华新水泥(600801) - 2018 Q3 - 季度财报

Important Notice This section confirms the report's authenticity, details director attendance, and states the audit status 1.1 Statement on Report Authenticity The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions; the chairman, legal representative, president, chief accountant, and head of accounting department also guarantee the truthfulness, accuracy, and completeness of the financial statements - The company's board of directors, supervisory board, and senior management commit to the truthfulness, accuracy, and completeness of the quarterly report content[5] - Chairman Xu Yongmo, President Li Yeqing, Chief Accountant Kong Lingling, and Head of Accounting Department Wu Xin guarantee the truthfulness, accuracy, and completeness of the financial statements[5] 1.2 Information on Absent Directors Director Ian Riley was unable to attend the board meeting due to personal reasons and did not delegate attendance to others Absent Directors | Absent Director Name | Position | Reason for Absence | Delegate Name | | :--- | :--- | :--- | :--- | | Ian Riley | Director | Personal Reasons | / | 1.3 Report Audit Status This company's third-quarter report is unaudited - This company's third-quarter report is unaudited[6] Company Overview This section provides an overview of the company's key financial performance and shareholder structure 2.1 Key Financial Data As of the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased, with a significant rise in net assets attributable to the parent company; year-to-date, operating cash flow, revenue, net profit, and non-recurring net profit all saw substantial growth, alongside a significant increase in weighted average return on equity, basic earnings per share, and diluted earnings per share Overview of Key Financial Data | Indicator | End of Current Period / Year-to-Date | End of Prior Year / Year-to-Date Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | Balance Sheet | | | | | Total Assets | 32,255,216,259 Yuan | 30,499,323,197 Yuan | 5.76 | | Net Assets Attributable to Shareholders | 14,905,392,478 Yuan | 11,899,804,274 Yuan | 25.26 | | Cash Flow Statement | | | | | Net Cash Flow from Operating Activities | 5,151,088,183 Yuan | 2,001,015,721 Yuan | 157.42 | | Income Statement | | | | | Operating Revenue | 19,040,138,370 Yuan | 14,349,891,455 Yuan | 32.68 | | Net Profit Attributable to Shareholders | 3,411,384,548 Yuan | 1,049,728,320 Yuan | 224.98 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 3,376,360,586 Yuan | 1,000,904,944 Yuan | 237.33 | | Weighted Average Return on Equity (%) | 25.41 | 10.05 | Increase 15.36 percentage points | | Basic Earnings Per Share (Yuan/Share) | 2.28 | 0.70 | 225.71 | | Diluted Earnings Per Share (Yuan/Share) | 2.28 | 0.70 | 225.71 | Non-Recurring Gains and Losses Items and Amounts | Item | Current Period Amount (July-Sept) | Year-to-Date Amount (Jan-Sept) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -5,678,048 Yuan | -10,109,743 Yuan | | Government Grants Included in Current Profit/Loss | 10,206,761 Yuan | 40,785,477 Yuan | | Gains from Investment Cost of Subsidiaries, Associates, and Joint Ventures Being Less Than Fair Value of Identifiable Net Assets | - | 4,489,836 Yuan | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | -12,847 Yuan | 3,978,611 Yuan | | Other Non-Operating Income and Expenses Apart from the Above | 9,200,773 Yuan | 3,306,524 Yuan | | Impact on Minority Interests (After Tax) | 1,942,495 Yuan | 425,324 Yuan | | Income Tax Impact | 2,205,739 Yuan | -7,852,067 Yuan | | Total | 17,864,873 Yuan | 35,023,962 Yuan | 2.2 Shareholder Ownership As of the end of the reporting period, the company had 48,013 shareholders; among the top ten, HOLCHIN B.V. and Huaxin Cement Co., Ltd. were major shareholders, holding 39.85% and 16.01% respectively, with HOLCHIN B.V. and HOLPAC LIMITED acting in concert - As of the end of the reporting period, the company had 48,013 shareholders[10] Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HOLCHIN B.V. | 596,817,018 | 39.85 | Overseas Legal Person | | Huaxin Cement Co., Ltd. | 239,685,714 | 16.01 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 37,359,177 | 2.49 | Unknown | | HOLPAC LIMITED | 29,779,888 | 1.99 | Overseas Legal Person | | UBS AG | 24,040,777 | 1.60 | Unknown | | Central Huijin Asset Management Co., Ltd. | 21,768,700 | 1.45 | Unknown | | FTIF-TEMPLETON ASIAN SMALLER COMPANIES FUND | 13,235,738 | 0.88 | Unknown | | TEMPLETON GLOBAL INVESTMENT TRUST-TEMPLETON EMERGING MARKETS SMALL CAP FUND | 9,955,953 | 0.66 | Unknown | | FTIF-TEMPLETON EMERGING MKT SMALLER COMPANIES FUND | 9,084,567 | 0.60 | Unknown | | China Railway Wuhan Bureau Group Co., Ltd. | 8,064,000 | 0.54 | Unknown | - Holchin B.V. and Holpac Limited are parties acting in concert[11] Significant Matters This section details significant changes in financial indicators, progress on key issues, unfulfilled commitments, and the annual net profit forecast 3.1 Significant Changes in Key Financial Indicators and Reasons The company experienced significant changes across multiple key indicators in its balance sheet, income statement, and cash flow statement; balance sheet items like prepayments, construction in progress, advances from customers, employee compensation payable, taxes payable, and non-current liabilities due within one year increased significantly, while short-term borrowings, long-term borrowings, and bonds payable decreased; the income statement showed substantial growth in operating revenue, taxes and surcharges, investment income, other income, income tax expense, and net profit attributable to the parent, with a decrease in financial expenses and non-operating income; the cash flow statement reported a significant increase in net cash flow from operating activities, while net cash flow from investing and financing activities showed negative growth 3.1.1 Changes in Key Balance Sheet Financial Indicators As of the end of the reporting period, several balance sheet items showed significant changes from the beginning of the year; prepayments and construction in progress substantially increased due to higher prepaid fuel costs and increased investment in cement, environmental, and new building material projects; advances from customers, employee compensation payable, and taxes payable rose primarily due to improved cement supply-demand, performance growth, and increased profitability; concurrently, short-term borrowings, long-term borrowings, and bonds payable decreased due to improved cash flow and reclassification of maturing borrowings to current liabilities Changes in Key Balance Sheet Items (Compared to Beginning of Year) | Item | Period-End Balance (Yuan) | Beginning-of-Year Balance (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Prepayments | 452,498,648 | 225,637,668 | 226,860,980 | 101% | Increase in prepaid fuel costs | | Construction in Progress | 2,273,405,674 | 1,302,962,540 | 970,443,134 | 74% | Increased investment in cement, environmental, and new building material projects | | Short-term Borrowings | 614,500,000 | 1,141,500,000 | -527,000,000 | -46% | Improved cash flow, reduction in current borrowings | | Advances from Customers | 971,156,635 | 562,705,382 | 408,451,253 | 73% | Improved cement supply-demand, increased customer prepayments | | Employee Compensation Payable | 467,287,327 | 281,087,404 | 186,199,923 | 66% | Significant performance increase, substantial growth in salaries payable, but not yet disbursed | | Taxes Payable | 698,835,707 | 507,945,221 | 190,890,486 | 38% | Increased profitability leading to higher income tax | | Non-current Liabilities Due Within One Year | 2,458,500,765 | 1,682,733,582 | 775,767,183 | 46% | Increase in long-term borrowings nearing maturity | | Long-term Borrowings | 2,779,818,621 | 4,058,959,121 | -1,279,140,500 | -32% | Improved cash flow leading to reduced borrowings and reclassification of maturing borrowings to current liabilities | | Bonds Payable | 2,296,525,157 | 3,295,605,346 | -999,080,189 | -30% | One corporate bond reclassified to due within one year | | Other Comprehensive Income | -6,530,120 | -20,053,747 | 13,523,627 | -67% | Appreciation of the functional currency (USD) of overseas subsidiaries against RMB | | Retained Earnings | 10,142,634,351 | 7,150,569,774 | 2,992,064,577 | 42% | Increased profitability | 3.1.2 Changes in Key Income Statement Financial Indicators Year-to-date, the company's income statement showed strong performance; operating revenue and net profit attributable to the parent company significantly increased due to rising cement product prices; taxes and surcharges, along with income tax expense, also rose considerably with increased revenue and profitability; financial expenses decreased due to a substantial reduction in interest-bearing debt and exchange losses, while investment income and other income improved due to increased profits from associates and higher tax refunds for comprehensive resource utilization Changes in Key Income Statement Items (Compared to Same Period Last Year) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 19,040,138,370 | 14,349,891,455 | 4,690,246,915 | 33% | Increase in cement product prices | | Taxes and Surcharges | 355,846,295 | 205,811,249 | 150,035,046 | 73% | Growth in revenue scale and new environmental protection tax | | Financial Expenses | 360,531,701 | 534,521,340 | -173,989,639 | -33% | Significant reduction in interest-bearing debt and exchange losses | | Investment Income | 85,970,675 | 61,387,688 | 24,582,987 | 40% | Increased profits from associates | | Other Income | 161,391,029 | 70,661,690 | 90,729,339 | 128% | Increase in tax refunds for comprehensive resource utilization | | Non-Operating Income | 21,477,223 | 72,183,034 | -50,705,811 | -70% | Decrease in government grants | | Income Tax Expense | 893,565,340 | 262,178,126 | 631,387,214 | 241% | Increase in cement product prices, increased profitability | | Net Profit Attributable to Parent Company Owners | 3,411,384,548 | 1,049,728,320 | 2,361,656,228 | 225% | Increase in cement product prices, increased profitability | 3.1.3 Changes in Key Cash Flow Statement Financial Indicators Year-to-date, net cash flow from operating activities significantly increased due to rising cement product prices and revenue growth; net cash flow from investing activities saw a larger negative growth due to increased investment in construction projects; net cash flow from financing activities also experienced a larger negative growth due to a reduction in new borrowings Changes in Key Cash Flow Statement Items (Compared to Same Period Last Year) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 5,151,088,183 | 2,001,015,721 | 3,150,072,462 | 157% | Increase in cement product prices, growth in revenue scale | | Net Cash Flow from Investing Activities | -1,325,024,023 | -905,098,045 | -419,925,978 | -46% | Increased investment in construction projects | | Net Cash Flow from Financing Activities | -3,056,330,262 | -1,805,934,608 | -1,250,395,654 | 69% | Decrease in new borrowings | 3.2 Progress of Significant Matters There are no significant matters requiring disclosure regarding their progress, impact, or solutions during this reporting period - There are no significant matters requiring disclosure regarding their progress, impact, or solutions during this reporting period[17] 3.3 Overdue Unfulfilled Commitments There are no overdue unfulfilled commitments during this reporting period - There are no overdue unfulfilled commitments during this reporting period[17] 3.4 Full-Year Net Profit Forecast The company forecasts a year-on-year increase of over 130% in net profit attributable to parent company owners for 2018, primarily driven by national supply-side structural reforms, industry capacity reduction, improved supply-demand, significant price increases for main products (cement and clinker), and enhanced operational management efficiency - Net profit attributable to parent company owners for 2018 is projected to increase by over 130% year-on-year[18] - Net profit growth is primarily attributed to national supply-side structural reforms, industry production and capacity reduction, improved supply-demand, and significant price increases for cement and clinker[18] - Improved company operational management also contributed to profitability growth[18] Appendix This appendix includes the company's unaudited financial statements and confirms the absence of an audit report for the period 4.1 Financial Statements This appendix includes the company's unaudited consolidated and parent company balance sheets as of September 30, 2018, consolidated and parent company income statements for January-September 2018, and consolidated and parent company cash flow statements for January-September 2018 Consolidated Balance Sheet The consolidated balance sheet as of September 30, 2018, presents the company's assets, liabilities, and owners' equity at the period end - The consolidated balance sheet shows that as of September 30, 2018, the company's total assets were 32,255,216,259 Yuan, and total owners' equity attributable to the parent company was 14,905,392,478 Yuan[22] Parent Company Balance Sheet The parent company balance sheet as of September 30, 2018, reflects the financial position at the parent company level - The parent company balance sheet shows that as of September 30, 2018, the parent company's total assets were 19,798,577,933 Yuan, and total owners' equity was 10,301,832,422 Yuan[25] Consolidated Income Statement The consolidated income statement for January-September 2018 shows significant year-on-year growth in total operating revenue and net profit, reflecting strong operating performance - From January to September 2018, the company's consolidated total operating revenue was 19,040,138,370 Yuan, a 33% year-on-year increase; net profit attributable to parent company owners was 3,411,384,548 Yuan, a 225% year-on-year increase[28][30] Parent Company Income Statement The parent company income statement for January-September 2018 shows growth in both operating revenue and net profit - From January to September 2018, the parent company's operating revenue was 1,729,770,080 Yuan, and net profit was 1,115,512,507 Yuan[31][32] Consolidated Cash Flow Statement The consolidated cash flow statement for January-September 2018 indicates a significant increase in net cash flow from operating activities, while net cash flows from investing and financing activities were both negative - From January to September 2018, net cash flow from operating activities was 5,151,088,183 Yuan, a 157% year-on-year increase[34] - Net cash flow from investing activities was -1,325,024,023 Yuan, and net cash flow from financing activities was -3,056,330,262 Yuan[34] Parent Company Cash Flow Statement The parent company cash flow statement for January-September 2018 shows negative net cash flow from operating activities, positive net cash flow from investing activities, and positive net cash flow from financing activities - From January to September 2018, the parent company's net cash flow from operating activities was -850,910,143 Yuan, net cash flow from investing activities was 522,262,812 Yuan, and net cash flow from financing activities was 461,055,220 Yuan[36][37] 4.2 Audit Report There is no audit report for this reporting period - There is no audit report for this reporting period[38]