TALOPH(SH:600222)2016-10-26 16:00Financial Performance - Net profit attributable to shareholders increased by 3.34% to CNY 2,151,311.96 compared to the same period last year[8]. - Operating revenue decreased by 10.21% to CNY 655,482,334.76 compared to the same period last year[7]. - The company reported a net loss of CNY 495,737.10 after deducting non-recurring gains and losses[8]. - The company reported a net profit of CNY 205,618,986.35, compared to CNY 203,467,674.39 from the previous year, a slight increase of about 1.06%[31]. - The net profit for Q3 2016 was CNY 17,520,470.28, a significant increase compared to CNY 3,005,521.61 in the same period last year, representing a growth of approximately 485%[44]. - The company reported a long-term investment increase to CNY 88,652,442.08 from CNY 48,482,198.34, marking a significant growth of approximately 82.9%[29]. Cash Flow - Net cash flow from operating activities improved by 32.26%, reaching CNY -46,227,499.75 compared to CNY -68,243,047.17 in the previous year[7]. - The net cash flow from operating activities for the first nine months of 2016 was negative at CNY -46,227,499.75, an improvement from CNY -68,243,047.17 in the same period last year[47]. - The company’s cash flow from investing activities improved significantly by 90.05%, totaling -¥11,514,721.81, compared to -¥115,706,949.18 in the previous year[20]. - Cash inflow from financing activities was $937.65 million, an increase of 26.8% from $739.45 million in the same period last year[50]. - Cash outflow for investment activities decreased significantly to $63.45 million from $183.36 million year-over-year[49]. Shareholder Information - The total number of shareholders reached 45,032 at the end of the reporting period[13]. - The largest shareholder, Zhengzhou Zhongsheng Industrial Group Co., Ltd., holds 23.08% of the shares, with 13,000,000 shares pledged[13]. - The company has pledged 13 million shares, accounting for 2.27% of its total equity, to secure a long-term loan of ¥50 million[15]. - The company plans to increase its shareholding by at least 0.1% of the total share capital within the next 12 months, not exceeding 1% of the total share capital[25]. - The company’s major shareholder, Zhengzhou Zhongsheng Industrial Group, committed to not reducing its shareholding during the implementation period of the increase[25]. Assets and Liabilities - Total assets increased by 3.96% to CNY 2,744,120,043.67 compared to the end of the previous year[7]. - The company's total assets and liabilities showed significant changes, with long-term equity investments increasing by 82.86% to ¥88,652,442.08 compared to the previous year[15]. - Current liabilities decreased to CNY 596,430,792.37 from CNY 1,037,142,247.03, a reduction of approximately 42.5%[35]. - Non-current liabilities totaled CNY 648,986,745.27, up from CNY 103,016,473.92, indicating a significant increase[31]. - The company’s fixed assets were valued at CNY 693,570,216.26, showing a slight increase from CNY 689,800,150.48 at the beginning of the year[29]. Operational Efficiency - Management expenses rose by 51.84% to ¥105,966,613.59, attributed to increased salaries for new R&D personnel and higher technical research investments[17]. - Total operating costs for Q3 2016 were ¥246,486,320.64, compared to ¥245,551,810.85 in Q3 2015, indicating a slight increase of about 0.38%[38]. - Sales expenses for the first nine months of 2016 decreased to ¥13,572,542.52 from ¥17,662,166.33 in the same period of 2015, a reduction of approximately 23.00%[42]. - Management expenses for the first nine months of 2016 were ¥21,811,250.95, down from ¥28,437,069.33 in the same period of 2015, reflecting a decrease of about 23.50%[42]. Future Commitments and Compliance - The company plans to avoid any competitive business activities with New Leading and its controlled enterprises, ensuring compliance with legal obligations[23]. - The company has established a commitment to avoid any actions that may harm the legal rights of shareholders and other enterprises[23]. - The company emphasizes the importance of fulfilling commitments and will bear legal responsibilities for any breaches[23]. - Wu Lan and Tao Xinhua will reduce and regulate related transactions with New Leading and its controlled enterprises[23].