Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
Stock code: 200512 Stock abbreviation: TKC B Announcement No.: 2016-004
TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
Abstract of the 2015 Annual Report
1. Important reminders
This Abstract is based on the full text of the 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.
Non-standard auditor’s 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 □ Inapplicable
Share capital increase from capital reserve
□ Yes √ No
Preplan for profit distribution to common shareholders for reporting period which has been reviewed and approved at board meeting:
Based on the total 185,391,680 shares, a cash dividend of RMB1.00 (tax included) will be distributed for every 10 shares held by
shareholders. No bonus shares will be granted and no capital reserve will be turned into share capital.
Preplan for profit distribution to preference shareholders for reporting period which has been reviewed and approved at board
meeting:
□ Applicable √ Inapplicable
Company profile
Stock abbr. TKC B Stock code 200512
Stock exchange Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Sun Meimei
TSANN KUEN Industrial Park, Taiwanese
Office address Investment Zone, Zhangzhou, Fujian
Province
Fax 0596-6268104
Tel. 0596-6268161
E-mail address mm_sun@tkl.tsannkuen.com
II. Brief introduction to main business or products in reporting period
Development and manufacture of household appliances, electronics, light industrial products, modern office supplies; design and
manufacture of molds for those products; Sale of the Company’s products in China and to other countries and regions as well as
provision of relevant after-sales service; wholesale, retail (only in the Company’s own shops), import & export and relevant
supporting business of household appliances, electronic products, electrical equipment, office supplies, kitchen utensils and
pre-packaged food as well as provision of relevant after-sales service (the aforesaid business scope of the Company does not involve
state trading commodities; where quota permission or a license is required, it shall be obtained according to the regulations of the
country before operation). No material changes occurred to the business model of the Company in the reporting period.
1
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
III. Accounting and financial highlights
1. Accounting and financial highlights for past three years
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Unit: RMB Yuan
Increase/decrease of
Item 2015 2014 current year over 2013
last year
Operating revenue 1,968,728,531.55 2,008,161,297.50 -1.96 2,037,382,839.55
Net profit attributable to shareholders of
36,782,299.50 51,348,795.39 -28.37 47,069,386.29
the Company
Net profit attributable to shareholders of
the Company after extraordinary gains and 25,526,229.90 41,759,659.26 -38.87 16,537,966.34
losses
Net cash flows from operating activities 83,438,590.84 45,016,298.98 85.35 165,776,987.42
Basic EPS (RMB Yuan/share) 0.20 0.28 -28.57 0.25
Diluted EPS (RMB Yuan/share) 0.20 0.28 -28.57 0.25
Weighted average ROE (%) 6.31 9.66 -3.35 9.36
Increase/decrease of
Item As at 31 Dec. 2015 As at 31 Dec. 2014 current year-end As at 31 Dec. 2013
than last year-end
Total assets 1,656,036,577.21 1,651,024,619.41 0.30 1,690,801,284.83
Net assets attributable to shareholders of
559,728,743.98 546,574,409.55 2.41 520,693,211.26
the Company
2. Accounting highlights by quarter
Unit: RMB Yuan
Item Q1 Q2 Q3 Q4
Operating revenue 453,454,308.58 441,739,849.49 579,140,206.32 494,394,167.16
Net profit attributable to shareholders of the Company 7,995,185.44 7,115,839.74 12,960,350.00 8,710,924.32
Net profit attributable to shareholders of the Company
2,993,743.17 672,763.97 19,466,416.78 2,393,305.98
after extraordinary gains and losses
Net cash flows from operating activities -36,982,666.95 -13,580,972.86 -53,558,201.77 187,560,432.42
Any material difference between the financial indicators above or their summations and those which have been disclosed in quarterly
or semi-annual reports?
□ Yes √ No
2
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
IV. Share capital and shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as
shareholdings of top 10 shareholders
Unit: share
Total number of
Total number of
Total number of preference
common
preference shareholders with
shareholders at
Total number of common shareholders resumed voting
17,702 pervious 17,817 0 0
shareholders at period-end with resumed rights at pervious
month-end of this
voting rights at month-end of this
Report’s
period-end Report’s
disclosure
disclosure
Shareholdings of top 10 shareholders
Number of Pledged or frozen shares
Nature of Shareholding Total shares held
Name of shareholder restricted shares Status of Number of
shareholder percentage at period-end
held shares shares
FORDCHEE Overseas
29.10% 53,940,530 0 No 0
DEVELOPMENT LIMITED corporation
EUPA INDUSTRY Overseas
13.09% 24,268,840 0 No 0
CORPORATION LIMITED corporation
GUOTAI JUNAN
Overseas
SECURITIES(HONGKONG) 6.21% 11,509,505 0 No 0
corporation
LIMITED
FILLMAN INVESTMENTS Overseas
2.49% 4,621,596 0 No 0
LIMITED corporation
Oversea
WU CHI LI 1.06% 1,968,000 0 No 0
individual
Domestic
CHEN YONGQUAN 1.02% 1,888,819 0 No 0
individual
Oversea
CHEN YONGQING 0.77% 1,436,149 0 No 0
individual
Domestic
GU KUNYI 0.70% 1,300,862 0 No 0
individual
Oversea
CHEN LIJUAN 0.69% 1,287,817 0 No 0
individual
Domestic
XIE QINGJUN 0.60% 1,112,276 0 No 0
individual
The first, the second and the fourth shareholders are the Company’s corporate
controlling shareholders. It is unknown whether the other shareholders of tradable
Related or acting-in-concert parties among
shares are related parties or acting-in-concert parties as prescribed in the
shareholders above
Administrative Methods for Disclosure of the Shareholding Changes of the Listed
Company’s Shareholders.
2. Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Inapplicable
No preference shareholders in reporting period
3
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
3. Relation between the Company and its actual controller in form of diagram
HU Wu Tsai Tsai Other
Tsai
CHUN Tsann Yuan Yuan sharehold
Shuhui
MEI Kuen Song Yuan ers
16.25%
21.25% 15.76% 28.75% 12.50% 5.49%
Tsann Kuen Investment
Wu Tsann Kuen Thai Shu Hui Other Shareholders
Co., Ltd.
4.16% 5.11% 44.40% 46.33%
STAR COMGISTIC
CAPITAL
CO.,LTD.
100.0%
SINO Global
Development
100.0% 93.90% 100.0%
EUPA Industry FORDCHEE FILLMAN Investment
Corporation Limited Development Limited Limited
29.10%
2.49%
13.09%
Tsann Kuen (China)
Enterprise Co., Ltd.
V. Discussion and analysis by management
(I) Business review for reporting period
For the reporting period, the Company achieved operating revenues of RMB1.968 billion, down 1.96% over RMB2.008 billion of
last year, and net profit of RMB37 million, down 28.37% over RMB51 million of last year. This was mainly because of increase in
cost of labor and decrease in rent income of the subsidiary Tsann Kuen Shanghai.
According to our strategy of “lean reform and transformation for upgrading”, we introduced new technique to improve our
productivity effect, optimize our product performance and cut down our manufacturing costs. Meanwhile, committed to green,
low-carbon economy, we improved our operating efficiency to save energy and reduce costs. Introducing new technique and at the
same time upholding independent product development and innovation with strict quality standards, we will transform our products,
amid increasing competition, towards products with high added value and build up a high-end service model to create more intimacy
with customers and therefore more market demands.
In 2015, the American and European markets continue to recover, with a larger market scale but a slower-than-expected speed. We
adjust our product structure, optimize our supplier management framework, reduce our costs in every link of the supply chain,
4
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
increase our operating efficiency and effectiveness, and provide elaborately designed multifunctional small household appliances
with high green, low-carbon technological contents which are exactly what the market needs, trying to increase our profitability.
Meanwhile, as smart houses are becoming a trend and people are pursuing more convenient and comfortable life, we will focus, in
our efforts for product development and innovation, on smart household appliances to satisfy people’s needs for a fully smart house.
We will try to effectively enlarge our share in the market where smart household appliances have been considered a necessary
element for a comfortable life.
(II) Future development strategies
1. Strategy of domestic market development
Owning to the reforming of the strategy of domestic market development, the development main spindle of the future products will
aim at China, which is the world largest home appliances market as the springboard; and will spread out the brand planning and
marketing which focuses on the coffee, home helper and green energy saving. Strengthen the China brand strategy.
2. Intimate consumer relation management
To construct a sound platform of sales service and offer the structured solution plan to the customers standing in their position, to
make real gene modification; cost leadership is not the core strategy of an enterprise, is the foundation of an enterprise. The true core
strategy for an enterprise is to create more intimacy with customers, provide products that satisfy customers’ needs and build up
differentiate competitive edges.
3. Leading creatively and the deployment of green industry
Increase the design resources investment, and relocate and plan for the design team bases on the green industry, environmental
protection, energy saving, global innovation platform at the same time, so thus to insist in the design integration interdisciplinary and
the innovation of the marketing mode as well as the brand concept. Lead and drive the Company’s transformation and the
deployment of the products such as the new careers, new fields, home helpers and the digital lighting solutions with innovation and
originality.
4. Continue strengthen of the overseas manufacturing deployment and enhance of manufacturing enterprises competitiveness
Considering the rapid growth of emerging economies and the rise of the surrounding economies of Southeast Asia, the Company will,
with the advantageous costs of the overseas production base, accelerate the chain integration, promote our own brands with
knock-out products, set up overseas marketing organs, attend overseas fairs, place advertisements in target markets and speed up the
development of the Asian market in 2016.
(III) Development trends and outlook of the industry
As the wireless, IT and intelligent era comes, the trend of intelligent home appliances boosts intelligence, healthiness, fashion,
combination and culture and technology, cross-field integration of design, innovation and marketing modes and brand concepts, and
to count in the business development of e-commerce. The market that the Company will face in 2016 has the following features:
1. Profound change will happen to the global market structure of household appliances in 2016. Emerging markets such as Southeast
Asia, Middle East and North America will achieve a high-speed growth, with growth in some African countries expectedly reaching
over 15% and growth in Asia 12%. Mature markets like Europe and North America will also show a tendency of positive growth.
2. In terms of the main export markets, China exports more household appliances to developed countries than emerging economies
and the US is still the biggest market for China’s export of household appliances. In 2016, the global economy will continue to grow,
5
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
as well as the developed economies in America and Europe, which will provide bigger export markets for China. The export growth
potential brought by the new demand from emerging economies will become a hotspot for the growth of the small household
appliance market in the future.
3. China is still considered a strong market. The home appliance industry of China has entered an era featuring brand as the winning
trump. Different from the traditional home appliances, the small home appliances are still in a developing stage in terms of sale. As
the way of spending changes, more new products enter the market and old appliances are being renewed, domestic demand for small
home appliances will soar and the industry will enjoy good prospects. Actually, it is expected that the coming few years will be a
golden period for the development of the small home appliance market of China.
4. New urbanization gives us a fresh view about China’s city pattern and direction of future development. Growing, positive cities at
the second and third tiers with strong purchasing power are becoming high-end markets in an unprecedented speed. We believe the
“new first-tier markets” growing from the markets at the second and third tiers will make a strong engine for China’s economic
growth in the future.
5. Due to the impact of e-commerce, the physical stores of household appliances are experiencing declining revenue with a falling
consumer demand. What’s more, considerately growing rent and labor cost put more pressure on these offline stores. Therefore,
e-commerce has become an important strategy for home appliance makers and sellers. Stimulated by the e-commerce strategy, online
stores have home appliances in more varieties to offer, with improving logistics and after-sales services. Meanwhile, with an
increasingly mature online shopping concept of consumers, the online market of home appliances expands quickly.
6. As more and more strong as well as large appliance brands and international brands are stepping into the small home appliance
industry, competition will become fiercer. The small home appliance business will step in the operation of professional, systematic
and branding, in order to fight for more market shares. Depending on its capital and R&D advantages, it will gradually eliminate a
batch of small brand enterprises which are comparatively feeble, lack of research and cost advantage and the market networks
management advantage. It is noteworthy that, under the dual demand stimulus of the improvement of the consumers’ consciousness
of energy conservation and environmental protection as well as the purchasing of the living quality, the consumption of old for new
service of the future urban market will put more emphasis on the higher technical content and better quality high-end home
appliances, which will offer powerfully market power to the industrial upgrading of the electric utility of our nation.
7. Intelligent and green small household appliances will enter serialization and mass production. Considering the stricter international
environmental standards, China has launched a set of energy efficiency standards, strongly promoting the popularization of
energy-saving products through tough measures including price reform and taxation. Small household appliances with energy-saving
characteristic will become the mainstream in the sector sooner or later. And the Company also focuses its efforts on healthy,
energy-saving and green appliances.
(IV) Expenditure plan
According to its development strategy planning, the Company will input more in high-tech products such as new energy,
high-efficiency and environment-protecting household appliances, as well as in expansion of the Indonesian plant. And capital above
RMB66 million is expected to be needed in the year 2016 for the production capacity expansion in the aforesaid fields.
(V) Major risk factors in future development
1. International
Influenced by the slowly recovery of the global economy, the enlarge of the exchange rate fluctuation, the enhance of the domestic
comprehensive cost, and with global inflation pressure that cannot be eased in the short run and more and more non-economic
6
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
obstacles from western countries in their trading with China, foreign trade of China will face, without doubt, a more complicated
environment and more serious conflicts in 2016.
For protecting the domestic newly-developing electrical home appliances manufacturing enterprises, parts of the countries began to
adopt trade protectionism and began to suppress the domestic electrical home appliances for the methods such as improve the import
tariff. The outburst of the global financial crisis led to the rise of the international trade protection, the aggravation of the tariff barrier
and the non-tariff barrier especially such as the technology standard, Intellectual property right protection and anti-dumping etc., as
well as the export of the domestic electrical home appliance encountered more and more threatens tariff an non-tariff barrier with the
more complicated international environment faced with the electrical home appliances.
As for the risks of the culture difference: the overseas expansion of the electrical home appliances desiderate the adjustment of
culture and products; the culture difference between China and other countries affect the difference process of the sales process of the
electrical home appliances at different degrees and different aspects, while the fusion of the culture and the adaptation of the products
are the two key elements of the success of the enterprises and to blend in the cultural environment of different regions as well as to
reduce the cost expenses brought by the unsteady elements as much as possible is the important content of the overseas expansion of
the enterprises.
2. Domestic
Y2016 will be the key year of the entirely promotion of the domestic great reform and adjustment and the year that the new normalcy
of domestic economy entirely step into the Crucial Period. Looking ahead to Y2016, the domestic and oversea environment is still of
anfractuosity as well as the economy development is still facing with many difficulties and challenges. However, the basic conditions
of the domestic economy development is still comparative good that will still provide favorable market environment and
development space for the electrical home appliances.
In recent years, the domestic per capita income grew steadily with the rise range of the price of commodities declined, and at the
same time influenced by the internal and external force factors such as the Chinese shopping spree, which stimulated the consuming
intention boosted constantly; as the constantly deepen of the domestic economy transformation, the future economy will realize
healthy and sustainable growth, which will depend on the consumption demands of each Chinese customers as the consumption
driving force of the domestic economy has been strengthening.
Through the path of expanding domestic demand and the adjustment of the overall economic system, the domestic competition will
become fiercer. As the development of the domestic production, the domestic home appliance is now facing the significant industrial
consolidation phrase, which could only win in the competition and become the industry integrator with powerful financial strength
and the ability to drive the domestic home appliance innovation enterprise. So the small home appliance enterprises are facing with
serious competition and challenge. Faced with the quick changes of the domestic environment, the Company will be close to the
customers’ requirements, to promote the brand image by taking the technology innovation as core, to build up self-own brand, and to
develop green, intelligent home appliances to increase the occupation portion of the domestic market.
3. Exchange rate fluctuation
The Company’s products were export-oriented, so the influence of the exchange rate fluctuation on the Company was rather big.
Facing with the negative influences of the appreciation of the RMB, the main methods are: to avoid the exchange risks by the
financial tools and to fully considerate the influences of the exchange risks when receiving an order, thus to transfer the exchange
risks.
4. Increase of the labor costs and the labor shortage
Influenced by the constantly rise of the labor cost, the Company reduced the employee turnover rate by improving the labor character
and perfecting the benefits, promoted the purchasing modularization as well as lean automation, and improved the per capita GDP to
deal with the labor shortage problem.
7
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
5. Environmental protection low-carbon
As the execution of the Environmental Protection Act, to prevent and remedy pollution and other public nuisance as well as to ensure
the environmental and public health become the development tendency that the production processes of the enterprises must active
deal with; the Company put the lean manufacturing into the core goal of the enterprises of this year, with the introduce of the new
environmental protection materials, the input of the automation and the promotion of the environmental protection manufacturing
that promoted the products of the Company developed orientated to the direction of environmental protection and the environment
protection work.
2. Major changes in main business in reporting period
□ Yes √ No
3. Products contributing over 10% of main business revenue or profit
√ Applicable □ Inapplicable
Unit: RMB Yuan
Gross
Gross Operating Operating
Operating profit
Product Operating cost Operating profit profit revenue: cost: YoY
revenue margin:
margin YoY +/-% +/-%
YoY +/-%
Cooking tools 1,237,385,562.27 1,056,546,841.40 180,838,720.87 14.61 3.08 1.90 0.99
Home helper 414,423,298.75 373,447,044.88 40,976,253.87 9.89 -19.60 -20.49 1.00
Tea/Coffee makers 235,062,032.76 207,140,807.34 27,921,225.42 11.88 27.32 26.51 0.57
Other products 16,036,277.23 13,064,103.06 2,972,174.17 18.53 -39.52 -20.80 -19.26
Total 1,902,907,171.01 1,650,198,796.68 252,708,374.33 13.28 -1.25 -2.17 0.81
4. Seasonal or periodic characteristics in operating performance that need special attention
□ Yes √ No
Main business data for the business year
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Current period Last period +/-%
Revenues 1,902,907,171.01 1,927,053,028.84 -1.25
Costs 1,650,198,796.68 1,686,769,448.84 -2.17
Sales 20,156,184.00 20,971,446.00 -3.89
Net profit 36,782,299.50 51,348,795.39 -28.37
Item Current period-end Last period-end +/-%
Inventories 264,090,949.73 193,150,144.07 36.73
5. Major YoY changes in operating revenues, operating costs and net profit attributable to common
shareholders or their composition
□ Applicable √ Inapplicable
6. Listing suspension or termination
□ Applicable √ Inapplicable
8
Abstract of the 2015 Annual Report of Tsann Kuen (China) Enterprise Co., Ltd.
VI. Matters related to financial reporting
1. YoY changes in accounting policy, accounting estimation and measurement methods
□ Applicable √ Inapplicable
2. Retrospective restatements due to correction of significant accounting errors in reporting period
□ Applicable √ Inapplicable
3. YoY changes in consolidation scope
In Feb. 2015, the controlled subsidiary of the Company Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. written off its subsidiary Tsann
Kuen (Zhangzhou) Profession and Technology Institute. Since the date that completed the written-off, Tsann Kuen (Zhangzhou)
Profession and Technology Institute would be no longer included in the consolidated statement scope, while the income, expenses
and profits before the completion of the written-off included in the consolidated income statement and the cash flow in the
consolidated cash flow statement.
In Apr. 2015, the controlled subsidiary of the Company Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. purchased the 100% equities of
Orient Star Investments Limited held by Bosco Consultancy Limited. And the Company included Orient Star Investments Limited
into the consolidated scope of the financial report since the date when completed the purchase.
4. Explanation by Board of Directors and Supervisory Committee concerning “non-standard auditor’s
report” issued by CPAs firm for reporting period
□ Applicable √ Inapplicable
9
首页
微信公众号
证券之星APP
