TECHMATION(SH:603015)2016-10-28 16:00Financial Performance - Operating revenue for the first nine months rose by 22.19% to CNY 365,219,233.63 year-on-year[7] - Net profit attributable to shareholders decreased by 38.72% to CNY 36,534,048.71 compared to the same period last year[7] - Basic earnings per share dropped by 56.25% to CNY 0.14 due to an increase in the number of shares outstanding[8] - Total operating revenue for Q3 2016 reached ¥118,363,671.63, a 53.6% increase from ¥77,043,085.38 in Q3 2015[36] - Net profit for Q3 2016 was ¥2,283,457.09, a decrease of 81.8% compared to ¥12,584,635.11 in Q3 2015[37] - Year-to-date net profit for 2016 was ¥44,090,999.85, down 20.5% from ¥55,454,648.07 in the previous year[40] Cash Flow - Net cash flow from operating activities turned negative at CNY -7,955,785.19, a decline of 124.22% compared to the previous year[7] - Cash flow from operating activities for the first nine months of 2016 was negative at -¥7,955,785.19, compared to positive cash flow of ¥32,854,728.01 in the same period last year[42] - Cash and cash equivalents decreased by 54.75% to RMB 273,477,277.94 from RMB 604,317,305.51 due to the purchase of structured financial products[16] - Cash and cash equivalents at the end of Q3 2016 stood at ¥264,506,199.08, down from ¥282,756,834.03 at the end of Q3 2015[43] - Net cash flow from operating activities was -$49.78 million, worsening from -$34.43 million year-over-year[45] Assets and Liabilities - Total assets increased by 11.56% to CNY 1,330,972,301.26 compared to the end of the previous year[7] - Total liabilities increased to CNY 217,698,944.61 from CNY 126,669,479.46, marking a growth of approximately 71.8%[29] - The company's total assets at the end of Q3 2016 were ¥1,092,137,043.21, compared to ¥1,061,855,996.16 at the end of Q3 2015[36] - The equity attributable to shareholders rose to CNY 1,098,557,594.37 from CNY 1,066,398,797.01, showing a growth of approximately 3%[29] Shareholder Information - The total number of shareholders reached 25,309 by the end of the reporting period[12] - The largest shareholder, RED FACTOR LIMITED, holds 60.32% of the shares, amounting to 241,399,200 shares[12] Expenses - Sales expenses increased by 45.48% to RMB 20,223,479.24 from RMB 13,901,110.61, mainly due to the consolidation of a new overseas subsidiary and increased employee compensation[20] - Management expenses rose by 65.44% to RMB 90,622,472.83 from RMB 54,777,274.23, driven by the consolidation of a new overseas subsidiary and increased R&D investments[20] - Financial expenses surged by 1622.61% to RMB 4,528,782.31 from RMB 262,903.08, primarily due to changes in exchange rates[20] Investments and Income - Investment income decreased by 52.86% to 3,452,748.45 due to reduced returns from financial products[21] - The company recognized government subsidies of CNY 1,914,663.34 during the reporting period, which are closely related to its normal business operations[10] - Non-recurring gains and losses totaled CNY 2,764,555.20 for the period, down from CNY 5,015,654.02 in the previous year[11] Goodwill and Other Assets - Goodwill increased by 1071.46% to RMB 46,443,373.68 from RMB 3,964,564.63, resulting from a business combination under common control[18] - Other current assets rose to CNY 218,049,359.04 from CNY 33,822,582.74, a growth of about 544%[28] Regulatory and Compliance - The company will strictly regulate related party transactions with Red Factor Limited to ensure fairness and compliance with legal requirements[22] - The company has committed to avoid engaging in similar business activities as 弘讯科技 to prevent direct or indirect competition[24] - If there are any false statements or omissions in the prospectus, the company will be liable for compensating investors for losses incurred[24]