ZTE(000063)2024-10-21 09:44Financial Performance - Revenue for Q3 2024 was RMB 27.56 billion, a decrease of 3.94% year-over-year[5] - Net profit attributable to shareholders in Q3 2024 was RMB 2.17 billion, down 8.23% year-over-year[5] - Operating profit for Q3 2024 was RMB 2,270,987 thousand, a decrease of 5.9% compared to RMB 2,414,137 thousand in Q3 2023[22] - Net profit for Q3 2024 was RMB 2,136,671 thousand, a decrease of 9.6% compared to RMB 2,364,563 thousand in Q3 2023[22] - Revenue for the first nine months of 2024 reached RMB 90,044,542 thousand, compared to RMB 89,393,443 thousand in the same period of 2023[21] - Operating profit for the first nine months of 2024 was RMB 8,548,503 thousand, slightly higher than RMB 8,516,862 thousand in 2023[21] - Net profit attributable to shareholders of the parent company for the first nine months of 2024 was RMB 7,906,403 thousand, compared to RMB 7,841,166 thousand in 2023[21] - Revenue for Q3 2024 was RMB 27,557,444 thousand, a decrease of 3.9% compared to RMB 28,688,649 thousand in Q3 2023[22] Cash Flow and Liquidity - Operating cash flow for Q3 2024 was RMB 1.05 billion, a significant decrease of 63.02% year-over-year[5] - Net cash flow from operating activities was RMB 8,049,065 thousand, a decrease of 13.1% from RMB 9,262,015 thousand in the previous year[23] - Net cash flow from investing activities decreased by 395.36%, from (4,319,503) to (21,397,176), mainly due to increased cash payments for investments[12] - Net cash flow from financing activities decreased by 242.19%, from 4,217,404 to (5,996,925), primarily due to reduced net borrowing[12] - Cash and cash equivalents stood at RMB 46,784,398 thousand, a significant increase from RMB 21,315,727 thousand at the end of 2023[19] - Cash and cash equivalents at the end of the period were RMB 31,576,058 thousand, a decrease of 44.1% from RMB 56,500,097 thousand at the end of the previous period[23] Assets and Liabilities - Total assets as of September 30, 2024, were RMB 199.69 billion, a slight decrease of 0.63% compared to the end of 2023[5] - Total assets as of September 30, 2024, amounted to RMB 199,694,343 thousand, a decrease from RMB 200,958,318 thousand at the end of 2023[19] - Current assets totaled RMB 140,002,948 thousand, down from RMB 158,504,553 thousand at the end of 2023[19] - Non-current assets increased to RMB 59,691,395 thousand from RMB 42,453,765 thousand at the end of 2023[19] - Total liabilities as of September 30, 2024, were RMB 127,058,767 thousand, a decrease from RMB 132,626,873 thousand at the end of 2023[20] - Current liabilities decreased to RMB 73,501,731 thousand from RMB 83,030,414 thousand at the end of 2023[20] - Non-current liabilities increased to RMB 53,557,036 thousand from RMB 49,596,459 thousand at the end of 2023[20] - Shareholders' equity as of September 30, 2024, was RMB 72,635,576 thousand, up from RMB 68,331,445 thousand at the end of 2023[20] Income and Expenses - Other income increased by 65.12% to RMB 2.43 billion, driven by increased VAT refunds and tax benefits[8] - Asset disposal income rose by 330.90% to RMB 87.48 million due to increased gains from non-current asset disposals[9] - Financial expenses decreased by 81.30% to a loss of RMB 165.9 million, mainly due to exchange rate fluctuations[8] - R&D expenses for the first nine months of 2024 amounted to RMB 18,640,816 thousand, slightly lower than RMB 19,060,762 thousand in 2023[21] - R&D expenses for Q3 2024 were RMB 5,914,921 thousand, a decrease of 5.7% compared to RMB 6,269,730 thousand in Q3 2023[22] - Interest income for the first nine months of 2024 was RMB 3,553,958 thousand, compared to RMB 2,980,876 thousand in 2023[21] - Interest income for Q3 2024 was RMB 972,375 thousand, a decrease of 14.8% compared to RMB 1,141,175 thousand in Q3 2023[22] - Other income for the first nine months of 2024 was RMB 2,433,179 thousand, significantly higher than RMB 1,473,568 thousand in 2023[21] - Other income for Q3 2024 was RMB 632,869 thousand, an increase of 32% compared to RMB 479,651 thousand in Q3 2023[22] - Income tax expenses for the first nine months of 2024 were RMB 677,296 thousand, slightly lower than RMB 704,561 thousand in 2023[21] - Income tax expense for Q3 2024 was RMB 110,503 thousand, an increase of 195% compared to RMB 37,475 thousand in Q3 2023[22] - Sales expenses for the first nine months of 2024 were RMB 6,380,307 thousand, compared to RMB 6,900,289 thousand in 2023[21] Shareholder Information - Zhongxing New holds 2,038,000 H shares of the company, held by Hong Kong Securities Clearing Company as a nominal holder[13] - As of September 30, 2024, the top 10 shareholders hold unrestricted shares, with Zhongxing New holding 20.09% of the shares[14][15] - Hong Kong Securities Clearing Company holds 15.73% of the company's H shares, excluding the 2,038,000 H shares held by Zhongxing New[16] - The top 10 shareholders and unrestricted shareholders did not participate in securities lending, with no shares lent out at the end of the period[17] Exchange Rate Impact - Comprehensive loss increased by 381.85% due to exchange rate fluctuations and other factors, resulting in a loss of (228,288) compared to (47,377) in the previous period[10] - Subsidiary's foreign currency translation loss decreased by 84.07%, from (4,075) to (649), primarily due to reduced exchange rate fluctuations[11] - The impact of exchange rate changes on cash and cash equivalents decreased by 134.30%, from 268,452 to (92,073), due to translation losses from exchange rate fluctuations[12] Investments and Financial Assets - The company's monetary funds decreased by 40.43% to RMB 46.78 billion due to new large-term deposits and structured deposits[8] - Trading financial assets surged by 9,132% to RMB 14.15 billion due to new structured deposits[8] - Prepayments increased by 141.71% to RMB 586 million due to increased procurement prepayments[8] Comprehensive Income and Loss - Total comprehensive income for the first nine months of 2024 was RMB 7,618,124 thousand, compared to RMB 7,705,363 thousand in 2023[21] - Total comprehensive income for Q3 2024 was RMB 1,873,620 thousand, a decrease of 20.8% compared to RMB 2,364,542 thousand in Q3 2023[22] - Minority interest loss for Q3 2024 was RMB 37,286 thousand, an increase of 738% compared to RMB 4,450 thousand in Q3 2023[22] Sales and Receivables - Sales of goods and services received cash of RMB 95,892,062 thousand, a 2.4% increase compared to RMB 93,639,500 thousand in the same period last year[23] - Accounts receivable decreased to RMB 20,840,387 thousand from RMB 34,822,340 thousand at the end of 2023[19] - Inventory levels slightly decreased to RMB 40,626,555 thousand from RMB 41,131,259 thousand at the end of 2023[19] Earnings Per Share - Basic earnings per share for the first nine months of 2024 were RMB 1.65, the same as in 2023[21] - Basic earnings per share for Q3 2024 were RMB 0.45, a decrease of 10% compared to RMB 0.5 in Q3 2023[22] Financial Statements - The company's balance sheet and quarterly financial statements are included in the report[18]