Company Overview
Tongfu Microelectronics Co., Ltd. (hereinafter referred to as "the Company") is a Sino-foreign joint-stock company established with the approval of the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China. The registered capital at the time of establishment was RMB 145.85 million.
In 2006, the Company implemented a capital increase from undistributed profits, raising the capital to RMB 200 million. In August 2007, the Company publicly issued 67 million shares of RMB ordinary shares (A shares) with a par value of RMB 1 per share, increasing the capital to RMB 267 million.
In December 2008, the Company conducted another capital increase, resulting in a total capital of RMB 347.1 million. In November 2010, the Company publicly issued 59.0667 million shares, raising the capital to RMB 406.1667 million.
In 2015, the Company conducted a private placement of 98.310291 million shares, increasing the capital to RMB 748.177011 million. In 2017, the Company acquired 49.48% equity of Nantong Furunda Investment Co., Ltd. and 47.63% equity of Nantong Tongrun Investment Co., Ltd. through share issuance, raising the capital to RMB 1,153.704572 million.
As of December 31, 2023, the Company had 2,522,248 shares remaining from the repurchase program. The Company has established a corporate governance structure with a shareholders' meeting, board of directors, and supervisory board, and operates various departments including finance, audit, and human resources.
Financial Statement Preparation Basis
This financial statement is prepared in accordance with the accounting standards issued by the Ministry of Finance and other relevant regulations. The financial statements are based on the assumption of going concern and are prepared using the accrual basis of accounting.
Important Accounting Policies and Estimates
- Revenue Recognition Policy: The Company recognizes revenue based on its production and operational characteristics.
- Accounting Period: The accounting period is based on the calendar year, from January 1 to December 31.
- Operating Cycle: The Company's operating cycle is 12 months.
- Functional Currency: The functional currency for the Company and its domestic subsidiaries is RMB.
Important Accounting Standards
The Company adheres to the accounting standards for enterprises, ensuring that the financial statements accurately reflect the financial position and operating results as of December 31, 2024.
Financial Instruments
The Company recognizes financial instruments upon entering into contracts and measures them at fair value. The classification of financial assets includes those measured at amortized cost, those measured at fair value with changes recognized in other comprehensive income, and those measured at fair value with changes recognized in profit or loss.
Impairment of Assets
The Company assesses assets for impairment at the end of each reporting period. If the recoverable amount of an asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.
Employee Compensation
Employee compensation includes various forms of remuneration provided for services rendered. The Company recognizes liabilities for employee compensation during the accounting period in which services are provided.
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognized based on temporary differences between the carrying amounts of assets and liabilities and their tax bases. The Company reviews the carrying amounts of deferred tax assets at each reporting date and adjusts them if it is no longer probable that sufficient taxable profits will be available to allow the deferred tax asset to be utilized.
Leases
The Company recognizes right-of-use assets and lease liabilities at the commencement of the lease term, except for short-term leases and leases of low-value assets. Lease liabilities are measured at the present value of future lease payments.