隆扬电子(301389) - 2024 Q3 - 季度财报

Major Financial Data Key Accounting Data and Financial Indicators Q3 2024 operating revenue grew 11.49%, but net profit attributable to shareholders declined 16.09%, indicating profitability pressure year-to-date Key Accounting Data and Financial Indicators | Indicator | Current Period (Q3 2024) | YoY Change in Current Period | Year-to-Date (YTD 2024) | YoY Change in Year-to-Date | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 78,981,554.57 | 11.49% | 208,661,498.99 | 5.36% | | Net Profit Attributable to Shareholders (RMB) | 22,642,898.12 | -16.09% | 52,656,144.73 | -34.02% | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains and Losses (RMB) | 20,823,280.93 | -18.81% | 49,582,396.50 | -34.87% | | Net Cash Flow from Operating Activities (RMB) | -- | -- | 41,330,637.72 | -17.95% | | Basic Earnings Per Share (RMB/share) | 0.08 | -20.00% | 0.19 | -32.14% | | Diluted Earnings Per Share (RMB/share) | 0.08 | -11.11% | 0.19 | -29.63% | | Weighted Average Return on Net Assets | 1.11% | -0.12% | 2.40% | -1.13% | Key Accounting Data and Financial Indicators | Indicator | End of Current Period (2024-09-30) | End of Prior Year (2023-12-31) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 2,273,713,858.79 | 2,307,068,843.19 | -1.45% | | Shareholders' Equity Attributable to Listed Company (RMB) | 2,186,874,945.82 | 2,233,118,997.06 | -2.07% | Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled RMB 1.82 million, primarily from government subsidies and financial asset fair value changes, positively impacting net profit Non-recurring Gains and Losses Items and Amounts | Item | Amount for Current Period (RMB) | Amount from Year-Beginning to End of Reporting Period (RMB) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -1,440.01 | -8,685.39 | | Government Subsidies Recognized in Current P&L | 620,794.63 | 1,071,794.63 | | Fair Value Changes and Disposal Gains/Losses from Financial Assets/Liabilities (Excluding Hedging) | 1,520,773.06 | 2,557,430.59 | | Other Non-operating Income and Expenses | -120.06 | -4,169.77 | | Less: Income Tax Impact | 320,390.43 | 542,621.83 | | Total | 1,819,617.19 | 3,073,748.23 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring gains and losses[5] Changes and Reasons for Key Accounting Data and Financial Indicators Financial statements show significant changes due to increased trading financial assets, fixed asset transfers, higher expenses, and substantial investment cash outflows Balance Sheet Item Changes (Period-End vs. Period-Beginning) | Balance Sheet Item | End of Period (RMB) | Beginning of Period (RMB) | Change Percentage | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 365,107,013.70 | 52,804,616.44 | 591.43% | Primarily due to increased purchases of broker-issued income certificates in current period | | Notes Receivable | 882,772.21 | 450,765.85 | 95.84% | Primarily due to increased bank acceptance bills received from customers in current period | | Prepayments | 2,746,173.35 | 706,614.35 | 288.64% | Primarily due to increased prepayments for materials in current period | | Other Current Assets | 1,247,134.98 | 2,345,040.44 | -46.82% | Primarily due to decreased input tax credit in current period | | Fixed Assets | 152,296,448.65 | 79,638,173.66 | 91.24% | Primarily due to construction in progress reaching intended use and being transferred to fixed assets in current period | | Construction in Progress | 42,083,246.87 | 73,710,424.87 | -42.91% | Primarily due to construction in progress reaching intended use and being transferred to fixed assets in current period | | Right-of-Use Assets | 4,262,564.65 | 7,292,643.79 | -41.55% | Primarily due to depreciation of right-of-use assets reducing their net book value in current period | | Long-term Deferred Expenses | 1,467,323.77 | 2,922,454.64 | -49.79% | Primarily due to amortization reducing book value in current period | | Other Non-current Assets | 12,762,954.92 | 20,726,882.25 | -38.42% | Primarily due to decreased prepayments for equipment and engineering in current period | | Short-term Borrowings | 8,440,099.73 | 3,000,752.60 | 181.27% | Primarily due to increased short-term borrowings in current period | | Lease Liabilities | 1,279,770.86 | 3,446,274.65 | -62.87% | Primarily due to lease payments in current period | | Other Comprehensive Income | -1,374,582.88 | 345,809.35 | -497.50% | Primarily due to exchange rate fluctuations in financial statement translation differences | Income Statement Item Changes (Current Period vs. Prior Period) | Income Statement Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change Percentage | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Taxes and Surcharges | 2,538,669.79 | 1,522,716.71 | 66.72% | Primarily due to increased property tax payments in current period | | Administrative Expenses | 14,003,647.44 | 10,756,273.79 | 30.19% | Primarily due to increased amortization expenses for restricted stock incentive plan in current period | | Financial Expenses | -24,590,314.71 | -46,356,538.56 | 46.95% | Primarily due to decreased interest income from lower deposit rates in current period | | Other Income | 1,613,004.70 | 481,121.31 | 235.26% | Primarily due to significant government subsidies related to ordinary activities received in current period | | Investment Income | 255,033.33 | 882,916.68 | -71.11% | Primarily due to lower investment income from transferable time deposits received in current period | | Credit Impairment Losses | -286,100.91 | 635,943.55 | 144.99% | Primarily due to increased accounts receivable balance at period-end and corresponding increase in bad debt provisions | | Asset Impairment Losses | -6,715,311.76 | -2,409,454.92 | 178.71% | Primarily due to increased inventory write-downs in current period | | Non-operating Expenses | 5,651.03 | 217,745.36 | -97.40% | Primarily due to decreased other expenses paid in current period | Cash Flow Statement Item Changes (Current Period vs. Prior Period) | Cash Flow Statement Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change Percentage | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | -624,632,578.13 | 64,377,016.60 | -1070.27% | Primarily due to significant purchases of time deposits and trading financial assets in current period | | Net Cash Flow from Financing Activities | -99,239,593.70 | -202,773,909.96 | 51.06% | Primarily due to decreased cash paid for dividend distribution compared to prior year, leading to increased net cash flow from financing activities | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,839,632.48 | 4,019,638.73 | -145.77% | Primarily due to exchange rate fluctuations in current period | | Net Increase in Cash and Cash Equivalents | -684,381,166.59 | -84,006,251.36 | -714.68% | Primarily due to decreased net cash flow from investing and financing activities in current period | Shareholder Information Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings The company had 25,252 common shareholders; Longyang International (69.04%) is the controlling shareholder, and Hong Kong Securities Clearing is the largest unrestricted shareholder - Total common shareholders at period-end was 25,252 households[8] Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Longyang International Co., Ltd. | Overseas Legal Person | 69.04% | 195,722,953 | 195,722,953 | | Kunshan Qunzhan Business Consulting Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 2.01% | 5,700,000 | 5,700,000 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.73% | 2,072,459 | 0 | | Zhu Hao | Domestic Natural Person | 0.37% | 1,041,800 | 0 | | Kunshan Shuangyu Lingba Equity Investment Enterprise (Limited Partnership) | Domestic Non-state-owned Legal Person | 0.22% | 614,400 | 0 | | Kunshan Shuangyu Investment Enterprise (Limited Partnership) | Domestic Non-state-owned Legal Person | 0.15% | 419,000 | 0 | | Yang Lijun | Domestic Natural Person | 0.13% | 372,000 | 0 | | Ding Kangning | Domestic Natural Person | 0.13% | 359,900 | 0 | | Chen Yao | Domestic Natural Person | 0.12% | 350,100 | 0 | | Yu Maosong | Domestic Natural Person | 0.11% | 308,300 | 0 | - The company's actual controllers, Fu Qingxuan and Zhang Dongqin, indirectly hold a combined 45.75% equity in Longyang International Co., Ltd., and indirectly hold a combined 71.54% equity in Kunshan Qunzhan Business Consulting Partnership (Limited Partnership)[9] - At the end of the reporting period, the company's special share repurchase account held 1,317,993 shares, accounting for 0.46% of the total share capital[9] Total Number of Preferred Shareholders and Top 10 Preferred Shareholders' Holdings The company has no preferred shareholders - The company has no preferred shareholders[10] Changes in Restricted Shares 822,047 pre-IPO restricted shares held by Suzhou Junshang Hejue Venture Capital were lifted from restriction and listed for trading on April 8, 2024 Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Longyang International Co., Ltd. | 195,722,953 | 0 | 0 | 195,722,953 | Pre-IPO restricted shares; due to commitment by relevant shareholders to extend lock-up period | 2026年4月30日 | | Kunshan Qunzhan Business Consulting Partnership (Limited Partnership) | 5,700,000 | 0 | 0 | 5,700,000 | Pre-IPO restricted shares; due to commitment by relevant shareholders to extend lock-up period | 2025年10月31日可解除2,492,000股；2026年4月30日可解除3,208,000股 | | Suzhou Junshang Hejue Venture Capital Partnership (Limited Partnership) | 822,047 | 822,047 | 0 | 0 | Pre-IPO restricted shares | April 8, 2024, already released from restriction and listed for trading | | Total | 202,245,000 | 822,047 | 0 | 201,422,953 | -- | -- | Other Significant Matters Thailand Electromagnetic Shielding and Other Related Materials Production Base Project The company approved an RMB 80 million investment for a new electromagnetic shielding production base in Thailand, funded by remaining proceeds from a terminated fundraising project - The company agreed to invest 80.00 million RMB for the construction of an electromagnetic shielding and other related materials production base project in Thailand[12] - The project's implementing entity is Longyang Electronics (Thailand) Co., Ltd., a wholly-owned subsidiary of the company[12] - Funds are sourced from the remaining proceeds of a terminated fundraising project, approved by the board of directors, supervisory board, and general meeting of shareholders, and a five-party supervision agreement for the raised funds has been signed[12] Share Repurchase Plan The company initiated a share repurchase plan of RMB 13-26 million using over-raised funds for value maintenance and future employee incentives - The company plans to use no less than 13.00 million RMB and no more than 26.00 million RMB of over-raised funds to repurchase shares, with a repurchase price not exceeding 21.47 RMB/share[13] - Repurchased shares are for maintaining company value and shareholder interests (not exceeding 46.15%) and for employee stock ownership plans, equity incentives, or convertible bonds (not less than 53.85%)[13] - As of September 30, 2024, 1,317,993 shares have been repurchased, accounting for 0.46%, with a total transaction amount of 17,432,978.27 RMB, and the repurchase plan has not yet been fully implemented[13][14] Quarterly Financial Statements Financial Statements This section provides Longyang Electronics' consolidated balance sheet, income statement, and cash flow statement, offering a comprehensive view of its financial health and operating results Consolidated Balance Sheet As of September 30, 2024, total assets were RMB 2.274 billion, slightly down, with increased trading financial assets and fixed assets from construction project transfers Consolidated Balance Sheet Major Data (As of September 30, 2024) | Item | End of Period (RMB) | Beginning of Period (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,520,208,486.61 | 1,904,116,316.66 | | Trading Financial Assets | 365,107,013.70 | 52,804,616.44 | | Notes Receivable | 882,772.21 | 450,765.85 | | Accounts Receivable | 85,520,923.22 | 78,967,609.30 | | Prepayments | 2,746,173.35 | 706,614.35 | | Inventories | 43,879,894.35 | 41,951,228.25 | | Total Current Assets | 2,020,928,253.57 | 2,082,737,110.63 | | Fixed Assets | 152,296,448.65 | 79,638,173.66 | | Construction in Progress | 42,083,246.87 | 73,710,424.87 | | Total Non-current Assets | 252,785,605.22 | 224,331,732.56 | | Total Assets | 2,273,713,858.79 | 2,307,068,843.19 | | Short-term Borrowings | 8,440,099.73 | 3,000,752.60 | | Accounts Payable | 51,340,298.31 | 42,194,561.48 | | Total Current Liabilities | 80,227,417.45 | 65,089,255.53 | | Lease Liabilities | 1,279,770.86 | 3,446,274.65 | | Total Liabilities | 86,838,912.97 | 73,949,846.13 | | Total Equity Attributable to Parent Company Shareholders | 2,186,874,945.82 | 2,233,118,997.06 | | Total Liabilities and Equity | 2,273,713,858.79 | 2,307,068,843.19 | Consolidated Income Statement from Year-Beginning to End of Reporting Period Total operating revenue reached RMB 209 million, a 5.36% increase, but higher costs led to a substantial decline in operating profit and net profit Consolidated Income Statement Major Data (Year-Beginning to End of Reporting Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 208,661,498.99 | 198,047,700.09 | | Total Operating Costs | 142,960,002.27 | 107,231,814.76 | | Taxes and Surcharges | 2,538,669.79 | 1,522,716.71 | | Selling Expenses | 12,260,927.96 | 9,729,110.18 | | Administrative Expenses | 14,003,647.44 | 10,756,273.79 | | R&D Expenses | 25,760,332.23 | 20,813,033.58 | | Financial Expenses | -24,590,314.71 | -46,356,538.56 | | Other Income | 1,613,004.70 | 481,121.31 | | Investment Income | 255,033.33 | 882,916.68 | | Gains from Fair Value Changes | 2,432,397.26 | 2,640,027.39 | | Credit Impairment Losses | -286,100.91 | 635,943.55 | | Asset Impairment Losses | -6,715,311.76 | -2,409,454.92 | | Operating Profit | 62,991,833.95 | 93,046,272.68 | | Total Profit | 62,987,664.18 | 92,905,383.74 | | Income Tax Expense | 10,331,519.45 | 13,100,275.67 | | Net Profit | 52,656,144.73 | 79,805,108.07 | | Net Profit Attributable to Parent Company Shareholders | 52,656,144.73 | 79,805,108.07 | | Basic Earnings Per Share | 0.19 | 0.28 | | Diluted Earnings Per Share | 0.19 | 0.27 | Consolidated Cash Flow Statement from Year-Beginning to End of Reporting Period Net cash flow from operating activities decreased 17.95% to RMB 41.33 million; investing activities saw a RMB 625 million outflow, significantly reducing cash and cash equivalents Consolidated Cash Flow Statement Major Data (Year-Beginning to End of Reporting Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 41,330,637.72 | 50,371,003.27 | | Net Cash Flow from Investing Activities | -624,632,578.13 | 64,377,016.60 | | Net Cash Flow from Financing Activities | -99,239,593.70 | -202,773,909.96 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,839,632.48 | 4,019,638.73 | | Net Increase in Cash and Cash Equivalents | -684,381,166.59 | -84,006,251.36 | | Cash and Cash Equivalents at End of Period | 660,029,475.94 | 1,145,868,118.48 | Adjustments for First-Time Adoption of New Accounting Standards The company did not adjust its 2024 beginning-of-year financial statements due to the first-time adoption of new accounting standards - The company did not adjust its 2024 beginning-of-year financial statements due to the first-time adoption of new accounting standards[22] Audit Report This quarterly report is unaudited - The company's third-quarter report is unaudited[22]