BEIJING, Aug. 23, 2017 /PRNewswire/ -- China TechFaith
Wireless Communication Technology Limited (NASDAQ: CNTF)
("TechFaith" or the "Company") today announced its unaudited
condensed financial results for the first half period ended
June 30, 2017.
For the first half of 2017, TechFaith reported total net
revenues of US$24.6 million compared
to US$34.5 million in the same period
of last year. Gross profit for the first half of 2017 was
US$4.5 million compared to
US$5.5 million in the same period of
last year. Gross margin for the first half of 2017 was 18.1%
compared to 15.9% in the same period of last year.
Operating expenses for the first half of 2017 were US$9.4 million compared to US$5.7 million in the same period of last
year. The first half of 2017 includes a charge of US$1.8 million for the write-off of impairment of
acquired intangible assets. Net loss attributed to TechFaith for
the first half of 2017 was US$2.6
million, or US$0.24 per basic
and diluted weighted average outstanding ADS, compared to net loss
of US$1.2 million, or US$0.11 per basic and diluted weighted average
outstanding ADS, in the same period of last year.
Miss Ouyang Yuping, TechFaith's
Chief Financial Officer, said, "We were able to maintain revenue in
our mobile phone business at a healthy level but our efforts were
impacted by softness in the overall China handset market. Separately, we
expect to further strengthen our balance sheet over the coming
quarters as we execute on our business strategy and deliver a
greater return to our shareholders. Earlier this year we announced
the share transfer agreement to sell our Beijing real estate portfolio for a total
consideration of RMB1 billion
(approximately US$144 million). We
have already received approximately RMB 400 million of the proceeds as of
Jun 30, 2017 and expect to receive
approximately RMB 400 million by the
end of the third quarter 2017, with the balance of RMB 200 million to be received upon final
construction and transfer of relevant ownership certificates."
Mr. Deyou Dong, Chief Executive
Officer of TechFaith, said, "We continue to build upon our positive
operating position, with a stabilized gross margin and lower cost
structure. We are also pleased with the ongoing successful
development of our real estate business, led by the announced
agreement to sell our Beijing real
estate portfolio. We continue to execute on the buildout of
our other real estate assets in Hangzhou and Shenyang, which we expect to serve as
additional catalysts for our revenue and profit growth, and our
success will allow us to build greater value for our
shareholders. We believe our actions will benefit our long
term business growth based on China's real estate market, help to further
improve our cash flow, and reduce potential operational challenges.
Overall, we will continue to focus on delivering an improved return
on investment to the company and our shareholders, as we optimize
our existing resources and infrastructure, and work to keep
operating expenses under tight control to avoid any unnecessary
risks and costs."
Investor Conference Call / Webcast Details
TechFaith will hold a conference call on Wednesday, August 23, 2017 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Wednesday, August 23, 2017 in
Beijing) using the following
dial-in numbers: +1-866-519-4004 or +1-845-675-0437. The conference
call passcode is 66054251. A live webcast of the conference
call will also be available on TechFaith's website at
www.techfaithwireless.com.
A replay of the call will be available approximately 2 hours
after the conclusion of the live call by telephone at
+1-646-254-3697, with passcode 66054251. A webcast replay will also
be available at www.techfaithwireless.com.
About TechFaith
TechFaith (NASDAQ: CNTF) is a developer, owner and operator of
commercial real estate properties across China as well as a China-based mobile solutions provider for the
global mobile handsets market. TechFaith continues to maintain a
team of professional engineers focused on the development of
ruggedized smart devices for both its consumer and enterprise
segments, although it started investing in the construction of
buildings and facilities in 2009 as part of its growth and business
diversification strategy, gradually shifting away from its
traditional focus on the mobile solutions and handset markets. The
Company currently focuses on developing office space that can serve
as anchor bases in areas with developing economies, as it meets the
needs of both established businesses and innovative start-up
companies in China. For more information, please visit
www.techfaithwireless.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident," "outlook" and similar
statements. Among other things, the business outlook and
strategic and operational plans of TechFaith and management
quotations contain forward-looking statements. TechFaith may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission on Forms
20-F and 6-K, among others, and in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about TechFaith's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, those risks outlined
in TechFaith's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F. TechFaith
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
CHINA TECHFAITH
WIRELESS COMMUNICATION TECHNOLOGY LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
|
(In Thousands of
U.S. Dollars, except share and per share/ADS data)
|
|
|
|
|
|
|
Six Months
Ended
|
|
June
30
|
|
|
2016
|
2017
|
|
|
|
|
Revenues:
|
|
|
|
Mobile phone
business
|
|
|
|
Third
parties
|
|
$29,165
|
$23,249
|
Related
party
|
|
3,536
|
190
|
Real
estate
|
|
1,796
|
1,165
|
Total net
revenues
|
|
$34,497
|
$24,604
|
|
|
|
|
Cost of
revenues:
|
|
|
|
Mobile phone
business
|
|
|
|
Third
parties
|
|
$25,145
|
$19,478
|
Related
party
|
|
3,313
|
149
|
Real
estate
|
|
552
|
527
|
Total cost of
revenues
|
|
$29,010
|
$20,154
|
|
|
|
|
Gross
Profit
|
|
$5,487
|
$4,450
|
|
|
|
|
Operating
expenses:
|
|
|
|
General and
administrative, including real
estate operating expenses
|
|
$2,047
|
$3,374
|
Research and
development
|
|
3,303
|
3,665
|
Selling and
marketing
|
|
398
|
649
|
Impairment of
long-lived assets
|
|
-
|
1,750
|
Total operating
expenses
|
|
$5,748
|
$9,438
|
|
|
|
|
Government subsidy
income
|
|
93
|
-
|
|
|
|
|
Loss from
operations
|
|
$(168)
|
$(4,988)
|
|
|
|
|
Interest
expense
|
|
(901)
|
(606)
|
Interest
income
|
|
22
|
23
|
Other expenses,
net
|
|
-
|
(16)
|
Change in fair value
of put option
|
|
(90)
|
(1,800)
|
Loss before income
taxes
|
|
$(1,137)
|
$(7,387)
|
Income tax
expenses
|
|
-
|
-
|
Net loss from
continuing operations
|
|
$(1,137)
|
$(7,387)
|
|
|
|
|
Net income from operations disposed
|
|
$275
|
$3,837
|
|
|
|
|
Net loss
|
|
$(862)
|
$(3,550)
|
Less: net income
(loss) attributable to the
noncontrolling interest
|
|
337
|
(963)
|
Net loss attributable
to TechFaith
|
|
$(1,199)
|
$(2,587)
|
|
|
|
|
Net (loss) income per share attributable to
China TechFaith
Wireless Communication
Technology Limited-Basic and Diluted:
|
|
|
|
Continuing
operations
|
|
$(0.00)
|
$(0.01)
|
Operations disposed
|
|
$0.00
|
$0.01
|
Net loss per share attributable to China
TechFaith
Wireless Communication
Technology Limited-Basic and Diluted
|
|
$(0.00)
|
$(0.00)
|
|
|
|
|
Net (loss) income per
ADS attributable to
China TechFaith
Wireless Communication
Technology Limited-Basic and Diluted:
*
|
|
|
|
Continuing
operations
|
|
$(0.14)
|
$(0.60)
|
Discontinuing
operations
|
|
$0.03
|
$0.36
|
Net loss per ADS attributable to
China TechFaith
Wireless Communication
Technology Limited-Basic and Diluted
|
|
$(0.11)
|
$(0.24)
|
|
|
|
|
Net loss
|
|
$(862)
|
$(3,550)
|
Other comprehensive
income (loss), net of
tax
|
|
|
|
Foreign currency
translation adjustment
|
|
(7,730)
|
3,827
|
Comprehensive (loss)
income
|
|
(8,592)
|
277
|
|
|
|
|
Less: Comprehensive
loss attributable to
noncontrolling interest
|
|
(314)
|
(1,527)
|
Comprehensive (loss)
income attributable to
TechFaith
|
|
$(8,278)
|
$1,804
|
|
|
|
|
Weighted average
shares
outstanding
|
|
|
|
Basic
|
|
794,003,193
|
794,003,193
|
Diluted
|
|
794,003,193
|
794,003,193
|
|
|
|
|
|
|
|
|
*Giving retroactive
effect to the 1-for-5 reverse ADS split effected on March
1,2016
|
CHINA TECHFAITH
WIRELESS COMMUNICATION TECHNOLOGY LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In Thousands of
U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
June
30,
2017
|
|
December 31,
2016
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$5,554
|
|
$6,363
|
Restricted
cash
|
-
|
|
2,881
|
Accounts receivable,
net of allowances of
$3,637 and $2,184 as of June 30, 2017
and December 31, 2016, respectively
|
28,643
|
|
25,459
|
Accounts receivable
due from a related
party
|
2,134
|
|
2,247
|
Amount due from a
related party
|
1,081
|
|
950
|
Inventories,
net
|
264
|
|
4,646
|
Prepaid expenses and
other current
assets
|
97,531
|
|
40,914
|
Assets held for
sale
|
-
|
|
3,352
|
Total current
assets
|
$135,207
|
|
$86,812
|
|
|
|
|
Property, plant and
equipment, net
|
$48,412
|
|
$49,145
|
Construction in
progress
|
96,620
|
|
69,792
|
Land use rights,
net
|
1,987
|
|
1,966
|
Acquired intangible
assets, net
|
1,089
|
|
3,785
|
Other non-current
assets
|
28,988
|
|
19,126
|
Other long-term
receivable
|
29,502
|
|
-
|
Other assets held for
sale
|
-
|
|
152,904
|
Total
assets
|
$341,805
|
|
$383,530
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
4,221
|
|
6,120
|
Notes
payable
|
-
|
|
5,761
|
Short-term
loans
|
4,345
|
|
7,816
|
Accrued expenses and
other current
liabilities
|
21,477
|
|
22,597
|
Advance from
customers
|
7,984
|
|
10,136
|
Deferred
revenue
|
3,803
|
|
5,138
|
Income tax
payable
|
916
|
|
896
|
Put option
liability
|
4,260
|
|
2,460
|
Liabilities held for
sale
|
-
|
|
27,644
|
Total current
liabilities
|
$47,006
|
|
$88,568
|
|
|
|
|
Long-term
loans
|
12,165
|
|
12,605
|
|
|
|
|
Total
liabilities
|
$59,171
|
|
$101,173
|
|
|
|
|
Equity
|
|
|
|
Ordinary shares
($0.00002 par value;
50,000,000,000,000 shares authorized;
794,003,193 and 794,003,193 shares
issued and outstanding as of June 30,
2017 and December 31, 2016,
respectively)
|
$16
|
|
$16
|
Additional paid-in
capital
|
144,836
|
|
144,836
|
Accumulated other
comprehensive
income
|
19,422
|
|
16,159
|
Statutory
reserves
|
21,567
|
|
22,258
|
Retained
earnings
|
73,881
|
|
75,777
|
Total
TechFaith
shareholders' equity
|
$259,722
|
|
$259,046
|
Noncontrolling
interest
|
$22,912
|
|
$23,311
|
Total
equity
|
$282,634
|
|
$282,357
|
Total liabilities
and equity
|
$341,805
|
|
$383,530
|
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SOURCE China TechFaith Wireless Technology Limited