TechFaith Files Annual Report on Form 20-F for the Fiscal Year 2017; Announces Appointment of CEO to Added Role of Chairman and Director Retirement
PUBLISHED ONApril 27, 2018 7:26 PM
BEIJING, April 27, 2018 /PRNewswire/ -- China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith" or the "Company") today announced it has filed its Annual Report Form 20-F for the fiscal year ended December 31, 2017 with the U.S. Securities and Exchange Commission on April 27, 2018. The annual report on Form 20-F, which contains TechFaith's audited financial statements, can be accessed on the SEC's website at www.sec.gov or on the Company's investor relations website at www.techfaithwireless.com.
For the full year ended December 31, 2017, TechFaith reported total net revenues of US$46.8 million compared to US$61.0 million for the full year ended December 31, 2016. The decline primarily reflects lower revenue in the Company's mobile phone business, which was negatively impacted by softness in the overall China handset market. Gross profit for the full year 2017 was US$9.8 million, compared to US$12.5 million for the full year 2016. Gross margin for the full year 2017 was 20.9%, compared to 20.4% for the full year 2016. Operating expenses for the full year 2017 were US$15.6 million compared to US$15.9 million for the full year 2016. Net loss attributed to TechFaith for the full year 2017 was US$9.3 million, or US$0.88 per basic and diluted weighted average outstanding ADS, compared to a net income of US$10.1 million, or US$0.96 per basic and diluted weighted average outstanding ADS, for the full year 2016.
TechFaith also announced the appointment of the Company's CEO, Mr. Deyou Dong, to the additional role of Chairman of the Board. Mr. Deyou Dong succeeds Mr. Defu Dong, who has served as the Chairman of the Board since founding the Company in 2002. The Company also announced the retirement of Ms. Ling (Shelly) Sui, 63 years old, who has served as an independent director since 2007.
Mr. Defu Dong, TechFaith's outgoing Chairman of the Board, commented, "I am proud of what TechFaith has accomplished over the past 16 years. Our team has successfully navigated challenging markets and established an impressive track record in our core business areas. I would like to thank our Board, management, employees, customers and investors for their support and wish everyone continued success."
Mr. Deyou Dong, TechFaith's Chairman and CEO, said, "I am grateful to Mr. Defu Dong for his tireless contributions, dedication, vision and leadership since he founded the Company back in 2002. We remain focused on building upon the legacy he has established. We are also appreciative of Ms. Shelly Sui's contributions as a director, and we wish her and her family all the best. We are optimistic entering 2018 as we work to deliver greater value to shareholders as the asset base TechFaith has built is more properly valued for its cash flow potential and the higher appreciated value of the land and buildings in the Company's portfolio. We also expect the Company will continue to execute on the anticipated revitalization of its mobile phone business."
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.
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