SANXING(SH:601567)2021-10-25 16:00Key Financial Data The company's revenue and net profit declined in Q1-Q3 2021, accompanied by a significant drop in operating cash flow Core Financial Indicators Revenue and net profit declined in Q1-Q3 2021, with operating cash flow turning negative due to inventory buildup 2021 Q1-Q3 Key Financial Indicators | Indicator | YTD Q3 2021 | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 5,103,632,532.88 CNY | -7.05% | | Net Profit Attributable to Shareholders | 667,219,123.50 CNY | -8.67% | | Net Profit Attributable to Shareholders (Non-recurring Items Excluded) | 593,084,160.59 CNY | 0.32% | | Net Cash Flow from Operating Activities | -474,955,452.90 CNY | -437.72% | | Basic Earnings Per Share (CNY/Share) | 0.48 CNY | -8.90% | | Weighted Average Return on Equity | 7.51% | Decreased by 1.43 p.p. | | Total Assets (at Period-End) | 13,827,924,657.06 CNY | 0.96% (vs. Year-End 2020) | | Equity Attributable to Shareholders (at Period-End) | 8,672,402,954.51 CNY | 0.60% (vs. Year-End 2020) | - Net cash flow from operating activities decreased sharply by 437.72% YoY, primarily due to increased payments for goods to build up inventory amid supply chain tensions and rising prices for chips and commodities8 2021 Q1-Q3 Non-Recurring Profit and Loss Items | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -2,208,922.30 | | Government Grants Included in Current Profit/Loss | 30,427,550.15 | | Fair Value Change Gains/Losses on Trading Financial Assets/Liabilities | 59,889,549.18 | | Other Net Non-operating Income and Expenses | 7,002,576.21 | | Total | 74,134,962.92 | Shareholder Information The report details the company's shareholder structure, including the total number of shareholders and top ten holdings Shareholder Structure The company had 27,355 common shareholders, with AUX Group as the controlling shareholder and related parties among top holders - As of the end of the reporting period, the total number of common shareholders was 27,3559 Top Ten Shareholders | Shareholder Name | Number of Shares | Shareholding Ratio (%) | | :--- | :--- | :--- | | AUX Group Co., Ltd. | 457,719,653 | 33.01 | | Zheng Jianjiang | 207,306,730 | 14.95 | | Zheng Jiang | 66,395,000 | 4.79 | | He Xiwan | 35,420,000 | 2.55 | | Lu Anjun | 31,760,250 | 2.29 | | Xu Xingen | 27,700,000 | 2.00 | | Golden Eagle Fund - SPD Bank - Golden Eagle Suitong Private Placement No. 136 | 21,088,410 | 1.52 | | Zhu Qijun | 19,936,943 | 1.44 | | Shanghai Regan Asset - Regan CTA Composite Strategy No. 3 | 18,000,000 | 1.30 | | Shanghai Regan Asset - Regan Tianbao All-Weather No. 3 | 15,000,000 | 1.08 | - The controlling shareholder is AUX Group Co., Ltd., and the actual controller is Zheng Jianjiang; Zheng Jiang is the brother of Zheng Jianjiang, and He Xiwan is the brother of Zheng Jianjiang's spouse, He Yiju11 Other Significant Matters This section confirms the absence of other significant operational matters requiring special investor attention during the period Important Information Reminder No other significant operational information requires special investor attention during this reporting period - The company has no other significant information regarding its operations that requires special investor attention during this reporting period12 Quarterly Financial Statements This section presents the consolidated balance sheet, income statement, and cash flow statement for Q1-Q3 2021 Consolidated Balance Sheet Total assets grew slightly to CNY 13.83 billion, driven by increases in receivables and inventories, with a 36.97% debt-to-asset ratio Key Balance Sheet Items (Unit: CNY) | Item | Sep 30, 2021 | Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 13,827,924,657.06 | 13,696,278,189.50 | 0.96% | | Total Liabilities | 5,111,723,528.86 | 4,911,338,256.40 | 4.08% | | Equity Attributable to Parent Company | 8,672,402,954.51 | 8,620,717,871.96 | 0.60% | Key Asset Item Changes (Unit: CNY) | Item | Sep 30, 2021 | Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,230,336,320.89 | 2,561,665,416.04 | -12.93% | | Accounts Receivable | 2,416,254,015.95 | 1,805,406,435.47 | 33.84% | | Inventories | 1,065,462,238.39 | 640,114,379.32 | 66.45% | | Non-current Assets Due within One Year | 909,434,436.09 | 1,436,415,512.66 | -36.69% | Consolidated Income Statement Revenue and net profit for Q1-Q3 2021 decreased by 7.05% and 8.67% respectively, with profits supported by cost control and investment gains Core Income Statement Data (2021 Q1-Q3) | Item | Amount (CNY) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 5,103,632,532.88 | -7.05% | | Total Operating Costs | 4,550,349,761.95 | -4.90% | | Investment Income | 154,856,127.37 | 299.38% | | Gain from Fair Value Changes | 32,296,749.31 | -84.53% | | Total Profit | 792,623,427.10 | -9.05% | | Net Profit | 672,924,192.22 | -8.34% | | Net Profit Attributable to Parent Company Shareholders | 667,219,123.50 | -8.67% | Consolidated Cash Flow Statement Operating cash flow turned negative to -CNY 475 million due to increased payments, while investing activities generated a net inflow Key Cash Flow Data (2021 Q1-Q3) | Item | Amount (CNY) | Same Period Last Year (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -474,955,452.90 | 140,637,230.15 | | Net Cash Flow from Investing Activities | 659,990,344.91 | -121,593,297.15 | | Net Cash Flow from Financing Activities | -486,625,357.59 | -862,116,777.78 | | Net Increase in Cash and Cash Equivalents | -309,422,917.03 | -850,492,625.43 | Impact of Adopting New Lease Standard The company adopted the new lease standard on Jan 1, 2021, recognizing right-of-use assets and lease liabilities on the balance sheet - The company adopted the new lease standard (ASBE No. 21 - Leases) issued by the Ministry of Finance in 2018, effective January 1, 2021, and adjusted relevant financial statement items accordingly28 Key Adjustments to Opening Balance Sheet from First-time Adoption | Adjusted Item | Adjustment Amount (CNY) | | :--- | :--- | | Assets | | | Right-of-use Assets | +85,806,950.78 | | Deferred Tax Assets | +2,570,344.32 | | Prepayments | -494,400.00 | | Liabilities | | | Lease Liabilities | +101,037,242.25 | | Other Payables | -4,144,847.54 | | Equity | | | Retained Earnings | -7,910,884.64 |