合力泰(002217) - 2016 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides critical disclaimers, the report's structure, and definitions of key terms for clarity Important Notice The Board of Directors, Supervisory Committee, and all senior executives guarantee the report's accuracy and completeness, with no plans for cash dividends or share transfers - Company management ensures the report's content is true, accurate, and complete, assuming corresponding legal responsibilities[4] - The company's 2016 semi-annual profit distribution plan proposes no cash dividends, bonus shares, or capital increase from capital reserves[6] Definitions This chapter defines key terms used in the report, including company abbreviations, technical terms, and major restructuring events, providing a foundational understanding - The report defines abbreviations for major subsidiaries within the company system, such as Jiangxi Holitech, Component Company, and Yeji Optoelectronics[10] - Core technologies and products related to the main business, such as Touch Panel (TP), Liquid Crystal Module (LCM), and Touch Display Integrated Module (TLI), are explained in detail[10] - The specific contents of the "2014 Restructuring" and "2015 Restructuring" are clarified, highlighting these as key events in the company's business expansion and structural changes[10][11] Company Profile This section outlines the company's fundamental information, including stock details, full names, legal representative, and contact methods Company Basic Information This chapter provides basic information for Holitech Technology Co., Ltd., including its stock ticker "Holitech", code "002217", full names, legal representative, and contact details, noting no changes during the reporting period | Item | Information | | :--- | :--- | | Stock Abbreviation | Holitech | | Stock Code | 002217 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 合力泰科技股份有限公司 | | Legal Representative | Wen Kaifu | - During the reporting period, there were no changes to the company's registered address, office address, website, email, or information disclosure channels[16][17][18] Summary of Accounting Data and Financial Indicators This section presents a concise overview of the company's key financial performance and position Key Accounting Data and Financial Indicators In the first half of 2016, the company achieved rapid performance growth, with operating revenue increasing by 178.86% to CNY 4.92 billion, net profit attributable to shareholders rising by 215.40% to CNY 311.35 million, and total assets growing by 12.67% from the prior year-end | Indicator | Current Reporting Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 4,915,585,869.90 | 1,762,757,106.81 | 178.86% | | Net Profit Attributable to Shareholders of the Listed Company (CNY) | 311,346,115.46 | 98,714,442.90 | 215.40% | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-Recurring Gains and Losses (CNY) | 287,986,324.90 | 73,082,305.15 | 294.06% | | Net Cash Flow from Operating Activities (CNY) | 109,990,717.40 | 106,011,759.56 | 3.75% | | Basic Earnings Per Share (CNY/share) | 0.2189 | 0.0913 | 139.76% | | Total Assets (CNY) | 10,314,424,523.01 | 9,154,653,463.77 (End of Prior Year) | 12.67% | | Net Assets Attributable to Shareholders of the Listed Company (CNY) | 5,817,324,463.55 | 5,530,649,603.56 (End of Prior Year) | 5.18% | - During the reporting period, the company's total non-recurring gains and losses amounted to CNY 23.36 million, primarily from CNY 28.49 million in government subsidies[26] Board of Directors' Report This section details the company's operational performance, strategic initiatives, and financial outlook as reported by the Board Overview of Operations During the reporting period, the company achieved significant performance improvement through internal integration and resource optimization, with operating revenue and net profit both increasing by over 170% year-on-year, while new products like IN-CELL modules and fingerprint recognition entered mass production, and strategic acquisitions continued | Indicator | Amount (CNY ten thousand) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 491,558.59 | 178.86% | | Total Profit | 35,594.29 | 189.28% | | Net Profit | 31,111.03 | 216.26% | | Net Profit Attributable to Parent Company | 31,134.61 | 215.40% | - Strong internal growth drivers include the mass production of new businesses such as IN-CELL modules, e-paper modules, camera modules, cover glass, and fingerprint recognition modules[29] - External mergers and acquisitions continue, with the company proposing to acquire 100% equity in Zhuhai Chenxin Technology Co., Ltd. using its own funds to enhance synergy with existing businesses[30] Analysis of Main Business The company's key financial data saw substantial year-on-year growth, driven by an expanded consolidation scope and increased sales, with R&D investment significantly rising by 285.22% for new projects, and profit sources shifting due to the merger of three new subsidiaries | Item | Current Reporting Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,915,585,869.90 | 178.86% | Expanded consolidation scope and increased sales volume | | Operating Cost | 4,165,473,903.45 | 183.11% | Increased with revenue growth | | Administrative Expenses | 297,429,386.85 | 152.49% | Expanded consolidation scope and new R&D investment | | R&D Investment | 151,854,858.81 | 285.22% | New R&D projects for dual cameras, IN-CELL, e-paper, etc | | Net Cash Flow from Financing Activities | -49,445,867.12 | -137.24% | Repayment of loans from Xingjian Investment and Yitai Investment | - The composition of profit significantly changed during the reporting period, primarily due to the new consolidation of three companies: Component Company, Yeji Optoelectronics, and Pingbo Electronics[33] - The company's actual profitability met expectations, with actual profit of CNY 311.35 million within the CNY 290 million to CNY 315 million forecast range disclosed in the first quarter[34] Composition of Main Business The company's main business comprises the touch display and chemical industries, with touch display being the primary revenue and profit driver, growing by 252.17% year-on-year and accounting for approximately 92.4% of total revenue, while new product lines like fingerprint recognition and e-paper contribute additional income Main Business Composition (by Industry) | Industry | Operating Revenue (CNY) | Year-on-Year Change in Operating Revenue | Gross Margin | | :--- | :--- | :--- | :--- | | Touch Display Industry | 4,544,780,398.85 | 252.17% | 15.22% | | Chemical Industry | 370,805,471.05 | -21.48% | 15.77% | Main Business Composition (by Major Product) | Product | Operating Revenue (CNY) | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | | CTP - Capacitive Touch Panel | 1,733,816,663.39 | 304.70% | | Seamless Lamination Touch Display Integrated Module | 1,553,257,682.26 | 295.21% | | FPC | 437,327,594.92 | - | | Camera Module | 148,600,493.76 | - | | H-INK E-Paper | 39,102,504.16 | - | | Fingerprint Recognition Module | 27,749,894.58 | - | Main Business Composition (by Region) | Region | Operating Revenue (CNY) | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | | South China Region | 2,640,420,326.42 | 178.02% | | International | 1,435,804,981.69 | 462.88% | Analysis of Core Competencies The company's core competencies encompass one-stop service, cost control, customer resources, market share, R&D, and management, enabling it to offer comprehensive products, optimize costs, secure top-tier clients, and maintain a leading position in emerging markets with extensive patent technology - One-stop service capability: The company is a leading domestic one-stop service provider for smart terminal core components, covering the entire industry chain including touch screens, display modules, camera modules, and fingerprint recognition, while actively developing a smart retail ecosystem[38][39] - Leading cost control capability: Through three-stage cost control (R&D, production, accounting), combined with the low-cost advantage of its Jiangxi production base and economies of scale in procurement, the company effectively optimizes its cost structure[40][41][43] - First-class domestic and international customer resources: The company has established strong cooperative relationships with industry leaders such as Samsung, Huawei, OPPO, VIVO, LeEco, and Microsoft, providing stable orders and growth momentum[43] - Leading R&D and technical strength: The company holds over 600 patent technologies, with several subsidiaries recognized as "National High-tech Enterprises" and a postdoctoral research workstation established[45] Analysis of Investment Status During the reporting period, the company invested CNY 9.8 million in Beijing Maifeng Network Technology Co., Ltd., and its two non-public offerings' raised funds were primarily used for touch display module projects and subsidiary acquisitions, all achieving expected benefits with no other significant investments - During the reporting period, the company made an external investment of CNY 9.8 million to acquire 49% equity in Beijing Maifeng Network Technology Co., Ltd., which primarily engages in electronic product sales and internet information services[48] - The first non-public offering raised a total of CNY 311 million, with CNY 311 million cumulatively invested, mainly in seamless lamination touch display integrated module and touch screen cover glass projects, which are completed and have achieved expected benefits[56][61] - The second non-public offering raised a total of CNY 884 million, with CNY 884 million cumulatively invested, primarily for acquiring equity in Component Company, Yeji Optoelectronics, and Pingbo Electronics, with projects completed and achieving expected benefits[58][64] Forecast of Operating Performance for January-September 2016 The company anticipates a significant increase in net profit attributable to shareholders for January-September 2016, projected to range from CNY 535 million to CNY 585 million, representing a 210.14% to 239.12% year-on-year growth, primarily due to expanded consolidation and internal optimization | Item | Forecast Data | | :--- | :--- | | Forecast Period | January-September 2016 | | Net Profit Attributable to Parent Company Change Range (CNY ten thousand) | 53,500 to 58,500 | | Net Profit Attributable to Parent Company Change Rate | 210.14% to 239.12% | | Net Profit Attributable to Parent Company in Prior Year Period (CNY ten thousand) | 17,250.54 | - The significant performance growth is attributed to two main reasons: first, changes in the consolidation scope, adding the performance of Component Company, Yeji Optoelectronics, and Pingbo Electronics; second, the company's internal integration and optimized resource allocation, driving year-on-year growth in sales revenue and profit[71] Significant Events This section details major corporate actions and transactions during the reporting period Asset Transactions During the reporting period, the company proposed to acquire 100% equity in Zhuhai Chenxin Technology Co., Ltd. from Baoden (Hong Kong) Co., Ltd. for CNY 101 million, a transaction approved by the board with no impact on current operations or profit and loss, and no other asset sales or mergers occurred | Counterparty | Acquired Asset | Transaction Price (CNY ten thousand) | Progress | | :--- | :--- | :--- | :--- | | Baoden (Hong Kong) Co., Ltd. | Zhuhai Chenxin Technology Co., Ltd. | 10,100 | Board of Directors' approval | Significant Related Party Transactions During the reporting period, the company engaged in significant daily operating related party transactions with BYD Company Limited and its affiliates, including CNY 558 million in raw material purchases and CNY 662 million in product sales, while also managing non-operating related party receivables and payables Daily Operating Related Party Transactions with BYD | Transacting Party | Transaction Type | Transaction Content | Transaction Amount (CNY ten thousand) | Percentage of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | | BYD Company Limited and its Affiliates | Procurement | Purchase of raw materials, goods | 55,833.47 | 35.04% | | BYD Company Limited and its Affiliates | Sales | Sale of products, goods | 66,159.30 | 43.17% | - The company has non-operating related party receivables and payables; initial receivables from related parties, mainly profit compensation and loans, were fully recovered during the reporting period, while year-end receivables from related parties, primarily operating payables with BYD, amounted to CNY 303 million[92] Significant Contracts and Their Performance During the reporting period, the company and its subsidiaries provided substantial guarantees to meet operational funding needs, with the total actual guarantee balance for subsidiaries reaching CNY 2.12 billion and inter-subsidiary guarantees at CNY 185 million, representing 39.63% of the company's net assets, all within the consolidated scope and compliant | Guarantee Type | Approved Guarantee Limit at End of Reporting Period (CNY ten thousand) | Actual Guarantee Balance at End of Reporting Period (CNY ten thousand) | | :--- | :--- | :--- | | Company Guarantees to Subsidiaries | 328,494 | 212,030 | | Subsidiary Guarantees to Subsidiaries | 22,500 | 18,500 | | Total | 350,994 | 230,530 | - At the end of the reporting period, the company's total actual guarantee amount represented 39.63% of its net assets[102] Commitments by the Company or Shareholders Holding 5% or More of Shares During or Continuing into the Reporting Period This chapter details various commitments made by relevant parties during past asset restructurings and refinancing, including share lock-up, performance guarantees with compensation mechanisms, and pledges to ensure the listed company's independence and regulate related party transactions, all of which are being strictly fulfilled - In the two major asset restructurings of 2014 and 2015, the transaction counterparties, including Wen Kaifu and BYD Company Limited, made share lock-up commitments with lock-up periods ranging from 12 to 36 months[107][114][115] - Restructuring transaction counterparties made performance commitments for the target assets (Holitech, Component Company, Yeji Optoelectronics, Pingbo Electronics) for varying periods from 2014-2017, with detailed compensation mechanisms, and these commitments remain in effect during the reporting period[107][118][120][121] - The controlling shareholder and actual controller made long-term commitments to ensure the listed company's independence in assets, personnel, finance, organization, and business, as well as to avoid horizontal competition and regulate related party transactions[109][110][111] Changes in Share Capital and Shareholder Information This section details the company's share capital movements and shareholder structure Changes in Share Capital During the reporting period, the company's total share capital of 1.42 billion shares remained unchanged, with minor shifts in share structure due to executive share lock-up and unlocking, resulting in a decrease of approximately 8.99 million restricted shares and a corresponding increase in unrestricted shares | Share Class | Before This Change (shares) | After This Change (shares) | Change (shares) | | :--- | :--- | :--- | :--- | | Restricted Shares | 1,046,891,869 | 1,037,906,810 | -8,985,059 | | Unrestricted Shares | 375,582,343 | 384,567,402 | +8,985,059 | | Total Share Capital | 1,422,474,212 | 1,422,474,212 | 0 | - Share changes primarily stemmed from executive share movements: Chairman Wen Kaifu's increased holdings led to an increase of 375,000 restricted shares; Vice Chairman Wang Yiming and Supervisory Board Chairman Wang Chongde's restricted shares decreased by 8.86 million shares and 354,000 shares, respectively, due to scheduled unlocking of executive-locked shares[133][134][136] Shareholder Numbers and Shareholding Status As of the end of the reporting period, the company had 37,814 common shareholders, with Wen Kaifu and BYD Company Limited as the top two shareholders, holding 21.68% and 12.59% respectively, and several top ten shareholders, including Wen Kaifu, having pledged shares - At the end of the reporting period, the company had a total of 37,814 common shareholders[137] Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholding Percentage | Number of Shares Held (shares) | Share Status | | :--- | :--- | :--- | :--- | | Wen Kaifu | 21.68% | 308,379,704 | Pledged 138,000,000 | | BYD Company Limited | 12.59% | 179,127,725 | - | | Wang Yiming | 4.36% | 62,087,927 | - | | Zeng Li | 4.01% | 57,095,255 | Pledged 57,095,255 | | Chen Yun | 3.68% | 52,337,265 | Pledged 52,337,265 | | Taihe County Xingjian Investment Co., Ltd. | 2.80% | 39,802,644 | Pledged 39,800,000 | - Among the top ten shareholders, Wen Kaifu, Zeng Li, Chen Yun, Taihe County Xingjian Investment Co., Ltd., Ma Juane, and Taihe County Yitai Investment Co., Ltd. are parties acting in concert[139] Financial Report This section presents the company's comprehensive financial statements and related disclosures Financial Statements This chapter provides the company's core financial statements for the first half of 2016, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, revealing total assets exceeding CNY 10 billion, operating revenue of CNY 4.92 billion, and net profit attributable to the parent company of CNY 311.35 million Consolidated Balance Sheet Key Data (2016-06-30) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 10,314,424,523.01 | 9,154,653,463.77 | | Total Liabilities | 4,495,076,523.14 | 3,621,744,504.32 | | Equity Attributable to Parent Company Owners | 5,817,324,463.55 | 5,530,649,603.56 | Consolidated Income Statement Key Data (January-June 2016) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 4,915,585,869.90 | 1,762,757,106.81 | | Operating Profit | 328,479,390.65 | 91,953,864.01 | | Total Profit | 355,942,927.85 | 123,046,318.80 | | Net Profit Attributable to Parent Company Owners | 311,346,115.46 | 98,714,442.90 | Consolidated Cash Flow Statement Key Data (January-June 2016) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 109,990,717.40 | 106,011,759.56 | | Net Cash Flow from Investing Activities | -177,452,856.22 | -205,203,657.53 | | Net Cash Flow from Financing Activities | -49,445,867.12 | 132,764,918.42 | | Net Increase in Cash and Cash Equivalents | -116,366,052.76 | 33,498,057.23 | Significant Accounting Policies and Estimates This chapter details the company's adherence to enterprise accounting standards and critical accounting policies and estimates, covering areas such as business combinations, financial instruments, receivables, inventories, fixed assets, and revenue recognition, all fundamental to understanding its financial position and performance - The company's financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards and using the accrual basis of accounting[190][191][193] - Allowance for doubtful accounts for receivables is calculated using the allowance method, with individually significant receivables tested separately, and others grouped by credit risk characteristics (aging analysis method)[221][222] - Inventories are accounted for using the perpetual inventory system, valued at actual cost, issued using the weighted average method, and measured at the lower of cost or net realizable value at period-end, with provision for impairment[225][226] - For revenue recognition, domestic sales are recognized upon customer acceptance, while export sales (FOB) are recognized upon completion of export customs procedures[255] Notes to Consolidated Financial Statement Items This chapter provides detailed explanations for major items in the consolidated financial statements, including cash and cash equivalents of CNY 741 million, accounts receivable of CNY 2.25 billion, inventories of CNY 1.53 billion, fixed assets of CNY 1.85 billion, and goodwill of CNY 2.21 billion, along with liabilities such as short-term borrowings of CNY 1.50 billion and accounts payable of CNY 1.21 billion, offering crucial data for in-depth financial analysis Period-End Balances of Major Balance Sheet Items | Item | Period-End Balance (CNY) | | :--- | :--- | | Cash and Cash Equivalents | 740,993,118.25 | | Notes Receivable | 352,977,891.49 | | Accounts Receivable | 2,252,701,789.68 | | Inventories | 1,529,361,490.50 | | Fixed Assets | 1,845,838,328.12 | | Goodwill | 2,212,863,126.37 | | Short-term Borrowings | 1,502,637,483.53 | | Notes Payable | 428,531,315.07 | | Accounts Payable | 1,205,781,709.93 | - The top five accounts receivable at period-end totaled CNY 582 million, accounting for 24.42% of the total[290] - The total amount of assets with restricted ownership or use rights at period-end was CNY 440 million, primarily comprising cash and cash equivalents, fixed assets, and intangible assets used as collateral for borrowings and as deposits[452] Reference Documents Catalog This section lists all documents available for investor review Reference Documents This chapter lists the documents available for investor review, including the semi-annual report and financial report signed by senior executives, and original copies of all publicly disclosed documents and announcements during the reporting period - Reference documents include: - The 2016 semi-annual report bearing the chairman's signature - The financial report signed and sealed by the legal representative, chief financial officer, and head of the accounting department - Original copies of all legally disclosed documents and announcements from the reporting period[566]