Financial Performance - For the nine months ended September 30, 2021, revenue was approximately RMB 374.0 million, an increase of about 52.7% compared to the corresponding period in 2020[5]. - Gross profit for the same period was approximately RMB 73.1 million, representing an increase of about 30.8%[5]. - Profit attributable to owners of the company was approximately RMB 11.6 million, a significant increase of about 102.0% compared to the corresponding period[5]. - Revenue from the Chinese market increased by approximately 49.2%, while overseas market revenue grew by about 59.3%[8]. - The group's revenue for the three months ended September 30, 2021, was RMB 123,304 thousand, compared to RMB 104,824 thousand for the same period in 2020, representing a year-over-year increase of 17.5%[29]. - The gross profit for the nine months ended September 30, 2021, was RMB 73,142 thousand, up from RMB 55,898 thousand in the same period of 2020, indicating a growth of 30.7%[29]. - Total revenue for the third quarter of 2021 was RMB 123.3 million, an increase of 17.6% compared to RMB 104.8 million in the same period of 2020[49]. - Revenue from China was RMB 85.9 million for the quarter, representing a 14.3% increase from RMB 74.7 million year-over-year[49]. Costs and Expenses - Sales costs rose by approximately RMB 111.8 million or about 59.2% to RMB 300.8 million, primarily due to increased material prices and production volume[9]. - The gross profit margin decreased to approximately 19.6% from 22.8% in the corresponding period due to rising production costs[10]. - Selling expenses increased by approximately RMB 10.1 million or 71.2% to RMB 24.3 million, mainly due to higher transportation, travel, marketing, and commission costs[13]. - Administrative expenses rose by approximately RMB 2.3 million or 7.6% to RMB 32.8 million, primarily due to increased R&D costs for new product development[14]. Other Income and Gains - Other income and gains increased by approximately RMB 2.0 million or 4,876.7%, mainly due to higher rental income and government subsidies[15]. - Other income, including sales of waste materials and rental income, totaled RMB 1.74 million, compared to a loss of RMB 0.73 million in the same period last year[51]. - The company experienced a significant increase in government grant income, which rose to RMB 727,000 from RMB 103,000 year-over-year[51]. Profitability and Earnings - The operating profit for the three months ended September 30, 2021, was RMB 3,103 thousand, down from RMB 5,587 thousand in the same period of 2020, reflecting a decrease of 44.5%[29]. - The company reported a net profit of RMB 1,946 thousand for the three months ended September 30, 2021, compared to RMB 2,384 thousand in the same period of 2020, a decline of 18.4%[29]. - The company reported a net profit attributable to owners of RMB 1.95 million for the quarter, down 18.4% from RMB 2.38 million in the same period last year[62]. - Basic and diluted earnings per share for the quarter were RMB 0.39, compared to RMB 0.48 in the same quarter of 2020[62]. - The total comprehensive income attributable to the owners of the company for the nine months ended September 30, 2021, was RMB 11,503 thousand, compared to RMB 5,592 thousand in the same period of 2020, an increase of 105.4%[31]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[85]. - The audit committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards[85]. - The company is committed to high corporate governance standards to protect shareholder interests and enhance company value[81]. - No arrangements were made for directors to acquire shares or debt securities during the reporting period[77]. - There were no reported interests or stakes in competing businesses by directors or major shareholders as of September 30, 2021[78]. - The company has adhered to the GEM Listing Rules and corporate governance code throughout the reporting period[81]. - Mr. Sheng serves as both the CEO and Chairman, which the board believes is beneficial for the company and shareholders[82]. Strategic Focus - The company aims to continue executing its business plan to achieve annual sales growth targets[27]. - The group will focus on sustainable strategic customers and growth in the domestic Chinese market[27]. - The group plans to enhance production efficiency and resource management to mitigate adverse operational impacts from government policies[27]. - The company will continue to explore new markets and seize emerging opportunities[27]. Shareholding Structure - As of September 30, 2021, the company had a total of 500,000,000 shares issued, with Mr. Sheng holding 259,440,000 shares, representing 51.89% ownership[70]. - Bright Commerce, a controlled entity by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[73]. - Mr. Chen holds 30,000,000 shares, which is 6.00% of the total shares[73]. Accounting and Taxation - The company has adopted new accounting standards that did not have a significant impact on its financial policies or require retrospective adjustments[44]. - The company’s effective tax rate for the period was influenced by a deferred tax income of RMB 788,000, compared to RMB 144,000 in the same period last year[57].
盛龙锦秀国际(08481) - 2021 Q3 - 季度财报