CISC(SH:601005)2017-10-30 16:00Financial Performance - Operating revenue for the first nine months was CNY 8,183,124, representing a 122.06% increase year-on-year[6] - Net profit attributable to shareholders improved to CNY -882,075, a reduction in loss of 71.47% compared to the same period last year[6] - Total operating revenue for Q3 2017 reached CNY 3,661,397,000, a significant increase from CNY 895,753,000 in the same period last year[29] - The company reported a net loss of CNY 13,279,826 thousand in retained earnings, worsening from a loss of CNY 12,397,711 thousand at the beginning of the year[23] - The total operating profit for the first nine months of 2017 was CNY -882,336,000, an improvement from CNY -3,659,041,000 in the same period last year[30] - Total comprehensive income for the first nine months of 2017 was CNY 120,277, compared to a loss of CNY 3,087,944 in the previous year[35] - The net profit for Q3 2017 was CNY 120,277, a turnaround from a net loss of CNY 1,300,728 in Q3 2016[35] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 36,689,970, an increase of 0.69% compared to the end of the previous year[6] - Total liabilities reached CNY 37,665,447 thousand, compared to CNY 36,545,888 thousand at the start of the year, indicating a rise in financial obligations[23] - The total assets as of Q3 2017 amounted to CNY 36,710,113,000, slightly up from CNY 36,438,401,000 at the end of the previous period[27] - Total liabilities increased to CNY 37,775,295,000 in Q3 2017 from CNY 36,638,226,000 in the previous period[27] - The company's current assets totaled CNY 3,751,008 thousand, up from CNY 2,447,146 thousand at the beginning of the year, indicating a significant improvement in liquidity[21] Cash Flow - The net cash flow from operating activities for the first nine months was CNY -81,623, an improvement of 41.87% year-on-year[6] - Cash flow from operating activities showed a net outflow of CNY 81,623 for the first nine months of 2017, an improvement from a net outflow of CNY 140,426 in the same period last year[38] - Cash and cash equivalents at the end of Q3 2017 were CNY 744,379, a decrease from CNY 776,943 at the end of Q3 2016[39] - The company reported a total cash outflow from financing activities of $2,120,928, highlighting the balance between inflows and outflows[41] - The net increase in cash and cash equivalents for the quarter was $5,213, indicating positive cash flow management[41] Shareholder Information - Net assets attributable to shareholders of the listed company decreased to CNY -1,067,979, a significant decline of 432.67% compared to the previous year[6] - The weighted average return on net assets was not applicable due to negative net assets[7] - The company’s basic and diluted earnings per share improved to CNY -0.199, a 71.45% increase compared to the previous year[7] - The company reported a basic earnings per share of CNY 0.026 for Q3 2017, compared to a loss per share of CNY 0.297 in Q3 2016[31] Operational Challenges and Strategies - The company is undergoing a restructuring process initiated by a creditor due to inability to repay debts, with the court accepting the application for restructuring[13] - The management is actively engaging with creditors and potential investors to secure funding for restructuring efforts[15] - The company has initiated multiple rounds of public auctions for its assets, including steel production facilities, but faced challenges with no bids received in initial attempts[16] - The company is exploring partnerships with investment funds to establish a steel platform company aimed at supporting its restructuring process[15] Market Conditions - The steel market has shown signs of recovery, with expectations of a potential profit by the end of the next reporting period[17] - The inventory level increased to CNY 2,199,189 thousand from CNY 972,960 thousand, reflecting a strategy to bolster stock in response to market conditions[21] - Total operating costs for Q3 2017 were CNY 3,593,764,000, compared to CNY 2,646,660,000 in Q3 2016, reflecting a year-over-year increase[30]