2021-08-03-深交所-闽灿坤Ｂ_2021年半年度报告（英文版）_175页_1mb

TSANN KUEN (CHINA) ENTERPRISE CO., LTD. 2021 SEMI-ANNUAL REPORT SUMMARY

Core Content Overview

This document is the 2021 Semi-Annual Report of TSANN KUEN (CHINA) ENTERPRISE CO., LTD., an un-audited report. It includes important statements, company profile, financial highlights, management discussion and analysis, corporate governance, environmental and social responsibility, significant events, share changes, and financial reports.

Main Points and Key Information

1. Important Statements

• The Board of Directors, Supervisory Committee, and all directors, supervisors, and senior management confirm the report is factual, accurate, and complete.
• The Company has not distributed cash dividends, bonus shares, or converted capital reserves into share capital.
• English translations are provided for reference, but the Chinese version takes precedence in case of discrepancies.

2. Company Profile

• Stock Name: TKC-B
• Stock Code: 200512
• Stock Exchange: Shenzhen Stock Exchange
• Chinese Name: 厦门灿坤实业股份有限公司
• Abbreviation: 闽灿坤
• English Name: TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
• Abbreviation: TKC
• Legal Representative: Cai Yuansong

3. Contact Information

• Board Secretary: Sun Meimei
• Securities Representative: Dong Yuanyuan
• Address: TSANN KUEN Industrial Park, Taiwanese Investment Zone, Zhangzhou, Fujian Province, P.R.China
• Phone: 0596-6268161 (Board Secretary), 0596-6268103 (Securities Representative)
• Fax: 0596-6268104
• Email: mm_sun@tkl.tsannkuen.com (Board Secretary), yy_dong@tkl.tsannkuen.com (Securities Representative)

4. Financial Highlights (Reporting Period vs. Same Period Last Year)

• Operating Revenue: RMB 1,197,289,007.11 (+50.98%)
• Net Profit Attributable to Shareholders: RMB 60,417,688.12 (+54.05%)
• Basic EPS: RMB 0.33 (+57.14%)
• Net Cash Flows from Operating Activities: RMB -62,974,459.40 (-124.81%)
• Net Increase in Cash and Cash Equivalents: RMB -57,774,818.54 (+81.05%)
• Total Assets: RMB 2,894,468,587.30 (+20.20%)
• Net Assets Attributable to Shareholders: RMB 895,834,244.98 (+3.68%)

5. Key Financial Drivers

• The increase in operating revenue is attributed to new products and export orders.
• Cost and expense control contributed to the rise in net profit.
• RMB depreciation and higher raw material prices impacted operating costs and financial costs.
• Investment income increased due to gains from forward forex contracts and wealth management instruments.

6. Segment and Product Breakdown

• Main Business: Development and manufacture of household appliances, electronics, light industrial products, and modern office supplies.
• Top Product Categories:
  • Cooking Utensils: RMB 849,986,846.00 (+69.70%)
  • Everyday Home Appliances: RMB 205,547,120.00 (+11.63%)
  • Tea and Coffee Makers: RMB 85,696,036.63 (+39.52%)
• Key Markets:
  • Americas: RMB 648,414,462.43 (+81.75%)
  • Europe: RMB 246,816,658.92 (+30.78%)
  • Asia: RMB 255,906,786.72 (+21.47%)
  • Africa: RMB 7,248,920.64 (-8.88%)

7. Non-Core Business Analysis

• Other Income: RMB 1,764,476.00 (1.98% of total profits) – from government subsidies.
• Investment Income: RMB 35,541,462.36 (39.89% of total profits) – from forward forex contracts and wealth management instruments.
• Gains on Fair Value Changes: RMB -18,740,083.34 (-21.03% of total profits) – from assessed losses on forex contracts.
• Non-Operating Income/Expenses:
  • Non-Operating Income: RMB 1,568,968.09 (1.76% of total profits) – from compensation for patent infringement and order cancellations.
  • Non-Operating Expenses: RMB 44,565.31 (0.05% of total profits) – from donations and penalties.

8. Significant Changes in Assets and Liabilities

• Cash and Cash Equivalents: RMB 744,754,520.51 (25.73% of total assets) – decreased by 6.28%.
• Held-for-Trading Financial Assets: RMB 552,835,416.66 (19.10% of total assets) – increased by 19.03% due to reclassification of wealth management instruments.
• Accounts Receivable: RMB 433,529,952.12 (14.98% of total assets) – increased by 1.37% due to higher operating revenue.
• Inventories: RMB 293,499,525.11 (10.14% of total assets) – increased by 0.66%.
• Fixed Assets: RMB 157,027,732.21 (5.43% of total assets) – decreased by 4.41% due to accumulated depreciation.
• Right-of-Use Assets: RMB 576,583,323.00 (19.92% of total assets) – new recognition due to new lease accounting standards.
• Accounts Payable: RMB 765,690,844.84 (26.45% of total assets) – increased by 1.31%.

Main Business and Core Competitiveness

• The Company focuses on smart control, smart home appliances, and IoT applications.
• It maintains a diversified R&D service system and a well-established customer service platform.
• 34 patents were obtained in the reporting period, enhancing intellectual property protection and core competitiveness.
• The business model remained unchanged, with a focus on innovative R&D and dual circulation strategy (export and domestic sales).

Extraordinary Gains and Losses

• Net Extraordinary Gains/Losses: RMB 12,383,707.52
• Extraordinary Gains:
  • Assets Disposal Income: RMB 996,128.23 (+256.00%)
• Extraordinary Losses:
  • Gains on Fair Value Changes: RMB -18,740,083.34 (-997.78%)
• Effects on Income Tax: RMB -3,543,149.21
• Net Extraordinary Gains Attributable to Minority Interests: RMB -5,159,529.30

Summary of Key Financial Metrics

Conclusion

The report outlines the Company's financial performance, core business, and operational strategies for the first half of 2021. The Company's revenue and profit have grown significantly, driven by new products, export demand, and cost control. The core competitiveness remains stable, supported by R&D efforts and patent acquisitions. The non-core business includes various income and expense items, primarily government subsidies, investment income, and non-operating activities. The assets and liabilities have undergone notable changes, especially due to new accounting standards and operational expansion.