TFME(SZ:002156)2019-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥3.59 billion, representing a 3.13% increase compared to the same period last year[10]. - The net profit attributable to shareholders of the listed company was approximately -¥77.64 million, a decrease of 176.72% year-on-year[10]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥143.91 million, a decline of 309.39% compared to the previous year[10]. - The basic earnings per share for the reporting period was -¥0.07, a decrease of 177.78% year-on-year[10]. - The diluted earnings per share for the reporting period was also -¥0.07, reflecting the same percentage decrease as basic earnings[10]. - The weighted average return on net assets was -1.28%, a decline of 2.98% compared to the previous year[10]. - The company reported a significant increase in sales expenses by 10.85% to RMB 26,520,952.35, attributed to enhanced market expansion efforts[28]. - The company’s financial expenses rose by 132.73% to RMB 93,474,391.42, primarily due to increased interest expenses and reduced foreign exchange gains[28]. - The company reported a net profit margin under pressure due to rising costs, impacting overall profitability for the first half of 2019[96]. Cash Flow and Liquidity - The net cash flow from operating activities was approximately ¥774.14 million, an increase of 372.73% year-on-year[10]. - The net increase in cash and cash equivalents was RMB 75,934,483.54, a 123.61% increase compared to a decrease of RMB 321,576,246.23 in the previous year[29]. - Operating cash flow for the first half of 2019 was CNY 774,137,886.59, a significant increase from CNY 163,760,495.53 in the same period of 2018, representing a growth of approximately 373%[104]. - Cash and cash equivalents at the end of the period totaled CNY 1,311,732,419.63, compared to CNY 1,205,160,230.09 at the end of the previous year, marking an increase of approximately 8.8%[105]. - The company reported a net increase in cash and cash equivalents of CNY 75,934,483.54, contrasting with a decrease of CNY 321,576,246.23 in the first half of 2018[105]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥14.96 billion, reflecting a 7.07% increase from the end of the previous year[10]. - The net assets attributable to shareholders of the listed company were approximately ¥5.98 billion, a decrease of 2.44% compared to the end of the previous year[10]. - Total liabilities increased to CNY 4,965,953,007.61 as of June 30, 2019, from CNY 4,634,096,425.30 at the end of 2018, representing an increase of approximately 7.2%[94]. - The company's total equity attributable to shareholders decreased to CNY 6,026,879,044.67 from CNY 6,142,110,361.42, indicating a decline of about 1.9%[95]. - The total assets of Tongfu Microelectronics Co., Ltd. amounted to CNY 13,968,377,342.51 as of June 30, 2019[192]. Research and Development - The company applied for 49 patents and 1 software copyright in the first half of 2019, with a total of 466 patents authorized by the end of the reporting period[23]. - The company's R&D investment increased by 5.11% to RMB 307,833,777.67 from RMB 292,866,387.68 in the previous year, reflecting a commitment to market demand[28]. - Research and development expenses for the first half of 2019 amounted to CNY 307,833,777.67, compared to CNY 292,866,387.68 in the same period of 2018, reflecting a year-over-year increase of approximately 5.1%[96]. Market and Customer Growth - The company successfully attracted 21 new customers, doubling the total number of customers compared to the same period last year, with 39% of new customers already in sample production[25]. - The company is focusing on market expansion in 5G, IoT applications, and automotive electronics, leveraging the growth in domestic chip design and manufacturing demand[22]. - Sales revenue from Tongfu Superway Suzhou and Tongfu Superway Penang increased by 32.16% compared to the same period last year, while Hefei Tongfu's sales revenue grew by 22.84%[21]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[3]. - The company completed the acquisition of FABTRONIC SDN BHD for a maximum amount of MYR 13.3 million on May 27, 2019[25]. - The company is positioned to benefit from AMD's launch of the world's first 7nm chip, which is expected to drive significant growth in demand for its packaging and testing services[22]. - The company plans to invest $100 million in R&D over the next two years to drive innovation in product development[133]. Environmental and Regulatory Compliance - The company has established pollution prevention facilities that are operational and compliant with environmental regulations[67]. - The company discharges wastewater with COD concentration of 59, meeting the standard of 500, with a total discharge of 85.205, while the approved total discharge is 220.654[66]. - The company has not faced any major litigation or arbitration matters during the reporting period, reflecting a stable legal standing[54]. Shareholder Information - The largest shareholder, Nantong Huada Microelectronics Group Co., Ltd., holds 28.35% of the shares, totaling 327,041,893 shares[77]. - The company repurchased a total of 5,920,092 shares, accounting for 0.51% of the total share capital, with a total payment of RMB 49,900,111.60[26]. - The total number of shares after the changes is 1,153,704,572, with 99.98% being unrestricted shares[72]. Accounting and Financial Reporting - The financial report for the first half of 2019 was not audited[87]. - The financial statements accurately reflect the company's financial position as of June 30, 2019, and the operating results for the first half of 2019[125]. - The company has made adjustments to its financial reporting formats in compliance with new accounting standards, which do not affect net profit or equity[188].