锦富技术(300128) - 2019 Q2 - 季度财报

Important Notice, Table of Contents and Definitions This section provides essential disclaimers, the report's structural index, and definitions of key terms and entities Important Notice The company's board, supervisory board, and senior management ensure the report's accuracy, while cautioning investors about forward-looking statements and no planned profit distribution - The company's management guarantees the truthfulness, accuracy, and completeness of the report's content and assumes legal responsibility[5] - The company advises investors to be aware of risks associated with forward-looking statements, including industry cyclical fluctuations, customer concentration, declining gross margins, underperforming new business expansion, and goodwill impairment[7] - The company plans no cash dividends, bonus shares, or capital increase from provident funds for the first half of 2019[9] Table of Contents This section provides a comprehensive index of the report's structure, covering eleven main parts from important notices to reference documents Definitions This section defines key company abbreviations, business terms, and technical jargon used throughout the report, providing foundational understanding - The company's main controlling shareholder is identified as Taixing Zhicheng Industrial Investment Fund (Limited Partnership), with abbreviations for its wholly-owned and controlled subsidiaries listed[13] - Core business and product terms such as backlight modules, optoelectronic display film devices, and IDC and its value-added services are explained[14] Company Profile and Key Financial Indicators This section outlines the company's fundamental information and presents key financial performance metrics for the reporting period Company Profile This section provides the company's basic commercial registration details, including stock information, full name, legal representative, and contact information for investor relations | Item | Information | | :--- | :--- | | Stock Abbreviation | Jinfu Technology | | Stock Code | 300128 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Gu Qing | Key Accounting Data and Financial Indicators During the reporting period, total operating revenue decreased by 44.45% year-on-year, while net profit attributable to shareholders significantly increased by 1388.89%, primarily due to non-recurring gains from subsidiary equity disposal Key Financial Indicators for H1 2019 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (RMB) | 832,956,985.73 | 1,499,344,647.37 | -44.45% | | Net Profit Attributable to Shareholders (RMB) | 18,864,727.18 | 1,267,034.34 | 1388.89% | | Net Profit Excluding Non-Recurring Items (RMB) | 627,723.42 | -1,932,519.95 | 132.48% | | Net Cash Flow from Operating Activities (RMB) | 51,760,091.65 | -398,067,224.08 | 113.00% | | Basic Earnings Per Share (RMB/share) | 0.0172 | 0.0012 | 1333.33% | | Total Assets (RMB) | 2,674,883,330.50 | 3,019,271,212.67 | -11.41% (Period-end vs. Year-start) | - Total non-recurring gains and losses for the period amounted to RMB 18,237,003.76, primarily from the RMB 18,227,237.94 gain on disposal of equity in subsidiary Suzhou Jiufu Electronics Co., Ltd., which was the core reason for the significant increase in net profit[26] Business Overview This section details the company's diverse main businesses, significant asset changes, and core competitive advantages in the optoelectronic and IT sectors Main Businesses The company's main businesses span LCD modules, optoelectronic display film devices, testing fixtures, automation equipment, and IDC services, serving the IT, communications, and automotive industries - The company's leading products include liquid crystal display modules (LCM and BLU), optoelectronic display films and electronic functional devices, testing fixtures and automation equipment, and IDC and its value-added services[29] Significant Changes in Major Assets Intangible assets and construction in progress significantly decreased due to the disposal of Suzhou Jiufu, while prepayments and notes receivable also declined, with the company also disclosing overseas asset information Explanation of Major Asset Changes | Major Asset | Change from Year-start | Primary Reason | | :--- | :--- | :--- | | Intangible Assets | -9.99% | Disposal of subsidiary Suzhou Jiufu, whose land use rights are no longer consolidated | | Construction in Progress | -44.34% | Disposal of subsidiary Suzhou Jiufu, whose factory buildings under construction are no longer consolidated | | Prepayments | -40.68% | Project termination, prepayments transferred to long-term receivables | | Notes Receivable | -49.07% | Reduced customers settling by notes due to contraction of photovoltaic business | - The company disclosed two major overseas assets: equity in Hong Kong Heou Electronics Co., Ltd. and ALL IN (ASIA) HOLDING CO., LIMITED, collectively accounting for approximately 28.56% of the company's net assets, both operating at a loss during the reporting period[34][35] Analysis of Core Competencies The company's core competencies include comprehensive optoelectronic display film solutions, a complete industry chain, key technological mastery, nationwide network layout, and a strong base of premium clients - The company has built a complete industry chain, from specialized processing equipment and testing equipment to backlight modules and optoelectronic display film devices[37] - Through the acquisition of Maizhi Technology, the company entered the high-end testing equipment sector for consumer electronics, enhancing its technological capabilities[39] - The company serves leading domestic and international enterprises such as Apple, Samsung, LGD, Foxconn, Huawei, and Sugon, possessing rich customer resources[41] Management Discussion and Analysis This section provides an in-depth review of the company's operational performance, financial position, investment activities, and risk management strategies during the reporting period Overview In H1 2019, total operating revenue decreased by 44.45% to RMB 832.96 million, but net profit attributable to shareholders surged by 1388.89% to RMB 18.86 million, driven by Maizhi Technology's performance and the disposal of Suzhou Jiufu equity Operating Performance for H1 2019 | Indicator | Amount (RMB 10,000) | YoY Growth | | :--- | :--- | :--- | | Total Operating Revenue | 83,295.70 | -44.45% | | Operating Profit | 1,470.68 | 650.68% | | Total Profit | 1,419.99 | 1,191.58% | | Net Profit Attributable to Parent | 1,886.47 | 1,388.89% | - The significant increase in net profit was primarily due to: (1) a slight increase in performance from subsidiary Maizhi Technology; and (2) a net gain of RMB 14.75 million from the disposal of 100% equity in Suzhou Jiufu[44] - During the reporting period, the company's actual controller changed to Taixing High-tech Industrial Development Zone Management Committee of Jiangsu Province[45] - The company acquired a 65% equity stake in Kunshan Minglija for RMB 57.20 million, aiming to diversify its product lines and add new profit growth points, with Apple Inc. as its primary end customer[47][49] Analysis of Main Business Main business revenue significantly declined due to reduced major customer orders and a comprehensive contraction of the photovoltaic business, despite an increase in gross margin for optoelectronic components manufacturing Year-on-Year Changes in Key Financial Data | Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | -44.45% | Decrease in major customer orders and contraction of photovoltaic business (YoY decrease of RMB 450 million) | | Operating Cost | -46.83% | Decreased in line with operating revenue | | Administrative Expenses | -31.41% | Contraction of photovoltaic and other businesses, optimization of management structure, and personnel streamlining | | Net Cash Flow from Operating Activities | 113.00% | Significant decrease in cash paid for goods and services | | Net Cash Flow from Financing Activities | -140.90% | Reduced borrowing scale after repaying matured loans | Operating Revenue by Product (Unit: RMB) | Product | Operating Revenue | YoY Change in Operating Revenue | | :--- | :--- | :--- | | LCD Display Modules | 374,215,374.09 | -21.33% | | Optoelectronic Display Films and Electronic Functional Devices | 173,854,451.92 | -23.96% | | Testing Fixtures and Automation Equipment | 139,109,253.27 | 10.19% | | Solar Photovoltaic Modules | 72,785,476.39 | -86.08% | Analysis of Non-Core Business Non-core business gains primarily stemmed from asset disposals, with investment income of RMB 13.32 million, mainly from the sale of Suzhou Jiufu Electronics equity, significantly impacting current period profit - Investment income amounted to RMB 13,324,504.42, primarily from the disposal of 93.83% equity in subsidiary Suzhou Jiufu Electronics Co., Ltd., significantly impacting profit composition[64] Analysis of Assets and Liabilities Total assets decreased from the year-start, with significant reductions in monetary funds due to loan repayments and inventory due to photovoltaic business contraction, while several assets are pledged or mortgaged for financing Significant Changes in Asset and Liability Composition | Item | % of Total Assets (Period-end) | % of Total Assets (Year-start) | Explanation of Change | | :--- | :--- | :--- | | Monetary Funds | 5.83% | 9.87% | Due to timely repayment of matured loans | | Inventory | 8.32% | 9.95% | Significant contraction of photovoltaic business, reducing corresponding inventory | | Short-term Borrowings | 27.71% | 25.00% | Repaid part of short-term borrowings by recovering funds | - The company has multiple restricted assets, including mortgaged properties, land, and equipment of subsidiary Aoying Optoelectronics, mortgaged properties and land of Wuxi Huante, and pledged equity in Nantong Qiyun held by the parent company, primarily for financing purposes[70][71] Analysis of Investment Status Investment increased by 76.84% year-on-year, mainly for acquiring Kunshan Minglija's 65% equity and capital injection into Hong Kong Heou, while the Nantong data center project's subsequent construction phases were delayed due to lower-than-expected cabinet sales - Investment during the reporting period totaled RMB 118 million, a 76.84% year-on-year increase, primarily due to the RMB 57.20 million investment to acquire 65% equity in Kunshan Minglija and a RMB 44.116 million capital injection into subsidiary Hong Kong Heou[72] - The acquisition of Kunshan Minglija includes performance commitments, requiring its net profits for 2019-2021 to be no less than RMB 18 million, RMB 20 million, and RMB 22 million, respectively[75] - The Nantong data center project's subsequent construction phases have been delayed due to significantly lower-than-expected sales of Phase I cabinets[76] Significant Asset and Equity Disposals The company completed the sale of 100% equity in the continuously loss-making subsidiary Suzhou Jiufu for RMB 18.94 million, positively impacting current net profit by 78.21%, while outstanding payments remain from a prior land and factory sale Significant Equity Disposal Information | Equity Disposed | Counterparty | Transaction Price (RMB 10,000) | Impact on Company's Net Profit | Status | | :--- | :--- | :--- | :--- | :--- | | 100% Equity in Suzhou Jiufu | CSPC Enbipu Pharmaceutical Co., Ltd. | 1,894.09 | Contributed 78.21% of total net profit | Transfer completed | Analysis of Major Holding and Associate Companies Subsidiary performance varied significantly, with Maizhi Technology (testing fixtures) showing steady growth, while Aoying Optoelectronics (electronic components) saw an 84.48% net profit decline, and Nantong Qiyun (IDC) expanded losses due to low customer occupancy Overview of Major Subsidiaries' Performance H1 2019 (Unit: RMB) | Company Name | Main Business | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | | Aoying Optoelectronics | Electronic Components | 376,967,538.66 | 1,404,790.64 | | Maizhi Technology | Testing Fixtures | 142,877,637.02 | 25,286,988.75 | | Nantong Qiyun | IDC and Value-added Services | 1,764,643.09 | -12,316,236.29 | | Wuxi Huante | Photovoltaic | 68,984,745.91 | -4,433,108.55 | - Maizhi Technology's performance grew, primarily benefiting from market expansion and new product R&D and sales, with a 8.76% year-on-year increase in net profit for the period[112] - Aoying Optoelectronics' performance significantly declined, with net profit decreasing by 84.48% year-on-year, mainly due to reduced orders from its key customer, Samsung[110] - Nantong Qiyun's losses expanded, with net profit decreasing by 1476.64% year-on-year, primarily due to significantly lower-than-expected data center customer occupancy rates and a substantial increase in depreciation expenses[114][115] Risks Faced by the Company and Countermeasures The company faces risks including intense market competition, economic cycles, integration and performance risks of acquired entities, declining gross margins, customer concentration, and accounts receivable collection, addressed through innovation, integration, and improved management - The company faces traditional business risks such as intense market competition, economic cyclical fluctuations, high customer concentration, declining gross margins, and accounts receivable collection[123][124][127][128][129] - Acquired Maizhi Technology faces risks of performance decline and goodwill impairment, while the newly entered IDC business (Nantong Qiyun) carries risks of lower-than-expected market development[126] Significant Matters This section details the fulfillment of commitments, ongoing litigation, significant related-party transactions, and other major events, including changes in controlling shareholders and key acquisitions Fulfillment of Commitments The new controlling shareholder fulfilled most commitments regarding share lock-up, independence, competition, and related-party transactions, but former director Xiao Peng failed to meet his share increase commitment - The new controlling shareholder, Taixing Zhicheng Industrial Investment Fund, committed to a 12-month lock-up period for its acquired shares starting from May 9, 2019[135] - Former director Mr. Xiao Peng failed to fulfill his commitment to increase shareholding by no less than RMB 27.50 million, citing a fundamental change in the premise of his commitment (serving as company chairman and general manager) due to the change in the company's largest shareholder[139][173] Litigation Matters While no major lawsuits occurred, significant ongoing cases include subsidiary Aoying Optoelectronics suing Zhejiang Yunhua Trade for RMB 99 million in prepaid goods, and the parent company suing Beijing Suanyun Lianke for RMB 35.18 million in prepaid funds - Subsidiary Aoying Optoelectronics has filed a lawsuit requesting Zhejiang Yunhua Trade Co., Ltd. to return prepaid goods amounting to RMB 99 million[142][143] - The company filed a lawsuit against Beijing Suanyun Lianke for failing to return prepayments, demanding a total refund of RMB 35.18 million including prepayments[142][144] Significant Related Party Transactions Non-operating related-party receivables primarily involve former actual controller Fu Guoping's occupation of company funds, with a significant balance of RMB 88.38 million still outstanding despite partial repayment Receivables from Related Parties | Related Party | Relationship | Reason for Formation | Beginning Balance (RMB 10,000) | Ending Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Fu Guoping | Former Actual Controller | Prepayment | 9,900 | 8,838 | - Former actual controller Mr. Fu Guoping reached a repayment agreement with the company to return occupied funds and interest in installments by June 30, 2020; as of the report date, RMB 22.9836 million has been returned, but the RMB 18 million principal and interest due in Q2 were not fully repaid[154] Other Significant Matters This section details the change in controlling shareholder to Taixing Zhicheng Industrial Investment Fund and actual controller to Taixing High-tech Industrial Development Zone Management Committee, along with the acquisition of Kunshan Minglija and the disposal of Suzhou Jiufu equity - On May 9, 2019, the equity transfer was completed, making Taixing Zhicheng Industrial Investment Fund the largest shareholder with 19.19% of the company's shares; in June 2019, the company's actual controller changed to Taixing High-tech Industrial Development Zone Management Committee of Jiangsu Province[171][172] - The company acquired 65% equity in Kunshan Minglija for RMB 57.20 million, with the counterparty committing that the target company's net profits for 2019-2021 will be no less than RMB 18 million, RMB 20 million, and RMB 22 million, respectively, and including profit compensation and equity repurchase clauses[176][181][185] - The company's wholly-owned subsidiary Shanghai Jinwei and the parent company transferred their combined 100% equity in Suzhou Jiufu to CSPC Enbipu Pharmaceutical for RMB 18.94 million, aiming to improve cash flow and dispose of continuously loss-making assets[190] Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder numbers, and the significant shift in controlling shareholder and actual controller during the reporting period Share Changes The company's total share capital remained unchanged at 1,094,115,412 shares, with changes primarily due to former director Huang Yafu's shares being released from lock-up and certain executives' newly acquired shares being locked due to commitments - Former director Huang Yafu's 7,116,480 shares were released from lock-up upon the expiration of his post-resignation lock-up period[195][199] - Executives Wang Wende, Deng Hao, and Li Lei had 75% of their newly acquired shares locked due to fulfilling their share increase commitments[196][200] Number of Shareholders and Shareholding Information The total number of shareholders increased, with Taixing Zhicheng Industrial Investment Fund becoming the largest shareholder with a 19.19% stake through an agreement transfer, while Shanghai Ruiwei Investment Management Co., Ltd. became the second largest Shareholding Information of Top Two Shareholders | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Taixing Zhicheng Industrial Investment Fund (Limited Partnership) | 19.19% | 209,963,460 | | Shanghai Ruiwei Investment Management Co., Ltd. | 9.59% | 104,977,679 | Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder changed to Taixing Zhicheng Industrial Investment Fund (Limited Partnership), and the actual controller changed to Taixing High-tech Industrial Development Zone Management Committee of Jiangsu Province on June 28, 2019 - The company's new controlling shareholder changed to Taixing Zhicheng Industrial Investment Fund (Limited Partnership)[205] - The company's new actual controller changed to Taixing High-tech Industrial Development Zone Management Committee of Jiangsu Province[205] Preferred Shares This section confirms that the company had no preferred shares during the reporting period Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[207] Directors, Supervisors, and Senior Management This section details changes in shareholdings and personnel within the company's board of directors, supervisory board, and senior management during the reporting period Changes in Shareholdings of Directors, Supervisors, and Senior Management Certain senior management members collectively increased their shareholdings by 747,500 shares, including General Manager Wang Wende, CFO Deng Hao, and Deputy General Manager Li Lei Executive Share Increase Information | Name | Position | Number of Shares Increased in Current Period (shares) | | :--- | :--- | :--- | | Wang Wende | General Manager, Board Secretary | 350,000 | | Deng Hao | CFO | 271,000 | | Li Lei | Deputy General Manager | 126,500 | Changes in Directors, Supervisors, and Senior Management Significant changes occurred in the company's board, supervisory board, and senior management, reflecting the change in control, with several original members departing and new directors, supervisors, and a deputy general manager appointed - Former directors such as Xiao Peng, Huang Wenjun, and Liu Xiaoxin resigned, while Zhang Wei, Fang Xianzhong, and Zhang Xiuhua were elected as new directors or independent directors[212] - Former supervisors such as Zhong Yanping and Qian Xiaoran resigned, while Lü Juewen and Gao Ming were elected as new supervisors[212] Corporate Bonds This section confirms that the company had no outstanding corporate bonds during the reporting period Corporate Bonds The company had no outstanding corporate bonds during the reporting period - The company had no corporate bond-related matters during the reporting period[215] Financial Report This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes Financial Statements The financial statements show a decrease in total assets, a year-on-year reduction in operating revenue, but a significant increase in net profit due to asset disposal, and improved operating cash flow Key Items from Consolidated Balance Sheet (June 30, 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 2,674,883,330.50 | | Total Liabilities | 1,386,295,529.69 | | Total Equity Attributable to Parent Company Owners | 1,214,915,936.42 | Key Items from Consolidated Income Statement (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 832,956,985.73 | | Total Operating Costs | 834,843,782.44 | | Total Profit | 14,199,948.92 | | Net Profit | 17,831,571.31 | Key Items from Consolidated Cash Flow Statement (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 51,760,091.65 | | Net Cash Flow from Investing Activities | 1,993,931.19 | | Net Cash Flow from Financing Activities | -173,480,654.17 | | Net Increase in Cash and Cash Equivalents | -119,909,819.07 | Notes to Financial Statements These notes detail accounting policies, changes in estimates, and provide comprehensive explanations for major balance sheet and income statement items, including financial instruments, goodwill, related-party transactions, and financial risk analysis - Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying original 'available-for-sale financial assets' to 'other equity instrument investments'[379][383] - As of the period-end, the company's goodwill book value was RMB 350 million, primarily arising from the acquisitions of Kunshan Maizhi Fixtures, Aoying Optoelectronics, and Kunshan Minglija[475] - The company disclosed market risks (exchange rate risk), credit risk, and liquidity risk related to financial instruments; the company believes liquidity risk is low, and despite tight working capital, normal operations can be ensured through financing capabilities[639][640][645][651] Reference Documents This section lists all documents available for inspection, including the signed original report, stamped financial statements, and all publicly disclosed documents from the reporting period Reference Documents The reference documents include the signed original 2019 semi-annual report, stamped financial statements, and all publicly disclosed documents from the reporting period, available at the company's securities affairs department - Reference documents include the signed original 2019 semi-annual report, financial statements, and all publicly disclosed documents from the reporting period[727]