TongFu Microelectronics Co Ltd

TongFu Microelectronics has a debt-to-equity ratio of 1.01, indicating a balanced capital structure, though its current ratio of 0.92 suggests potential short-term liquidity constraints. Operating cash flow of CNY 1.84 billion supports operational flexibility, but capital expenditures of CNY -1.98 billion indicate significant reinvestment in infrastructure.

Profitability metrics show a return on equity of 1.57% and return on assets of 0.62%, both below the industry median for semiconductor equipment firms, which typically exceed 5% ROE and 3% ROA. Gross profit of CNY 917 million represents 15.8% of revenue, consistent with industry norms, but operating income of CNY 289 million reflects margin compression from competitive pricing pressures.

The company derives revenue primarily from domestic Chinese markets, with no disclosed segment or geographic breakdown in the latest financials. This lack of diversification introduces concentration risk, as the firm is heavily exposed to regional demand cycles and regulatory shifts.

Outlook data indicates a projected revenue decline in the current fiscal year, with a negative delta of 12.3% year-over-year, driven by reduced semiconductor demand in China. The next fiscal year is expected to show a modest recovery of 4.1%.

Risk factors include medium liquidity risk due to negative net cash after debt, and a low dilution risk as shares outstanding remain unchanged between basic and diluted measures. No recent equity issuance or ATM programs are disclosed, and no dilution sources are identified in 10-K filings or recent transcripts.

Recent 10-K filings highlight supply chain disruptions and rising raw material costs as key challenges. No material earnings call transcripts or regulatory filings were available in the latest data window.

TongFu Microelectronics Co Ltd (002156.SZ) has been formally classified within the Semiconductors activity and Technology economic sector, marking a significant structural update to its corporate profile. This taxonomy classification, identified as a medium-severity change, establishes the company’s operational identity within the broader technology landscape, providing a clearer framework for industry-specific analysis. Concurrently, the company’s risk assessment profile has been initialized with specific metrics. Dilution risk is now assessed as low, indicating a stable capital structure with minimal threat of share value erosion from new issuances. This low severity rating suggests that existing shareholders face limited immediate pressure from equity dilution. Liquidity risk, however, is classified as medium, highlighting a moderate level of concern regarding the company’s ability to meet short-term financial obligations. While this risk level is not critical, it warrants attention as it contrasts with the low dilution risk, suggesting that while capital structure is stable, cash flow management or market trading conditions may present moderate challenges. These updates collectively refine the understanding of TongFu Microelectronics’ position in the market. By defining its sectoral alignment and establishing baseline risk parameters for dilution and liquidity, investors now have a more structured view of the company’s operational context and financial stability, despite the absence of current analyst coverage or index membership data.

Revenue grew 16.9% year-over-year to CNY 27.9 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 79.9% to CNY 1.2 billion in FY2026, indicating significant improvement in bottom-line profitability.

Gross profit rose to CNY 3.9 billion in FY2026, supporting improved margin potential despite high capital expenditures.

Cash conversion ratio of 8.23 ranks best-in-class within the semiconductor equipment cohort, highlighting superior cash management.

Free cash flow remains deeply negative at CNY -1.9 billion in FY2026, signaling persistent cash burn and liquidity pressure.

Long-term debt escalated to CNY 20.2 billion in FY2026, creating substantial leverage risk and high credit risk flags.

Debt-to-equity ratio of 1.01 places the company in the bottom quartile of its semiconductor equipment peer group.

Revenue ¥7.48B, +22,8% YoY; Operating income +128,0% YoY.

• ▍Revenue ¥7.48B, +22,8% YoY
• ▍Operating income +128,0% YoY
• ▍Net income +224,6% YoY
• ▍Net margin 4.4%

Revenue ¥7.81B, +14,8% YoY; Operating income +74,2% YoY.

• ▍Revenue ¥7.81B, +14,8% YoY
• ▍Operating income +74,2% YoY
• ▍Net income +186,4% YoY
• ▍Net margin 4.6%

Revenue ¥7.08B, +17,9% YoY; Operating income +76,2% YoY.

• ▍Revenue ¥7.08B, +17,9% YoY
• ▍Operating income +76,2% YoY
• ▍Net income +95,1% YoY
• ▍Net margin 6.3%

Revenue ¥6.95B, +19,8% YoY; Operating income +49,3% YoY.

• ▍Revenue ¥6.95B, +19,8% YoY
• ▍Operating income +49,3% YoY
• ▍Net income +38,6% YoY
• ▍Net margin 4.5%

Revenue ¥6.09B; Operating income ¥206.0M.

• ▍Revenue ¥6.09B
• ▍Operating income ¥206.0M
• ▍Net margin 1.7%

Revenue ¥6.80B; Operating income ¥306.0M.

• ▍Revenue ¥6.80B
• ▍Operating income ¥306.0M
• ▍Net margin 1.8%

Revenue ¥6.00B; Operating income ¥328.6M.

• ▍Revenue ¥6.00B
• ▍Operating income ¥328.6M
• ▍Net margin 3.8%

Revenue ¥5.80B; Operating income ¥288.5M.

• ▍Revenue ¥5.80B
• ▍Operating income ¥288.5M
• ▍Net margin 3.9%

Revenue ¥27.92B, +16,9% YoY; Operating income +66,7% YoY.

• ▍Revenue ¥27.92B, +16,9% YoY
• ▍Operating income +66,7% YoY
• ▍Net income +79,9% YoY
• ▍Free cash flow −78,0% YoY
• ▍Net margin 4.4%

Revenue ¥23.88B, +7,2% YoY; Operating income +331,7% YoY.

• ▍Revenue ¥23.88B, +7,2% YoY
• ▍Operating income +331,7% YoY
• ▍Net income +299,9% YoY
• ▍Free cash flow +48,2% YoY
• ▍Net margin 2.8%

Revenue ¥22.27B, +3,9% YoY; Operating income −48,2% YoY.

• ▍Revenue ¥22.27B, +3,9% YoY
• ▍Operating income −48,2% YoY
• ▍Net income −66,2% YoY
• ▍Free cash flow +47,5% YoY
• ▍Net margin 0.8%

Revenue ¥21.43B, +35,5% YoY; Operating income −50,4% YoY.

• ▍Revenue ¥21.43B, +35,5% YoY
• ▍Operating income −50,4% YoY
• ▍Net income −47,5% YoY
• ▍Free cash flow −7,5% YoY
• ▍Net margin 2.3%