LZCIC(600423)2020-10-27 16:00Financial Performance - Operating revenue for the first nine months was CNY 67,433,022.32, a decline of 76.07% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 1,595,772.53, compared to a loss of CNY 483,410,157.94 in the same period last year[8] - The company reported a net loss of 5.87 billion RMB after accounting for asset disposal gains of 1.29 billion RMB in 2019, indicating ongoing concerns regarding its ability to continue as a going concern[15] - Total operating revenue for Q3 2020 was ¥23,786,388.14, a slight decrease from ¥23,847,373.38 in Q3 2019[27] - The net profit for the first three quarters of 2020 was reported as -¥2,231,365,641.24, indicating a loss compared to -¥2,229,769,868.71 in the same period of 2019[24] - Q3 2020 revenue was CNY 23.79 million, a 5.1% increase from CNY 22.63 million in Q3 2019[30] - Q3 2020 net profit was CNY 3.78 million, compared to a net loss of CNY 243.94 million in Q3 2019[29] - Total profit for Q3 2020 reached CNY 3.78 million, contrasting with a total loss of CNY 243.94 million in the same period last year[29] Assets and Liabilities - Total assets decreased by 22.16% to CNY 461,515,423.23 compared to the end of the previous year[8] - Total assets decreased from 592.93 million RMB at the end of 2019 to 461.52 million RMB by September 30, 2020, reflecting a significant reduction in operational scale[19] - Total liabilities for Q3 2020 were ¥83,187,188.37, down from ¥213,600,161.17 in Q3 2019[24] - The total current liabilities decreased from 213.60 million RMB to 83.19 million RMB, indicating improved liquidity management[20] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 140,969,430.14, compared to a net outflow of CNY 258,109,698.88 in the previous year[8] - The net cash flow from operating activities increased substantially, mainly due to reduced employee salaries and settlement costs in the current period compared to the previous year[16] - In the first three quarters of 2020, the company reported cash inflows from operating activities of CNY 43,336,710.51, a decrease of 81.8% compared to CNY 238,003,228.81 in the same period of 2019[32] - The net cash outflow from operating activities was CNY -140,969,430.14, compared to CNY -258,109,698.88 in the previous year, indicating an improvement of 45.5%[33] - The total cash and cash equivalents at the end of the period were CNY 341,706,322.79, down from CNY 536,530,161.66 at the beginning of the year[35] Inventory and Receivables - Accounts receivable increased by 402.64% to CNY 164,940,000, primarily due to increased credit sales[10] - Inventory decreased by 35.79%, attributed to the sale of stock goods[11] - The company’s inventory decreased from 4.78 million RMB to 3.07 million RMB, reflecting a reduction in operational capacity[18] - Inventory levels were reported at ¥3,066,628.79, down from ¥4,775,875.76 in the previous year[24] Expenses and Cost Management - Management expenses decreased by 96.13% compared to the same period last year, due to the cessation of most production systems[12] - Employee compensation payments decreased by 52.38% year-on-year, attributed to a significant reduction in workforce following the completion of the restructuring plan[13] - Tax payments decreased by 62.88% year-on-year, reflecting a substantial reduction in revenue and operational scale[13] - Operating costs for Q3 2020 were CNY 18.34 million, up from CNY 14.80 million in Q3 2019, reflecting a 24.3% increase[30] - Research and development expenses were noted at ¥4,580.63 for Q3 2020, reflecting ongoing investment in innovation[27] - Research and development expenses were CNY 4,580.63 in Q3 2020, compared to CNY 2.02 million in the same period last year[30] Operational Risks and Future Strategies - The company continues to face significant operational risks, with ongoing losses reported in the first three quarters of the year[15] - The company aims to enhance market expansion and product development strategies moving forward[30] - The company is focusing on cost management strategies to improve profitability moving forward[27] Financial Reporting Changes - The company executed a new revenue standard from January 1, 2020, resulting in a reclassification of certain financial items[11] - The company has no subsidiaries to consolidate in the financial statements following the disposal of all subsidiaries in November 2019[5]