东方通信(600776) - 2018 Q3 - 季度财报

Important Notice This chapter states that the company's board of directors, supervisory board, and senior management are legally responsible for the truthfulness, accuracy, and completeness of the quarterly report, and notes that this report is unaudited - The company's board of directors, supervisory board, and directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with no false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[5] - All company directors attended the board meeting to review the quarterly report[5] - This company's third-quarter report is unaudited[5] Company Profile This chapter outlines the company's key financial data at the end of the reporting period, including year-on-year changes in assets, liabilities, net profit, and cash flow, and discloses shareholder structure information Key Financial Data As of the end of September 2018, the company's total assets decreased by 3.94% year-on-year, net profit attributable to shareholders increased by 11.14%, but net profit excluding non-recurring gains and losses significantly decreased by 44.12%, indicating a substantial contribution from non-recurring items to current profit Key Financial Data for Q3 2018 (Consolidated Statements) | Metric | Amount at End of Reporting Period/Year-to-Date (yuan) | Amount at End of Prior Year/Prior Year-to-Date (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Balance Sheet (Period-End): | | | | | Total Assets | 3,622,981,593.09 | 3,771,709,106.79 | -3.94 | | Net Assets Attributable to Shareholders of Listed Company | 3,022,774,587.09 | 3,021,432,913.25 | 0.04 | | Income Statement (Year-to-Date): | | | | | Operating Revenue | 1,561,738,006.99 | 1,596,264,660.53 | -2.16 | | Net Profit Attributable to Shareholders of Listed Company | 76,701,677.68 | 69,014,378.45 | 11.14 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 31,177,411.03 | 55,795,774.29 | -44.12 | | Weighted Average Return on Net Assets (%) | 2.53 | 2.31 | Increase of 0.22 percentage points | | Basic Earnings Per Share (yuan/share) | 0.06106821 | 0.05494775 | 11.14 | | Diluted Earnings Per Share (yuan/share) | 0.06106821 | 0.05494775 | 11.14 | | Cash Flow Statement (Year-to-Date): | | | | | Net Cash Flow from Operating Activities | -298,945,977.18 | -444,774,459.87 | 32.79 | Non-Recurring Gains and Losses for Q3 2018 (Year-to-Date) | Item | Amount (Jan-Sep) (yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 33,464,928.17 | | Government Grants Included in Current Profit/Loss | 3,149,969.41 | | Investment Income from Disposal of Trading Financial Assets, Trading Financial Liabilities, and Available-for-Sale Financial Assets | 199,200.00 | | Other Non-Operating Income and Expenses Apart from the Above | -48,293.55 | | Other Profit/Loss Items Meeting the Definition of Non-Recurring Gains/Losses | 19,826,422.89 | | Impact of Minority Interests (After Tax) | -1,222,678.83 | | Income Tax Impact | -9,845,281.44 | | Total | 45,524,266.65 | Shareholder Information As of the end of the reporting period, the company had 81,221 shareholders, with Potevio Eastern Communications Group Co., Ltd. as the largest shareholder holding 45.439%, and the top ten shareholders including several state-owned legal entities and overseas institutional investors - As of the end of the reporting period, the company had a total of 81,221 shareholders[8] Top Ten Shareholder Information | Shareholder Name | Shares Held at Period-End (shares) | Proportion (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | 普天东方通信集团有限公司 | 570,712,740 | 45.439 | State-owned Legal Entity | | 中国证券金融股份有限公司 | 32,203,281 | 2.564 | State-owned Legal Entity | | 中央汇金资产管理有限责任公司 | 17,168,500 | 1.367 | State-owned Legal Entity | | ISHARES CORE MSCI EMERGING MARKETS ETF | 4,354,549 | 0.347 | Overseas Legal Entity | | NOMURA SINGAPORE LIMITED | 4,262,206 | 0.339 | Overseas Legal Entity | | VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 3,422,300 | 0.272 | Overseas Legal Entity | | 华夏基金－农业银行－华夏中证金融资产管理计划 | 3,084,400 | 0.246 | Other | | 刘伟 | 2,948,200 | 0.235 | Domestic Individual | | NORGE BANK | 2,935,960 | 0.234 | Overseas Legal Entity | | 工银瑞信基金－农业银行－工银瑞信中证金融资产管理计划 | 2,629,300 | 0.209 | Other | - The company is unaware if there are any related party relationships among the aforementioned shareholders or if they are acting in concert as defined by the 'Measures for the Administration of Information Disclosure on Changes in Shareholdings of Listed Companies'[9] Preferred Shareholder Information As of the end of the reporting period, the company had no preferred shareholders - The company has no preferred shareholders[9] Significant Events This chapter details significant changes and their reasons in key accounting statement items and financial indicators, and states that there are no other important matters, overdue unfulfilled commitments, or performance warnings to disclose during the reporting period Significant Changes in Key Accounting Statement Items and Financial Indicators During the reporting period, several accounting items experienced significant changes, primarily influenced by factors such as the disposal of equity in an associate of a subsidiary, maturity and recovery of wealth management products, increased renovation expenses for production facilities, and increased advance receipts for enterprise network business Key Accounting Item Changes and Reasons (Year-to-Date) | Accounting Item | Change Rate (%) | Reason for Change | | :--- | :--- | :--- | | Other Receivables | 478.80 | Primarily due to the disposal of equity in an associate by subsidiary Hangzhou Eastern Communications City Co., Ltd | | Other Current Assets | -99.47 | Primarily due to the maturity and recovery of the company's wealth management products at the beginning of the period | | Long-Term Equity Investments | -53.83 | Primarily due to the disposal of equity in an associate by subsidiary Hangzhou Eastern Communications City Co., Ltd | | Long-Term Deferred Expenses | 149.16 | Primarily due to increased renovation expenses for production facilities in the current period | | Advance Receipts | 68.41 | Primarily due to increased advance receipts for the company's enterprise network business | | Employee Benefits Payable | -58.94 | Primarily due to the company's payment of prior year employee benefits | | Taxes Payable | -72.15 | Primarily due to the company's payment of prior year taxes | | Other Current Liabilities | -46.58 | Primarily due to changes in accrued expenses related to sales services, transportation, and after-sales services | | Financial Expenses | 67.37 | Primarily due to changes in the company's interest income and exchange gains/losses | | Asset Impairment Losses | -97.25 | Primarily due to changes in allowance for doubtful accounts for accounts receivable in the current period | | Investment Income | 146.85 | Primarily due to the disposal of equity in an associate by subsidiary Hangzhou Eastern Communications City Co., Ltd | | Income Tax Expense | 67.98 | Primarily due to the disposal of equity in an associate by subsidiary Hangzhou Eastern Communications City Co., Ltd | Progress of Significant Events During the reporting period, the company had no significant event progress, impacts, or solutions requiring disclosure - Not applicable, no significant event progress, impacts, or solutions requiring analysis and explanation during the reporting period[12] Overdue Unfulfilled Commitments During the reporting period, the company had no overdue unfulfilled commitments - Not applicable, no overdue unfulfilled commitments during the reporting period[12] Performance Warning The company has not issued a warning regarding potential cumulative net profit loss or significant change from the prior year for the period from the beginning of the year to the end of the next reporting period - Not applicable, the company has not issued any related performance warnings[12] Appendix This chapter includes the company's unaudited consolidated and parent company financial statements, comprising the balance sheet, income statement, and cash flow statement, comprehensively presenting the financial position and operating results at the end of the reporting period Financial Statements This section provides Eastern Communications Co., Ltd.'s consolidated and parent company balance sheets as of September 30, 2018, and consolidated and parent company income statements and cash flow statements for January-September 2018, all of which are unaudited Consolidated Balance Sheet As of September 30, 2018, the company's consolidated total assets were 3.623 billion yuan, a slight decrease from the beginning of the year; current assets accounted for approximately 76%, and non-current assets for approximately 24%. Total liabilities were 560 million yuan, and total owner's equity was 3.063 billion yuan Consolidated Balance Sheet Key Data (As of September 30, 2018) | Item | Period-End Balance (yuan) | Year-Start Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 3,622,981,593.09 | 3,771,709,106.79 | | Total Current Assets | 2,753,018,832.27 | 2,779,358,657.35 | | Total Non-Current Assets | 869,962,760.82 | 992,350,449.44 | | Total Liabilities | 560,058,606.36 | 708,256,601.78 | | Total Current Liabilities | 554,870,649.92 | 703,068,645.34 | | Total Non-Current Liabilities | 5,187,956.44 | 5,187,956.44 | | Total Owner's Equity (or Shareholder's Equity) | 3,062,922,986.73 | 3,063,452,505.01 | - Cash and cash equivalents balance at period-end was 784 million yuan, notes and accounts receivable totaled 916 million yuan, and inventory was 875 million yuan[15] - Other current assets significantly decreased from 411 million yuan at the beginning of the year to 2.17 million yuan, primarily due to the maturity and recovery of wealth management products[11][15] Parent Company Balance Sheet As of September 30, 2018, the parent company's total assets were 3.271 billion yuan, a slight decrease from the beginning of the year. Total current assets were 2.338 billion yuan, and total non-current assets were 933 million yuan. Total liabilities were 506 million yuan, and total owner's equity was 2.765 billion yuan Parent Company Balance Sheet Key Data (As of September 30, 2018) | Item | Period-End Balance (yuan) | Year-Start Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 3,270,958,185.51 | 3,355,728,290.96 | | Total Current Assets | 2,338,077,764.56 | 2,427,875,478.57 | | Total Non-Current Assets | 932,880,420.95 | 927,852,812.39 | | Total Liabilities | 506,049,066.71 | 596,253,378.73 | | Total Current Liabilities | 500,916,495.44 | 591,120,807.46 | | Total Non-Current Liabilities | 5,132,571.27 | 5,132,571.27 | | Total Owner's Equity (or Shareholder's Equity) | 2,764,909,118.80 | 2,759,474,912.23 | - Parent company cash and cash equivalents balance at period-end was 758 million yuan, notes and accounts receivable totaled 618 million yuan, and inventory was 860 million yuan[18] Consolidated Income Statement From January to September 2018, the company's consolidated total operating revenue was 1.562 billion yuan, a slight decrease of 2.16% year-on-year. Net profit attributable to parent company owners was 76.70 million yuan, an increase of 11.14% year-on-year. Investment income significantly increased by 146.85%, contributing substantially to net profit Consolidated Income Statement Key Data (Jan-Sep 2018) | Item | Year-to-Date Amount (yuan) | Prior Year-to-Date Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,561,738,006.99 | 1,596,264,660.53 | -2.16 | | Operating Profit | 94,644,932.86 | 77,639,720.02 | 21.91 | | Total Profit | 97,746,608.72 | 81,340,914.78 | 20.17 | | Net Profit | 77,142,485.56 | 69,075,213.01 | 11.68 | | Net Profit Attributable to Owners of Parent Company | 76,701,677.68 | 69,014,378.45 | 11.14 | | Investment Income | 61,426,302.68 | 24,884,262.40 | 146.85 | - Financial expenses were -3.07 million yuan, a significant improvement from -9.41 million yuan in the prior year, primarily due to changes in interest income and exchange gains/losses[11][21] - Basic earnings per share were 0.061 yuan/share, an increase of 11.14% year-on-year[22] Parent Company Income Statement From January to September 2018, the parent company's operating revenue was 1.096 billion yuan, a year-on-year decrease. Net profit was 80.79 million yuan, a slight decrease from the prior year. Investment income was 102 million yuan, an increase of 18.78% year-on-year Parent Company Income Statement Key Data (Jan-Sep 2018) | Item | Year-to-Date Amount (yuan) | Prior Year-to-Date Amount (yuan) | | :--- | :--- | :--- | | Operating Revenue | 1,095,508,813.60 | 1,169,530,882.88 | | Operating Profit | 78,264,000.34 | 82,102,703.98 | | Total Profit | 80,794,210.41 | 83,205,575.51 | | Net Profit | 80,794,210.41 | 83,205,575.51 | | Investment Income | 102,102,165.69 | 85,959,282.25 | - Parent company financial expenses were -2.21 million yuan, a significant improvement from -8.97 million yuan in the prior year[24] Consolidated Cash Flow Statement From January to September 2018, the company's net cash flow from operating activities was -299 million yuan, a significant improvement from -445 million yuan in the prior year. Net cash flow from investing activities was 268 million yuan, and net cash flow from financing activities was -78 million yuan Consolidated Cash Flow Statement Key Data (Jan-Sep 2018) | Item | Year-to-Date Amount (yuan) | Prior Year-to-Date Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -298,945,977.18 | -444,774,459.87 | | Net Cash Flow from Investing Activities | 268,282,697.03 | 267,702,105.97 | | Net Cash Flow from Financing Activities | -77,509,298.40 | -90,975,031.87 | | Net Increase in Cash and Cash Equivalents | -109,816,094.22 | -268,358,615.93 | | Cash and Cash Equivalents at Period-End | 141,594,504.16 | 347,054,473.13 | - Total cash inflow from operating activities was 1.691 billion yuan, and total cash outflow was 1.990 billion yuan[28] - Cash inflow from investing activities primarily came from recovery of investments and other cash received related to investing activities[28] Parent Company Cash Flow Statement From January to September 2018, the parent company's net cash flow from operating activities was -267 million yuan, a significant improvement from -502 million yuan in the prior year. Net cash flow from investing activities was 304 million yuan, and net cash flow from financing activities was -75 million yuan Parent Company Cash Flow Statement Key Data (Jan-Sep 2018) | Item | Year-to-Date Amount (yuan) | Prior Year-to-Date Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -267,276,052.33 | -501,893,358.60 | | Net Cash Flow from Investing Activities | 303,530,871.59 | 369,576,671.06 | | Net Cash Flow from Financing Activities | -75,197,298.40 | -98,092,761.04 | | Net Increase in Cash and Cash Equivalents | -40,585,994.81 | -230,720,678.74 | | Cash and Cash Equivalents at Period-End | 117,812,539.89 | 333,455,647.37 | - Parent company total cash inflow from operating activities was 1.312 billion yuan, and total cash outflow was 1.579 billion yuan[31] Audit Report This quarterly report is unaudited - This quarterly report is unaudited[32]