Tongfang Guoxin's first 9 months performance forecast revised to the same direction

On September 28th, Tongfang Guoxin released the announcement of the revision of the performance forecast for January-September 2012. The revised expected performance is the same upward trend. During the reporting period, the net profit attributable to shareholders of listed companies was 100 million yuan -115 million yuan before the retrospective adjustment, an increase of 269%-325% over the same period of the previous year; the profit after retrospective adjustment: 100 million yuan - 115 million yuan, a year-on-year increase 2% - 18%.

On August 6 this year, Tongfang Guoxin predicted in the 2012 Semi-annual Report that the net profit attributable to shareholders of listed companies from January to September 2012 was 170%-200% higher than the same period of the previous year. Based on the retrospective adjustment of the financial statements of the previous year, it is estimated that the net profit attributable to shareholders of listed companies from January to September 2012 will increase or decrease from -25.11% to -16.78%.

Regarding the reasons for the change in performance, Tongfang Guoxin stated that the “Smart Card Chip R&D and Industrialization” project declared by its wholly-owned subsidiary Beijing Tongfang Microelectronics Co., Ltd. was included in the national high-tech industry development project plan and the national fund subsidy plan, and obtained the integrated circuit. Design special fund support. Tongfang Microelectronics has received a total of 38 million yuan from the Ministry of Finance in 2012 and has been included in the deferred income account.

Tongfang Microelectronics received the “Circular of the Beijing Municipal Finance Bureau on the Budget for the Central Special Subsidy Fund for the R&D Capabilities of the First Batch of IC Design Enterprises in 2012”. According to the contents of the document, the above-mentioned subsidy fund is the special subsidy fund for the R&D capability of IC design companies from Tongfang Microelectronics to 2012. Tongfang Guoxin, according to the provisions of the “Accounting Standards for Business Enterprises”, carried forward the above-mentioned subsidy funds to the non-operating income on average during the project execution period. The transfer of the subsidy will have certain impact on the company's profit and loss from January to September 2012.

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