Changes in Share Capital and Shareholders I. Changes in Share Capital The total number of shares and unrestricted shares remained unchanged at 245,849,768 during the reporting period, with no share repurchase activities Changes in Share Capital | | Quantity Before Change | Proportion | | :--- | :--- | :--- | | II. Unrestricted Shares | 245,849,768 | 100.00% | | 1. RMB Ordinary Shares | 245,849,768 | 100.00% | | III. Total Shares | 245,849,768 | 100.00% | - The total number of shares and the number of unrestricted shares remained unchanged during the reporting period[85] - The company had no progress in the implementation of share buybacks, nor did it reduce its repurchased shares through centralized bidding[85] 2. Changes in Restricted Shares There were no changes in the company's restricted shares during the reporting period - The company had no changes in restricted shares during the reporting period[86] II. Securities Issuance and Listing The company did not issue or list any securities during the reporting period - The company did not issue or list any securities during the reporting period[86] III. Number of Shareholders and Shareholding Status At the end of the period, there were 30,856 ordinary shareholders, with the controlling shareholder, TCL Technology Group (Tianjin), holding 26.86% - At the end of the reporting period, the total number of ordinary shareholders was 30,856[86] Shareholdings of Ordinary Shareholders with over 5% or Top 10 Ordinary Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Ordinary Shares Held at Period End | Change during Reporting Period | Number of Restricted Ordinary Shares | Number of Unrestricted Ordinary Shares | Share Status | Pledged, Marked, or Frozen Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TCL Technology Group (Tianjin) Co, Ltd | Domestic non-state-owned legal entity | 26.86% | 66,026,154 | 0 | 0 | 66,026,154 | | 0 | | Su Ming | Domestic natural person | 4.99% | 12,263,883 | -300 | 0 | 12,263,883 | | 0 | | Xuanyuan Private Equity Investment Management (Guangdong) Co, Ltd - Xuanyuan Kexin No 122 Private Securities Investment Fund | Other | 3.02% | 7,432,100 | 48,900 | 0 | 7,432,100 | | 0 | | Tianjin Zhonghuan Investment Co, Ltd | Domestic non-state-owned legal entity | 2.64% | 6,499,600 | 0 | 0 | 6,499,600 | | 0 | | Chen Chaohai | Domestic natural person | 1.21% | 2,977,000 | 0 | 0 | 2,977,000 | | 0 | | Hebei Xindu Technology Co, Ltd | Domestic non-state-owned legal entity | 1.11% | 2,736,200 | 1,577,600 | 0 | 2,736,200 | | 0 | | Zhu Xiaogang | Domestic natural person | 1.01% | 2,474,300 | 2,474,300 | 0 | 2,474,300 | | 0 | | Wu Shangwen | Domestic natural person | 0.82% | 2,015,000 | 2,015,000 | 0 | 2,015,000 | | 0 | | Tianjin Printronics Circuit Corp - 2023 Employee Stock Ownership Plan | Other | 0.68% | 1,666,268 | 0 | 0 | 1,666,268 | | 0 | | Qin Cuifang | Domestic natural person | 0.64% | 1,569,100 | -400,500 | 0 | 1,569,100 | | 0 | - Tianjin Zhonghuan Investment Co, Ltd is a wholly-owned subsidiary of TCL Technology Group (Tianjin) Co, Ltd; the Tianjin Printronics Circuit Corp - 2023 Employee Stock Ownership Plan is the company's dedicated securities account for the 2023 employee stock ownership plan[87][90][92] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2023 annual report[101] V. Changes in the Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[102] - The company's actual controller did not change during the reporting period[102] Information on Preferred Shares Information on Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[103] Information on Bonds Information on Bonds The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[104] Financial Report I. Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[105] II. Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2024, detailing its financial position and performance - This section includes the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Equity, and Parent Company Statement of Changes in Equity[106][109][112][114][116][118][120][127] 1. Consolidated Balance Sheet As of June 30, 2024, total assets were RMB 1.785 billion, an 18.79% increase from the beginning of the year, with total liabilities of RMB 1.046 billion Key Data from Consolidated Balance Sheet | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,784,825,070.95 | 1,502,564,487.67 | | Total Current Assets | 682,841,086.34 | 607,438,187.94 | | Total Non-current Assets | 1,101,983,984.61 | 895,126,299.73 | | Total Liabilities | 1,046,304,003.66 | 771,058,941.05 | | Total Equity | 738,521,067.29 | 731,505,546.62 | 2. Parent Company Balance Sheet As of June 30, 2024, the parent company's total assets were RMB 1.159 billion, a 2.00% increase, with total liabilities of RMB 687 million Key Data from Parent Company Balance Sheet | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,158,968,446.07 | 1,136,289,480.46 | | Total Current Assets | 294,333,295.57 | 272,710,388.35 | | Total Non-current Assets | 864,635,150.50 | 863,579,092.11 | | Total Liabilities | 687,143,582.09 | 684,632,821.43 | | Total Equity | 471,824,863.98 | 451,656,659.03 | 3. Consolidated Income Statement For the first half of 2024, the company achieved total operating revenue of RMB 516 million, a 70.17% increase, with a net profit of RMB 27.42 million Key Data from Consolidated Income Statement | Item | First Half 2024 (Yuan) | First Half 2023 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 516,137,591.94 | 303,301,497.36 | | Total Operating Costs | 489,459,950.43 | 287,277,732.41 | | Net Profit | 27,417,120.07 | 16,201,372.06 | | Net Profit Attributable to Parent Company Shareholders | 20,686,110.25 | 16,201,372.06 | | Basic Earnings Per Share (Yuan/share) | 0.08 | 0.07 | | Diluted Earnings Per Share (Yuan/share) | 0.08 | 0.07 | 4. Parent Company Income Statement For the first half of 2024, the parent company achieved operating revenue of RMB 281 million and a net profit of RMB 27.39 million Key Data from Parent Company Income Statement | Item | First Half 2024 (Yuan) | First Half 2023 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 280,541,321.61 | 303,301,497.36 | | Net Profit | 27,393,973.32 | 16,201,372.06 | | Basic Earnings Per Share (Yuan/share) | 0.11 | 0.07 | | Diluted Earnings Per Share (Yuan/share) | 0.11 | 0.07 | 5. Consolidated Cash Flow Statement Net operating cash flow was RMB 19.24 million, a 62.68% decrease, while net financing cash flow increased to RMB 266 million due to new borrowings Key Data from Consolidated Cash Flow Statement | Item | First Half 2024 (Yuan) | First Half 2023 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 19,238,848.92 | 51,547,313.54 | | Net Cash Flow from Investing Activities | -268,467,271.00 | -36,707,030.72 | | Net Cash Flow from Financing Activities | 265,883,634.46 | 50,860,899.57 | | Net Increase in Cash and Cash Equivalents | 18,543,887.48 | 65,644,610.16 | - Net cash flow from operating activities decreased by 62.68% year-on-year, mainly due to increased payments for matured bills[116][28] - Net cash flow from investing activities decreased by 631.38% year-on-year, mainly due to payments for a major asset restructuring project[116][28] - Net cash flow from financing activities increased by 422.77% year-on-year, mainly due to an increase in borrowings during the period[117][28] 6. Parent Company Cash Flow Statement The parent company's net operating cash flow was RMB 13.70 million, with net investing and financing cash flows of -RMB 221 million and RMB 194 million, respectively Key Data from Parent Company Cash Flow Statement | Item | First Half 2024 (Yuan) | First Half 2023 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 13,697,260.81 | 51,547,313.54 | | Net Cash Flow from Investing Activities | -220,672,214.10 | -36,707,030.72 | | Net Cash Flow from Financing Activities | 194,395,785.24 | 50,860,899.57 | | Net Increase in Cash and Cash Equivalents | -11,405,022.35 | 65,644,610.16 | 7. Consolidated Statement of Changes in Equity Equity attributable to parent company shareholders increased by RMB 13.46 million, driven by a comprehensive income of RMB 20.69 million - Total equity attributable to parent company shareholders was RMB 464,942,879.99 at the end of the period, compared to RMB 451,482,538.11 at the beginning of the period[108] - The total comprehensive income attributable to parent company shareholders for the period was RMB 20,686,110.25[113][122] - Capital contributed and reduced by owners decreased by RMB 7,225,768.37 during the period[122] 8. Parent Company Statement of Changes in Equity The parent company's total equity increased by RMB 20.17 million, primarily due to a comprehensive income of RMB 27.39 million - The parent company's total equity was RMB 471,824,863.98 at the end of the period, compared to RMB 451,656,659.03 at the beginning of the period[111] - The parent company's total comprehensive income for the period was RMB 27,393,973.32[115][128] - Capital contributed and reduced by owners decreased by RMB 7,225,768.37 during the period[128] III. Company Basic Information Originally a joint venture, Tianjin Printronics became a joint-stock company in 2005, listed in 2007, and is ultimately controlled by TCL Technology Group Corporation - Tianjin Printronics Circuit Corp, formerly Tianjin Printronics Circuit Co, Ltd, was restructured into a joint-stock company in 2005 and listed on the Shenzhen Stock Exchange on May 16, 2007[131] - As of December 31, 2023, the company's total issued share capital is 245,849,768 shares, with a registered capital of RMB 245,849,768; its registered and head office address is No 53, Hanghai Road, Airport Economic Zone, Tianjin Pilot Free Trade Zone[132] - The company's ultimate controlling party is TCL Technology Group Corporation[132] - The company belongs to the circuit board manufacturing industry, with a business scope including the production, sales, and commissioned processing of printed circuit boards and related products[133] - A total of 3 subsidiaries were included in the scope of consolidation for the current period[134] IV. Basis of Preparation for Financial Statements The financial statements are prepared in accordance with China's Accounting Standards for Business Enterprises and on a going concern basis - The company prepares its financial statements in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the "Rules for the Compilation and Reporting of Information Disclosure by Companies Offering Securities to the Public No 15 - General Provisions on Financial Reports" (revised in 2023) by the China Securities Regulatory Commission[135] - The company has assessed its ability to continue as a going concern for the 12 months from the end of the reporting period and has not identified any matters or circumstances that cast significant doubt on its going concern ability; therefore, these financial statements are prepared on a going concern basis[136] V. Significant Accounting Policies and Estimates This section details the company's accounting policies for key areas such as revenue recognition, financial instruments, and fixed assets, noting the adoption of ASBE Interpretation No 17 - The financial statements prepared by the company comply with the requirements of the Accounting Standards for Business Enterprises and truly and completely reflect the company's financial position, operating results, and cash flows for the reporting period[138] - The company uses a 12-month period as its operating cycle and as the basis for classifying assets and liabilities as current or non-current; the functional currency is the Renminbi (RMB)[140][141] - The company classifies financial assets into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[163] - Depreciation of fixed assets is calculated using the straight-line method over their estimated useful lives, based on their carrying amount less estimated net residual value[194][195] - The company recognizes revenue when it has fulfilled its performance obligations in a contract, i e, when the customer obtains control of the relevant goods or services, at the transaction price allocated to that performance obligation[224] - On November 9, 2023, the Ministry of Finance issued "Interpretation No 17 of the Accounting Standards for Business Enterprises," which the company has implemented since January 1, 2024[245] VI. Taxes The company's main taxes include VAT and corporate income tax, with the company and its subsidiaries benefiting from a reduced 15% income tax rate as high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods or provision of taxable services | 13%, 9%, 6%, 5%, 0% | | Urban Maintenance and Construction Tax | Actual paid turnover tax | 7% | | Corporate Income Tax | Taxable income | 25%, 15%, 16.5% | | Property Tax | Based on value: 1.20% of the residual value after a 30.00% deduction from the original property value; Based on rent: 12.00% of rental income | 1.2%, 12% | | Education Surcharge | Actual paid turnover tax | 3% | | Local Education Surcharge | Actual paid turnover tax | 2% | - The company and Techwise Circuit Technology (Huizhou) Co, Ltd have both passed the high-tech enterprise review or certification, and their corporate income tax rate is reduced to 15.00%[248] VII. Notes to Items in the Consolidated Financial Statements This section provides detailed notes on key items in the consolidated financial statements, including cash, receivables, inventory, fixed assets, and long-term borrowings - The year-end balance of cash and cash equivalents was RMB 161,376,116.83, with restricted funds amounting to RMB 13,097,110.49 (for note margins, letter of credit margins, and ETC deposits)[249] - The year-end book value of accounts receivable was RMB 342,810,325.46, with a bad debt provision of RMB 6,410,940.65[256] - The year-end book value of inventory was RMB 130,842,226.67, with a total provision for inventory write-down and contract fulfillment cost impairment of RMB 5,274,068.79[273][274] - The year-end book value of fixed assets was RMB 253,900,994.55, and construction in progress was RMB 567,857,692.58, including RMB 333,817,871.70 for the Zhuhai factory project[278][285] - The year-end balance of long-term borrowings was RMB 444,430,844.61, mainly comprising pledged, mortgaged, and credit loans[316][317] - Operating revenue for the current period was RMB 516,137,591.94, and operating costs were RMB 424,707,851.62[329] VIII. Research and Development Expenditures Total R&D expenditure for the period was RMB 16.55 million, all of which was expensed, primarily consisting of personnel costs and material inputs R&D Expenditure Composition | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Personnel Costs | 10,336,739.14 | 5,545,011.27 | | Material Inputs | 2,860,952.43 | 1,311,757.61 | | Depreciation and Amortization | 2,460,757.83 | 2,251,609.16 | | Testing and Inspection Fees | 44,615.47 | 147,732.82 | | Other Expenses | 846,152.26 | 196,436.06 | | Total | 16,549,217.13 | 9,452,546.92 | | Of which: Expensed R&D | 16,549,217.13 | 9,452,546.92 | IX. Changes in the Scope of Consolidation The scope of consolidation increased by three entities this period, including Techwise Circuit Technology (Huizhou), acquired through a business combination under common control - Compared to the previous period, 3 entities were added to the scope of consolidation in this reporti