长川科技(300604) - 2020 Q3 - 季度财报

Important Notice The company's board, supervisors, and senior management, along with key financial officers, collectively affirm the truthfulness, accuracy, and completeness of this quarterly report and its financial statements - The company's Board of Directors, Supervisory Committee, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities; all directors attended the board meeting to review this quarterly report[2] - Zhao Yi (Company Head), Wei Gang (Head of Accounting), and Tang Yongjuan (Head of Accounting Department) jointly declare that the financial statements in this quarterly report are true, accurate, and complete[2] Company Profile This section provides an overview of the company's significant financial performance metrics and detailed information on its shareholder structure as of the reporting period end Major Accounting Data and Financial Indicators The company achieved explosive growth in performance during the first three quarters of 2020, with operating revenue increasing by 147.09% and net profit attributable to shareholders surging by 2,583.81% year-on-year, alongside a significant turnaround in net cash flow from operating activities Major Financial Indicators for the First Three Quarters of 2020 | Indicator | Year-to-Date (CNY) | Same Period Last Year (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 500,187,419.27 | 202,435,331.62 | 147.09% | | Net Profit Attributable to Shareholders (CNY) | 35,441,164.03 | 1,320,553.19 | 2,583.81% | | Non-recurring Adjusted Net Profit Attributable to Shareholders (CNY) | 3,629,285.59 | -15,005,031.06 | 124.17% | | Net Cash Flow from Operating Activities (CNY) | 26,988,322.13 | -63,437,705.62 | 142.54% | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.00 | - | | Weighted Average Return on Net Assets | 3.50% | 0.28% | Increased by 3.22 percentage points | Major Financial Indicators for Q3 2020 | Indicator | Current Period (CNY) | Same Period Last Year (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 181,898,381.31 | 100,342,410.29 | 81.28% | | Net Profit Attributable to Shareholders (CNY) | 9,060,589.04 | 244,502.70 | 3,605.72% | - The company's year-to-date non-recurring gains and losses totaled CNY 31,811,878.44, primarily from government grants of CNY 37,553,818.84 recognized in current profit or loss, which significantly contributed to the difference between net profit and non-recurring adjusted net profit[4] Shareholder Information As of the reporting period end, the company had 21,471 common shareholders, with controlling shareholder Zhao Yi holding 25.37% of shares, some of which are pledged, and National Integrated Circuit Industry Investment Fund Co., Ltd. as the second-largest shareholder with 9.87% - As of the reporting period end, the company had a total of 21,471 common shareholders[6] Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares | | :--- | :--- | :--- | :--- | | Zhao Yi | Domestic Natural Person | 25.37% | 79,606,419 | | National Integrated Circuit Industry Investment Fund Co., Ltd. | State-owned Legal Entity | 9.87% | 30,960,411 | | Hangzhou Changchuan Investment Management Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 7.87% | 24,709,544 | | Zhong Fenghao | Domestic Natural Person | 6.40% | 20,091,057 | | Ningbo Tiantang Silicon Valley Hehui Venture Capital Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 3.29% | 10,327,620 | - Shareholders Zhao Yi, Zhong Fenghao, and Sun Feng have pledged shares, with 22,163,504 shares, 5,415,241 shares, and 6,065,070 shares pledged, respectively[6] - Hangzhou Changchuan Investment Management Partnership (Limited Partnership) is an entity controlled by Xu Xin (Zhao Yi's spouse), one of the actual controllers, forming a concerted party relationship[8] Significant Events This section details significant changes in the company's financial data and indicators, along with other important events and their implications during the reporting period Analysis of Major Changes in Financial Data During the reporting period, the company experienced significant changes across various financial data points, primarily driven by increased sales, the consolidation of a wholly-owned subsidiary's operating data, new bank loans, government grants, and the implementation of new accounting standards Balance Sheet Item Changes Key balance sheet changes include a 131.38% increase in short-term borrowings due to new bank loans, a 166.41% rise in employee compensation payable, and a 98.83% increase in deferred income tax assets, alongside the reclassification of "advances from customers" to "contract liabilities" under new revenue standards Major Balance Sheet Item Changes and Reasons | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Short-term Borrowings | 131.38% | Primarily due to new bank loans obtained in the current period | | Employee Compensation Payable | 166.41% | Primarily due to accrued bonuses and increased headcount in the current period | | Deferred Income Tax Assets | 98.83% | Primarily due to an increase in deductible income tax losses in the current period | | Long-term Equity Investments | 100.00% | Primarily due to external investments made in the current period | | Other Receivables | -86.05% | Primarily due to the receipt of performance compensation receivables from the beginning of the year | Income Statement Item Changes The income statement shows significant year-to-date increases in operating revenue by 147.09% and operating cost by 148.22%, driven by sales growth and subsidiary consolidation, with corresponding rises in selling, administrative, and R&D expenses, and an 85.03% increase in other income due to government grants Major Income Statement Item Changes and Reasons (Year-to-Date) | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 147.09% | Primarily due to increased sales business compared to the same period last year and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Operating Cost | 148.22% | Primarily due to increased sales business compared to the same period last year and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Selling Expenses | 140.87% | Primarily due to increased company business leading to higher expenses and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Research and Development Expenses | 98.44% | Primarily due to increased company business leading to higher expenses and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Other Income | 85.03% | Primarily due to an increase in government grants received in the current period | Cash Flow Statement Item Changes Cash received from sales of goods increased by 204.37% year-on-year, indicating strong sales collection, while cash outflows for purchases and employee compensation also rose with business expansion; net cash flow from operating activities turned positive, and financing cash inflows significantly increased due to new bank borrowings Major Cash Flow Statement Item Changes and Reasons (Year-to-Date) | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Rendering of Services | 204.37% | Primarily due to increased cash receipts and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Paid for Goods and Services | 101.70% | Primarily due to the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Paid to and on Behalf of Employees | 108.68% | Primarily due to increased company headcount and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Received from Borrowings | - | Primarily due to the receipt of bank loans in the current period | Other Significant Events During the reporting period, the company had no significant event progress, share repurchases, overdue unfulfilled commitments, illegal external guarantees, or non-operating funds occupied by controlling shareholders, nor did it issue performance forecasts or engage in investor relations activities - The company had no significant matters requiring disclosure during the reporting period, such as share repurchases, overdue unfulfilled commitments, illegal external guarantees, or occupation of funds by controlling shareholders[14][15] - The company did not provide a forecast for its 2020 operating performance[15] - During the reporting period, the company did not engage in any investor research, communication, or interview activities[15] Financial Statements This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, along with explanations for adjustments and the audit status Consolidated Balance Sheet As of September 30, 2020, the company's total assets reached CNY 1.443 billion, a 9.23% increase from the beginning of the year, with total liabilities at CNY 404 million (up 24.36%) and total equity attributable to parent company owners at CNY 1.039 billion (up 4.29%), driven by business expansion Major Consolidated Balance Sheet Items | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,443,111,267.53 | 1,321,218,368.95 | +9.23% | | Total Liabilities | 403,749,364.59 | 324,648,691.53 | +24.36% | | Total Equity Attributable to Parent Company Owners | 1,039,361,902.94 | 996,569,677.42 | +4.29% | Parent Company Balance Sheet As of September 30, 2020, the parent company's total assets were CNY 1.340 billion, a 5.82% increase from the year's start, with total liabilities at CNY 312 million (up 16.56%) and total owners' equity at CNY 1.028 billion (up 2.95%) Major Parent Company Balance Sheet Items | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | Total Assets | 1,340,419,342.34 | 1,266,633,400.48 | | Total Liabilities | 312,160,003.42 | 267,820,047.21 | | Total Owners' Equity | 1,028,259,338.92 | 998,813,353.27 | Consolidated Income Statement The company's profitability significantly improved in both the first three quarters and Q3 2020, with year-to-date operating revenue reaching CNY 500 million (up 147.09%) and net profit attributable to parent company owners surging to CNY 35.44 million (up 2,583.81%), while Q3 alone saw operating revenue of CNY 182 million (up 81.28%) and net profit of CNY 9.06 million (up 3,605.72%) Consolidated Income Statement Key Data | Item | Year-to-Date (CNY) | Year-on-Year Change | Q3 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 500,187,419.27 | 147.09% | 181,898,381.31 | 81.28% | | Net Profit Attributable to Parent Company Owners | 35,441,164.03 | 2,583.81% | 9,060,589.04 | 3,605.72% | Parent Company Income Statement The parent company's year-to-date operating revenue for the first three quarters of 2020 reached CNY 234 million (up 31.23%), with net profit of CNY 11.47 million (up 222.82%), while Q3 operating revenue was CNY 82.59 million (up 7.95%) and net profit was CNY 1.72 million, a turnaround from a loss in the prior year Parent Company Income Statement Key Data | Item | Year-to-Date (CNY) | Year-on-Year Change | Q3 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 234,389,260.90 | 31.23% | 82,594,129.89 | 7.95% | | Net Profit | 11,466,979.61 | 222.82% | 1,717,277.11 | - | Consolidated Cash Flow Statement In the first three quarters of 2020, net cash flow from operating activities significantly improved to CNY 26.99 million from a CNY 63.44 million outflow in the prior year, driven by increased sales collection, with net cash outflows from investing activities of CNY 17.38 million and net cash inflows from financing activities of CNY 40.57 million primarily from new bank borrowings Consolidated Cash Flow Statement Summary (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 26,988,322.13 | -63,437,705.62 | | Net Cash Flow from Investing Activities | -17,382,818.79 | -28,179,042.04 | | Net Cash Flow from Financing Activities | 40,573,586.91 | -15,740,778.92 | | Net Increase in Cash and Cash Equivalents | 45,981,840.10 | -107,545,337.25 | Parent Company Cash Flow Statement The parent company's net cash flow from operating activities for the first three quarters of 2020 turned positive to CNY 19.52 million, reversing a CNY 58.42 million outflow from the prior year, with net cash outflows from investing activities of CNY 14.02 million and net cash inflows from financing activities of CNY 40.57 million Parent Company Cash Flow Statement Summary (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 19,522,070.47 | -58,423,954.15 | | Net Cash Flow from Investing Activities | -14,017,487.87 | -27,822,804.69 | | Net Cash Flow from Financing Activities | 40,573,586.91 | -15,051,102.21 | | Net Increase in Cash and Cash Equivalents | 46,070,060.33 | -101,306,295.59 | Explanation of Financial Statement Adjustments Effective January 1, 2020, the company adopted new revenue and lease accounting standards using the prospective application method, thus requiring no adjustments to the opening balance sheet or retrospective restatement of prior period comparative data - The company first adopted new revenue and lease accounting standards in 2020, applying the prospective method, which eliminates the need to adjust the opening financial statements or retrospectively restate prior period data[44] Audit Report This company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[45]