TPC(SZ:002134)2016-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2016 was CNY 177.90 million, a decrease of 11.86% compared to the same period last year[20]. - The net profit attributable to shareholders was a loss of CNY 28.49 million, which is an increase in loss of 48.73% year-on-year[20]. - The net profit after deducting non-recurring gains and losses was a loss of CNY 29.35 million, reflecting a 45.86% increase in loss compared to the previous year[20]. - The net cash flow from operating activities was CNY 10.80 million, an increase of 89.24% compared to the same period last year[20]. - The company expects a net loss of between -45 million and -35 million yuan for the first nine months of 2016, compared to a net loss of -27.63 million yuan in the same period of 2015[56]. - The company reported a cumulative actual investment of 115.85 million yuan in the San Factory Project, which is 38.62% of the planned total investment of 300 million yuan[55]. - The company reported a total capital reserve of RMB 302,270,727.09, which reflects a significant component of the total equity[144]. - The company's net profit for the first half of 2016 was not explicitly stated, but the comprehensive income totalled a loss of RMB 28,491,370.08[144]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 673.38 million, a decrease of 6.23% from the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were CNY 493.91 million, down 5.45% from the end of the previous year[20]. - The total current assets decreased from 336,536,475.86 RMB to 311,970,499.28 RMB, a reduction of approximately 7.3%[114]. - The total assets decreased from 718,130,626.89 RMB to 673,382,533.90 RMB, a decline of about 6.2%[114]. - The total liabilities decreased to CNY 179.76 million from CNY 196.02 million, representing a reduction of approximately 8%[120]. - The owner's equity totaled CNY 495.57 million, down from CNY 524.06 million, reflecting a decrease of about 5%[120]. - The total equity attributable to the parent company was ¥302,270,727.09, reflecting a decrease due to comprehensive income losses[135]. Market Conditions - The PCB industry is facing challenges due to declining demand in traditional electronics and insufficient order volume, leading to operational losses[28]. - The global PCB market growth rate was reported at -3.7% in 2015, with China's growth rate dropping to 0%[28]. - The PCB industry in China is expected to grow at an annual rate of around 3% in the coming years, despite a slowdown in growth[29]. - The company acknowledges the ongoing economic uncertainties and pressures in the manufacturing sector, impacting its performance[28]. Operational Efficiency - The company has focused on market expansion and improving operational efficiency through refined management practices[33]. - The introduction of an optimized ERP system has improved production scheduling and material requirements, enhancing operational efficiency[34]. - Operating costs decreased by 5.65% to ¥190,062,817.91, while sales expenses increased by 33.94% due to higher salaries in the sales department[31]. - The company has established stable customer resources and long-term partnerships, which are crucial for its sustained operations[38]. Corporate Governance - The company has maintained compliance with corporate governance regulations and has not faced any administrative regulatory measures[63]. - The company has not reported any significant litigation or arbitration matters during the reporting period[71]. - The company has not conducted any related party transactions in its daily operations during the reporting period[77]. - The company reported no related party debts or transactions during the reporting period[80][81]. Shareholder Information - The total number of shares remains at 245,849,768, with no changes in the shareholder structure during the reporting period[98][99]. - Total number of common shareholders at the end of the reporting period is 22,066[100]. - The largest shareholder, Tianjin Zhonghuan Electronic Information Group Co., Ltd., holds 25.35% of shares, totaling 62,314,645 shares[100]. - Tianjin Jinrong Investment Service Group Co., Ltd. is the second-largest shareholder with a 21.35% stake, amounting to 52,498,900 shares[100]. Cash Flow - The net cash flow from operating activities for the first half of 2016 was ¥10,797,623.30, an increase of 89.5% compared to ¥5,705,822.23 in the same period of 2015[134]. - The total cash outflow from operating activities was ¥179,511,666.57, down 20.6% from ¥226,103,313.48 year-on-year[134]. - The net cash flow from investing activities was -¥5,029,826.92, compared to -¥3,704,975.52 in the previous year, indicating an increase in investment outflows[134]. - The net cash flow from financing activities was -¥20,795,316.21, a significant decrease from a positive cash flow of ¥2,934,511.23 in the same period last year[134]. Investment and Restructuring - The company announced a major asset restructuring plan on May 9, 2016, and entered the restructuring process on May 17, 2016[93]. - Due to significant changes in the market environment and failure to reach an agreement on transaction pricing, the company decided to terminate the major asset restructuring on July 26, 2016[94]. - The company has not engaged in any external investments or securities investments during the reporting period[43][45]. - The company has not engaged in any major asset acquisitions or sales during the reporting period[73][74]. Accounting Policies - The financial statements of the company are prepared based on the going concern assumption and comply with the relevant accounting standards issued by the Ministry of Finance[148]. - The company’s financial statements accurately reflect its financial position as of June 30, 2016, in accordance with the disclosure requirements of the China Securities Regulatory Commission[149]. - The company engages in the production and sales of printed circuit boards and related products, following specific accounting policies and estimates related to revenue recognition[151]. - The company uses Renminbi as its functional currency for accounting purposes[154]. Inventory and Asset Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when the net realizable value is lower than cost[184]. - The company categorizes inventory into raw materials, work in progress, finished goods, and consumables[183]. - The company applies weighted average cost method for inventory valuation upon issuance[184]. - The company uses a perpetual inventory system for tracking inventory[184].