Tunghsu Optoelectronic(SZ:000413)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥2,770,888,073.71, a decrease of 67.31% compared to the same period last year[25]. - The net profit attributable to shareholders of the listed company was -¥896,816,721.92, representing a decline of 206.24% year-on-year[25]. - The net cash flow from operating activities was ¥376,087,214.61, down 36.72% from the previous year[25]. - The total assets at the end of the reporting period were ¥66,191,689,782.86, a decrease of 2.32% compared to the end of the previous year[25]. - The net assets attributable to shareholders of the listed company were ¥29,721,538,787.17, down 2.95% from the previous year[25]. - The basic earnings per share were -¥0.16, a decrease of 206.67% compared to the same period last year[25]. - The diluted earnings per share were also -¥0.16, reflecting the same decline of 206.67% year-on-year[25]. - The weighted average return on net assets was -2.97%, a decrease of 5.54% compared to the previous year[25]. - The company achieved a revenue of 2.771 billion yuan in the first half of 2020, with a net profit attributable to shareholders of -897 million yuan, representing a year-on-year decline of 67.31% and 206.24% respectively[55]. - The operating cost decreased by 62.27% to ¥2,479,375,719.85 from ¥6,571,893,216.94 year-on-year[64]. - Research and development investment fell by 56.66% to ¥104,021,295.61, down from ¥239,995,337.32 due to ongoing liquidity issues[68]. - The revenue from the new energy vehicle segment was ¥121,939,429.24, representing 4.40% of total revenue, down 81.34% from ¥653,517,499.98[64]. - The construction and installation segment generated ¥521,018,615.55, accounting for 18.80% of total revenue, a decrease of 66.03% from ¥1,533,873,637.92[64]. - The company faced a significant reduction in orders for high-end equipment and construction installation projects due to tight liquidity and the ongoing pandemic[62]. - The financial expenses increased by 57.97% to ¥581,488,048.27, primarily due to higher interest expenses from mid-term notes and reduced interest income from bank deposits[64]. - Revenue from mainland China was approximately ¥2.63 billion, accounting for 94.83% of total revenue, with a year-on-year decrease of 67.58%[71]. - Revenue from the optical display materials segment decreased by 53.24% year-on-year to approximately ¥918.83 million, with a gross margin of 20.60%[71]. - The company reported a significant decline in investment income, with a loss of approximately ¥175.48 million, representing 20.79% of total profit[73]. - The company’s total investment during the reporting period was approximately ¥208.84 million, a decrease of 92.02% compared to the previous year[81]. - The company’s accounts receivable stood at approximately ¥10.62 billion, accounting for 16.05% of total assets, with a slight decrease of 0.69% year-on-year[77]. - The company’s inventory decreased to approximately ¥2.67 billion, representing 4.04% of total assets, down 2.62% from the previous year[77]. - The company’s strategic focus has shifted towards core business areas, leading to a 39% decrease in revenue from electronic communication products[72]. - The company reported a net profit of -526,988,488.71 CNY from its subsidiary Wuhu Dongxu Guangdian Equipment Technology Co., Ltd., which contributed to a significant loss[87]. - The company has faced a net loss of -91,247,775.05 CNY from its subsidiary Dongxu Construction Group Co., Ltd.[87]. - The company’s total revenue from its subsidiaries was 1,013,041,863.12 CNY, with a total operating profit of -513,087,974.20 CNY[87]. Business Strategy and Operations - The company focuses on the liquid crystal glass substrate business, which is a key component in the liquid crystal display industry[36]. - The company has over 20 production lines for liquid crystal glass substrates, covering TFT-LCD products from G5 to G8.5 generations[38]. - The company has developed a drop-resistant glass with a drop height of 1.8 meters, significantly improving durability by 5 to 10 times[40]. - The company is actively expanding its graphene application in high-value industries, including lithium-ion batteries and energy-saving lighting[43]. - The high-end equipment manufacturing business is based on the production technology of liquid crystal glass substrates and includes customized equipment for various applications[44]. - The company is committed to enhancing its competitive position in the display materials industry through flexible and diversified product offerings[39]. - The company aims to leverage its technological advancements to capture future economic and technological development opportunities[44]. - The company has integrated its electronic communication business, which includes LCD display modules and storage chips, to enhance product sales channels and contribute to revenue growth[47]. - The company is focusing on the research and development of hydrogen fuel cell technology, including hydrogen fuel cell engines and high-pressure hydrogen storage systems, positioning itself as a leader in key technologies for new energy vehicles[45]. - The company has expanded its new energy vehicle product line to include pure electric city buses, hydrogen fuel cell buses, hybrid city buses, and new energy logistics vehicles, covering most regions in mainland China and exporting to Southeast Asia, South Korea, and the Middle East[45]. - The company is actively developing flexible display technologies and has made significant progress in producing ultra-thin flexible cover glass, which has attracted further cooperation from well-known domestic and international smartphone manufacturers[57]. - The company has launched a new graphene electric heater, which has been recognized for its low power consumption and safety features, and is designed for heating solutions in various regions[58]. - The company has leveraged its equipment manufacturing technology to support pandemic response efforts, including the production of mask machines and robots for mobile inspection and delivery in Europe[60]. Risk Management and Financial Health - The company has detailed risk factors and countermeasures in the report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company is focusing on developing its core business and has divested from non-core industries to address its debt crisis[62]. - The company is actively communicating with creditors to resolve debt crises and has signed extension agreements with some creditors[104]. - The company is implementing strict controls on new external guarantees and enhancing internal management systems to mitigate risks[105]. - The company is monitoring its financial subsidiary to address liquidity issues and ensure the safety and liquidity of its deposits[105]. - The company has obtained extensions on bank loans amounting to RMB 272,943,000 and company bond principal of RMB 91,932,670, totaling an extended amount of RMB 98,184,090 in the first half of 2020[104]. - The company is involved in significant litigation, with a financial loan contract dispute amounting to RMB 404,622.2 thousand and a financing lease contract dispute of RMB 73,775.8 thousand, both pending court hearings[107]. - The company reported a total of 116,248 million in bond trading disputes, which is currently unresolved[110]. - The company is facing a financial loan contract dispute with a total amount of 1,116.87 million, which remains unresolved[110]. - The company has a total of 75,415.55 million in financial loan contract disputes, which are still pending[117]. - The company has not faced any media scrutiny during the reporting period[118]. - The total amount of corporate bonds that the controlling shareholder, Dongxu Group, has defaulted on is 4.742 billion yuan[122]. Environmental Compliance and Sustainability - Shanghai Shenlong Bus Co., Ltd. reported a total wastewater discharge of 0.384 tons for chemical oxygen demand (COD), which is below the approved limit of 18.53 tons per year[161]. - The ammonia nitrogen discharge from Shanghai Shenlong Bus Co., Ltd. was 0.0154 tons, significantly lower than the approved limit of 2.22 tons per year[161]. - The total nitrogen discharge concentration was recorded at 31.65 mg/L, with no exceedance of the standard limits[161]. - The company maintained compliance with the wastewater discharge standards, with all reported pollutants not exceeding the limits[161]. - The sulfur dioxide emissions from Shanghai Shenlong Bus Co., Ltd. were 0.051 tons, well below the approved limit of 0.508 tons per year[164]. - Nitrogen oxides emissions were reported at 0.413 tons, which is also below the approved limit of 2.376 tons per year[164]. - Particulate matter emissions were recorded at 1.156 tons, significantly lower than the approved limit of 14.651 tons per year[164]. - The company’s wastewater treatment systems effectively processed wastewater, ensuring compliance with environmental standards[167]. - The total phosphorus discharge concentration was 3.3575 mg/L, with no exceedance of the standard limits[161]. - The company has implemented advanced wastewater treatment systems to ensure environmental compliance and sustainability[167]. - The wastewater treatment system processed wastewater with ammonia nitrogen levels at 1.31 mg/L, compliant with the Liaoning provincial standards[170]. - The company has implemented a SCR denitrification system to ensure that nitrogen oxides in flue gas are reduced to N2, with the system operating continuously throughout the year to meet emission standards[6]. - The company has installed 13 cartridge dust collectors and 1 bag dust collector to manage particulate emissions during the glass production process, ensuring compliance with discharge standards[6]. - The company reported stable operation of environmental protection facilities with no unplanned shutdowns and all pollutants meeting discharge standards during the first half of 2020[9]. - The company has established a wastewater treatment facility that processes domestic sewage before it is discharged into the municipal sewage system, ensuring compliance with external discharge standards[8]. - The company has adopted low-noise equipment and implemented sound insulation measures to mitigate noise pollution in its operations[8]. - The company has a comprehensive solid waste management strategy, utilizing general solid waste and ensuring that hazardous waste is handled by qualified third parties[8]. - The company has received environmental impact assessment approvals for multiple projects, ensuring compliance with environmental regulations[8]. - The company has invested in advanced pollution control technologies to maintain compliance with air and water quality standards[6]. - The company has established a rigorous monitoring system for emissions, with real-time data uploads to ensure transparency and compliance[9]. - The company is actively pursuing clean production initiatives to enhance environmental performance and sustainability[9]. - The company completed the environmental impact assessment for the production line, receiving approval from the Henan Provincial Environmental Protection Department on February 24, 2011, for the TFT-LCD glass substrate production line project[192]. - The second phase of the project, with an annual production capacity of 2.2 million square meters of liquid crystal glass substrates, received environmental approval on November 2, 2010, and passed the completion acceptance on February 28, 2014[192]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and filed with the relevant environmental authorities[193]. - The company conducts quarterly monitoring of wastewater, waste gas, and noise, ensuring compliance with national and local environmental regulations[196]. - The company has implemented an online monitoring system for wastewater and waste gas, with real-time data uploaded to the environmental monitoring platform[197]. - The company has not reported any exceedances in pollutant emissions to date, indicating effective environmental management practices[197]. - The company plans to conduct emergency drills for environmental incidents in the second half of 2020[193]. - The company has established a comprehensive environmental management system, including pollution prevention measures and public participation in risk analysis[193]. - The company collaborates with third-party institutions for environmental monitoring and compliance verification[197]. - Shanghai Shenlong Bus Co., Ltd. had no environmental administrative penalties in the first half of 2020, demonstrating compliance with environmental laws and regulations[200]. - Guangxi Shenlong Automobile Manufacturing Co., Ltd. completed the application for the pollutant discharge permit on May 16, 2019, and prepared the discharge permit execution report for the first and second quarters of 2020[200]. - Fuzhou Dongxu Optoelectronic Technology Co., Ltd. has publicly disclosed its environmental self-monitoring information on its official website[200]. - Chengdu Dongxu Intelligent Technology Co., Ltd. invested heavily in advanced treatment systems for wastewater, waste gas, and noise, aligning with its green environmental protection image[200]. - Sichuan Xuhong Optoelectronic Technology Co., Ltd. publicly disclosed its environmental administrative licensing procedures and pollutant discharge information[200]. - Wuhu Dongxu Optoelectronic Co., Ltd. has made its environmental impact assessment and acceptance information available on the designated platform[200]. - Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. completed the registration of fixed pollution sources on June 11, 2020[200]. - Zhengzhou Xufei Optoelectronic Technology Co., Ltd. is included in the Henan Province environmental credit information management system, indicating compliance with local environmental regulations[200].