盈方微(000670) - 2016 Q3 - 季度财报

Section I Important Notice 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] - All directors attended the board meeting to review this quarterly report[5] - 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] Section II Key Financial Data and Shareholder Changes I. Key Accounting Data and Financial Indicators 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] 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 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] 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] - 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][16] Section III Significant Matters I. Changes and Reasons for Key Financial Statement Items and Indicators During the Reporting Period 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 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 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] - 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] - 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] - 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] 2. Board of Directors and Supervisors Re-election 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] - 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] 3. Progress of Datan Digital Lawsuit 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] - 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] - As of the date of this report, the lawsuit has not yet had another hearing[26] 4. Transfer of Shanghai Minghe Partnership Equity 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] - 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] 5. Investigation Initiation 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] 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 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][31][33][34] - 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] - 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][32] - 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][33] - Chen Zhicheng's commitment not to reduce his shareholding in the company within 12 months from July 9, 2015, has been fulfilled[33] - 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] IV. Forecast of 2016 Operating Performance 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] - 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] V. Securities Investment The company did not engage in any securities investments during the reporting period - The company had no securities investments during the reporting period[36] VI. Derivative Investments The company did not engage in any derivative investments during the reporting period - The company had no derivative investments during the reporting period[37] VII. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period 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 The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[39] IX. Non-Operating Funds Occupied by Controlling Shareholder and Its Related Parties from the Listed Company 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]