TKC(SZ:200512)2020-08-04 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥793,014,584.36, a decrease of 14.68% compared to ¥929,448,983.38 in the same period last year[16]. - The net profit attributable to shareholders was ¥39,220,703.16, down 17.07% from ¥47,292,567.95 year-on-year[16]. - The net profit after deducting non-recurring gains and losses increased by 229.56% to ¥32,506,739.64, compared to ¥9,863,734.45 in the previous year[16]. - The net cash flow from operating activities was negative at -¥28,011,876.14, a significant decline from ¥4,167,209.43 in the same period last year, representing a decrease of 772.20%[16]. - The total assets at the end of the reporting period were ¥1,847,468,612.40, down 5.57% from ¥1,956,448,835.98 at the end of the previous year[16]. - The net assets attributable to shareholders increased by 2.91% to ¥770,522,673.06, compared to ¥748,738,791.34 at the end of the previous year[16]. - The basic earnings per share decreased by 19.23% to ¥0.21 from ¥0.26 in the same period last year[16]. - The diluted earnings per share also decreased by 19.23% to ¥0.21 from ¥0.26 year-on-year[16]. - The weighted average return on equity was 5.10%, down from 7.02% in the previous year, a decrease of 1.92 percentage points[16]. - The company reported a net profit attributable to shareholders for the reporting period was CNY 39.22 million, a decrease of 14.68% compared to CNY 47.29 million in the same period last year[31]. - Operating revenue for the period was CNY 793.01 million, down 14.68% from CNY 929.45 million year-on-year[32]. - The company reported a net profit for the reporting period of CNY 52,076,256.64, down 39.94% from CNY 86,699,969.95 in the previous year, primarily due to the absence of policy compensation from the Shanghai plant demolition[34]. - The company reported a total profit of CNY 59,903,358.50 for the first half of 2020, down 48.6% from CNY 116,520,950.07 in the same period of 2019[103]. Cash Flow and Investments - The company reported a cash and cash equivalents balance of CNY 334,822,611.51, with a difference of CNY 256,531,463.17 due to pledged borrowings and fixed deposits[45]. - The company engaged in derivative investments, with a total initial investment of CNY 71,980.94 and a year-end investment amount of CNY 35,179.93[50]. - The report indicated a loss of CNY 2,301,689.00 from derivative financial assets during the period[44]. - The company reported a cash flow from operating activities showed a net outflow of CNY 28,011,876.14, a significant decline of 772.20% compared to a net inflow of CNY 4,167,209.43 in the previous year[34]. - The cash flow from investing activities resulted in a net outflow of CNY 253,882,705.24, worsening from a net outflow of CNY 150,107,116.07 in the same period last year[107]. - The cash flow from financing activities also showed a net outflow of CNY 24,094,067.00, compared to a net outflow of CNY 9,723,111.90 in the first half of 2019[107]. - The company reported a significant increase in cash inflow from investment activities, indicating a strategic focus on investment growth[109]. Research and Development - The company obtained 25 research and development patents during the reporting period, including 15 invention patents, 9 utility model patents, and 1 design patent[27]. - The company is focusing on smart control and IoT applications in its R&D efforts to meet the growing demand for high-quality home appliances[27]. - Research and development expenses amounted to CNY 30,818,857.76, a decrease of 16.02% compared to CNY 36,699,200.50 in the same period last year[34]. - Research and development expenditures are classified into research phase and development phase, with the latter recognized as intangible assets only if specific criteria are met[186]. Market and Economic Conditions - The company is actively monitoring the impact of the COVID-19 pandemic and adjusting its operations to mitigate adverse effects on production and sales[29]. - The company anticipates a favorable impact on revenue in the second half of 2020 due to increased demand for small home appliances as people spend more time at home during the pandemic[54]. - The ongoing U.S.-China trade tensions and rising protectionism are expected to complicate the international trade environment for the company, potentially affecting export operations[55]. - Domestic recovery from the pandemic is underway, with manufacturing beginning to rebound, which is seen as a positive indicator for the second half of the year[55]. - The company is facing challenges from rising labor costs and shortages, prompting efforts to improve working conditions and retain employees[55]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[5]. - The company has committed to increasing its shareholding by 2% if the stock price reaches a specified target, indicating a strategic approach to shareholder value[61]. - The company has not yet audited its half-year financial report, and a proposal to appoint a new accounting firm is under consideration[62]. - The total number of ordinary shareholders at the end of the reporting period was 15,759[85]. - The largest shareholder, FORDCHEE DEVELOPMENT LIMITED, holds 29.10% of the shares, totaling 53,940,530 shares[85]. - EUPA INDUSTRY CORPORATION is the second-largest shareholder with a 13.09% stake, amounting to 24,268,840 shares[85]. - There were no changes in the number of shares held by state-owned or other domestic investors during the reporting period[82]. - The company did not issue new shares or conduct any stock transfers during the reporting period[82]. Legal and Compliance - The company reported a litigation amount of ¥1,770.26 million, which was dismissed by the court, and an appeal has been filed[65]. - The company has ongoing litigation with a claim amount of ¥333.00 million, with no results yet from the second-instance judgment[65]. - The company has no penalties or rectifications during the reporting period[66]. - There are no significant non-operating fund occupations by controlling shareholders and their related parties[71]. Assets and Liabilities - Total liabilities decreased to CNY 671,588,037.70 from CNY 789,179,960.42, representing a reduction of about 15%[99]. - Current assets totaled CNY 1,585,946,835.88, down from CNY 1,685,193,347.55, indicating a decrease of approximately 5.89%[98]. - The company reported a current liability total of CNY 622,619,060.40, down from CNY 739,918,342.31, indicating a decrease of about 15.87%[99]. - The non-current assets totaled CNY 261,521,776.52, a slight decrease from CNY 271,255,488.43, reflecting a decline of approximately 3.06%[98]. Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[119]. - The financial statements are prepared based on the going concern assumption, following the accrual basis of accounting[118]. - The company recognizes cash flows from foreign currency transactions at the average exchange rate on the transaction date, with adjustments for exchange rate impacts reported separately in the cash flow statement[138]. - The company recognizes impairment losses based on expected credit losses for financial assets measured at amortized cost and those measured at fair value with changes recognized in other comprehensive income[148]. Inventory and Revenue Recognition - The company categorizes inventory into raw materials, work in progress, semi-finished products, finished goods, low-value consumables, and in-transit materials[153]. - Revenue is recognized when the company fulfills its performance obligations, which occurs when the customer gains control of the related goods[194]. - The company recognizes revenue when the customer obtains control of the goods or services, which includes conditions such as current payment obligations and transfer of legal ownership[196]. - For sales with return clauses, the company estimates expected returns and recognizes liabilities accordingly, while also accounting for the expected return of goods as an asset[196].