TJ(SH:600667)2023-08-28 16:00Project Delays and Contract Issues - The contract amount for the supporting area project design, procurement, and construction general contracting project, originally scheduled for completion in August 2020, has not been settled as of June 30, 2023, due to delays in the dormitory, life hall, and Yangtze River Future Hall projects[1] - The National Memory Base Project (Phase I) factory area and comprehensive supporting area project design, procurement, and construction general contracting, as well as the OFILM Optical and Optoelectronic Industry Base construction project, have remaining contracts that will not be executed due to changes in owner requirements[1] - The second phase contract for the Shanghai Jita Semiconductor Co., Ltd. special process production line construction project has been temporarily suspended due to owner reasons[1] - The second phase of the Zhejiang Haixin Micro Semiconductor Technology Co., Ltd. 300mm wafer core special process production line project will not be executed due to owner changes[1] - The Shucheng County Smart Electronics Town project electromechanical general contracting is progressing normally after a slow start due to owner reasons[1] - The contract amount for the industrialization project Phase IV general contracting project, with a contract period ending on June 30, 2019, has not been settled as of June 30, 2023, due to incomplete final settlement[2] Financial Performance - The company's monetary funds as of June 30, 2023, amounted to RMB 6,393,634,215.67, a decrease from RMB 7,134,630,591.88 as of December 31, 2022[3] - The company's accounts receivable as of June 30, 2023, increased to RMB 5,796,602,766.63 from RMB 4,611,985,772.54 as of December 31, 2022[3] - The company's cash flow from operating activities for the first half of 2023 was negative RMB 1,053,487,775.05, an improvement from negative RMB 1,197,050,283.55 in the same period of 2022[6] - Operating cash flow was negative at -6,172,338.18, a significant decrease from -1,359,364.17 in the previous period[8] - Investment cash inflow was 105,720,832.27, a sharp decline from 435,310,944.77 in the prior period[8] - Financing cash inflow was 630,000,000.00, up from 450,000,000.00 in the previous period[8] - Net profit distribution to owners was -83,656,211.20[10] - Special reserve decreased by -5,051,961.09[10] - Total comprehensive income for the period was 425,132,773.22[12] - Paid-in capital (or share capital) remained stable at 2,106,190,178.00[12] - Capital reserve stood at 3,726,117,817.10[12] - Retained earnings increased by 67,080,442.96[12] - The company's operating income for the first half of 2023 is 44,036.70 RMB[18] - The company's operating cost for the first half of 2023 is 31,311.24 RMB[18] - The company's financial expenses for the first half of 2023 are 5,962,226.11 RMB, an increase from 2,853,714.42 RMB in the previous period[18] - The company's investment income for the first half of 2023 is 102,246,480.37 RMB, a decrease from 434,443,804.40 RMB in the previous period[18] - The company's total equity at the end of the period is 8,349,349,737.34 RMB[19] - The company's comprehensive income for the first half of 2023 totaled RMB 562,764,948.64, with RMB 493,399,897.03 attributable to the parent company's owners[78] - The basic earnings per share for the first half of 2023 was RMB 0.20, and the diluted earnings per share was also RMB 0.20[78] - The foreign currency translation difference in the financial statements amounted to RMB 34,996,436.81[78] - The minority shareholders' share of other comprehensive income after tax was RMB 26,522,004.06[78] - The minority shareholders' share of comprehensive income totaled RMB 69,365,051.61[78] - Revenue for the first half of 2023 reached RMB 18,616,529,237.32, a 25.19% increase year-over-year[119] - Net profit attributable to shareholders of the listed company was RMB 426,847,689.48, up 378.17% compared to the same period last year[119] - Basic earnings per share (EPS) for the reporting period was RMB 0.20, a 400% increase year-over-year[119] - The weighted average return on equity (ROE) was 5.80%, an increase of 4.70 percentage points from the previous year[119] - The company's total assets increased by 6.87% to RMB 30,915,806,323.67 compared to the end of the previous year[119] - The company's net profit increase was partly due to lower base effects from asset impairment losses in the previous year[120] - The company's net profit attributable to parent company shareholders was RMB 426,847,689.48, a significant increase from RMB 89,266,105.66 in the previous period[173] - The company's total comprehensive income for the period was RMB 562,764,948.64, with RMB 493,399,897.03 attributable to parent company shareholders[179] - The company's cash and cash equivalents at the end of the period were RMB 162,833,806.77, a decrease from RMB 276,753,170.81 in the previous period[177] - The company's credit impairment loss was RMB -116,875,389.14, an improvement from RMB -171,279,628.96 in the previous period[173] - The company's asset impairment loss was RMB -3,150,775.03, a significant improvement from RMB -349,262,458.52 in the previous period[173] - The company's investment income from associates and joint ventures was RMB 81,884,309.70, an increase from RMB 74,233,734.04 in the previous period[173] - The company's other comprehensive income after tax was RMB 93,074,211.61, with RMB 66,552,207.55 attributable to parent company shareholders[173] - The company's total owner's equity at the end of the period was RMB 7,877,166,791.14, with RMB 7,113,245,549.39 attributable to parent company shareholders[179] - The company's exchange rate impact on cash and cash equivalents was RMB 3,843.17, compared to RMB -529.02 in the previous period[177] - The company's net increase in cash and cash equivalents was RMB 56,857,425.58, a decrease from RMB 82,814,810.14 in the previous period[177] - The company's total equity at the end of the period was RMB 8,519,976,915.06[183] - The net profit for the period was RMB 87,758,622.54[197] - The comprehensive income for the period was RMB 87,758,622.54[197] Subsidiaries and Investments - Subsidiary "十一越南" has a registered capital of 9,456,000,000.00 Vietnamese Dong and fully paid-up capital of 9,456,000,000.00 Vietnamese Dong[14] - Subsidiary "青海蓓翔" has a registered capital of 371,670,000.00 RMB and fully paid-up capital of 371,670,000.00 RMB[14] - Subsidiary Haite Semiconductor (Wuxi) Co., Ltd. has a registered capital of $175 million[22] - Subsidiary Taiji Semiconductor (Suzhou) Co., Ltd. has a registered capital of RMB 722,108,475[22] - Subsidiary Taiji Microelectronics (Suzhou) Co., Ltd. has a registered capital of RMB 100,498,650[22] - Subsidiary Wuxi Taiji International Trade Co., Ltd. has a registered capital of RMB 25,000,000[22] - Subsidiary Sichuan Aide Zhongchuang Construction Engineering Co., Ltd. has a paid-in capital of RMB 95,650,000[22] - Subsidiary Jiangsu Huaxin New Energy Management Co., Ltd. has a paid-in capital of RMB 3,000,000[22] - Subsidiary Inner Mongolia Xinyuan Energy Co., Ltd. has a registered capital of RMB 200,000,000[22] - Subsidiary Wulate Qianqi Xiehe Photovoltaic Power Generation Co., Ltd. has a paid-in capital of RMB 21,893,405.58[22] - Subsidiary Wuxi Shiyi New Energy Investment Co., Ltd. has a registered capital of RMB 300,000,000[22] - Subsidiary Hainan Huayuan New Energy Co., Ltd. has a paid-in capital of RMB 2,100,000[22] - The company's subsidiary, Hynix Semiconductor, primarily provides back-end services for SK Hynix's DRAM products, leveraging a strong partnership to reduce industry entry risks[134] - The company's subsidiary, 11th Technology, manages engineering design, consulting, and EPC projects, with design contract payments structured at 20% upon signing, 50% after preliminary design, and 90%-95% after construction drawings[137] - The company's subsidiary, TaiJi Semiconductor, has successfully developed advanced hybrid packaging (Hybrid, FC+WB) processes and achieved mass production of 1β DRAM and 232-layer NAND[159] - The company's subsidiary, HaiTai, has a complete packaging and testing production line that is closely integrated with SK Hynix's 12-inch wafer production line, leveraging SK Hynix's advanced DRAM technology[159] - The company's subsidiary, Eleventh Technology, has been involved in photovoltaic power station investment and operation since 2014, leveraging its brand and technical advantages in design and EPC[153] - The company's subsidiary, Eleventh Technology, secures engineering projects through long-term client relationships, nationwide branch networks, and public bidding processes[154] - The subsidiary TaiJi Semiconductor invested RMB 147.49 million to expand DDR4/LPDDR4 testing capacity, with RMB 133.53 million already invested by the end of the reporting period[195] Industry and Market Trends - The semiconductor business focuses on DRAM and NAND Flash, with procurement prices typically locked for one year[123] - The company's engineering services subsidiary, Eleven Technology, has significant competitive advantages in high-end manufacturing, data centers, and biopharmaceutical sectors[122] - China's integrated circuit production in the first half of 2023 totaled 165.7 billion units, a year-on-year decrease of 3.0%[133] - China imported 227.8 billion integrated circuit units in the first half of 2023, a year-on-year decrease of 18.5%, with a total import value of RMB 1,119.14 billion, down 17.0%[133] - China exported 127.6 billion integrated circuit units in the first half of 2023, a year-on-year decrease of 10.0%, with a total export value of RMB 436.104 billion, down 12.0%[133] - The total revenue of enterprises with survey and design qualifications in 2021 was RMB 8,401.61 billion, with engineering survey revenue of RMB 110.3 billion, up 7.5% year-on-year[133] - Engineering design revenue in 2021 was RMB 574.53 billion, up 4.8% year-on-year, while engineering EPC revenue was RMB 4,004.16 billion, up 21.1% year-on-year[133] - In 2022, China's construction industry added value was RMB 8,338.3 billion, up 5.5% year-on-year, with total profits of qualified construction enterprises at RMB 836.9 billion, down 1.2% year-on-year[139] - The global semiconductor market sales for the first half of 2023 were $244 billion, a decrease of 19.79% year-on-year[156] Corporate Governance and Shareholding - The company's registered and headquarters address is located at 21st Floor, 401 Xingyuan North Road, Liangxi District, Wuxi City[41] - The total number of shares and share capital structure remained unchanged during the reporting period[45] - Wuxi Industrial Development Group Co., Ltd. holds 640,624,856 shares, accounting for 30.42% of the total shares[47] - National Integrated Circuit Industry Investment Fund Co., Ltd. holds 84,247,763 shares, accounting for 4.00% of the total shares[47] - Wuxi Construction Development Investment Co., Ltd. holds 75,321,382 shares, accounting for 3.58% of the total shares[47] - Wuxi Venture Capital Group Co., Ltd. holds 60,401,612 shares, accounting for 2.87% of the total shares[47] - Hong Kong Securities Clearing Company Ltd. holds 42,895,568 shares, accounting for 2.04% of the total shares[47] - Wuxi Innovation Investment Group Co., Ltd. holds 27,149,340 shares, accounting for 1.29% of the total shares[47] - Zhao Zhenyuan holds 23,663,435 shares, accounting for 1.12% of the total shares[47] - Wang Qinmei holds 16,801,158 shares, accounting for 0.80% of the total shares[47] - The company's registered and office address is located at 21st Floor, 401 Xingyuan North Road, Liangxi District, Wuxi City[103] - The company's website is www.wxtj.com and the email address is tjsy600667@163.com[103] Business Operations and Strategy - The company's electronic high-tech engineering technology services business includes project contracting[107] - The investment model is part of the company's electronic high-tech engineering technology services business[108] - The semiconductor packaging and testing industry is a key focus area for the company[108] - The company has optimized its semiconductor packaging product structure, introducing "cut before grind" (DBG) technology and achieving breakthroughs in high-stacking products (16D)[159] - The company has received multiple provincial-level awards for engineering design, including first and second prizes for projects such as the Changsha HKC 8.6th generation ultra-high-definition new display device production line[158] - The company has established a comprehensive "big safety" management system, including responsibility systems, regulatory updates, and risk control mechanisms[160] - The company's semiconductor business focuses on integrated circuit design, chip manufacturing, and packaging and testing, positioning it as a leading domestic semiconductor packaging and testing enterprise[156] - The company's financial statements are prepared in RMB, with its subsidiary Wuxi HaiTai using USD as its functional currency[168] - The company invested RMB 4,611.8 million in safety standardization upgrades in 2023[190] - The highest monthly production capacity of Hitech Semiconductor's packaging and testing reached 2.24 billion Gb and 2.43 billion Gb respectively, representing year-on-year growth of 9.0% and 24.7%[200] Financial Instruments and Accounting Policies - The company's investment properties are initially measured at cost, with subsequent expenditures capitalized if they enhance the asset's future economic benefits[72] - The company capitalizes borrowing costs for assets that take more than one year to construct, develop, or produce, provided certain conditions are met[73] - The company assesses the credit risk of financial instruments at each balance sheet date and measures expected credit losses accordingly[65] - The company's construction-in-progress costs include actual construction expenditures and related expenses, which are transferred to fixed assets upon completion[70] Financing and Capital Structure - The company successfully issued RMB 400 million in medium-term notes on the national interbank bond market, enhancing its financing capabilities and optimizing its debt structure[144]