Securities code: 600237 Securities for short: Tongfeng Electronic Announcement Number: Pro 2021-002

Anhui Tongfeng Electronics Co., LTD
Pre-profit announcement for 2020 annual results

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.

Important content Tips:

1. According to the preliminary calculation by the financial department of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company"), it is estimated that the net profit attributable to shareholders of the listed company in 2020 will be RMB 6 million to RMB 9 million.

2. The company's pre-profit of this performance is mainly caused by non-recurring profit and loss items, and the impact amount is about 30 million yuan. It mainly sells the shares of subsidiaries to obtain investment income, and confirms the government subsidy and carries back the impairment reserve.

3. It is estimated that the net profit attributable to shareholders of listed companies in 2020 after deducting non-recurring gains and losses will be -24 million yuan to -21 million yuan.

I. Performance forecast of this period

(1) Performance forecast period

January 1, 2020 to December 31, 2020.

(2) Performance forecast

1. According to the preliminary calculation of the financial department of the company, it is expected that the net profit attributable to shareholders of the listed company in 2020, compared with the same period of last year, will be turned from loss to profit, and the net profit attributable to shareholders of the listed company will be 6 million to 9 million yuan.

2. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses ranges from -24 million yuan to -21 million yuan.

(III) The performance forecast data of the current period have not been audited by certified public accountants.

Ii. Performance in the same period of last year

(1) Net profit attributable to shareholders of the listed company: -15,2.87 million yuan. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses: -159,626,500 yuan.

(II) Earnings per share: -0.27 yuan.

Iii. Main reasons for the pre-profit of current performance

(I) Main business impact.

In 2020, the company strictly controlled the production cost, timely adjusted the business strategy, the company's comprehensive gross profit margin improved, the sales gross profit increased by about 38 million yuan compared with the same period last year.

(2) The impact of non-operating profit and loss

1. Selling Anhui Hehuijinyuan Technology Co., LTD. 's equity during the current period, and obtaining investment income of RMB 8,883,700.

2. Government subsidy of about 9.6 million yuan (including 7.4 million yuan received in the current period and 2.2 million yuan deferred amortization in previous years) recognized in the current period was recorded in current profit and loss, which increased by about 5 million yuan compared with the same period last year.

3. In the current period, the receivables of the single provision for bad debts are recovered, and the impairment loss is about 7 million yuan.

4. During the current sales period, the inventory of decline reserve is separately set aside, and the decline reserve is about 4.4 million yuan.

(3) Other influences

1. Impairment loss.

The impairment loss incurred in the current period decreased by approximately RMB 105 million compared to the same period last year.

2. Period expenses.

In 2020, the company will strengthen internal management and strictly control expenses. Combined with the impact of social security expense exemption, the current administrative expenses will be reduced by about 6 million yuan and the financial expenses will be reduced by about 1 million yuan. In the current period, the sales expenses of exported products to the United States were reduced by about RMB 3 million compared with the same period last year due to the impact of tariff exemption.

Iv. Risk tips

The above estimated performance is the preliminary calculation made by the financial department of the company according to its own professional judgment. We have made preliminary communication with the annual audit certified public accountant in advance and have not yet been audited by the annual audit certified public accountant.

As of the disclosure date of this announcement, the Company has not found any other material uncertainties that may affect the accuracy of the current performance forecast.

V. Other explanatory matters

The above forecast data is only preliminary accounting data, specific and accurate financial data to the company's official disclosure of the audited annual report in 2020, please pay attention to the investment risk.

This is to announce.