SMEG(SH:600689)2017-10-30 16:00Financial Performance - Operating revenue rose by 9.59% to CNY 893,118,501.89 for the year-to-date period[7] - Net profit attributable to shareholders was CNY 35,416,440.42, a significant recovery from a loss of CNY 4,648,379.85 in the same period last year[7] - The weighted average return on equity improved to 7.86% from -1.42% year-on-year[7] - Basic and diluted earnings per share were both CNY 0.176, recovering from a loss of CNY -0.023 in the previous year[7] - Total operating revenue for Q3 2017 reached ¥320,920,227.88, an increase of 15.7% compared to ¥277,243,081.27 in Q3 2016[32] - Net profit for Q3 2017 was ¥643,194.92, a significant decrease from ¥12,568,763.98 in Q3 2016, indicating a decline of 94.9%[33] - The net profit for Q3 2017 was -¥471,193.37, compared to a net profit of ¥17,734,901.12 in Q3 2016, indicating a significant decline[38] - The total comprehensive income for Q3 2017 was ¥3,738,450.88, compared to ¥16,765,790.12 in Q3 2016, reflecting a decrease of 77.7%[38] Asset and Liability Management - Total assets decreased by 2.34% to CNY 774,426,822.52 compared to the end of the previous year[7] - Cash and cash equivalents decreased by 52.69% to CNY 102,094,214.74 due to investments in short-term financial products[12] - The company's total assets amounted to RMB 774.43 million, a decrease from RMB 793.01 million at the beginning of the year[24] - The company's current assets totaled RMB 429.98 million, down from RMB 461.45 million at the beginning of the year, with cash and cash equivalents decreasing from RMB 215.82 million to RMB 102.09 million[24] - The company's total liabilities decreased from RMB 356.37 million to RMB 285.25 million, indicating a reduction in financial obligations[26] - The total assets as of Q3 2017 amounted to ¥763,586,646.58, compared to ¥736,509,005.38 at the end of the previous year, showing an increase of 3.7%[30] - The total liabilities decreased to ¥278,694,836.60 from ¥306,554,432.97, a reduction of 9.1%[30] - The company's equity increased to ¥484,891,809.98, up from ¥429,954,572.41, representing a growth of 12.8%[30] Cash Flow Analysis - The net cash flow from operating activities was negative at CNY -36,449,050.50, a decline of 154.29% compared to the previous year[7] - The company reported a net cash flow from operating activities of -36,449,050.50 RMB, a decrease of 154.29% compared to the previous year[14] - Cash flow from operating activities for the first nine months of 2017 was -¥36,449,050.50, a decline from ¥67,136,091.47 in the same period of 2016[40] - Total cash inflow from operating activities for the first nine months of 2017 was CNY 293,225,289.85, an increase from CNY 276,974,082.92 in the previous year[43] - Total cash outflow for operating activities was CNY 233,172,890.71 in the first nine months of 2017, compared to CNY 277,322,868.91 in the same period last year, showing a reduction of approximately 15.9%[43] - The company’s cash flow from financing activities showed a net outflow of CNY -13,169,650.00 in Q3 2017, compared to a net outflow of CNY -13,324,799.76 in the same period last year[44] Investment Activities - Investment activities generated a net cash flow of -65,703,293.43 RMB, a decline of 189.95% year-on-year due to the purchase of short-term financial products[14] - The company recorded an investment income of 23,595,472.97 RMB, an increase of 32.06% attributed to the transfer of equity in Ancheng Insurance[14] - The company approved a capital increase of 50 million RMB for Sanmao Security, raising its registered capital to 80 million RMB[15] - The company completed the transfer of 32% equity in Wantu Cloud Investment Development Co., Ltd. for 1,279,100 RMB due to operational losses[16] - The company has agreed to acquire a 10% stake in Shanghai Shuo Feng International Travel Agency from its wholly-owned subsidiary, with the assessed value of the stake being RMB 1.62 million based on the total equity value of RMB 16.2 million as of December 31, 2016[21] - The company recorded an investment income of ¥1,825,635.82 in Q3 2017, down from ¥23,532,463.21 in Q3 2016[38] Operational Challenges and Changes - The company is in the process of liquidating Shanghai Yimaotiao Textile Co., Ltd., which has been operating at a loss due to unfavorable market conditions[17] - The company is attempting to transfer 100% equity of Chongqing Yimaotiao Textile Co., Ltd. with a starting price of 27,968,800 RMB after previous unsuccessful attempts[19] - The company has initiated the dissolution and liquidation of Shanghai Sanmao Shanchu Investment Management Co., Ltd., which has not engaged in actual production or operations for two years, and this will not significantly impact the company's overall business and financial status[20] - The liquidation of the investment management company is still underway, with the impact on current profits to be determined post-completion[20]