LZCIC(SH:600423)2018-10-29 16:00Financial Performance - Operating revenue increased by 12.85% to CNY 1,469,312,708.46 for the period from January to September[6] - Net profit attributable to shareholders was a loss of CNY 84,129,481.64, an improvement from a loss of CNY 178,997,395.29 in the same period last year[6] - The company's operating profit, total profit, and net profit indicators showed a reduction in losses compared to the same period last year, primarily due to the cessation of interest on bank debts following the company's judicial reorganization[15] - Total operating revenue for the third quarter was $362.71 million, a decrease of 13.2% from $417.84 million in the same period last year[29] - Net profit for the third quarter was a loss of $60.63 million, compared to a loss of $91.08 million in the same period last year, representing a 33.3% improvement[30] - The company reported a basic earnings per share of -$0.15, an improvement from -$0.23 in the previous year[31] - The company reported a total comprehensive loss of approximately ¥39.91 million for Q3 2018, compared to a loss of ¥64.62 million in Q3 2017[34] Assets and Liabilities - Total assets decreased by 9.85% to CNY 2,888,067,008.75 compared to the end of the previous year[6] - Total liabilities decreased from ¥3,165,047,554.69 to ¥2,754,852,504.74, a decline of about 12.9%[23] - Current liabilities increased from ¥2,502,543,964.49 to ¥2,288,188,070.42, a decrease of about 8.6%[22] - Non-current liabilities decreased from ¥662,503,590.20 to ¥466,664,434.32, a reduction of approximately 29.5%[23] - Owner's equity increased from ¥38,634,067.36 to ¥139,570,503.21, an increase of approximately 262.5%[23] Cash Flow - Cash flow from operating activities decreased by 25.74% to CNY 123,355,067.72 compared to the same period last year[6] - Cash inflow from operating activities decreased by 98.01% compared to the previous period, mainly due to receiving a government subsidy of 160 million yuan in the same period last year[15] - Cash inflow from financing activities decreased by 86.38% compared to the previous period, primarily due to reduced bank borrowing activities following the judicial reorganization[15] - Cash paid for debt repayment decreased by 85.72% compared to the previous period, as the company suspended bank debt repayments during the judicial reorganization[15] - Cash and cash equivalents increased significantly from ¥19,752,028.63 to ¥201,109,547.01, a growth of about 917.5%[25] - The company experienced a net increase in cash and cash equivalents of CNY 196,635,516.63, compared to CNY 5,372,273.45 in the previous year[40] Shareholder Information - The number of shareholders reached 29,565 at the end of the reporting period[10] - The company decided to publicly auction its 95.5% stake in Hunan Zhongcheng, with a starting price of 100,000 yuan, which was successfully acquired by the largest shareholder for the same amount[18] Legal and Operational Risks - The total amount involved in lawsuits (arbitration) against the company reached 463.39 million yuan, which is 1484.78% of the company's audited net assets of 38.63 million yuan[16] - The company is undergoing judicial reorganization, and if the reorganization fails, there is a risk of bankruptcy, indicating significant uncertainty regarding the company's ability to continue as a going concern[17] Expenses - Financial expenses decreased by 76.04% due to the cessation of interest accrual on bank loans during judicial reorganization[14] - Research and development expenses were $1.05 million, slightly down from $1.17 million year-over-year[29] - Sales expenses decreased to $22.28 million, down 11.8% from $25.26 million in the same period last year[29] - Management expenses were reduced to $37.73 million, a decrease of 16.1% from $44.95 million year-over-year[29]