TECHMATION(SH:603015)2016-10-31 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 71.88% to CNY 0.09 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, contrasting with a positive cash flow of ¥32,854,728.01 in the same period last year[42] - Total cash inflow from investment activities was ¥390,474,037.46, while cash outflow was ¥700,144,908.99, resulting in a net cash flow of -¥309,670,871.53[42] - 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] - The net cash flow from financing activities was -$20.01 million, compared to a positive $448.03 million in the previous year, reflecting a significant change[46] 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 72%[29] - The company's total assets reached ¥1,092,137,043.21 at the end of Q3 2016, compared to ¥1,061,855,996.16 at the end of Q3 2015[36] - The total liabilities as of the end of Q3 2016 amounted to ¥138,301,706.10, an increase from ¥132,101,658.90 at the end of Q3 2015[36] 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] - The controlling shareholder, Red Factor Limited, pledged not to engage in competing businesses with the company to avoid conflicts[22] - The company will not transfer or manage its shares in the company for 36 months post-IPO, ensuring stability in shareholding[22] Expenses - Sales expenses increased by 45.48% to ¥20,223,479.24 from ¥13,901,110.61 primarily due to the consolidation of a new overseas subsidiary[20] - Management expenses rose by 65.44% to ¥90,622,472.83 from ¥54,777,274.23 mainly due to increased employee compensation and R&D investments[20] - Financial expenses surged by 1622.61% to ¥4,528,782.31 from ¥262,903.08 due to exchange rate fluctuations[20] Other Financial Metrics - The weighted average return on equity decreased by 3.04 percentage points to 3.36%[7] - Investment income decreased by 52.86% to 3,452,748.45 due to reduced returns from financial products[21] - The company reported a significant increase in goodwill by 1071.46% to ¥46,443,373.68 from ¥3,964,564.63 as a result of a business combination[18] - The company experienced a rise in asset impairment losses, which totaled ¥5,025,195.62 for the first nine months of 2016, compared to ¥2,759,031.65 in the same period last year[39]