TECHSEM(SZ:300046)2015-08-12 16:00Financial Performance - Total operating revenue for the first half of 2015 was ¥86,789,721.18, a decrease of 23.91% compared to ¥114,061,569.79 in the same period last year[17]. - Net profit attributable to ordinary shareholders was ¥15,708,918.31, down 33.02% from ¥23,454,684.75 year-on-year[17]. - Net cash flow from operating activities was ¥18,219,654.68, a decline of 46.34% compared to ¥33,953,481.00 in the previous year[17]. - Basic earnings per share decreased to ¥0.1106, down 33.01% from ¥0.1651 in the same period last year[17]. - The weighted average return on net assets was 1.90%, down 0.95 percentage points from 2.85% in the previous year[17]. - The total sales volume of various power semiconductor devices was 470,900 units, a decline of 8.81% year-on-year, with thyristor sales down 25.45% to 189,500 units[27]. - The company reported a net cash flow from operating activities of CNY 18.22 million, a significant decrease of 46.34% due to reduced cash received from sales[30]. - The cash and cash equivalents decreased by CNY 62.64 million, a decline of 259.91% compared to the previous period, primarily due to reduced cash flow from operating activities[31]. - The company reported a minor impact on profits from related party transactions, which accounted for 0.41% of similar transaction amounts[73]. Investment and Development - The company plans to accelerate the development of new products to mitigate the impact of macroeconomic fluctuations[23]. - The company faces risks related to slow technological innovation and increasing market competition, necessitating enhanced R&D investment[23]. - Research and development expenses were CNY 6.28 million, a slight decrease of 3.90% compared to the previous year, influenced by project progress[30]. - The company is actively developing several key R&D projects, including 7.5KV high voltage devices and high power pulse power devices, with some products achieving mass production and expanding market applications[40]. - The company aims to enhance its core competitiveness through the continuous development of new products and technologies, with a focus on high-end applications in various sectors[41]. - The company plans to accelerate project identification and consider mergers and acquisitions to effectively utilize the raised funds while managing risks[24]. - The company has introduced three utility model patents and one software copyright during the reporting period, enhancing its innovation capabilities[28]. - The company is focusing on high-end new product development and seeking investment projects to restore stable growth in operating performance[45]. Market Conditions and Challenges - In the first half of 2015, the company achieved operating revenue of CNY 86.79 million, a year-on-year decrease of 23.91% due to weak demand for power semiconductor devices and intensified market competition[27]. - The company is facing significant challenges due to intense market competition and structural overcapacity in the industry, which has led to price reductions and increased competition[47]. - The company has identified the need for faster new product development to meet changing customer demands and expand into new markets[47]. - The company faced underutilization of capacity due to sluggish economic growth, prompting a focus on deepening traditional markets and accelerating development in new applications and international markets[48]. Financial Management and Shareholder Relations - The company will not distribute cash dividends or issue bonus shares for this reporting period[6]. - The company distributed a cash dividend of 4 RMB per 10 shares, totaling 56.83 million RMB, based on a total share count of 14.208 million shares as of December 31, 2014[63]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[64]. - The company has committed to ensuring that related party transaction prices do not deviate from market prices set by independent third parties[85]. - The company guarantees not to use its position to harm the interests of shareholders through related party transactions[85]. - The company emphasizes the importance of maintaining the interests of shareholders in all transactions[85]. Shareholding Structure - The total number of shares is 142,080,000, with 106,800,000 shares (75.17%) being unrestricted and 35,280,000 shares (24.83%) being restricted[92]. - The largest shareholder, Xiangyang New Yiyuan Semiconductor Co., Ltd., holds 40.02% of the shares, totaling 56,860,000 shares, with a reduction of 6,700,000 shares during the reporting period[96]. - The number of restricted shares decreased by 15,890,000, resulting in 19,390,000 restricted shares remaining[94]. - The company has a total of 9,519 shareholders at the end of the reporting period[96]. Regulatory Compliance and Financial Reporting - The company has not completed an audit for the semi-annual financial report[87]. - The report indicates that the financial statements were not audited, which may affect the reliability of the financial data presented[104]. - The company’s financial reports were approved by the board on August 12, 2015, indicating compliance with regulatory requirements[125]. - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows[128]. Asset Management - Total assets at the end of the reporting period were ¥831,096,591.46, a decrease of 5.50% from ¥879,421,548.34 at the end of the previous year[17]. - The company's cash and cash equivalents stood at RMB 449,168,251.87, down from RMB 513,587,964.01, indicating a decrease of about 12.5%[106]. - Accounts receivable increased to RMB 62,885,685.53 from RMB 34,446,095.26, representing an increase of approximately 82.8%[106]. - Inventory levels were reported at RMB 73,079,699.65, slightly up from RMB 72,475,871.30, showing a marginal increase of about 0.8%[106]. - The company's non-current assets totaled RMB 197,388,358.23, remaining relatively stable compared to RMB 197,794,927.56 at the beginning of the period, indicating a slight decrease of about 0.2%[107]. Accounting Policies - The company recognizes revenue from sales when ownership risks and rewards are transferred, with specific conditions for direct and indirect sales[190]. - The company recognizes deferred tax assets limited to the amount of taxable income that is likely to be available to offset deductible temporary differences[195]. - The company recognizes leased assets as finance lease fixed assets if they meet certain criteria, including ownership transfer at lease end or the present value of minimum lease payments being nearly equal to the asset's fair value[171]. - The company applies the equity method for long-term equity investments where it has joint control or significant influence, adjusting the investment's book value based on the investee's net profit or loss[165].