Hangcha (SH:603298)2022-10-21 16:00Report Overview Important Notice Hangcha Group's Q3 2022 report guarantees content accuracy and completeness, with legal responsibility borne by management; financial statements are unaudited - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility3 - The third-quarter financial statements are unaudited3 Key Financial Data Key Accounting Data and Financial Indicators During the reporting period, Hangcha Group achieved year-on-year growth in both operating revenue and net profit attributable to shareholders, with significant Q3 net profit growth; operating cash flow, total assets, and equity also saw robust increases Key Financial Indicators for Q3 2022 and Year-to-Date | Item | Current Period (Q3) (Yuan) | YoY Change (%) | Year-to-Date (Yuan) | Period-end vs. Prior Year-end Change (%) | | :--------------------------------------------- | :------------------------- | :------------- | :------------------ | :--------------------------------------- | | Operating Revenue | 3,840,512,302.32 | 5.58 | 11,364,909,101.62 | 3.28 | | Net Profit Attributable to Shareholders | 290,235,277.04 | 24.11 | 746,358,388.37 | 1.06 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Gains/Losses) | 295,096,479.98 | 29.75 | 734,144,515.25 | 2.08 | | Net Cash Flow from Operating Activities | N/A | N/A | 547,894,484.88 | 275.32 | | Basic Earnings Per Share (Yuan/share) | 0.33 | 22.22 | 0.86 | 1.18 | | Diluted Earnings Per Share (Yuan/share) | 0.32 | 18.52 | 0.83 | -2.35 | | Weighted Average Return on Net Assets (%) | 4.95 | Increased 0.6 ppts | 12.85 | Decreased 1.15 ppts | | Total Assets (End of Current Period) | 11,467,752,978.96 | | | 10.30 | | Equity Attributable to Shareholders (End of Current Period) | 6,038,668,584.93 | | | 7.84 | Non-recurring Gains and Losses Items and Amounts The company's non-recurring gains and losses totaled negative 4.86 million Yuan for the quarter and positive 12.21 million Yuan year-to-date, primarily influenced by fair value changes in financial assets and government grants; local water conservancy construction funds are classified as recurring Non-recurring Gains and Losses Items and Amounts | Item | Current Period Amount (Yuan) | Year-to-Date Amount (Yuan) | | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | :--------------------------- | :------------------------- | | Gains or losses from disposal of non-current assets | 1,896,471.49 | 3,050,037.49 | | Government grants recognized in current profit or loss (excluding those closely related to normal business operations and continuously enjoyed) | 4,913,377.00 | 30,634,174.65 | | Gains or losses from entrusted investment or asset management | 5,248,671.26 | 12,126,647.67 | | Gains or losses from changes in fair value of transactional financial assets, derivative financial assets, transactional financial liabilities, derivative financial liabilities, and investment income from disposal of such assets and other debt investments, excluding effective hedging related to normal business operations | -35,828,231.40 | -61,210,200.54 | | Reversal of impairment provisions for accounts receivable and contract assets for which impairment tests are performed individually | 518,231.90 | 2,613,875.98 | | Less: Income tax impact | 6,450,602.04 | 5,865,561.00 | | Minority interest impact (after tax) | 11,780,376.03 | 18,181,557.75 | | Total | -4,861,202.94 | 12,213,873.12 | - Local water conservancy construction funds (268,570.83 Yuan) are classified as recurring gains and losses due to being state-mandated taxes and fees directly related to normal operations, lacking special or incidental characteristics8 Changes and Reasons for Key Accounting Data and Financial Indicators Year-to-date operating cash flow significantly increased by 275.32% year-on-year, primarily due to effective inventory control and increased bank bill settlements - Net cash flow from operating activities (year-to-date) increased by 275.32%9 - The change is primarily due to effective inventory control and increased bank bill settlements during the period9 Shareholder Information Total Number of Common Shareholders and Top Ten Shareholders' Holdings As of the reporting period end, the company had 18,031 common shareholders, with Zhejiang Hangcha Holding Co., Ltd. and Hangzhou Industrial Investment Group Co., Ltd. as the top two, holding 44.64% and 22.01% respectively - The total number of common shareholders at the end of the reporting period was 18,03110 Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held | Shareholding Ratio (%) | | :--------------------------------------------------------- | :----------------- | :-------------------- | :--------------------- | | Zhejiang Hangcha Holding Co., Ltd. | Domestic Non-State | 386,744,960 | 44.64 | | Hangzhou Industrial Investment Group Co., Ltd. | State-owned Legal Person | 190,722,646 | 22.01 | | Zhao Limin | Domestic Natural Person | 20,440,010 | 2.36 | | China Construction Bank Co., Ltd. - Dongfanghong Qidong Three-Year Holding Mixed Securities Investment Fund | Other | 16,833,539 | 1.94 | | China Merchants Bank Co., Ltd. - Ruiyuan Growth Value Mixed Securities Investment Fund | Other | 10,728,997 | 1.24 | | Hong Kong Securities Clearing Company Limited | Other | 9,698,270 | 1.12 | | Wang Yiping | Domestic Natural Person | 8,250,000 | 0.95 | | Dai Jingjing | Domestic Natural Person | 7,600,000 | 0.88 | | Zhang Yaying | Domestic Natural Person | 6,005,600 | 0.69 | | Xu Lida | Domestic Natural Person | 5,465,470 | 0.63 | Other Reminders Other Reminders The company has no other significant information requiring special attention from investors during the reporting period - There is no other significant information regarding the company's operating performance during the reporting period that requires special attention from investors12 Quarterly Financial Statements Type of Audit Opinion The financial statements for this quarter are unaudited - The financial statements for this quarter are unaudited12 Consolidated Balance Sheet As of September 30, 2022, total assets reached 11.47 billion Yuan, a 10.30% increase from year-end, driven by growth in monetary funds, accounts receivable, and long-term equity investments; total liabilities rose 13.67% due to increased short-term borrowings and notes payable, while equity attributable to parent company shareholders grew 7.84% Consolidated Balance Sheet Key Item Changes (September 30, 2022 vs December 31, 2021) | Item | Sep 30, 2022 (Yuan) | Dec 31, 2021 (Yuan) | Change Amount (Yuan) | Change (%) | | :------------------------- | :------------------ | :------------------ | :------------------- | :--------- | | Monetary Funds | 3,027,221,175.37 | 2,331,374,173.01 | 695