NSWRC(600165)2024-12-27 13:48Financial Performance - The company's operating revenue for Q3 2024 was ¥71,030,635.58, representing a year-on-year increase of 6.62%[3]. - The net profit attributable to shareholders for Q3 2024 was -¥54,577,412.00, with a year-to-date net profit of -¥479,541,476.01[3]. - The basic earnings per share for Q3 2024 was -¥0.080, compared to -¥0.700 for the year-to-date period[3]. - The company reported a net loss of approximately ¥498.93 million for the third quarter of 2024, compared to a net loss of ¥247.88 million in the same period of 2023, indicating a significant increase in losses[49]. - The company’s total profit for the third quarter of 2024 was approximately -¥498.72 million, compared to -¥248.49 million in the same quarter of 2023[49]. - Total comprehensive income attributable to the parent company was -473,510,322.34 CNY, compared to -220,193,861.07 CNY in the same period last year, reflecting a significant decline[71]. - Basic and diluted earnings per share were both -0.700 CNY, compared to -0.322 CNY in the previous year[71]. Assets and Liabilities - Total assets at the end of Q3 2024 were ¥2,212,801,533.90, a decrease of 25.18% compared to the end of the previous year[23]. - The equity attributable to shareholders was -¥418,468,199.54, reflecting a significant decrease of 522.03% year-on-year[23]. - The company's total assets decreased from CNY 2,957,514,548.54 as of December 31, 2023, to CNY 2,212,801,533.90 as of September 30, 2024, representing a decline of approximately 25%[68]. - The company's non-current liabilities decreased from CNY 770,789,590.60 to CNY 573,505,023.42, a reduction of approximately 25.6%[70]. - The company's short-term borrowings decreased from CNY 343,795,810.07 to CNY 227,696,366.09, a decline of about 34%[69]. Cash Flow - The company reported a net cash flow from operating activities of -¥5,958,333.66 year-to-date, indicating ongoing financial challenges[3]. - The net cash flow from operating activities increased significantly due to higher cash receipts from the sale of goods by the subsidiary Ningxia Huahui Environmental Protection Technology Co., Ltd.[27]. - Cash inflow from operating activities totaled 147,286,673.18 CNY, down from 155,827,411.44 CNY year-over-year[80]. - Net cash flow from operating activities was -5,958,333.66 CNY, an improvement from -30,519,828.13 CNY in the same period last year[80]. - Cash inflow from financing activities was 41,600,000.00 CNY, a decrease from 287,531,028.61 CNY in the previous year[80]. - Cash inflow from investment activities was 2,498,855.85 CNY, significantly higher than 290,108.00 CNY in the previous year[80]. - The company reported a decrease in cash received from sales of goods and services, totaling 140,378,435.57 CNY compared to 144,945,878.62 CNY in the previous year[79]. - The company’s cash and cash equivalents decreased by ¥12.21 million in the third quarter of 2024, with a closing balance of ¥9.63 million[52]. Restructuring and Recovery Efforts - The company has applied for reorganization and pre-reorganization due to significant solvency issues, indicating potential restructuring efforts[18]. - The company signed a cooperation agreement with local government platforms to provide ¥45 million in financial support for its subsidiary's recovery efforts[16]. - The company and Zhongke New Materials received a notice from the Shizuishan Intermediate Court regarding a restructuring application due to inability to repay debts, with a pre-restructuring process initiated[32]. - The court approved the initiation of pre-restructuring for the company and Zhongke New Materials on May 30, 2024, and appointed a temporary administrator[34]. - The temporary administrator is actively recruiting and selecting restructuring investors, with a deadline for submissions set for June 28, 2024[35]. - The restructuring process for Zhongke New Materials includes a creditor meeting scheduled for November 6, 2024, to discuss the restructuring plan[62]. - Zhongke New Materials was ordered to undergo restructuring by the court on September 6, 2024, with a liquidation team appointed to manage the process[36]. - The company remains the controlling shareholder of Zhongke New Materials and retains voting rights in the restructuring process, which is part of a coordinated restructuring plan with subsidiaries[40]. Operational Challenges - The company is currently in a temporary production halt, with uncertainty regarding the resumption of normal operations[65]. - The company has faced continuous operating losses for three consecutive years from 2021 to 2023, leading to additional risk warnings regarding its stock listing status[44]. - The company has been placed under delisting risk warning by the Shanghai Stock Exchange effective April 30, 2024, due to an audit report that could not express an opinion[65]. - The company faces potential bankruptcy risks if the court does not approve its restructuring application[64]. - The company’s financial expenses increased to approximately ¥111.71 million in the third quarter of 2024, compared to ¥99.70 million in the same period of 2023[49]. - The company’s research and development expenses were approximately ¥9.92 million in the third quarter of 2024, slightly up from ¥9.84 million in the same period of 2023[49]. Production and Sales - The company is undergoing production recovery at its subsidiary, Ningxia Zhongke New Materials Co., Ltd., which has led to increased trial production and sales volumes[9]. - The company’s major subsidiary, Zhongke New Materials, was temporarily suspended from production starting February 7, 2024, with a low production output during trial production after resuming on April 28, 2024[29]. - The company signed a supplementary agreement on April 9, 2024, extending the support period for Zhongke New Materials until December 31, 2024[31]. - The total revenue for the first three quarters of 2024 was CNY 184,527,070.49, compared to CNY 168,608,929.26 for the same period in 2023, indicating a growth of about 9.5%[70]. - The total operating costs decreased from CNY 397,869,702.37 to CNY 352,868,998.74, a reduction of approximately 11.3%[70].