Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
Stock code: 200512 Stock name: TKC-B Announcement No.: 2019-032
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
ABSTRACT OF 2019 SEMI-ANNUAL REPORT
I. Important reminders
This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding of the
operating results, financial condition and future development planning of the Company, investors are kindly
reminded to read the full text carefully on the media designated by China Securities Regulatory Commission (the
“CSRC”).
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Independent auditor ’s modified opinion
□ Applicable √ Inapplicable
Preplan for profit distribution to common shareholders or turning capital reserve into share capital for Reporting
Period which has been reviewed and approved at board meeting
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Preplan for profit distribution to preference shareholders for reporting period which has been reviewed and
approved at board meeting:
□ Applicable √ Not applicable
II. Company profile
1. Stock profile
Stock name TKC-B Stock code 200512
Stock exchange Shenzhen Stock Exchange
For contact Board Secretary Securities Representative
Name Sun Meimei Dong Yuanyuan
TSANN KUEN Industrial Park, Taiwanese TSANN KUEN Industrial Park, Taiwanese
Office address Investment Zone, Zhangzhou, Fujian Province, Investment Zone, Zhangzhou, Fujian Province,
P.R.China P.R.China
Tel. 0596-6268161 0596-6268103
E-mail address mm_sun@tkl.tsannkuen.com yy_dong@tkl.tsannkuen.com
2. Accounting and financial highlights
Whether the Company performed any retrospective adjustment to or restatement of its accounting data due to
change of accounting policy, correction of accounting error, etc.
√ Yes □ No
Reason for retrospective adjustment or restatement
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
Change of accounting policy
Unit: RMB Yuan
Same period of
Item Reporting Period YoY +/-（％）
last year
Operating revenue 929,448,983.38 691,510,505.23 34.41
Net profit attributable to shareholders of the 47,292,567.95 -28,341,686.77 266.87
Company
Net profit attributable to shareholders of the
9,863,734.45 -31,209,045.03 131.61
Company before extraordinary gains and losses
Net cash flows from operating activities 4,167,209.43 -119,821,570.49 103.48
Basic EPS (RM B Yuan/share) 0.26 -0.15 273.33
Diluted EPS (RM B Yuan/share) 0.26 -0.15 273.33
Weighted average ROE (%) 7.02 -4.47 11.49
As at the end of last
As at the end of the +/- (%)
Item year
Reporting Period
Original Restated
Total assets 1,866,046,665.40 1,842,514,750.64 1.28
Net assets attributable to shareholders of the
689,643,586.10 648,801,684.35 6.29
Company
Total shares of the Company as at closure of the last trading day before the disclosure of this Report:
Total shares of the Company as at closure of the last trading day before the
185,391,680
disclosure of this Report (share)
Fully diluted EPS based on the latest total shares (RMB Yuan/share) 0.26
3. Shareholders and their shareholdings
Unit: share
Total number of common Total number of preference shareholders with
16,023 0
shareholders at the period-end resumed voting rights at the period-end
Greater than 5% or top 10 common shareholders
Total Number Pledged or
Increase/dec Number of frozen shares
common of
Nature of Shareholdin rease during unrestricted
Name of shareholder shares held restricted Status Numb
shareholder g percentage the reporting common
at the common of er of
period shares
period-end shares shares shares
FORDCHEE Foreign
29.10% 53,940,530 No change 0 53,940,530 N/A 0
DEVELOPM ENT LIM ITED corporation
EUPA INDUSTRY Foreign 13.09% 24,268,840 No change 0 24,268,840 N/A 0
CORPORATION LIM ITED corporation
GUOTAI JUNAN
Foreign
SECURITIES(HONGKONG) 4.95% 9,181,382 -15,067 0 9,181,382 N/A 0
corporation
LIM ITED
FILLM AN INVESTM ENTS Foreign 2.49% 4,621,596 No change 0 4,621,596 N/A 0
LIM ITED corporation
SHENWAN HONGYUAN
Foreign
SECURITIES (H.K.) 1.09% 2,016,752 60,000 0 2,016,752 N/A 0
corporation
LIM ITED
Domestic
CHEN YONGQUAN 1.03% 1,900,776 No change 0 1,900,776 N/A 0
individual
Foreign
CHEN YONGQING 0.83% 1,538,949 No change 0 1,538,949 N/A 0
individual
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
Foreign
CHEN LIJUAN 0.75% 1,381,334 No change 0 1,381,334 N/A 0
individual
Domestic
DING XIAOLUN 0.63% 1,173,500 25,500 0 1,173,500 N/A 0
individual
Domestic
FAN JIE 0.38% 697,185 New 0 697,185 N/A 0
individual
Strategic investor or general corporation
becoming a top ten shareholder due to N/A
placing of new shares
The first, the second and the fourth shareholders are the Company ’s corporate controlling
Related parties or acting-in-concert parties shareholders. It is unknown whether the other shareholders of tradable shares are related
among the shareholders above parties or acting-in-concert parties as prescribed in the Administrative M et hods for
Disclosure of the Shareholding Changes of the Listed Company ’s Shareholders.
Top ten unrestricted common shareholders
Number of unrestricted Type of shares
Name of shareholder common shares held at the
period-end Type Number
FORDCHEE DEVELOPM ENT LIM ITED 53,940,530 Domestically listed foreign shares 53,940,530
EUPA INDUSTRY CORPORATION LIM ITED 24,268,840 Domestically listed foreign shares 24,268,840
GUOTAI JUNAN
9,181,382 Domestically listed foreign shares 9,181,382
SECURITIES(HONGKONG) LIM ITED
FILLM AN INVESTM ENTS LIM ITED 4,621,596 Domestically listed foreign shares 4,621,596
SHENWAN HONGYUAN
2,016,752 Domestically listed foreign shares 2,016,752
SECURITIES (H.K.) LIM ITED
CHEN YONGQUAN 1,900,776 Domestically listed foreign shares 1,900,776
CHEN YONGQING 1,538,949 Domestically listed foreign shares 1,538,949
CHEN LIJUAN 1,381,334 Domestically listed foreign shares 1,381,334
DING XIAOLUN 1,173,500 Domestically listed foreign shares 1,173,500
FAN JIE 697,185 Domestically listed foreign shares 697,185
Explanation on associated relationship or/and The first, the second and the fourth shareholders are the Company ’s corporate
persons acting in concert among the top ten controlling shareholders. It is unknown whether the other shareholders of public shares
unrestricted common shareholders and between are related parties or acting-in-concert parties as prescribed in the Administrative
the top ten unrestricted common shareholders M ethods for Disclosure of the Shareholding Changes of the Listed Company ’s
and the top ten common shareholders Shareholders.
Explanation on the top 10 common shareholders
N/A
participating in the margin trading business
Did any of the top ten common shareholders or the top ten unrestricted common shareholders of the Company
conduct any promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
4. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
The controlling shareholder did not change in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
The actual controller did not change in the Reporting Period.
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
5. Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Not applicable
6. Corporate bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this Report or were due but could not be redeemed in full?
No.
III. Performance discussion & analysis
1. Performance review for the Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
For the reporting period, we achieved operating revenue of RMB929 million, up 34.41% from RMB692 million
of the same period of last year, and a net profit of RMB47 million, up 266.87% from RMB-28 million of the same
period of last year. The overall profit increased year-on-year primarily driven by a subsidy for the expropriation of
the phase II plant of subsidiary Tsann Kuen China (Shanghai) Enterprise Co., Ltd. (“TKS”), lead time adjustments
by certain customers on their orders and the receipt of more purchase orders in the current period.
We will carry on with the simplification and transformation strategies. We are checking the structures and
functions of our departments of development, procurement, manufacturing and marketing to make sure the
implementation of lean production. Meanwhile, new raw materials, techniques and manufacturing equipment are
being brought in to increase our yield rate and production efficiency. Upholding the strategy of innovation-driven
transformation and strengthening execution in innovation, output and differentiation to deal with competition, we
aim to provide products with multi-functions, high added value and high quality for customers.
As the smart control technology grows more mature and is being used more widely and people’s living standards
are improving, they are looking for better home appliances, which makes the rapid development of smart
appliances a must. Consumers are no longer looking for merely the functions of the appliances, but also a quality
in the appliances to improve their living standards. The household appliance industry is all about how to help
people live a better life. Only by providing convenient, smart, health-improving and delicious-food-cooking
solutions, can a household appliance manufacture keeps on developing.
Meanwhile, in view of the rapid growth in the domestic market driven by the international trade environment, we
promote innovation in R&D to create more intimacy with customers, support domestic sales with overseas
manufacturing bases, and create market demand by developing smart-home and low-carbon products, which
effectively expands our market share and strengthens our operating revenue and profitability.
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
2. Matters related to financial reporting
(1) Changes in accounting policy, accounting estimation and measurement methods compared to last
accounting period
√ Applicable □ Not applicable
Changes in accounting policies
① Changes in accounting policies due to the implementation of the new Accounting Standards for Business
Enterprises
The Ministry of Finance issued the Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments (revised in 2017) (CaiKuai [2017]No.7), Accounting Standards for
Bus iness Enterprises No.23-Transfer of Financial Assets (revised in 2017) (CaiKuai[2017]No.8), and Accounting
Standards for Business Enterprises No.24-Hedge Accounting (revised in 2017) (CaiKuai[2017]No.9) on 31 March
2017, and issued the Accounting Standards for Business Enterprises No.37-Presentation of Financial Instruments
(revised in 2017) (CaiKuai[2017]No.14) on 2 May 2017(collectively referred to as “New Financial Instruments
Standards”). Enterprises domestically listed are required to implement the New Financial Instruments Standards
since 1 January 2019.
On 16 March 2019, the Company held the second meeting of the Board in 2019 and the first meeting of the
Supervisory Committee in 2019 on which the Proposal on Change of Accounting Policies was reviewed and
approved and the independent directors and supervisors have given their independent opinions of consent on the
proposal.
All financial assets confirmed pursuant to New Financial Instrument Standards shall be measured as per the
amortized cost or fair value subsequently. On the execution date of New Financial Instrument Standards, the
business model of financial assets is evaluated and managed on the basis of existing fact and condition of the
Company on that day and the contractual cash flow characteristics of the financial assets are evaluated on the
basis of the fact and condition upon the initial recognition of financial assets. The financial assets are divided into
three categories: The financial assets measured as per the amortized costs, measured as per the fair value with the
change included in other comprehensive incomes, measured as per the fair value with the change included in the
current profit and loss. Wherein, for the equity instrument investment measured as per the fair value with change
included in other comprehensive incomes, when such financial assets carry out the derecognition, the
accumulative gains or loss included in other comprehensive incomes previously will be transferr ed to the retained
earnings from other comprehensive incomes and aren't included in the current profit and loss.
Pursuant to New Financial Instrument Standards, the Company, on the basis of expected credit loss, calculates and
withdraws the impairment reserve of the financial assets measured at the amortized cost, the debt instrument
investment measured at fair value with change included in other comprehensive incomes, the lease receivables,
contract assets and financial guarantee contract, and confirms the credit impairment loss.
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
The Company traces and applies the New Financial Instrument Standards, and may not conduct the restatement to
the inconsistence between the previous comparative financial statement data involved in the classification and
measurement (including the impairment) and New Financial Instrument Standards. Therefore, for the cumulative
impact of the standard implementation for the first time, the Company adjusts the retained earnings or other
comprehensive income at the beginning of 2019 and the amount of other related items in the financial statements,
and the financial statements in 2018 were not restated.
The impacts on the Company due to the implementation of the new Accounting Standards for Business
Enterprises are as follows: Unit: RMB Yuan
Affected financial statements
Before retrospection Adjustment amount After retrospection
items
200,000.00 0.00 200,000.00
Notes receivable
280,596,130.89 1,291,219.83 281,887,350.72
Accounts receivable
Notes receivable and accounts 280,796,130.89 1,291,219.83 282,087,350.72
receivable
Total current assets 1,559,613,387.48 1,291,219.83 1,560,904,607.31
Deferred tax assets 26,552,328.43 -91,086.12 26,461,242.31
Total non-current assets 282,901,363.16 -91,086.12 282,810,277.04
Total assets 1,842,514,750.64 1,200,133.71 1,843,714,884.35
Other comprehensive income 5,924,132.67 9,597.14 5,933,729.81
Surplus reserves 37,804,354.59 -33,871.83 37,770,482.76
Retained earnings 122,872,551.30 839,695.41 123,712,246.71
Equity attributable to
648,801,684.35 815,420.72 649,617,105.07
shareholders of the Parent
Minority interests 367,597,191.43 384,712.99 367,981,904.42
Total shareholders ‘equity 1,016,398,875.78 1,200,133.71 1,017,599,009.49
Total liabilities and
1,842,514,750.64 1,200,133.71 1,843,714,884.35
shareholders’ equity
(2) Retrospective restatements due to correction of significant accounting errors in Reporting Period
□ Applicable √ Not applicable
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Abstract of 2019 Semi-Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
(3) Changes in consolidation scope compared to last accounting period
√ Applicable □ Not applicable
In May 2019, Tsann Kuen (China) Enterprise Co., Ltd. incorporated a wholly-owned subsidiary Xiamen
Tsannkuen Property Services Co., Ltd., which has been included in the Company’s consolidated financial
statements since the day of its incorporation.
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