2024-08-09-深交所-闽灿坤Ｂ_2024年半年度报告（英文版）_164页_1mb

TSANN KUEN (CHINA) ENTERPRISE CO., LTD. 2024 SEMI-ANNUAL REPORT Summary

Core Content

The 2024 Semi-Annual Report of TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (TKC-B, stock code 200512) is issued by the Company and is subject to the statements and declarations of the Board of Directors, Supervisory Committee, directors, supervisors, and senior management. It is important to note that the report is unaudited, and any forward-looking statements should not be considered as promises to investors. The Company has decided not to distribute cash dividends or bonus shares during the reporting period.

Company Profile & Financial Highlights

Basic Information

• 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

Contact Information

• Board Secretary: Sun Meimei
• Securities Representative: Dong Yuanyuan
• Contact Address: TSANN KUEN Industrial Park, Taiwanese Investment Zone, Zhangzhou, Fujian Province, P.R.China
• Tel: 0596-6268161
• Fax: 0596-6268104
• Email: mm_sun@tk-eupa.com, yy_dong@tk-eupa.com

Financial Highlights

• Operating Revenue: RMB 788,085,998.03 (up by 26.01% YoY)
• Net Profit Attributable to Shareholders: RMB 33,989,579.63 (up by 20.03% YoY)
• Basic EPS: RMB 0.18 (up by 20.00% YoY)
• Total Assets: RMB 2,548,042,164.94 (down by 1.63% YoY)
• Net Assets Attributable to Shareholders: RMB 1,062,672,624.55 (down by 1.14% YoY)
• Net Cash Flows from Operating Activities: RMB -26,296,992.61 (up by 11.60% YoY)
• Net Cash Flows from Investing Activities: RMB -152,804,883.43 (down by 168.55% YoY)
• Net Cash Flows from Financing Activities: RMB -37,562,013.34 (up by 32.30% YoY)
• Net Increase in Cash and Cash Equivalents: RMB -217,996,478.33 (down by 54.12% YoY)

Main Business and Core Competitiveness

The Company's primary business is the development, production, and manufacturing of small home appliances, including gourmet cooking, home helper, tea and coffee. It also designs and manufactures molds related to these products and provides after-sales service globally.

The Company maintains its core competitiveness through:

• A professional R&D technology service system
• 45 years of experience in small home appliance design and manufacturing
• Collaboration with global brands and customers
• Strategic cooperation and innovation
• Focus on smart home appliances, scenario IoT, energy conservation, and health protection

During the reporting period, the Company filed 25 patent applications and obtained 16 patents, including 3 invention patents and 7 utility model patents, reinforcing its intellectual property protection and technological leadership.

Financial Analysis

YoY Changes in Major Financial Data

• Operating Revenue: RMB 788,085,998.03 (up 26.01%)
• Net Profit Attributable to Shareholders: RMB 33,989,579.63 (up 20.03%)
• Operating Cost: RMB 665,733,282.11 (up 31.62%)
• Selling Expenses: RMB 15,705,789.17 (up 19.33%)
• General and Administrative Expenses: RMB 34,966,806.51 (down 0.58%)
• Finance Costs: RMB 213,569.01 (down 98.04%)
• Investment Income: RMB 14,548,243.97 (up 20.58%)
• Gains from Changes in Fair Values: RMB 1,950,911.11 (up 231.41%)
• Impairment Loss of Credit: RMB 1,310,991.27 (up 665.38%)
• Impairment Loss of Asset: RMB -5,385,687.68 (down 75.35%)
• Non-operating Income: RMB 148,920.32 (down 96.70%)
• Income Tax Expenses: RMB 5,204,909.85 (up 0.87%)
• Research and Development Investments: RMB 32,146,701.14 (up 10.40%)

Breakdown of Operating Revenues

• Total Operating Revenue: RMB 788,085,998.03 (up 26.01%)

• Breakdown by Products:

  • Cooking Utensils: RMB 462,268,892.25 (up 29.17%)
  • Everyday Home Appliances: RMB 228,514,421.19 (up 38.44%)
  • Tea and Coffee Makers: RMB 63,844,429.06 (up 3.48%)
  • Other: RMB 33,458,255.53 (down 17.95%)

• Breakdown by Areas:

  • Americas: RMB 364,669,044.48 (up 52.03%)
  • Europe: RMB 254,715,358.72 (up 24.49%)
  • Asia: RMB 153,601,879.71 (down 3.07%)
  • Australia: RMB 8,195,752.50 (up 31.48%)
  • Africa: RMB 6,903,962.62 (down 57.49%)

Non-Core Business Analysis

• Other Income: RMB 909,068.05 (1.83% of total profit) – related to government subsidies
• Investment Income: RMB 14,548,243.97 (29.26% of total profit) – from forward forex contracts and wealth management instruments
• Gains from Changes in Fair Values: RMB 1,950,911.11 (3.92% of total profit) – from assessed gains on wealth management instruments
• Impairment Loss of Credit: RMB 1,310,991.27 (2.64% of total profit) – from reversal of impairment allowances
• Impairment Loss of Asset: RMB -5,385,687.68 (-10.83% of total profit) – due to increased inventory and fixed asset impairment allowances
• Gains from Disposal of Assets: RMB 600,085.35 (1.21% of total profit)
• Non-Operating Income: RMB 148,920.32 (0.30% of total profit)
• Non-Operating Expenses: RMB 52,501.87 (0.11% of total profit) – from donation expenses

Assets and Liabilities

Significant Changes in Asset Composition

• Cash and Cash Equivalents: RMB 347,066,157.87 (13.62% of total assets) – down by 8.28% due to increase in long-term deposits
• Accounts Receivable: RMB 224,371,968.97 (8.81% of total assets) – up by 1.21%
• Inventories: RMB 207,518,037.34 (8.14% of total assets) – up by 0.71%
• Debt Investments: RMB 332,924,463.92 (13.07% of total assets) – up by 9.21%
• Fixed Assets: RMB 150,602,758.55 (5.91% of total assets) – down by 0.15%
• Use Rights Assets: RMB 361,253,930.80 (14.18% of total assets) – down by 0.05%

Main Assets Overseas

• SCI (Pt.Star Comgistic Indonesia):
  • Nature: Investment
  • Value: RMB 161,616,918.11
  • Location: Indonesia
  • Operation Status: Small home appliance manufacturing
  • Measures for Asset Safety: Periodic review
  • Earnings: RMB -8,332,328.57
  • Contribution to Net Assets: 15.21%
  • Major Impairments Risk: No

Summary of Key Information

• The report is unaudited and has been verified by the company’s principal and head of accounting.
• There are no material changes in the Company's core competitiveness.
• The Company did not distribute cash dividends in the reporting period.
• No significant changes in the measurement attributes of major assets.
• No major impairments risk for the Company’s assets.

Key Financial Figures

Summary of Extraordinary Gains and Losses

Notes on Other Gains and Losses

• The Company did not classify any extraordinary gains/losses as recurrent items.
• The report is in Chinese, with an English translation provided for reference only. In case of discrepancy, the Chinese version is considered the official one.

Conclusion

The report highlights the steady growth of the Company's operations, with increased operating revenue and net profit. The Company continues to focus on R&D and innovation, with a notable increase in patent filings and investment income. It also outlines the distribution of revenue across different products and regions, showing strong performance in the Americas and Europe, while Asia saw a slight decline. The financial structure has remained relatively stable, with a focus on cash management and asset protection.